It’s 2018 and we are in the middle of a capacity crunch. With more loads than drivers currently on the road, now is the time to examine your inbound freight management and assess whether you are effectively managing your supply chain.
To help you re-evaluate your supply chain activities, here are four tips to help you manage your inbound freight costs:
1. Clearly understand shipping instructions and payment responsibility prior to submitting a purchase order
Make sure all instructions and payment responsibility have been properly negotiated and submitted before creating your purchase order. By clearly communicating all agreed-upon information up front, you and your team will be able to avoid excessive costs and inefficiencies that occur due to miscommunication.
2. Take control of your inbound freight charges
Because the party responsible for freight charges has control over your shipment's route, you typically want control over shipping, handling and processing fees. There are some vendors that use freight control as an added revenue stream, meaning that you could be paying above fair market rate for that service. Partnering with a 3PL like Ascent Global Logistics helps you take control of your inbound freight by implementing vendor compliance programs and providing technology to ensure visibility to the best rate, route and mode.
3. Avoid using “BEST WAY” as a shipping instruction
Shipping freight requires several complexities such as economy, delivery time and risk of damage. The “best way” usually is the most inexpensive, which does not necessarily mean greatest value when it comes to delivery of your freight on time and intact.
4. Place shipments with your vendor with plenty of load time
Planning ahead will allow you to save time and money on your shipments. High traffic, weather and breakdowns can wreak havoc on your shipments and your wallet, particularly when everyone is trying to ship at the end of the month.
How can I use these tips to improve my supply chain?
Ascent Global Logistics is always here to answer any further questions you may have about effectively managing your inbound freight costs. Please contact us today or speak directly to your Ascent Global Logistics representative.
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