How to reduce your freight costs without switching logistics partners

Freight costs for Indian manufacturers and distributors can represent 3–8% of revenue — and most companies accept their current costs as a given without actively managing them. There is almost always 10–20% reduction available without changing your logistics partner.

Consolidate shipments. Sending 5 small shipments per week is significantly more expensive per unit than sending 2 larger consolidated shipments. If your customers will accept 2-day instead of next-day delivery, consolidation can cut freight costs by 20–30% on those lanes.

Audit your dimensional weight charges. Many freight companies charge by dimensional weight (length × width × height / divisor) rather than actual weight for lightweight but bulky shipments. If you're being charged dimensional weight, redesigning your packaging to reduce volume can cut freight costs significantly.

Renegotiate your rates. If you've been with the same logistics partner for more than 2 years without a rate review, you're likely paying above-market rates. Get quotes from two alternative providers and use them to renegotiate. Even a 10% rate reduction is significant at scale.

Optimise your packaging. Oversized packaging increases dimensional weight charges and reduces how many units fit in a truck. Packaging optimisation — smaller boxes, better fill efficiency — can reduce freight cost per unit by 10–15%.

Use route optimisation for your own vehicles. If you run your own delivery fleet, basic route planning software (even Google Maps for small fleets) can reduce fuel costs and driver time by 15–20%. Ensure your drivers are following optimised routes, not habits.