3 Best Ways to Cut Inbound Freight Costs 


For every business, inbound freight is a vital component of their supply chain. Managing inbound loads by vendors and suppliers is often left to the company’s discretion. If companies neglect their inbound freight strategy, the transportation process can become obscured. This leads to hidden costs and overspending.  

For many companies, different parts of the supply chain have more consideration and oversight than others. As a result, companies tend to overlook inbound shipments. They do this even though inbound shipments account for a significant portion of transportation costs. For some companies, inbound costs can reach 40 percent of the transportation budget.  

How to reduce inbound freight costs?  

Your company needs to control its freight management to reduce costs on incoming shipments. With this in mind, you can identify optimization opportunities and fill gaps.  

When analyzing and improving your inbound freight movement, it’s not just about cost savings. The analysis enables more visibility into your supply chain. It also fosters a more trusted relationship with your vendors.  

Review Your Approach   

Ask yourself if your vendors meet the compliance program standards. Additionally, what level of supply chain visibility you have, and how much control you have over inventory movement.  

Relationships with your vendors are crucial. Communication is vital to these relationships being a success. You may be losing out on many of the benefits of a collaborative partnership because you are not communicating effectively.  

To get the most from your inbound shipments, you’ll need to stay up to date on the current state of the economy. This will help you determine whether you should put in oversight. This will help you find opportunities to reduce your inbound freight costs.  

Enhance Visibility with Technology   

Supply chain executives can set their terms and conditions for suppliers and vendors with the help of inbound software. This includes deciding which parties will enter the shipment information. One option is to have the supplier enter the shipment information.  

Here the logistics team can communicate and book to meet business requirements. The executives could also designate the supplier to directly book with preferred carriers and suppliers. This results in lower inbound freight costs. It is always at the discretion of the executives to determine the best process based on inbound software insights.  

One of the crucial factors of successful inbound management is high visibility into the supply chain. A transportation management system (TMS) lets companies track their shipments through. A TMS like PLS Pro enables you to manage shipments and collect valuable data for strategic planning. They also help you find inefficiencies.  

Enforce a Retail Compliance Program   

In a vendor compliance program, the retailer or consignee and the supplier agree with clearly stated terms and conditions when moving freight. Vendors must comply with delivery times and other performance requirements outlined by retailers.  

As a part of this agreement, the consignee also specifies penalties for the supplier’s failure to follow terms and conditions. The vendor compliance program gives both parties a clear picture of how they work together and significantly impacts the performance of inbound shipments.  

Inbound freight management with PLS Logistics Services  

The more transparent your inbound freight is, the better. PLS Logistics Services can help reduce your inbound freight costs with our inbound freight solutions and a proprietary TMS. Consider applying for a free Freight Bill Analysis or Logistics Opportunity Assessment. PLS Logistics Services can help you save on your logistics strategy.  

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