How to Control Transportation Management Costs And Maximize Efficiency
Transportation management is a considerable cost for any manufacturer or retailer
In a highly competitive global environment, companies require nationwide transportation capabilities, including truckload, flatbed, less-than-truckload (LTL), and consolidation services. But, while all of these capabilities are important to growth, understanding exactly how each will affect your transportation management can be difficult.
So, we will reframe the choice of above solutions. Instead of seeing specific transportation capabilities, think of them as specific examples of cost vs. profits. The reason transportation methods matter is the total cost of transporting. Moving products from manufacturing facilities to warehouses, and between facilities and to distributors, can consume about 50% of your overall supply chain costs.
Now, let’s think of things on a much larger scale. When you add in the cost of international distribution or sourcing, logistic costs can escalate even higher. But, in a global economy, only working regionally can leave you at a great disadvantage.
With transportation costs consuming a considerable amount of the average logistics budget, companies understand that the key to mastering supply chain costs is to implement more efficient and cost-effective inbound and outbound transportation solutions.
Focus on transportation costs
Businesses continually evaluate
how to get their products from point A to point B to point C faster, to save money and to increase customer satisfaction levels. Consequently, “supply chain optimization and increased visibility”—as it relates to transportation management—has become a frequently repeated catchphrase across many industries.
Transportation management synchronizes a blend of mission-critical tasks, which include the following elements:
· Tracking warehouse operations
· Managing fuel costs
· Routing area selection
· Freight costs
· Warehousing communication
· Cargo handling
· Transportation management accounting
Find the solution
It is critical to have a comprehensive understanding of the movement of goods across suppliers, vendors and customers for maximum cost efficiency. Finding the right transportation management solution immediately adds value to your operations.
Many enterprises have made the decision to outsource the entire warehousing operations, or at minimum the transportation management functions, to third-party logistics providers.These firms have the expertise and network required to support warehousing
and shipping operation for all types of industries, including technology, automotive, retail, and industrial manufacturing distribution.
Whether you need more effective transportation management or a more comprehensive warehousing solutions, outsourcing can help you create efficient plans to reduce costs, improve on-time performance, increase customer satisfaction, and gain a competitive advantage.
If a third party logistics provider is an option, drop us a line. We’d love to talk to you and answer any questions.
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