Welcome back to our supply inefficiency video series. Today, we’re going to discuss the many ways freight costs can add up.
If you are buying inventory direct, freight charges can quickly eat away at any cost savings benefit you initially believed you would realize, especially if you are using multiple suppliers.
Also, if you do not have a reliable forecasting process in place, or if production ramps up unexpectedly, expedites and rush orders charges could easily compound your costs, especially if you are buying overseas.
Various factors, such as taxes and fees if shipping internationally, insurance and time spent in managing customs clearance all contribute to freight cost, in the case. And if anything breaks or is lost during transport, you’ll have to account for that too.
Come back to Falcon Fastening soon to learn about supply inefficiency number five: error-related costs.
Thanks for watching!