12 Proven Strategies for Freight Spend Optimisation and Cost Savingss

If you’re running your business outside the big metros, rising freight costs can feel like a constant struggle. Industry reports say that the global logistics market reached €5.35 trillion in 2023. Transportation costs make up almost half of all supply chain costs. For sellers with limited margins, this means every extra rupee spent on freight, whether on half-filled trucks, sudden fuel hikes, or unfavourable carrier deals, can quickly turn profitable orders into losses.

The challenges are real. Fewer carrier options in your area, poor route planning, unused load capacity, and hidden charges often result in slower and more expensive deliveries. Customers get frustrated, and you end up paying more without gaining real value. 

Implementing freight spend optimisation through smarter planning, technology, and stronger partnerships can help sellers cut costs significantly while keeping operations smooth.

In this blog, we’ll share 12 proven strategies that you can start applying today to optimise your freight spend. 

What are the Top 12 Strategies that Help in Freight Spend Optimisation?

1. Consolidate Shipments

Instead of sending out multiple small shipments, combine them into fewer, larger ones. This reduces cost per unit and avoids paying premium charges for partial truck loads. For example, if you ship five 50 kg consignments separately, the price will be higher compared to consolidating them into a single 250 kg load. 

2. Optimise Route Planning

Using data-driven and software-based route planning helps avoid unnecessary detours, traffic delays, and duplicate trips. Smart routing tools factor in fuel efficiency, road conditions, and delivery schedules to find the most cost-effective path. For sellers, this means faster deliveries, lower fuel bills, and fewer wasted driver hours.

3. Negotiate Carrier Contracts

Do not settle for standard carrier rates. Review your contracts regularly and negotiate based on your shipping volume and frequency. Long-term commitments or assured minimum volumes often fetch better pricing. 

4. Use Multi-Carrier Strategies

Relying on a single carrier can limit flexibility and raise costs. Having multiple carrier options allows you to compare rates, choose the most reliable partner for each route, and avoid service disruptions. 

5. Leverage Technology Platforms

Freight optimisation tools and Transport Management Systems (TMS) offer visibility into costs, delivery timelines, and performance. They help automate load planning, track shipments in real time, and provide insights into carrier performance.

6. Implement Load Optimisation

Every cubic inch of space in a truck or container should be used wisely. Efficient palletisation, stacking methods, and packaging design help maximise load capacity. For example, using stackable cartons instead of irregular boxes reduces wasted space and lowers per-unit shipping costs.

7. Monitor and Control Accessorial Charges

Charges like detention and demurrage, storage, fuel surcharges, or last-mile delivery add up quickly. Sellers often pay these without realising how much they inflate freight bills. The solution is to track these costs closely, question inconsistencies, and negotiate caps or waivers with carriers where possible.

8. Forecast Demand Accurately

Poor demand forecasting forces last-minute expedited shipping, which is always more expensive. By analysing past sales, seasonal patterns, and upcoming promotions, sellers can predict demand more accurately and plan shipments. 

9. Switch Between Transport Modes

Not all freight has to move by road or air. Rail and sea options are often cheaper for long distances or bulk shipments, even if they take longer. Intermodal solutions, which combine two or more transport modes, can effectively balance speed and cost. 

For example, shipping from Delhi to Chennai might be cheaper by rail for non-urgent orders, while urgent orders can go by road.

10. Use Data for Continuous Improvement

Key metrics such as cost per kilometre, cost per kilogram, on-time delivery rates, and fuel efficiency should be monitored regularly. Analysing this data highlights inefficiencies and helps refine processes. Sellers can set benchmarks, track progress, and continuously reduce costs, rather than treating optimisation as a one-time exercise.

11. Train Teams in Freight Management

Even the best systems fail if teams lack knowledge. Training staff on contract terms, freight documentation, load optimisation, and software tools prevents costly mistakes. 

12. Collaborate with Logistics Partners

Strong partnerships with reliable logistics providers ensure better rates, dependable service, and added benefits, such as cargo insurance and faster problem resolution. Instead of juggling multiple vendors without coordination, sellers can work with integrated logistics partners who handle multi-carrier networks, real-time tracking, and dispute resolution. 

What are the Benefits of Freight Cost Optimisation?

Optimising freight costs isn’t just about saving money; it’s also about making the supply chain smarter and more resilient. Companies that handle freight well have long-term advantages over their competitors.

Let us take a quick look at some of the basic benefits:

• Lower Logistics Costs

Optimisation directly reduces waste such as empty miles, under-filled loads, and last-minute express shipping. By selecting the right carriers, routes, and shipment sizes, businesses cut unnecessary expenses and protect margins. The savings compound with volume, meaning the more you ship smartly, the more you save annually.

• Faster Deliveries

Planned routes and carrier choices reduce delays at warehouses, ports, or customs. This leads to smoother transit and quicker fulfillment. In e-commerce, faster deliveries directly improve customer satisfaction and can boost conversion rates.

• Improved Cash Flow

Freight often consumes 40-50% of logistics budgets. Optimisation frees up capital by eliminating avoidable costs, leaving more resources for inventory, technology upgrades, or expansion. A healthier cash flow helps businesses scale and respond quickly to market demand.

• Stronger Supplier and Carrier Relationships

Clear visibility into freight spend allows businesses to negotiate with confidence and secure fair pricing. Consistency fosters trust with carriers and suppliers, resulting in improved service levels, reliable schedules, and potential discounts for long-term commitments.

• Enhanced Customer Experience

Optimised freight ensures on-time deliveries, reduced product damage, and fewer surprise charges. Customers benefit from reliable service and competitive pricing, which drives repeat purchases and brand loyalty in crowded markets.

5 Common Challenges in Freight Spend Optimisation

Even with careful planning, businesses often face obstacles that prevent effective freight cost control. Here are the five most common challenges:

1. Limited Visibility

Without real-time tracking, it is difficult to monitor shipments, detect delays, or spot inefficiencies. This lack of visibility leads to higher costs, late deliveries, and unhappy customers, making it impossible to optimise freight spend effectively.

2. Fluctuating Fuel Prices

Fuel is a major component of freight costs, and frequent price changes make budgeting difficult. Sudden spikes either increase overall expenses or force businesses to pass costs onto customers, affecting competitiveness and profit margins.

3. Fragmented Carrier Network

Working with multiple carriers without a centralised system creates inefficiencies. It complicates billing, weakens negotiation power, and often results in inconsistent service quality, all of which contribute to higher overall freight costs.

4. Inaccurate Forecasting

Misjudging demand leads to inefficient shipping. Underestimating requires expensive last-minute shipments, while overestimating causes unused trucks and wasted miles. Accurate forecasting is crucial for planning shipments and controlling costs.

5. Hidden Accessorial Charges

Fees such as detention, demurrage, fuel surcharges, and last-mile delivery costs often appear unexpectedly. If unmonitored, these charges quickly inflate budgets, causing businesses to pay far more than planned.

Optimise Your Freight Spend With Shiprocket Cargo

To reduce the costs of freight, you must prepare beforehand and choose the right logistics partner. You can choose Shiprocket Cargo in such cases. This will help streamline operations, reduce costs, and provide a more comprehensive picture overall.

Here’s how Shiprocket Cargo helps you get the most out of your freight spend:

• Multi-Carrier Access: You can find the cheapest way to ship each item by comparing rates from different carriers.
• Real-Time Tracking: End-to-end visibility lets you know exactly where your freight is at all times, which cuts down on waste and delays.
• Optimised Routes: AI-driven route planning saves money on gas and makes deliveries faster and more reliable.
• Transparent Pricing: Clear, up-front fees get rid of hidden costs and unpleasant surprises.
• Scalable Solutions: Shiprocket Cargo can be changed to fit the needs of your business, whether you’re shipping small items or large amounts of freight.

Conclusion

Freight costs don’t have to reduce your profits. By planning routes, consolidating shipments, negotiating with carriers, and using technology, you can cut waste and lower costs.

Optimising freight spend improves delivery speed, strengthens carrier relationships, and enhances customer satisfaction. Solutions like Shiprocket Cargo give multi-carrier access, transparent pricing, AI-driven routes, and real-time tracking, making freight management easier and more cost-effective.

FAQs Related to Freight Optimisation: