- by Best Inc.
- December 20, 2020
For any business that deals with having goods delivered by train, truck, plane, or ship, freight management is critically important. Having smooth freight management means that products are delivered to the right customers on time, in the right quantity, without damage, and at the lowest possible cost. To achieve this, freight managers should fully understand each cost component and constantly come up with the best strategies to deliver more efficiently while lowering overheads.
There are many variables involved that can affect the movement of goods from one place to another, which means that each fluctuating component of freight transportation has to be anticipated. These factors include demand changes, miscommunications, equipment breakdowns, urgent shipment, poor weather conditions, and human error. Planning ahead to manage these variables effectively is important in countering problems as they occur and minimize disruptions to operations. This will also lower overheads in the long run.
Managing Supply Chain and Freight Management Processes
You should start by assessing each component of your existing supply chain and identifying how and when issues usually arise. It is crucial to go over every variable at each phase because each element will affect the efficiency of your freight management processes. While doing so, track each cost component and figure out ways to decrease cost, which will lead to increased competitiveness and profitability.
Here are some of the most important elements that you should consider:
- Production forecasting and planning
- Raw material acquisition and freight
- Raw material inventory management
- Warehousing and inventory management
- Safety stock calculations
- Freight transit time
Partnering Relationships to Improve Efficiency and Lower Costs
Partnering relationships have a large impact on how smooth your freight management is, especially with regard to order accuracy, fast shipment, and costs. This is why it is important for businesses to only form partnering relationships with trustworthy and high-quality transportation and freight management companies. You should look out for companies that have a track record of being collaborative and communicative with their clients and are service-oriented. Having a scorecard to assess partners is a great way to choose reliable partners to collaborate with. Consider evaluating your partners by their on-time performance rate, safety record, and communication consistency.
Here at Best Inc., we understand how complicated freight management can be. This is why we provide cost-effective and fuss-free solutions to our clients so they can focus their efforts on other vital aspects of their businesses. By working with both domestic and local carriers, we are able to offer a full range of freight management services. If you are looking for a transportation and freight management partner for your business, you can trust us to be committed to providing you with the best service. Contact Best Inc. today for quotes and to find out how we can best support your business in freight management solutions.