Find out how your company can reduce the value of freight and circumvent the increase in fuel

Sabrina Moreira Paes
13-05-2022 08:44:58
in Logistics and Transport
costs, freight value, high fuel High fuel prices can drive away customers if freight is high

High shipping can make customers give up on the purchase

São Paulo, May 11, 2022 – In online business, shipping is a very important factor during the customer's purchase on the website, making him go ahead or leave it aside. However, the increase in fuels, as a result of the conflict between Ukraine and Russia, can make it difficult to offer lower value and even free shipping.

Shipping can work as a good marketing strategy, according to Alexandre Sousa, sector director at Everlog. Therefore, you should not put the fuel increase on the customer's account, as this is a factor that can drive him away from the purchase. That is, you must find ways to reduce the cost, and you can use technology to your advantage in the competitive race.

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Although it may not seem like it, the war between Russia and Ukraine plays a key role in increasing fuel prices and inflation around the world. After all, the region has an important contribution to the production of fossil fuels in the world. In this way, the problem with distribution affects several branches in society, in a cascade.

The conflict between Russia and Ukraine plays a key role in rising fuel and inflation worldwide

If you still don't understand why this conflict enbetween Russia and Ukraine affects our country, let's explain better. Around 8% of the oil we use, 20% of the polymers and 62% of the fertilizers we have in the country come from Russia. In addition, around 22% of semi-finished metal products originate in Ukraine.

With the stoppage of this distribution, we are directly affected. The worst is that the scenario is not favorable for the next few years and finding outlets to offer freight at lower costs will become a big mission. The video below explains in detail the impact of the war on inflation and rising fuel prices.

The conflict between the nations of the East has consequences for the whole world | Source: TV Cultura

The conflict brought an increase of 68% to the national diesel. As a result, freight reached a vertiginous increase of 29%, according to data from the National Land Transport Agency (ANTT). Therefore, to remain competitive, companies must use some strategies to not make the customer pay this bill.

After all, how can I offer affordable shipping?

In this sense, Alexandre points out that some actions can be taken to reduce shipping costs. In general, attitudes are aimed at the centralization of information and greater organization of the logistics process. Thus, you avoid problems in the long run and provide a higher quality service to customers. Check out the 4 tips we separate to help you.

1. Seeking partnerships

The first one is the search for partnerships with companies that work in the field of logistics and transport as a way of reducing tariffs based on the volume of deliveries. However, it is important to have more than one partnership to provide the customer with greater options for prices and delivery times.

2. Using technological resources

In addition, you can give up technological resources such as applications or platforms that allow you to customize delivery according to volume characteristics. This feature can focus the results through a preliminary simulation and then choosing the best option to reduce costs.

The technology can also help reduce costs by identifying idle vehicles, that is, the path where there is no load. In this sense, through technology and data crossing, these idle moments can be reused to bring cargo from other places and speed up freight, as well as its costs, to circumvent the increase in fuel costs.

3. Negotiating delivery times and freight costs

Another important action is to negotiate delivery terms and values with the customer. That is, the shorter, the more expensive the freight; otherwise cheaper. However, having professionals who manage through Business Intelligence can make it easier to obtain this information about customers and offer greater customization for delivery.

4. Closely monitoring the delivery flow

Finally, you must closely monitor the flow of deliveries and analyze possible deadline or address failures. So, with this data in hand, you can take the necessary steps to prevent these problems from recurring and also ensure payment compliance. In addition, through constant auditing, you can better control spending and avoid losses.

Follow these tips and ensure that your business remains competitive, even in the face of adversity from the increase in fuel and freight.

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Sabrina Moreira Paes
Resident of Greater São Paulo, 25 years old, graduated from UFPR with a master's degree from Unicamp and a PhD in progress at USP. Marketing, Copy, SEO and Ghost Writer certified by the Universities of Stanford, California, Northwestern and Toronto. Get in touch for a suggestion of an agenda, disclosure of job vacancies or advertising proposal on our portal. We do not receive resumes.