Building Your Own Logistics Best Practices with Freight Optimization

Blazo Gjorev
4 min readApr 7, 2022

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According to Blazo Gjorev, freight optimization, also known as cost reduction, is the process of reducing the overall cost of distribution. It entails trading off the expenses of inventory, transportation, distribution, and manufacturing in order to lower the overall cost of the business. In order to complete this process, exact dimensions and weights of the products must be taken into consideration. Simplest way to cut costs on product distribution. It also helps organizations improve their supply chain planning and cooperation. You may save money by following these strategies. Is this something you’d like to learn about?

Consider the 53-footer option. When the shipper has collected enough freight to fill a truck, this option is employed. This strategy can save the shipper money if the cargo is large enough to fill the vehicle. Third-party logistics (or 3PL) providers can also be used to consolidate shipments and save money. There are many advantages to using these services, including lower shipping costs. The savings can be significant enough to justify the expense in many circumstances.

Freight charges are sometimes taken for granted by shippers. By getting a new perspective, it is feasible to lower these costs. Half of the normal corporate freight costs can be saved by taking a strategic strategy. Offering freight pickups at night, for example, may appear nave. However, the technique isn’t as complicated as it first appears. It doesn’t matter how you go about it; the end result is the same. You’ll be able to save money while also improving customer service if you can put the correct plan in place.

It doesn’t matter what method you employ to ship your goods; freight optimization can help. You can save a lot of money on shipping costs by merging multiple smaller orders into a single larger one. You can save money and improve service quality by embracing intra-company transparency. Your customers will be happier, and you’ll have less stress. This means that while it’s important to save expenses as part of freight optimization, it’s equally important to build strong connections with your carrier and shipper.

Blazo Gjorev stressed that by using a TMS optimization tool, shippers can easily compare results, and estimate actual costs. Using this application, shippers can measure their savings and make graphs to highlight their progress. They can also store data and findings utilizing such a tool for future comparison. As a result, they are able to develop their own set of best practices. Shippers can improve their bottom line by learning what works best for them. Both parties benefit from this because they can optimize their shipping operations.

Using a freight optimization tool, you may compare the efficiency of various transportation options in addition to their costs. Dynamic pooling, parcel zone skipping, and other possibilities are among them. Using an optimization program may be worthwhile if you have your own private fleet. You can make an informed decision based on the information you have. Optimization tools can help you save money in a variety of ways.

You can speed up delivery, save expenses, and simplify warehouse operations by automating these conversations. Choosing the proper carrier is critical to maximizing profit and lowering costs because there are literally hundreds of options. Do not accept the cheapest choice because it may not be the best solution. As an alternative, you should establish a standard procedure for selecting service providers. The amount of money you’ll save by implementing a freight management system will astound you.

Establishing a long-term relationship with a carrier is another strategy to reduce your freight costs. In order to decrease the number of deadhead miles they have to travel, companies should sign a long-term contract with a carrier. In order to maximize profits, a carrier must be able to use its resources in the most efficient manner possible. In addition, the shipper’s rate is guaranteed by a longer-term contract. Inflation and fluctuation in the market will be shielded from the shipper.

Additional warehouses can be placed in more cost-effective areas in order to reduce freight costs even further. For these warehouses, the k-means algorithm can help you locate the most cost-effective locations. The total freight cost will be reduced if you have more optimal warehouses. You can save even more on freight if you have two well-optimized warehouses. Now is the time to start thinking about how to make the most of your warehouse space! Almost immediately, you’ll notice a significant reduction in your costs.

Blazo Gjorev believes that in the end, optimizing your cube of product will save you room on a pallet. If you’re shipping a product, the optimal solution depends on what you’re shipping. Make sure the weight of the goods is correct as well. Optimize your load for a truck once you have the right dimensions and weight. When deciding how to effectively meet customer needs, consider logistics choices. Use numerous forms of transportation, but don’t forget to be flexible.

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Blazo Gjorev
Blazo Gjorev

Written by Blazo Gjorev

Blazo Gjorev began a temporary employment as a truck driver after arriving in the USA in 2002.

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