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FREIGHT COST REDUCTION ( Own or Hired )



The challenges in every day life of logistics dept is to reduction of freight cost.

So the homework need to be done on How ?

Lets took  example

If it’s a daily route somewhat near to warehouse its better to use own or dedicated vehicle

  1. Good Service
  2. 24*7 availability
  3. Proper coordination
  4. If there is some return goods can be managed on same freight
  5. Points known so less chance in delay

Only thing need to consider if paying on per km , need to calculate on variables ( Fuel Price Escalation , Maintenance etc )

But on the same scenario

If it’s a far of place & frequency is less

  1. Up Down costing will be more
  2. Long distance time coordination will be a issue
  3. Frequency is less so liability will also be less.

On any scenario need to calculate, but always if the service is own its better but on serviceability point not on cost always .






Sumit Chatterjee
Senior Supply Chain Manager
Dream Bake Pvt Ltd ( Brand Winkies , Mainly into package Cakes division )

More than 10 + years’ experience in FMCG Supply Chain
MBA Marketing & Finance from Future Business School
Post Graduate Diploma in Logistic & Supply Chain from St Xavier’s
Post Graduate Diploma in Export & Import Management from ICFAI University

___________________________________________
Keywords: SCM, Logistics, Transportation, Cost optimization
Logistics, Supply Chain, Trucks, Container, Warehouse Space


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