Global Fastener News

Auditor Gates at SFA: 10 Tips to Reduce Shipping Costs

John Wolz

David Gates of Freight Audit Recovery offered the Southwestern Fastener Association “Ten Tips to Reduce Your Shipping Costs” at the spring conference.

1. Know the National Motor Freight Classification numbers for your commodities. Most fasteners are “50.”

2. Fill out the bill of lading accurately and completely including address, payment terms, weight, the NMFC# and class of commodity.

3. Inspect incoming “collect” shipments before signing the Proof of Delivery. Note damaged or missing goods, the date and time, and check that freight terms are correct.

4. Obtain all documentation before approving payment. If carrier can not provide backup for any accessorial charge, deduct that amount from the invoice.

5. Check fuel surcharge on the weekly index on EIA.DOE.gov for U.S. National Average Diesel Fuel Index and check your carriers’ website to be sure the carrier is applying the accurate fuel surcharge.

6. Negotiate. Carriers want your business.

7. Pay attention to location when growing or moving your business. Freight costs are higher outside certain zones.

8. Many fees and accessorial charges are avoidable: Are you paying fees for weight/inspection? Did vendor use correct carrier on “collect” shipmen? Are your discounts applied?

9. Seek out resources such as industry associations and newsletters.

10. Seek out post audit company to review freight invoices. Auditors can be free by splitting overcharges they find. Web: FreightAuditRecovery.com �2006 FastenerNews.com