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What are the benefits of managing “Inbound Freight” vs. buying product FOB our door?

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What are the benefits of managing “Inbound Freight” vs. buying product FOB our door?

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Volume drives pricing. Our experience has shown we are able to reduce our customer’s transportation cost and the cost of their raw materials by managing their inbound purchases. The supplier either provides you with a freight allowance that is much too low or they increase what they tell you it will cost to ship the product and that is added to your cost of materials purchased. We encourage our customers to always obtain two prices: one delivered and one will call. This allows us to know what the anticipated freight cost is and we work from there.

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