---
title: Your Inbound Freight Costs Are Siphoning Your Profit
description: Boost your bottom line with Customodal’s EXACT program. Learn about inbound freight cost management and debunk three common myths.
---

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# Your Inbound Freight Costs Are Siphoning Your Profit

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/3-reasons-an-ltl-freight-broker-is-a-worthy-investment)

[ NEXT ARTICLE ** ](https://blog.customodal.com/usmca-shipping-documents-101-what-changed-from-nafta-to-usmca)

[Customodaladmin](https://blog.customodal.com/author/customodaladmin) July 15, 2020

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Most companies already know the advantage of gaining control over outbound freight costs—low-hanging fruit for anyone wanting to save on their transportation spend. What is much rarer, is the company that understands the value of and takes control over their inbound shipping. Because inbound is mostly the responsibility of the purchasing department, quite often, it is just simpler to trust their vendors and carriers to choose the best freight option and “not get into it.”  In an era of calculating labor and raw materials down to seconds and thousandths, for many, inbound freight has somehow slipped through the watchful eye of cost analysis and is simply “added in” to COG and not *managed*  in COG. But just like any other cost, *inbound that is not controlled, ALWAYS costs more than necessary* . The truth is, nobody is going to care about your inbound freight costs unless you do.

## **The Difficulty of Managing Inbound Freight Costs**

For decades, inbound freight costs have lived in relative ambiguity, neatly tucked away in invoices or built into the cost of raw materials. Rarely challenged and even less often, controlled, inbound freight has been lost in the supply chain and is often simply line-itemized as a percent of raw materials cost—inaccurate at best. In other words, inbound freight costs are possibly the last frontier in cost-control because few have taken the time to demystify it, attack it, and manage it. ***“…like any other cost, inbound that is not controlled, ALWAYS costs more than necessary.”***

## **Inbound Control Demystified**

So how, in this era of controlling material and labor costs, has inbound freight somehow gotten a pass? The reason: most think it’s too difficult to control, and it is easier to assume the vendor and the carrier have the customer’s best interest at heart. Even in the most utopian business world, that is not very likely.  The following are three big myths about inbound freight costs. **Myth #1: “Company A” Solved Inbound Overcharge by Mandating Their Routing Guide** The Routing Guide is lots of work to maintain and is outdated the next day after it is completed. Typical Routing Guides are based on data that is 12-18 months old and were the best option for shippers to use in controlling their freight costs— *twenty years ago* . Today, not so much. **Myth #2: “Company B” Gets Best-Pricing by Funneling All Freight to One Carrier** While there is such a thing as volume pricing, there is *no such thing*  as a single carrier (or even a group of two or three) having the best rates for every route and shipment. The only way to reduce overall freight costs is to evaluate shipping costs—for every shipment continually. Once upon a time, that was a difficult task. **Myth #3: “Company C” Figures the Staff Time Spent Gaining Control of Inbound Would Offset any Savings** Twenty years ago, this was true. Today it *couldn’t be further from the truth* . Controlling inbound without professional tools is like mowing your lawn with hand clippers. It can be done, but there’s now a better way to do it. And herein lies the real secret to inbound control. In the past, the task of gaining control of inbound freight was slow and arduous at best. Efforts like Inbound Routing Guides were an attempt to gain some amount of control, but the reality was the keys to inbound were locked away, hidden from the eyes of shippers hungry to save on freight.  ***“Controlling inbound without professional tools is like mowing your lawn with hand clippers. It can be done, but there’s now a better way to do it.”***

## **Controlling Inbound Freight Costs is Easy with the Right Tools**

In the last five years, logistics has become one of the most data-driven industries in the business world, but data that was still closely held by carriers and institutional 3PL’s. That is until a new breed of customer-centered Third-Party Logistics providers (3PL’s) changed the playing field for savvy shippers. Through their partnership with TForce’s TForce Worldwide, customer-centric 3PL provider **Customodal**  is able to provide companies with pricing, routing, and transit information for up to 20 carriers simultaneously. We use an online portal where a shipment can be entered, evaluated, and booked in under two minutes.  **Customodal’s ** [***EXACT Program***](https://customodal.com/exact-inbound/)  enables companies to gain near-complete control of all inbound with minimal training. The ability to control the most favorable cost/route/time options, gain near real-time tracking, audit past shipments, limit carrier options—all with the click of a mouse—enables purchasing departments to look more deeply than ever into their inbound costs.

## **Customodal’s *****EXACT*****: The Routing Guide for the 21****ST**** Century**

Perhaps the best feature of ***EXACT***  is that, just as the old Routing Guide was given to vendors to book freight, the ***EXACT***  portal is instead given to vendors for freight booking, enabling purchasing departments to maintain control over carriers. It removes the matter of having to deal with the daily booking of shipments. No additional staff time. Lower inbound cost. Exact numbers for COG. And more money to the bottom line thanks to better inbound pricing.

### **It’s Good to be *****EXACT***

So the last frontier of precision cost control—inbound freight costs—can now be harnessed, understood, evaluated, and managed. True COG can now be fully known, a real-time (and lower) freight number can be line-itemized, and most importantly, the real cost of doing business with specific raw materials vendors can be compared and evaluated. With ***EXACT*** , purchasing departments can now know their numbers completely and with precision, enabling better purchasing decisions and lower COG. Customodal is a new breed of innovative 3PL’s primarily serving the Manufacturing sector with a full menu of Logistics services for over 15 years. For more information about Customodal and their ***EXACT***  inbound service, click Customodal.com or dial 800-445-6577.

[Blog](https://blog.customodal.com/tag/blog) [inbound freight costs](https://blog.customodal.com/tag/inbound-freight-costs)

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## [Cost vs. Value: Finding the Right Logistics Solution for Your Business](https://blog.customodal.com/cost-vs.-value-finding-the-right-logistics-solution-for-your-business)

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## [Keep Your Carrier, Cut Your Costs](https://blog.customodal.com/keep-your-carrier-cut-your-spend)

 Keep Your Carrier, Cut Your Costs Discover Deeper Savings and Greater Control Over Shipping. It takes effort to find vendors who “check all the...

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

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## [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...

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 Jan 2024

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