How to Save Money on Your Inbound-Freight Program

1. Identify all costs associated with your inbound freight. Determine total annual costs for inbound freight, then calculate it by the percentage of gross sales. This gives you a cost baseline, so you accurately can track your cost savings.

2. Demand that freight be clearly delineated on each vendor's invoice. Don't accept pre-pay and added freight. While in many cases freight is prepaid and added to your invoice, there are many instances in which it's buried in the price you pay for each item. Working with suppliers to break out freight costs from the cost of goods isn't easy; the process requires frank conversations.