We all know that the end-goal of business is to make a profit. In most cases, running a business means paying overhead and operational expenses. Transportation costs are part of this mix, and smart managers will analyze their business operations for cost-saving opportunities.
Despite the desire to run an efficient shipping program, companies still have trouble controlling their transportation budgets.
So what is this money wasting practice that could be hurting your business?
In a nutshell:
Looking at transportation as a commodity instead of a partnership.
Here’s an example of what this means:
Say your company has established a relationship with a particular carrier who has guaranteed you the lowest shipping price. One day, a shipment is missed and your company is forced to find another carrier at the last minute. You send a message out to multiple brokers looking for a carrier to pick up the shipment.
Since market changes and government regulations have already tightened capacity, carriers are pitted against one another to fight for the load. Shippers get caught in the middle and end up paying more money. How? Because when a carrier is asked to move a shipment under a short time constraint, the ball is in their court and they have leverage to charge a higher fee. This hurts shippers financially and pollutes the market.
The bottom line is this:
There isn’t always a direct correlation between saving money and making money.
Many companies assume that saving money up-front will result in a better bottom line. The reality is that you will hit a few bumps in the road (pun intended). Trucks will break down. Shipments will get delayed. This is when you need a reliable provider to pull through for you – one that will go out of its way to ensure a safe, timely delivery of your shipment.
Third-party logistics providers cansave you hard and soft dollars as well as take away the headache of managing transportation. This allows the focus to be put back on your business!
Visit www.onestopshipping.com to learn more about partnering with a third-party logistics provider.