Transportation is more than simply delivering items from point A to point B. It is a complex industry that requires technology, careful management and strategic thinking to successfully meet customers’ increasing demands. Now more than ever, shippers are expected to deliver items faster, at lower costs and with greater visibility throughout the process. This pressure has brought innovation and optimization into the spotlight.
However, new solutions and technologies are often a large investment and can be difficult to justify for a shipper, requiring organizations to leverage a 3PL’senterprise agreements and expertise to deploy a high-performing network with accelerated speed to value. To remain equal with their peers, it is critical for organizations to make decisions based on current market intelligence and focus on efficiencies. Below are three key areas for effective transportation management:
With the industry experiencing an extremely volatile freight market due to volume fluctuations, increased regulations and continued driver shortages, shippers need benchmarking to know that they are buying capacity at the market rate. This is essential to provide insights on how their rates compare as the market swings. To successfully manage transportation costs companies must:
• Be Proactive: Rather than being in a reactive “firefighting” mode to address daily customer pain points, adopt a more strategic approach by evaluating areas for improvement either from a cost position or supply chain performance perspective.