Posted on January 23, 2019
As we begin the new year, now is the perfect time to establish a list of supply chain goals you'd like to accomplish for 2019. Let’s say you’d like to reduce transportation costs by 10% in the next 12 months. How would your organization even begin to achieve this goal?
An excellent place to start would be to track the performance of your carriers using Key Performance Indicators (KPI’s). Your freight data holds many secrets. Through them you can identify your top performers using metrics such as on time pickup/delivery rates, total transit time, and spend per carrier. Furthermore, this data can be drilled down to monitor execution on your key lanes – those routes which matter the most, for example from the warehouse containing raw materials to a main production facility.
Another goal would be to implement Transportation Management Software (TMS) into your everyday logistics operations. The old-school days of picking up the phone to call your carriers individually for a quote and waiting hours or days are over. The KPI’s mentioned earlier give your organization leverage to negotiate the best possible rates with your providers, which can then be loaded into a user friendly TMS. From there, you can instantly gather a quote from your carriers then decide which one to use based on price, available capacity, and estimated lead time. Tendering the shipment itself is as easy as a click of a button. Additionally, a fully functioning TMS will allow you to track your load in real time and verify delivery.
Finally, after your shipment is complete, it’s time to pay the bill. Is there an opportunity for savings here as well? Of course! Having your freight invoices audited ensures you are only being charged for the services you’ve received at the agreed upon rates and not a penny more. Think of all the times you’ve simply paid the bill in front of you without examining the details. Did the billed rate exactly match that quote you received a few weeks ago? Were you mistakenly charged an accessorial such as a lift gate or residential delivery fee? Did the carrier charge you for the correct dimensional weight and freight class?
These are just a few processes that can be implemented to achieve full supply chain visibility and get your organization on the path to savings. For over 25 years, Allyn International has been an industry leader in providing Logistics and Trade Compliance solutions for the business marketplace. Our dedicated team consists of over 400 worldwide, and we conduct business in more than 20 languages with extensive experience in both developed and emerging markets. Our Highly trained experts are positioned throughout North and South America, Europe and Asia. For more information on adopting these processes and more into your organization, call us at (239) 489-9900 ext. 1445.
Contributor: Richard Singh
About Allyn International
Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.