Could your company benefit from improving your current transportation process? I’m sure you can agree that there is always room for improvement. In fact, shippers are always looking for opportunities to easily reduce transportation spend. Millennium Logistics Management is happy to share this article as a helpful guide which provides 5 ways to improve your transportation process!
One of the best ways to drive logistics related savings is by reviewing processes and using technology. In order to eliminate costs without an effect on efficiency, shippers must review their supply chain process and transportation performance (while taking advantage of historical and real-time data).
With that said, how exactly can you improve your transportation process? Let’s consider the following 5 points:
Bring in a Third-Party Logistics Company:
A third-party logistics company (such as Millennium Logistics Management) optimizes logistics operations successfully and continuously searches for new ways to reduce costs. They also make it possible for companies to focus on core competencies, as day to day transportation operations are handled by the third-party logistics company. Most logistics providers do a wonderful job in working with you to improve processes, create visibility and reduce spend.
Avoid Accessorial Charges:
In order for service rates to remain competitive, carriers charge accessorial fees. Examples of accessorial fees include limited access fees, re-weight costs, lift gate fees and re-delivery fees. Although incurring these additional costs can increase your spend significantly, you can reduce or even avoid these charges by checking the carrier’s rules tariff, disclosing the special service charge up front and using a TMS (Transportation Management System).
Implement a TMS:
Transportation management systems (TMS) are great because they automate scheduling, reporting and routine while effectively moving freight from its origin to its destination. These systems are designed to reduce spend by developing insight into performance and costs. Today, companies that rely on manual processes are more likely to create a costly mistake.
Use The Right Mode:
Figure out which transportation mode works best for your cargo in order to find the best freight rates and service. To accomplish this effectively, you must know your freight volume, load size and specific regulations to determine whether you should use truckload shipping, intermodal freight, LTL shipping (Less Than Truckload) or a combination of those options.
When assessing your carriers, think about the lanes you use to move your freight. For example, if you operate with multiple DC’s and a high concentration of customers in a specific area, you might want to consider regional carriers who provide broad schedules for pick-up and delivery. Ultimately, if you are able to provide carriers with a backhaul opportunity, you are most likely to receive a discount.
You are guaranteed to see improvements in your transportation process when you implement the 5 things discussed in this article. For additional information or inquiries about our services, please make sure to contact Millennium Logistics Management today!
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