View Full Version : Freight Costs in Relation to Sales
06-10-2011, 09:35 PM
I have recently started to work in a small manufacturer/distributor of pet care products. In my previous experiences I have not been involved in outbound freight costs. Our freight costs compared to sales seem to be very high. I realize that I do not have much clout with our small size. I am wondering if some of you could tell me the ratio of your freight costs to either sales or gross margin.
Thanks inadvance for your help.
01-31-2012, 05:42 PM
Freight has a lot to do with size and weight of items being sold, so this is hard to answer. We have a system where any PO issues has our shipping terms, such as if item is over 100 lbs, goes on a larger carrier (negotiated freight rates) and smaller items under 100 lbs goes on DHL.
To save on freight costs you could hold orders and put throught items only once a week, in order to accumulate quantities and quantitites can be boxed and you only pay for the box or crate, instead of many little shipments.
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