The data is not news to anyone involved in transportation logistics. Business logistics and transportation costs are rising at a quickening pace, especially for motor freight. The reasons are many – a driver shortage, the ELD mandate, the hot economy, trade wars and rising fuel costs. No matter what the reason, shippers must find ways to bend the cost curve for transportation logistics back downward amidst a very challenging environment. Here are some tips on how to leverage affordable technologies to do just that!
Highly Accurate Scheduling
Advanced scheduling features should be part of any superior TMS platform. Better scheduling of pickup/deliver appointments and dock door availability improves on-time performance and reduces dwell time for carriers who have their pick of shippers to pull for. Respecting their time with robust scheduling makes carriers more inclined to accept your tenders.
Efficient Private/Dedicated Fleet Management
CSCMP’s “2018 State of Logistics Report” notes that private/dedicated trucking set the pace with cost increases of 9.5% year over year. Superior TMS platforms deliver the ability to manage private/dedicated resources alongside common carriers and spot market carriers so planners can strategically determine the most appropriate, cost-effective mode for moving a shipment.
Powerful Optimization for Better Routing and Fewer Empty Miles
Matthew Kropp, a logistics tech company CEO recently said in a Transport Topics Op-Ed piece, “We can use technology to transform the current trucking ecosystem by significantly reducing the amount of empty trucks on the road.” Leveraging powerful algorithmic optimizers in logistics plans is proven to reduce empty miles and superior TMS solutions even provide a “proximity search capability” to help improve the identification of backhaul opportunities. More efficient routing helps carriers and their drivers be more productive and earn more; all of which makes you a more attractive shipper to work for. Plus it helps lower overall transportation costs.
Intelligent Settlement for Quicker, More Accurate Carrier Payments
Surveys of carriers and truckers indicate one of the top three factors impacting their business was receiving more timely payment from their customers. One way to achieve speedier settlement with your carrier base is to automate exception management using tolerances and allowances to avoid holding up invoices for the reconciliation of minor discrepancies like regular accessorial charges, tolls, etc. Not all TMS solutions support this time saving feature. But be sure that carriers know which ones do and which ones don’t!
Does your current TMS solution offer all these features and functions in a single application? Do you use disparate technologies – TMS, YMS, Scheduling Tools, Freight Payment/Audit – in an attempt to cover all these bases and lower transportation costs? Would you like to know more about a solution platform that delivers all these potent features and more to help bend the transportation cost curve down?