---
title: “Freight Shipping Leverage is Only for Large Companies” and Other Myths
description: Large companies aren’t the only ones with leverage when it comes to freight shipping. Discover other myths and how to build an ideal shipping model.
image: https://blog.customodal.com/hubfs/Imported_Blog_Media/once-upon-a-time-719174_1920-scaled-1.jpg
---

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# “Freight Shipping Leverage is Only for Large Companies” and Other Myths

TAGS:

- [Blog](https://blog.customodal.com/tag/blog)
- [3pl](https://blog.customodal.com/tag/3pl)
- [Logistics](https://blog.customodal.com/tag/logistics)
- [Freight Brokerage](https://blog.customodal.com/tag/freight-brokerage)
- [Inbound Freight](https://blog.customodal.com/tag/inbound-freight)
- [Digital Freight Management](https://blog.customodal.com/tag/digital-freight-management)
- [Shipping](https://blog.customodal.com/tag/shipping)
- [supply chain](https://blog.customodal.com/tag/supply-chain)
- [Freight Costs](https://blog.customodal.com/tag/freight-costs)
- [Outbound Freight](https://blog.customodal.com/tag/outbound-freight)
- [Specialized Freight Management](https://blog.customodal.com/tag/specialized-freight-management)
- [Technology](https://blog.customodal.com/tag/technology)
- [Freight Forwarding](https://blog.customodal.com/tag/freight-forwarding)
- [TMS](https://blog.customodal.com/tag/tms)
- [LTL](https://blog.customodal.com/tag/ltl)
- [freight](https://blog.customodal.com/tag/freight)
- [Featured](https://blog.customodal.com/tag/featured)
- [Freight Savings](https://blog.customodal.com/tag/freight-savings)
- [Logistics Planning](https://blog.customodal.com/tag/logistics-planning)
- [Controlling Costs](https://blog.customodal.com/tag/controlling-costs)
- [Digital Freight Brokering](https://blog.customodal.com/tag/digital-freight-brokering)
- [supply chain challenges](https://blog.customodal.com/tag/supply-chain-challenges)
- [avoid extra fees](https://blog.customodal.com/tag/avoid-extra-fees)
- [Inbound-Outbound Freight](https://blog.customodal.com/tag/inbound-outbound-freight)
- [Strategic Logistics](https://blog.customodal.com/tag/strategic-logistics)
- [manufacturing](https://blog.customodal.com/tag/manufacturing)
- [outbound](https://blog.customodal.com/tag/outbound)
- [Critical Infrastructure](https://blog.customodal.com/tag/critical-infrastructure)
- [FLEX Outbound Freight](https://blog.customodal.com/tag/flex-outbound-freight)
- [Tracking](https://blog.customodal.com/tag/tracking)
- [import](https://blog.customodal.com/tag/import)
- [sustainability](https://blog.customodal.com/tag/sustainability)
- [visibility](https://blog.customodal.com/tag/visibility)
- [API](https://blog.customodal.com/tag/api)
- [Compliance](https://blog.customodal.com/tag/compliance)
- [EXACT Inbound](https://blog.customodal.com/tag/exact-inbound)
- [EXACT Inbound Freight](https://blog.customodal.com/tag/exact-inbound-freight)
- [Freight Cost Tracking](https://blog.customodal.com/tag/freight-cost-tracking)
- [Outbound Freight Savings](https://blog.customodal.com/tag/outbound-freight-savings)
- [Precision ROI](https://blog.customodal.com/tag/precision-roi)
- [Project-based Logistics](https://blog.customodal.com/tag/project-based-logistics)
- [Vendor Performance](https://blog.customodal.com/tag/vendor-performance)
- [documentation](https://blog.customodal.com/tag/documentation)
- [export](https://blog.customodal.com/tag/export)
- [freight claim](https://blog.customodal.com/tag/freight-claim)
- [freight management](https://blog.customodal.com/tag/freight-management)
- [inbound freight costs](https://blog.customodal.com/tag/inbound-freight-costs)
- [incoterms](https://blog.customodal.com/tag/incoterms)
- [meet the team](https://blog.customodal.com/tag/meet-the-team)
- [ocean freight](https://blog.customodal.com/tag/ocean-freight)
- [parcel](https://blog.customodal.com/tag/parcel)
- [save money](https://blog.customodal.com/tag/save-money)
- [supplychain](https://blog.customodal.com/tag/supplychain)
- [Carrier Selection](https://blog.customodal.com/tag/carrier-selection)
- [Critical Freight](https://blog.customodal.com/tag/critical-freight)
- [Data Driven](https://blog.customodal.com/tag/data-driven)
- [Freight Claims](https://blog.customodal.com/tag/freight-claims)
- [Risk Mitigation](https://blog.customodal.com/tag/risk-mitigation)
- [Turnaround Logistics](https://blog.customodal.com/tag/turnaround-logistics)
- [Uptime](https://blog.customodal.com/tag/uptime)
- [current events](https://blog.customodal.com/tag/current-events)
- [inbound](https://blog.customodal.com/tag/inbound)
- [priority1](https://blog.customodal.com/tag/priority1)
- [recession](https://blog.customodal.com/tag/recession)
- [shipping delay](https://blog.customodal.com/tag/shipping-delay)
- [4pl](https://blog.customodal.com/tag/4pl)
- [Analytics](https://blog.customodal.com/tag/analytics)
- [Customs](https://blog.customodal.com/tag/customs)
- [Dock Management](https://blog.customodal.com/tag/dock-management)
- [Downtime](https://blog.customodal.com/tag/downtime)
- [FLEX Freight Control](https://blog.customodal.com/tag/flex-freight-control)
- [Heavy Haul](https://blog.customodal.com/tag/heavy-haul)
- [International](https://blog.customodal.com/tag/international)
- [SDK](https://blog.customodal.com/tag/sdk)
- [Strategic Outsourcing](https://blog.customodal.com/tag/strategic-outsourcing)
- [book review](https://blog.customodal.com/tag/book-review)
- [canada](https://blog.customodal.com/tag/canada)
- [covid 19](https://blog.customodal.com/tag/covid-19)
- [customodal way](https://blog.customodal.com/tag/customodal-way)
- [delivery](https://blog.customodal.com/tag/delivery)
- [digital freight broking](https://blog.customodal.com/tag/digital-freight-broking)
- [exports](https://blog.customodal.com/tag/exports)
- [freight broker](https://blog.customodal.com/tag/freight-broker)
- [ftl](https://blog.customodal.com/tag/ftl)
- [holidays](https://blog.customodal.com/tag/holidays)
- [in the news](https://blog.customodal.com/tag/in-the-news)
- [logisitics](https://blog.customodal.com/tag/logisitics)
- [mike eberl](https://blog.customodal.com/tag/mike-eberl)
- [news](https://blog.customodal.com/tag/news)
- [oceanfreight](https://blog.customodal.com/tag/oceanfreight)
- [packaging](https://blog.customodal.com/tag/packaging)
- [rates](https://blog.customodal.com/tag/rates)
- [save on freight](https://blog.customodal.com/tag/save-on-freight)
- [save on shipping](https://blog.customodal.com/tag/save-on-shipping)
- [shipping news](https://blog.customodal.com/tag/shipping-news)
- [shipping solutions](https://blog.customodal.com/tag/shipping-solutions)
- [small parcel audit](https://blog.customodal.com/tag/small-parcel-audit)
- [small parcel refunds](https://blog.customodal.com/tag/small-parcel-refunds)
- [truckload](https://blog.customodal.com/tag/truckload)
- [update](https://blog.customodal.com/tag/update)
- [2022](https://blog.customodal.com/tag/2022)
- [2022 shipping expectations](https://blog.customodal.com/tag/2022-shipping-expectations)
- [Alaska](https://blog.customodal.com/tag/alaska)
- [Carbon Accounting](https://blog.customodal.com/tag/carbon-accounting)
- [Cold Chain](https://blog.customodal.com/tag/cold-chain)
- [Customs Broker](https://blog.customodal.com/tag/customs-broker)
- [EXACT](https://blog.customodal.com/tag/exact)
- [Electrical Utilities](https://blog.customodal.com/tag/electrical-utilities)
- [Freight Control](https://blog.customodal.com/tag/freight-control)
- [Green Logistics](https://blog.customodal.com/tag/green-logistics)
- [Hawaii](https://blog.customodal.com/tag/hawaii)
- [Hazmat](https://blog.customodal.com/tag/hazmat)
- [In-House Fleet vs Virtual Fleet](https://blog.customodal.com/tag/in-house-fleet-vs-virtual-fleet)
- [Inbound Shipping Skills](https://blog.customodal.com/tag/inbound-shipping-skills)
- [Inventory Management](https://blog.customodal.com/tag/inventory-management)
- [JIT](https://blog.customodal.com/tag/jit)
- [Jones Act](https://blog.customodal.com/tag/jones-act)
- [LCL](https://blog.customodal.com/tag/lcl)
- [Maintenance Logistics](https://blog.customodal.com/tag/maintenance-logistics)
- [Midwest](https://blog.customodal.com/tag/midwest)
- [Oversized](https://blog.customodal.com/tag/oversized)
- [Puerto Rico](https://blog.customodal.com/tag/puerto-rico)
- [Reverse Logistics](https://blog.customodal.com/tag/reverse-logistics)
- [air freight](https://blog.customodal.com/tag/air-freight)
- [all risk shippers protection](https://blog.customodal.com/tag/all-risk-shippers-protection)
- [asset based](https://blog.customodal.com/tag/asset-based)
- [automated audits](https://blog.customodal.com/tag/automated-audits)
- [automated refunds](https://blog.customodal.com/tag/automated-refunds)
- [benjamin lorr](https://blog.customodal.com/tag/benjamin-lorr)
- [broker](https://blog.customodal.com/tag/broker)
- [bullwhip](https://blog.customodal.com/tag/bullwhip)
- [carmack](https://blog.customodal.com/tag/carmack)
- [central wisconsin manufacturing](https://blog.customodal.com/tag/central-wisconsin-manufacturing)
- [cheap logistics](https://blog.customodal.com/tag/cheap-logistics)
- [china](https://blog.customodal.com/tag/china)
- [choose local](https://blog.customodal.com/tag/choose-local)
- [cip](https://blog.customodal.com/tag/cip)
- [coronavirus](https://blog.customodal.com/tag/coronavirus)
- [covid19](https://blog.customodal.com/tag/covid19)
- [cpt](https://blog.customodal.com/tag/cpt)
- [ctb](https://blog.customodal.com/tag/ctb)
- [cybersecurity](https://blog.customodal.com/tag/cybersecurity)
- [dan hendrickson](https://blog.customodal.com/tag/dan-hendrickson)
- [dap](https://blog.customodal.com/tag/dap)
- [dayton freight](https://blog.customodal.com/tag/dayton-freight)
- [ddu](https://blog.customodal.com/tag/ddu)
- [diy shipping](https://blog.customodal.com/tag/diy-shipping)
- [double brokering](https://blog.customodal.com/tag/double-brokering)
- [e-commerce](https://blog.customodal.com/tag/e-commerce)
- [ebol](https://blog.customodal.com/tag/ebol)
- [exporting](https://blog.customodal.com/tag/exporting)
- [factoring](https://blog.customodal.com/tag/factoring)
- [freight damage](https://blog.customodal.com/tag/freight-damage)
- [freight jobs](https://blog.customodal.com/tag/freight-jobs)
- [freightforwarding](https://blog.customodal.com/tag/freightforwarding)
- [from the forest](https://blog.customodal.com/tag/from-the-forest)
- [fuel surcharge](https://blog.customodal.com/tag/fuel-surcharge)
- [fulltruckload](https://blog.customodal.com/tag/fulltruckload)
- [glossary](https://blog.customodal.com/tag/glossary)
- [holiday shipping](https://blog.customodal.com/tag/holiday-shipping)
- [how to switch ltl](https://blog.customodal.com/tag/how-to-switch-ltl)
- [importing](https://blog.customodal.com/tag/importing)
- [inboundfreight](https://blog.customodal.com/tag/inboundfreight)
- [industry 4.0](https://blog.customodal.com/tag/industry-4-0)
- [insurance](https://blog.customodal.com/tag/insurance)
- [insurance claim](https://blog.customodal.com/tag/insurance-claim)
- [last mile](https://blog.customodal.com/tag/last-mile)
- [location](https://blog.customodal.com/tag/location)
- [logistics coordinator](https://blog.customodal.com/tag/logistics-coordinator)
- [low cost shipping](https://blog.customodal.com/tag/low-cost-shipping)
- [maritimeshipping](https://blog.customodal.com/tag/maritimeshipping)
- [michael standley](https://blog.customodal.com/tag/michael-standley)
- [mycarrier](https://blog.customodal.com/tag/mycarrier)
- [newsletter](https://blog.customodal.com/tag/newsletter)
- [non-performance refunds](https://blog.customodal.com/tag/non-performance-refunds)
- [ocean shipping](https://blog.customodal.com/tag/ocean-shipping)
- [onboarding](https://blog.customodal.com/tag/onboarding)
- [our values](https://blog.customodal.com/tag/our-values)
- [outboundfreight](https://blog.customodal.com/tag/outboundfreight)
- [outsource](https://blog.customodal.com/tag/outsource)
- [overview](https://blog.customodal.com/tag/overview)
- [pallet](https://blog.customodal.com/tag/pallet)
- [pandemic](https://blog.customodal.com/tag/pandemic)
- [parcel audit](https://blog.customodal.com/tag/parcel-audit)
- [parcel refunds](https://blog.customodal.com/tag/parcel-refunds)
- [parcel shipping](https://blog.customodal.com/tag/parcel-shipping)
- [partnership](https://blog.customodal.com/tag/partnership)
- [permits](https://blog.customodal.com/tag/permits)
- [predications](https://blog.customodal.com/tag/predications)
- [purchasing management](https://blog.customodal.com/tag/purchasing-management)
- [questions](https://blog.customodal.com/tag/questions)
- [reshoring](https://blog.customodal.com/tag/reshoring)
- [risk management](https://blog.customodal.com/tag/risk-management)
- [rose george](https://blog.customodal.com/tag/rose-george)
- [routing guide](https://blog.customodal.com/tag/routing-guide)
- [save time](https://blog.customodal.com/tag/save-time)
- [sea freight](https://blog.customodal.com/tag/sea-freight)
- [seafreight](https://blog.customodal.com/tag/seafreight)
- [shipment](https://blog.customodal.com/tag/shipment)
- [shipping 101](https://blog.customodal.com/tag/shipping-101)
- [shipping clerk](https://blog.customodal.com/tag/shipping-clerk)
- [shipping costs](https://blog.customodal.com/tag/shipping-costs)
- [skid](https://blog.customodal.com/tag/skid)
- [staff](https://blog.customodal.com/tag/staff)
- [standley](https://blog.customodal.com/tag/standley)
- [supply chain resilience](https://blog.customodal.com/tag/supply-chain-resilience)
- [team](https://blog.customodal.com/tag/team)
- [testimonial](https://blog.customodal.com/tag/testimonial)
- [trade show shipping](https://blog.customodal.com/tag/trade-show-shipping)
- [transportation](https://blog.customodal.com/tag/transportation)
- [transportation management](https://blog.customodal.com/tag/transportation-management)
- [truck broker](https://blog.customodal.com/tag/truck-broker)
- [truckload specialist](https://blog.customodal.com/tag/truckload-specialist)
- [ups shipping](https://blog.customodal.com/tag/ups-shipping)
- [yellow](https://blog.customodal.com/tag/yellow)

#### Recent Articles

[ How Manufacturers Can Lower LTL Costs Without Hurting Service ](https://blog.customodal.com/how-manufacturers-can-lower-ltl-costs-without-hurting-service)

[ When Should Manufacturers Rebid Freight Contracts? ](https://blog.customodal.com/when-should-manufacturers-rebid-freight-contracts)

[ LTL vs Truckload: Which Is More Cost-Effective for Manufacturers? ](https://blog.customodal.com/ltl-vs-truckload-which-is-more-cost-effective-for-manufacturers)

[ How to Audit Your Freight Spend in 30 Days ](https://blog.customodal.com/how-to-audit-your-freight-spend-in-30-days)

[ Contract Freight vs Spot Freight for Manufacturers ](https://blog.customodal.com/contract-freight-vs-spot-freight-for-manufacturers)

[** PREVIOUS ARTICLE ](https://blog.customodal.com/freight-management-those-who-keep-control-keep-the-money)

[ NEXT ARTICLE ** ](https://blog.customodal.com/eliminating-hidden-inbound-outbound-freight-costs-profitability)

[Customodaladmin](https://blog.customodal.com/author/customodaladmin) May 13, 2020

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![“Freight Shipping Leverage is Only for Large Companies” and Other Myths](https://blog.customodal.com/hubfs/Imported_Blog_Media/once-upon-a-time-719174_1920-scaled-1.jpg)

When a large company gains the sophistication to dictate the details of freight shipping from a supplier, it’s a good bet that they have negotiated rates with carriers they know are better than they could get in a prepay/add scenario. It’s also likely that they put some thought into who that carrier should be. None of this happens by itself, but thanks to the resources of TForce Worldwide and Customodal, the following ingredients could be added to ABC’s knowledge base to reduce their transportation spend.

## **Sometimes Too Many Choices are Too Many**

Initially, ABC Manufacturing did not have negotiated volume rates in place with the carrier group they established.  They also did not direct vendors which carrier to use, instead, instructing the vendor to choose a carrier from the approved list. ABC assumed that the vendors would check which carrier on the list was best for that shipment and make the right choice for ABC (which they didn’t). They most often chose instead the carrier the vendor “liked” the most, assuming all the carriers were about the same (which they aren’t).

## **The Benefit of the Online Portal for Freight Shipping: Data. Data. Data.**

When ABC’s large customers dictated freight shipping to them; they also required our client to enter shipment details to their system online to facilitate shipment visibility and data collection. Our client had no online system for their own vendors to access, hence no visibility of shipments and no worthwhile cost data on shipments on which to build a knowledge base.

Having a thorough database in one accessible location that provides all the pertinent data for each shipment over a given period is a tremendous asset when it comes to choosing the carrier for tomorrow’s shipment. Without historical data to guide future buying decisions, shipping departments are flying blind with every carrier they choose. 

It’s not just about the price, either. Damage claims, on-time pickup, and on-time delivery carry equal weight in good buying decisions. If a carrier has a history of late delivery, they disqualify themselves from being chosen for a time-sensitive delivery no matter how inexpensive they are. But those without the data set that shows those trends will not always make the right carrier decision.

## **Minimizing Risk, Deferring Responsibility**

When ABC’s large customers negotiated the terms of sale and the subsequent shipping procedures, they set terms that kept responsibilities for the freight in ABC’s lap. Only when the product arrived at their dock did they become legal owners—meaning shipping damage was still ABC’s problem. That seemingly small nuance cost money and time whenever there was freight damage—and it was ABC’s responsibility to deal with it. It’s an easy distinction to miss, but Customodal quickly implemented new shipping terms for all of ABC’s inbound shipments.

But there is only so far a company can go without leverage. It was admirable that ABC had a list already developed for preferred vendors. Still, even at that, they were receiving very little of the real financial benefit of controlling their shipping. Customodal changed that by reengineering their vendor list, controlling the carrier decision, and bringing considerable leverage to bear for ABC.

## **Building the Ideal Freight Shipping Model for Small- to Mid-Sized Companies**

Utilizing Customodal’s inbound freight program, which is modeled after the best practices of large successful companies, we partnered with ABC to streamline and optimize their inbound freight program with an eye on three significant improvements.

First, Customodal developed a baseline sample of inbound shipment data with carrier and cost components. This provided an initial data set from which ABC’s cost history could be benchmarked and from which Customodal could build.

Next, the Customodal team ran that baseline through our proprietary rating model to identify carrier and rate optimizations.  From that, a revised carrier list was established that included all pertinent values and priorities set by ABC.

Lastly, we collaboratively developed a letter to ABC’s vendor-base informing them of new procedures for inbound freight.  These new procedures dictated to vendors how freight would be shipped, optimized the rate/carrier selection to take advantage of our volume rates, and captured all shipments into our TMS for full client visibility, as well as data capture.  

The implementation of this phase took 60 days, targeted only vendors who were generating freight bills on our client’s account, and resulted in immediate cost improvements while decreasing freight damage incidence. Read [Discovering, Mapping and Eliminating Hidden Freight Costs to Enhance Profitability](https://customodal.com/blog/eliminating-hidden-inbound-outbound-freight-costs-profitability) for more details.

After this trial, the savings were encouraging, and the time commitment reduced considerably. ABC commissioned Customodal to employ their newly developed Freight Model throughout their entire inbound and outbound freight shipping costs.

[Inbound-Outbound Freight](https://blog.customodal.com/tag/inbound-outbound-freight) [Blog](https://blog.customodal.com/tag/blog) [Featured](https://blog.customodal.com/tag/featured)

## Related Articles

[![Spot vs. Contract Rates in LTL Truckload Shipping](https://blog.customodal.com/hubfs/Imported_Blog_Media/spot-vs-contract-rates-ltl-shipping.jpg) ](https://blog.customodal.com/spot-vs-contract-rates-in-ltl-truckload-shipping)

## [Spot vs. Contract Rates in LTL Truckload Shipping](https://blog.customodal.com/spot-vs-contract-rates-in-ltl-truckload-shipping)

 In the complex world of LTL (Less Than Truckload) shipping, businesses are often confronted with the choice between Spot and Contract rates. These...

[Read More >](https://blog.customodal.com/spot-vs-contract-rates-in-ltl-truckload-shipping)

[Mike Eberl](https://blog.customodal.com/author/mike-eberl)

 Jan 2024

[![How to Save on Inbound Freight if you are a Manufacturing Company](https://blog.customodal.com/hubfs/save-on-inbound-shipping.webp) ](https://blog.customodal.com/how-to-save-on-inbound-freight-if-you-are-a-manufacturing-company)

## [How to Save on Inbound Freight if you are a Manufacturing Company](https://blog.customodal.com/how-to-save-on-inbound-freight-if-you-are-a-manufacturing-company)

 Save on InBound Freight Customodal works with a wide variety of manufacturing companies, helping them to save on inbound freight. Inbound freight...

[Read More >](https://blog.customodal.com/how-to-save-on-inbound-freight-if-you-are-a-manufacturing-company)

[Customodaladmin](https://blog.customodal.com/author/customodaladmin)

 Mar 2022

[![How Customodal Can Help Shipping Clerks](https://blog.customodal.com/hubfs/Imported_Blog_Media/how-we-help-shipping-clerks-e1692987879910-1.jpg) ](https://blog.customodal.com/how-customodal-can-help-shipping-clerks)

## [How Customodal Can Help Shipping Clerks](https://blog.customodal.com/how-customodal-can-help-shipping-clerks)

 We Help Shipping Clerks Succeed A lot goes into international shipping and a shipping clerk is therefore an integral part of any manufacturing...

[Read More >](https://blog.customodal.com/how-customodal-can-help-shipping-clerks)

[Customodaladmin](https://blog.customodal.com/author/customodaladmin)

 Mar 2021

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