hen companies look for opportunities to improve profitability, they typically focus on purchasing, labor, pricing and manufacturing efficiencies. Yet one of the largest expenses on many distributors’ and manufacturers’ financial statements often receives far less attention: freight.

During his presentation, “The Hidden Costs in Your Supply Chain,” at the 2026 IAPD Annual Convention in Atlanta, Brad Caplan of WerkAtlas, LLC challenged attendees to examine their freight and logistics operations, where overlooked costs can significantly affect profitability.

Drawing on his experience in supply chain management and the performance plastics industry, Caplan emphasized that freight may be functioning adequately while still costing companies considerably more than necessary.

Caplan identified freight invoice auditing as one of the most immediate opportunities to recover margins.

In many companies, freight invoices are processed by accounts payable personnel who verify that the billed amount matches the quoted rate but may lack the specialized knowledge to identify questionable charges. A $35 liftgate fee or residential delivery surcharge may appear legitimate and get paid without anyone determining whether the service was necessary.

Caplan encouraged companies to assign responsibility for auditing freight invoices to someone who understands carrier pricing, accessorial charges and shipping requirements. Every additional fee should be reviewed and challenged when appropriate.

For performance plastics companies, overlength charges are particularly significant. Shipping standard 4-by-8-foot sheets can trigger additional fees with some carriers, while 5-by-10-foot sheets are even more likely to incur substantial surcharges. Caplan noted that fees of $70 to $100 per shipment can quickly erode margins, particularly on smaller orders.

These charges are not necessarily fixed. Companies may be able to negotiate lower fees, obtain temporary waivers or select carriers with more favorable terms for oversized materials.

Another overlooked expense involves freight classifications for less-than-truckload (LTL) shipments. Caplan cautioned against automatically using the same freight class for every shipment simply because that classification has historically been entered into the system. Incorrect classifications can result in unnecessary costs, making periodic reviews essential.

Whether companies operate their own trucks, negotiate directly with carriers or use third-party logistics providers (3PLs), Caplan stressed that no single freight model is universally best.

The key is actively managing relationships and regularly evaluating costs and performance.

Companies that have maintained the same carrier or 3PL relationships for years may be paying significantly more than necessary, even when service levels remain satisfactory.

Caplan encouraged businesses to periodically benchmark freight rates, solicit competitive proposals and negotiate charges rather than automatically accepting annual increases.

He also highlighted opportunities in parcel shipping, where companies may qualify for better pricing through negotiated agreements or specialized providers with access to more favorable rates.

Rising diesel prices, labor costs and transportation capacity constraints are adding pressure to freight expenses. However, Caplan cautioned against assuming that every rate increase is justified by market conditions.

Companies can reduce costs by consolidating shipments, optimizing delivery routes and evaluating whether multiple LTL shipments moving in the same direction could be combined into more economical multistop truckload arrangements.

Caplan also emphasized the importance of understanding carrier liability and freight insurance. Standard carrier coverage may reimburse damaged or lost shipments based on weight rather than actual material value.

For example, a company shipping $60,000 worth of performance plastics could discover that its carrier’s standard liability coverage provides only a fraction of the shipment’s value. Caplan encouraged companies to understand their coverage limits and arrange supplemental insurance when necessary.

Proper packaging, accurate freight classifications and appropriate insurance are especially important when transporting high-value or oversized performance plastics.

Caplan’s overarching message was that freight management requires ongoing attention, accountability and expertise.

He encouraged executives to determine who owns freight management within their organizations, whether costs are being actively monitored and whether employees have the knowledge needed to identify opportunities for improvement.

For companies without dedicated logistics expertise, experienced external partners can provide valuable support.

Rather than viewing freight simply as an unavoidable cost of doing business, Caplan urged attendees to recognize it as an opportunity to protect margins, improve customer service and strengthen overall business performance.