When it comes to transport management, there can be many deficiencies which could be affecting your bottom line. The inevitable consequences of these could be costing you unnecessary expenses and could even result in the loss of business. There are a number of strategies which can be implemented by management to help reduce these risks. Here are some important ways in which the risk of these problems could be reduced, providing you with more time and money.
1. Strategic Carrier Management
Your management system should ensure that the best transport methods are being used at all times. This entails the reduction of transport costs with activities such as reducing the amount of carriers present in the logistics process. For example, the system might use the most cost effective carriers for each route, however the costs occurred in the overall process might become high. By synchronising costs with the use of fewer carriers, the large amount of work provided to each carrier will result in lower overall costs. This way, shipments can also be consolidated, saving you even more transport cost. Extra time and thought should be given to ensure the right carrier, at the best price, is being utilised.
2. Informed Service Estimates
Fully understanding and being realistic about your customer service requirements is something to re-evaluate often. While customers needs change, your business should follow. For example, if you customers do not expect your products or services to arrive within the week of order, you should not incur cost in order to deliver within 3 days. You should attempt to best match consumer expectation with delivery time, as this can save you transport costs.
3. Carrier Criteria and KPI’s
Don’t allow for miscommunication of expectations to happen between you and your carriers. By mapping out the expectation, fees and services for both parties, you can save yourself the risk of spending 25% or more on transport. A good means of doing this is by setting up measurable KPI’s to track the carriers performance. This will help you to have more control over the entire process, and ensure that you always meet your transport goals.
4. Transport Management Software System
The overall theme within these tips is that a proper transport management is vital. Using a software system that can provide all your transport management needs can reduce many of the risks usually involved in this area of the supply chain. Dovetail Business Solutions specialises in providing this exact technology, to help your business increase logistics management efficiencies, affordability and to optimise the transport management processes. View our Transport Management Solutions or Contact us to solve all your logistics problems today.