How To Increase Your Freight Receiving Volume And Cash Flow

The freight factoring is a cash business, with high operating costs and low margins. Businesses that deal in raw materials, contract manufacturers, distributors, and other suppliers all rely on the same freight factoring service and a handful of companies to move their goods. Whether you’re a small distributor or wholesaler with just a couple of locations or an e-commerce retailer with warehouses across the country, the same principles apply. If you want more volume coming through your business and increasing cash flow too, read on for some tips.

Don’t Receive Freight Where You Work

Many freight factoring companies receive the majority of their freight volume at the location where they do business. You can’t expect to receive high volumes of freight simply because you’re nearby. You need to put in place procedures and controls to ensure you’re receiving freight in a timely manner. Make sure that you’re tracking your inventory so that you know exactly how much freight you’ve taken in and can offer a clear explanation to customers when they call. Having a clear understanding of where you’re getting the most and least volume will also help you to budget for more stock, hire more staff, and invest in improvements to reduce your operating costs.


 

Track Your Inventory

A good way to increase your freight volume is to track your inventory. This will help you to understand the availability of your products and know exactly how much you’re taking in. You can use a software program like ERP or E-commerce platforms to manage your inventory. Tracking your inventory will help you to understand the availability of your products and will ensure that you’re not taking on too much. If you’re just starting out, consider hiring a full-time stock manager who can help you manage your inventory. A stock manager will help you to keep track of your products, ensure that you’ve got enough stock to fulfill orders, and manage your storage costs. Some warehouses will also charge storage fees on top of the price of the product itself.

Take Credit Cards Only When It Makes Sense

Credit card authorizations are often the fastest way to receive freight, especially if the carrier is an e-commerce company that’s generating high sales volumes. But when it comes to cash flow, you don’t want to have to worry about paying back that money. This is why it’s important to only accept credit card payments on a freight-based business when it makes sense. You want to be able to pay cash and receive the goods as quickly as possible.

Wrapping Up

Freight is a tough business. The freight industry is full of risks, and you’ll need to be willing to do a lot of hard work to get a good deal. If you’re looking to get more freight volume and cash flow, you’re going to need to spend time improving your company’s processes. You’re going to have to spend time tracking inventory and managing your inventory, communicating with customers, and working with your carriers to get rates and get paid as quickly as possible. There are a lot of risks involved with the freight business, but there are also a lot of rewards. If you’re looking to get more volume, you’ll need to be willing to spend time improving your company’s processes and investing in risk management.

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