Freight Cost Management and Optimization Strategies in Small and Medium Engineering Enterprises: A Study in Coimbatore District

Freight cost optimization has become a critical concern for engineering good SMEs due to rising transportation charges, fuel price fluctuations and increasing services expectations. This study investigates the key logistics factors influencing freight cost optimization among SMEs in Coimbatore. Freight cost optimization is treated as the dependent variables while transportation mode selection, shipment consolidation, route planning and network design, carrier selection and contract management and packaging and load optimization are considered as independent variable. Data is collected through a structured survey from engineering goods SMEs and analysed using statistical methods to examine the relationship between logistics practices and cost performance. The results highlight that SMEs adopting structured route planning, effective shipment consolidation and strategic carrier contract managements achieve better cost control and delivery efficiency. The study contributes by offering a practical cost optimization framework for SMEs and supports the need for improved logistics planning and technology adoption in regional manufacturing clusters.