The global supply chain undergoes a marked shift in standards and expectations for efficiency in the wake of the pandemic. And no supply chain, not even the U.S. Department of Defense, is immune to the effects. There is a clear need to strengthen supply chain resiliency and flexibility to hold back the disruptions of both today and tomorrow. And as the world watches the U.S. election results unfold, it’s still time to think about uncertainty and how to build a better supply chain mousetrap. Fortunately, multimodal shipping is one-way shippers can achieve that goal and unlock renewed viability in existing networks and operations. To that end, this white paper will help with understanding multimodal, including an in-depth discussion of the following:
Multimodal shipping represents how companies can find new value within their supply chains and augment efficiency without dramatically increasing landed costs. While multimodal continues to change in the wake of disruption from the pandemic this year, interest in new shipping strategies has exploded. The supply chain has been suffering due to the growing conglomerates like Walmart and Amazon, that other companies have had to get creative with their cost reductions and their spending. One of the ways to do this is by integrating multimodal capabilities into the basic freight transportation strategy. Companies must precisely understand what multimodal logistics are and how they work for companies evaluating which shipping methods have the most significant benefits.
The first step to understanding multimodal transportation and shipping is knowing what it means and what it entails. Multimodal shipping is using different methods of shipping that are all coordinated under the same carrier. That method helps eliminate any other middlemen associated with coordinating other transportation methods being outsourced each time. As a result, shippers can save time, money, labor, and other resources.
Multimodal freight management and transportation also drive down individual costs associated with freight transportation, such as freight spending. When implemented correctly, multimodal shipping can reduce most shipping costs. Because it reduces the need to outsource to multiple carriers, multimodal shipping inherently keeps volume discounts and guaranteed capacity at their peaks. As a result, carriers are more likely to offer more competitive rates and prioritize a freight shipper. As explained by Jeff Berman of Logistics Management, the “economy relies on domestic and international freight making its way through our ports, railways, and intermodal hubs, which serve as gateways to the global marketplace for American farmers, manufacturers, and consumers. In the US, our freight network moves 49 million tons of goods every day, which is worth more than $52.5 billion.” While rail is usually viewed as an intermodal freight aspect, its introduction into new legislation means a significant improvement in the US’s overall infrastructure. Thus, more companies will look to take advantage of tax incentives or benefits with multimodal transportation. Also, multimodal usually results in a lower carbon cost for shipping too. Therefore, it provides immense benefits to both the companies and communities as well.
There are many ways companies can apply multimodal transportation to increase efficiencies. And like most other transportation management advancements, they surround the value of technologies and data in modern logistics. And a few tips for applying multimodal shipping to increase freight management efficiency include:
One of the more critical steps to apply multimodal shipping is utilizing a TMS appropriate for your business. The right TMS will consolidate the software and paperwork, creating a more user-friendly experience that improves work. It also reduces labor costs by eliminating a lot of back-of-office paperwork and errors.
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