4 Ways to save money using expedited shipping services

AMG Logistics

Examining the cost of expedited shipping vis-a-vis other transportation modes, the expense can seem bloated. To ascertain the actual cost, you must analyze the total cost of moving your shipments at a definite speed. In view of that, below are four ways to save money using expedited shipping services.

  1. Avoid “Market Price” from Non-Expedite Providers

A greater percentage of transportation buyers have their go-to carrier for non-critical services. In fact, most have several carriers that offer solutions for truckload, Less-Than-Truckload, freight forwarding, intermodal and other modes. So, what happens when there is a critical shipment that must meet a deadline?

Some buyers call a service provider on their list and request help in fast-tracking the transit. Others may request a referral to an expediter they can call. While quality transportation partners like AMG Logistics can provide multiple services at a fair rate, many cannot

If expedited service is the best way to meet your strict timelines, trust a specialist. Have an expedite carrier on your list that has been proven for service quality and rates. Do not pay “market price” for a provider that may not be trustworthy.

  1. Improved Production Uptime

How much does it cost if a manufacturing plant is idle due to unplanned downtime? This is a number that all business leaders should know. For many, the cost is enormous.

The general cost of lost production time can range from N400,000 to N2,000,000 per day, with larger facilities even higher. Hence, the incremental cost to move product more quickly is minimal if it means reaching the facility before production halts.

Imagine you are facing a multi-hour plant delay estimated at N3,000,000 of impact. You have an option to avoid shutdown by choosing an expedited shipping provider that can accelerate delivery for N500,000 more than the prior scheduled service. Wouldn’t that solution make sense? As a transportation buyer, plant manager or business leader, it is critical that your facility operates at its highest possible output. Expedited service can help accomplish that.

  1. Reduce OS&D with Exclusive-Use Vehicles

What is OS&D? A transportation buyer who regularly ships products should be conversant with this term. OS&D is the abbreviation for overage, shortage and damaged. All these words relate to the condition of the shipment when received at the destination.

Overage is when quantities received are greater than noted on the shipping documents. Shortage is when quantities received are less than noted on the shipping documents. Damaged is when the product received has some sort of damage, either visible or concealed, that is eventually noted on the shipping documents. The important connection between these three words is, that they all cost money.

When evaluating potential shipping methods, consider the following questions:

  • Is timely delivery and exact piece counts with no damage crucial?

  • How sensitive to harm is my product during the shipping process?

  • Does loading and unloading several times increase the potential for damage?

If the response to any of these questions is in the affirmative, consider using an expedite service provider.

As part of standard procedures, an experienced expediter will schedule the expected piece count to be shipped during the booking process. At pick-up, they will confirm that the shipped piece count matches the scheduled piece count. The shipment will be loaded on an exclusive-use vehicle, which means not consolidated with other shipments along the way — instead, it is transported directly to the delivery site. Finally, upon delivery, the expedite carrier will confirm receipt with the recipient.

This doesn’t mean there will never be damages or claims with expedited freight. However, booking freight with an expediter on an exclusive-use vehicle greatly minimizes the chances of OS&D. A reduction in OS&D means fewer costs for replacement products, inventory management, restocking, secondary shipping, customer service and other related functions.

More importantly, lower OS&D means a higher number of happy customers. The increase in shipping cost is now insignificant in relation to the final delivered cost.

  1. Improved Product Availability

How important is it that products reach customers at the expected time? If a company launches a new product, advertises it and shares availability with its consumer base, what does it cost if that product isn’t there when the consumer expects it? The cost extends beyond lost revenue to lost loyalty and damaged brand reputation. A clear end-to-end strategy from procurement to distribution is key in the consumer world. A lost sale can send customers to competitors, and they may never come back.

An experienced expedite provider can assist with this. The expediter schedules inbound products to distribution centres, establishes time-sensitive delivery timelines to the point-of-purchase and can even arrange to roll out a product launch. There are many options in all these areas, and importantly, an expedite provider excels at the tight delivery windows required

A good expedite service provider can provide incredible value, with benefits to:

  • Timely product availability

  • Significant monetary savings

  • Production uptime

  • Customer satisfaction.

Knowing this, wise transportation buyers focus on what they save as against what they spend and avoid the misconception that expedited services are high-priced.

Contact AMG Logistics for all your logistics needs

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AMG Logistics is a Lagos-based TRACE certified logistics company. Our services include Freight Forwarding, Customs Clearance, Trucking, Distribution, and Warehousing within Nigeria.



Tel: +234 909 199 9866

+234 909 199 9866

+234 909 199 9841

+234 909 199 9805

+234 909 199 9813

AMG Logistics Locations

7c Creek Road

B3 ground floor
84 Keane Nkrumah Street
Asokoro Business & Lifestyle centre

NAMA Admin Building
Port Harcourt International Airport
River State