For businesses that use baling wire, it becomes a recurring expense, which can prove to be a major financial burden if the freight costs and expenses aren’t planned well. When you purchase these wires in smaller quantities, the cost doesn’t seem very high; but they tend to add up over time and can affect your bottom line. However, it is possible to keep a handle on bailing wire and freight costs; take a look at how:
Estimate the Total Amount of Bailing Wire you Need over the Long Term
Bailing wire doesn’t deteriorate over time as it isn’t a perishable commodity. As long as you have some covered space in a warehouse to stock it, the wire can last for a very long time, without any problems. You only need to make sure the wire isn’t exposed to excessive dust or moisture.
Calculate the amount of bailing wire you would need over the year, estimate how much space you have to store it and order it accordingly. Aside from the amount you save on bulk orders of bailing wires, you will save on freight costs as these companies offer better rates for shipping larger consignments. You pay a significantly lower cost than what you would if you had ordered the bailing wire in stages over a period of a year.
The Right Scheduling Matters
This is how you can schedule your bailing order shipments– If you order in excess of 10 bundles each year, place only one larger order annually; this will remove a huge amount of freight costs. Shipping costs if not calculated carefully can quickly get out of hand and in most cases no planning/poor planning results in business owners overpaying.
If you are unable to order in bulk, find out whether you can work with a good freight consolidation service. These providers will combine your bailing wire shipment with others to create a full truckload, which again reduces freight costs for you.
Effectively managing freight costs for bailing wire can have a positive impact on your bottom line. Every dollar you save on freight translates to a proportional improvement in your financial performance. If you have any questions about how to minimize your freight costs, contact us today.