Read the original article at Inbound Logistics

The bad news: Tight capacity and higher freight rates are the new normal. The good news: There are ways to handle the impacts far better than your competition.

Aside from securing reduced freight rates from your carriers, here’s how you can cut freight expense while improving service:

Look At Other Areas

In the sweat and worry about costs, some companies overlook the overall business plan. Review how you are doing business with your largest customers. For example:

Answering these questions gives you great data that is the key starting point to pivot in a constrained capacity economy. These analytics help you understand what you can and cannot change across pricing, billing, purchasing, packaging, and sales.

Nearly all shippers’ businesses look different today in terms of customer footprint, density, and average shipment size and weight, yet they haven’t reviewed supply chain data and optimization approaches in ages. It might be time for a fresh look.

Many good transportation management systems have access to the key data and can offer an initial analysis. Alternatively, third-party firms can offer solid technology at little or no additional cost to the transportation spend. Either way, it’s prime time to examine every internal process that could impact order size, order frequency, inventory management, and transportation decisions.

Written by:

Andrew Berke, Vice President, Strategic Ventures
Charles Boesch, Vice President, Strategic Ventures Sales

BlueGrace Logistics

> Read the original article at Inbound Logistics

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