Freight costs are on the rise once again, putting additional strain on manufacturers and supply chains worldwide. Disruptions in major shipping routes, including the Suez and Panama Canals, combined with increasing operational expenses, have caused shipping prices to surge. According to UNCTAD, these challenges could further destabilize global trade and increase costs for businesses across multiple industries.
For manufacturers, rising freight costs can significantly impact profitability. Fortunately, there are proactive steps companies can take to mitigate these expenses and optimize their logistics.
1. Maximize Trucking Efficiency
One of the most effective ways to reduce freight costs is by improving the efficiency of how products are packed and shipped. The more product you can fit per load, the fewer trips you need, reducing overall transportation expenses.
Solution: The RZR Rack from Diverse Global is specifically designed to maximize trucking efficiency by cubing out a box truck or semi-trailer at maximum height. Unlike traditional storage solutions that leave unused air space, the RZR Rack expands vertically, ensuring you utilize every inch of available space. This translates to:
- Up to 60% more storage capacity per rack
- Fewer trucks are required to move the same number of parts
- Reduced transportation costs by fitting more parts per shipment
2. Optimize Supply Chain Routes
With shipping disruptions driving up costs, manufacturers should evaluate alternative routes and shipping methods. Working closely with logistics partners to identify the most cost-effective transportation options can lead to significant savings.
Tip: If your company frequently ships overseas, consider adjusting shipment schedules to avoid peak congestion times. Additionally, consolidating shipments and leveraging regional suppliers when possible can reduce dependency on high-cost routes.
3. Reduce Handling and Labor Costs
Labor shortages and increased wages are another factor driving up freight expenses. The more time and effort required to load and unload shipments, the more costly the process becomes.
Solution: The RZR Rack enhances efficiency by reducing material handling time and making loading/unloading easier. It allows workers to access more parts per trip, increasing productivity while minimizing unnecessary labor. With intuitive and customizable designs, the RZR Rack streamlines operations and helps facilities work smarter, not harder.
4. Leverage Returnable Packaging
Freight costs increase when businesses rely on single-use or inefficient packaging. Investing in returnable, reusable packaging solutions can help reduce long-term shipping expenses.
Solution: Diverse Global specializes in custom returnable packaging solutions, including steel racks, dunnage, and plastic containers that improve shipping density and lower transportation costs.
5. Improve Warehouse Space Utilization
One overlooked factor contributing to rising costs is inefficient warehouse storage. When a facility runs out of space, businesses often resort to leasing additional storage—adding significant expenses.
Solution: The RZR Rack frees up valuable floor space by reducing the number of racks required. In fact, one customer eliminated 172 standard racks and saved 1,121 square feet of floor space after implementing RZR Racks into their facility. By optimizing warehouse storage, manufacturers can delay or even eliminate the need for costly warehouse expansions.
The Bottom Line
Rising freight costs are a challenge, but manufacturers can take strategic actions to combat them. From maximizing truckloads to reducing handling time and optimizing warehouse space, implementing smart solutions like the RZR Rack can lead to significant cost savings.
Want to learn how the RZR Rack can help you reduce freight costs and improve efficiency? Contact Diverse Global today to explore customized solutions tailored to your operation.
