How to Save Money on Your Inbound-Freight Program

4. Evaluate and implement appropriate freight classifications for the items you ship. Every item has a National Motor Freight Classification (NMFC) number that equates to a classification and directly correlates to the rate charged. (The National Classification Committee develops and maintains the NMFC Guide that is regulated by the U.S. Department of Transportation's Surface Board.) The higher the classification number, the higher the freight rate. For example, a major toy company was using a freight classification of 125 for toys and dart games. This classification's freight cost in the existing traffic lane was $650 per shipment. By changing to the correct classification of 85, the freight cost was reduced by $226. Because the toy company was moving about five shipments per week, it was able to save more than $100,000 per year on just that one lane.