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000000075827 06-10-2011 09:35 PM

Freight Costs in Relation to Sales
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.

000000375711 01-31-2012 05:42 PM

Freight costs in Relation to Sales
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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