It’s a fact: Many shippers are overspending. If you’re reading this, you may be worried that you’re one of them.
You may have heard the term “transportation optimization” thrown around as a solution. Transportation optimization involves the careful analysis of modes, carriers, distribution strategies, and routes to ensure the most cost-effective shipment possible. It sounds complicated — and it can be — but with the right knowledge and tools, it doesn’t have to be.
Like so many things in life, there are many ways to solve a problem. Let’s break down three different approaches to transportation optimization, so you can see how they’d work for you.
Devil, details… You know the saying. Here are some of the most basic steps you can take today to optimize your transportation strategy and reduce your freight spend.
First, let’s look at how you package your freight. Are there less costly packaging materials you could use? Or, less bulky materials? Is there room for your freight to shift in transit? The denser your freight, the lower your rates, the less your chance of damages, and the better your ability to find capacity.
By reviewing your carrier invoices, you can identify any unnecessary accessorial charges or inaccuracies, then work to eliminate them.
While accessorials like liftgate and inside delivery are helpful, they will bulk up your bills. If you can find a way to get rid of the accessorials you don’t really need, that’s money back in your pocket.
Carriers process thousands of invoices a day. So sometimes, mistakes slip through the cracks. Audit each invoice to avoid overpaying.
On the same note, work to prevent fees associated with shipper errors like incorrect freight classification (NMFC) or missed appointment times. For example, if your vendors are consistently unprepared for pickup, it will detain your carriers, and you will have to pay for their wasted time. Managing your vendors’ transportation to align with your needs isn’t easy, so getting assistance with your inbound freight management could earn a big return on investment.
Finally, make data-based decisions. While a transportation management system (TMS) streamlines transportation data analysis, you don’t need one to look at the recent feedback from your carriers. Taking some time to review transportation data could reveal areas where you can cut costs.
For example, say one of your regular shipping lanes has been plagued with delays in recent months due to construction. You should follow up with your carriers to see how you can make alternative plans to avoid that construction and reduce those costs in the short term.
Aggregation, pooling, continuous moves — these are just a few ways to get creative with your shipping strategy to find capacity and save time and money.
Learn more about creative strategies to optimize your transportation.