Major trends continue to influence the state of logistics. According to John Schultz of Logistics Management, US logistics costs rose more than 11% through 2018, and they allude to a year of continued growth throughout 2019. Such costs amount to 8% of gross domestic product (GDP), and shippers are scrambling to find ways to keep costs under control. To maintain profitability and reduce freight spend, shippers need to rethink their freight carrier management strategies, considering the challenges of traditional freight management, why modern, innovative systems can help and apply a few best practices.
Traditional logistics management involved a complex process that relied on manual activities. Freight was tendered through paper-based systems, and shippers lacked real-time access to freight rates. Latency in freight quoting amounts to higher costs, not to mention losses and efficiency. Part of the problem derives from a lack of information about what to expect within the supply chain. Carriers can only plan for what they know, and while the use of data can improve demand forecasting, data grows in value as its volume increases. It can be a confounding principle, but the truth remains.
Modern shippers and carriers have significant advantages through the use of technology and data. While problems remain in those operating with paper-based systems, evolving supply chain processes and practices to reflect the 21st century opens the door to new possibilities. For example, shippers and carriers can collaborate more efficiently, plan for demand, lessen reactivity, and transition to a proactive freight management approach.
Think about it; carriers have an interest in knowing what to expect. If shippers leverage advanced systems to connect with carriers, carriers can apply more data to manage their operation better. As a result, the inefficiencies found within a traditional logistics management approach decline.
It can be challenging to identify the best way to keep carrier management at the forefront of all interactions. In today’s world, new systems are continuously evolving, promising better savings, more profitability, and happier customers. To achieve these goals, enterprises need to follow these best practices:
Freight carrier management can help shippers reclaim control over their operations and keep freight spend in check. Those that have experienced trouble when communicating or work working with carriers should start by following the tips mentioned above, working to connect the supply chain, and learn more about what is happening, what may happen, and what needs to happen to achieve the best possible outcome. Of course, it also depends on choosing the right partner that has a proven history of improving freight carrier management.
Cerasis, operating as Logistics Management Services, hired its first key personnel, Amy Cook, in Houston, Texas, to handle freight carrier management relations and freight management services such as claims, quotes, and Truckload freight brokering. Also in Houston, Steve Norall leads the sales efforts to acquire new LTL, TL, and small package freight shippers.
At this time, Steve Ludvigson oversees the operations side of the company as CEO and COO in Eagan, MN, overseeing invoicing and freight payments.
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