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Reduced Freight Cost: Cosmetics Distributor Lowered Freight Expense by 34 Percent

Challenge

A major distributor of cosmetics to pharmacy retailers was sending multiple boxes to a single location, which was increasing freight costs unnecessarily. Every parcel package that a company sends has a minimum cost to ship, regardless of weight. In this case, the distributor was paying $10.54 to ship two 10-pound packages.

Solution

We recommended the purchase of a strapping machine that runs 3/8” polypropylene strapping to strap two 10-pound boxes together to be shipped as a single package.

Results

Sending one 20-pound package that contained two boxes reduced the shipping cost to $6.90 total. This 34 percent reduction earned them a quick payback on the machine of 3.8 months.

Related Solution

Reducing Freight Costs

Reduce Freight Cost

The three largest variable costs for a shipping operation are freight, labor and packaging materials. Our packaging professionals have the tools and talent to assess your individual needs and recommend the right solution to return valuable profitability to your operations.

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Reduce Freight Cost