6. Review your sales order
polices regarding minimum
order size and frequency of
ordering to encourage the
largest size shipment possible.
Your sales policies affect your outbound
freight costs.
In the past several years, many companies have
experienced increased costs due to customers
who are demanding more frequent, smaller size
shipments. Your outbound freight costs will rise as
a result. This is especially true when customers
focus on “lean” stocking strategies and do not
incorporate transportation as part of their total
landed, or delivered, cost of product. With LTL
freight, the smaller the size of the shipment, the
greater the relative cost!
Look at your free freight and shipment
frequency policies.
You can mitigate the impact of this smaller
shipment trend by reviewing your outbound
freight policies and examining your free freight
thresholds. It may be opportune to implement an
increase in sales minimums that determine who
pays for the freight.
We have seen companies increase their sales
order total dollar value required to qualify for free TRANZACT TECHNOLOGIES, INC. • 11 STEPS TO REDUCE YOUR LTL COSTS | MARCH, 2014
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freight or stratify their customers into different
service levels to determine shipping frequency.
These changes can increase sales and lower
freight costs, since the subsequent shipments will
be made in greater quantities.