Freight management refers to the entire process of organizing and scheduling inbound and outbound shipments. It covers a number of processes that go into moving goods throughout the supply chain, from the moment a product is packaged to the moment it arrives at a retail location or the customer’s doorstep. Freight management covers a range of topics, including:
Freight management is how businesses manage the transportation of raw materials and finished goods. Many businesses turn to managed logistics provider to manage this critical function. Partnering with a logistics service provider (LSP) can free up valuable resources within your business so that they can be allocated to more strategic, value-driving activities, not the day-to-day hassles of transportation and logistics. Partnering with a 3PL or 4PL provider gives you:
● Better flexibility and technology — As your business scales, so must your freight management, and a logistics provider has the flexibility to seamlessly increase capacity without any additional capital investment. They also give you access to years of industry knowledge and the latest TMS and integration technology.
● Time to focus on other parts of the business – Resources and time that would have been spent on logistics and shipping can be allocated elsewhere, like establishing winning new customers and deepening existing customer relationships.
● Reduced costs – The ROI from outsourcing freight management comes from leveraging the provider’s expertise in optimizing transportation planning, sourcing carriers, negotiating better rates, avoiding the cost of building and maintaining an internal logistics team, technology cost-saving, and reducing costs per shipment through consolidation.
● Improved customer service — All it takes is one late or incorrect shipment to permanently damage customer goodwill. Repeated mistakes and preventable errors mean customers will look elsewhere despite superior quality or advantageous pricing.
● Visibility – Leveraging a modern, fully-integrated TMS creates unprecedented visibility to data across disparate systems, locations, and business units, arming you with the insights you need to make timely and informed business decisions.
● Transparency – TMS systems allow you to track shipments in real-time, providing up-to-the-minute updates on the status of shipments in transit that you can help you keep customers apprised of delivery times.
The signs that a business needs the help of a 3PL will vary depending on the business and the industry they are in. However, here are some common ones to look out for:
From flat rates to per-item models, logistics companies all charge for services in different ways. Some of the standard freight management costs that come with 3PL/4PL services include:
while in the hands of the shippers. The best logistics providers will include filing freight claims and dispute resolution into their service fees.
3PL and 4PL providers deliver the technology, industry experience, and carrier contacts to reduce costs and streamline processes. The best strategy to save you money and improve your shipping comes through a well-thought-out strategy.
If you don’t have the time or capacity to accomplish this, then outsourcing is the next best choice, especially if your business is undergoing rapid growth, planning to expand into new markets or product lines, or is involved in mergers and acquisitions of other companies. There are many benefits that come with using freight management services. Here are some of the most significant ones:
This complete guide to freight management is intended to show managed transportation services as something any business of any size can benefit from. Sheer Logistics is an experienced 3PL that uses technology and proven logistics best practices to provide outstanding supply chain management, freight audit and complete freight solutions for all our clients.
At Sheer,
We’re proactive – Using real-time data and business intelligence, we’ll analyze and boost virtually every aspect of your logistics network before challenges come up.
We’re not a carrier – That means zero conflict of interest. We’ll be your advocate in competitive bidding, ensuring you get reliable carrier capacity at the right price.
We do our homework – We assess your current technology and process flow so we can recommend improvements that save time and money.
Call us today for a shipping assessment and find out how a professional 3PL provider can revolutionize your supply chain.
4 Key Benefits of Outsourced Logistics Management