Shippers are always looking for opportunities to easily reduce transportation spends. One of the best ways to drive logistics-related savings is by reviewing processes and using technology. Shippers who review supply chain processes and transportation performance, while taking advantage of historical and real-time data, will eliminate costs without an effect on efficiency. It’s important to define your logistics goals for a successful freight assessment.
7 Logistics Goals for Your Next Freight Assessment
Use the right mode
To find the best freight rates and service, figure out which transportation mode works best for your cargo. Choosing a mode is dependent on knowing your load size, freight volume, and specific regulations to discover whether you should use truckload shipping, LTL shipping, intermodal freight moves, or a mixture of those options.
Trucks carry more than 60% of the annual gross tonnage moved in the US.
Rail transport accounts for 37% of freight moved between 750 and 2,000 miles.
Assess carriers
Think about the lanes you use to move your freight. If you can provide carriers with a backhaul opportunity, you’re likely to receive a discount. If you operate with multiple DCs and a high concentration of customers in a specific area, you might want to vet regional carriers who provide broad schedules for pick-up and delivery.
Carriers respond to as few as 20% of the tenders they are invited to participate
Review the BOL
An inaccurate bill of lading creates extra costs and losses. Shippers can avoid the most common mistakes by correctly and specifically describing the freight and freight count, communicating with the carrier about shipment requirements, and providing accurate contact information and service numbers.
Avoid accessorial charges
Carriers charge accessorial fees because it allows baseline service rates to remain competitive. Some common accessorial fees include reweighing costs, redelivery fees, limited access fees, and lift-gate fees. Having these additional costs can greatly increase your spend, but you can reduce or avoid these charges by checking the carrier’s rules tariff, using a TMS, and disclosing the special service charge upfront.
Plan ahead
Forecasting helps you develop a custom transportation strategy so that you can avoid paying extra for expedited shipments or light loads. When you know the demand for your product, you can work to improve lead time and transport consistency.
51% of companies ranked forecast accuracy and demand variability as the top obstacles to achieving supply chain goals.
Implement a TMS
Companies that rely on manual processes are more likely to create a costly mistake. A transportation management system automates routing, scheduling, and reporting while effectively moving freight from its origin to destination. A TMS’ functionality is to reduce spend by developing insight into performance and costs.
57% of chief executives ranked supply chain optimization and traceability as the first priority for technology investment.
Bring in a 3PL
A 3PL enables companies to focus on core competencies, while everyday transportation operations are handled by the 3PL. 3PL optimizes logistics operations and continuously searches for new ways to reduce costs. Most logistics providers will collaborate with you to create visibility, improve processes and reduce spend.
72% of shippers are increasing their outsourced logistics services, and 78% of 3PLs have declared an increase in outsourcing among shippers.
