Case Studies / Reduced Freight Cost
Reduced Freight Cost: Cosmetics Distributor Lowered Freight Expense by 34 Percent
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.
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.
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.
Reduce Freight Costs
The three largest variable costs for a shipping operation are freight, labor and packaging materials.View Solution