When you are doing business, success will rely upon the swiftness with which you are able to react to changes taking place in your industry and also in your own business. Statistics reveal that up to six to eight percent of revenue for businesses depends on the selection of the right form of freight. As such, it is important to decide about the right mix of LTL and FTL transportation offered by freight forwarding services to reap the benefits. Here, our aim will be to provide some insights, which will help you decide when to use a particular type of transportation method.
Deciding upon the Right Mix of FTL and LTL Transportation
If you are a startup company that wants to send out smaller parcels at a fast pace to meet the growing demand, consolidating shipments through LTL shipping will save on major costs. On the other hand, if you are a mid-sized organization that is dispatching bulk orders, FTL solutions will prove to be useful for you.
When to use FTL transportation?
Usually FTL transportation proves to be useful when there are 6 or more pallets or the total weight of your shipment is over 12,000 lbs. In this situation, you will be able to benefit from economies of scale. Moreover, since FTL transportation provided by freight forwarding companies will not have any stops during transportation, you will be able to get things transported at a faster rate.
Additionally, if your shipment is such that it needs special handling, then this mode of transportation will be right for you. As the shipment is loaded and then unloaded once, the chances of damage are minimized, and if you are shipping fragile or sensitive items then it will be an important point to keep note of.
When to use LTL transportation?
The low cost is one of the USPs of LTL transportation. Thus, for companies transporting smaller quantities on a frequent basis, LTL transportation is the right option to select. If your shipment will not be affected by multiple stops during the transit then LTL transportation offered by freight forwarder services in Montreal will be the right option to select.
Moreover, if the weight of your shipment is less than 12,000 lbs and slower delivery will not affect the business in any way, then LTL transportation will prove to be the right option to choose.
Thus, you will have to blend LTL and FTL transportation by considering your requirements and the timeline within which the items are to be transported. Your aim here should be to reach a balance between dependability and flexibility to achieve maximum benefit for your business and achieve desired results.
One option is to utilize the services of a 3rd party logistics provider since they are connected with carriers and are aware of the rates each of them offer. They also have the expertise to improve any shipping strategies that are already in play. Additionally, they make use of efficient transportation management systems for finding the best method to consolidate your shipment.