Buzz words roll off their
tongues: TMS, WMS, lean,
The manufacturer needs to move goods out the warehouse door. The objective is clear. Get products on the trucks to ship. This is a challenge when base rates, fuel surcharges and fees constantly change.
Who decides your carrier and protocol? The Freight Broker, Shipping Clerk or 3PL?
Are they making the best decisions for your business or theirs? It’s a tough call. Time to bring in professionals to figure it out.
The Typical Process: Consultants descend into the office.
The buzzwords roll off their tongues: TMS, WMS, lean, cross-docking, density, accessorial.
The recommendations appear reasonable. You go for it! It takes a few months to set up, perhaps a year. It takes even longer to realize your ROI. Once complete, warehouse efficiency is obvious. The shipping department is easier to manage and the motor carrier chosen is a recognized name in the industry.
The Problem: Shipping rates are still high.
After the planning, expense and effort, the supply chain is streamlined. However, the nagging thought persists, “Am I getting the best rates possible?”
The Objective: Control the cost of LTL shipping.
This paper explores how manufactures and distributors can decrease shipping costs using direct-to-carrier price rating engines and examines the benefits of Software-as-a-Service (SaaS) web-based technology — a powerful trend.
Factors Affecting Freight Cost
Government rules, reduced freight capacity, and the drilling ban in the Gulf are a few causes that have driven shipping rates higher.
Compliance, Safety, Accountability
The Federal Motor Carrier Safety Administration (FMCSA) rolled out the “Compliance, Safety, Accountability” (CSA) initiative at the end of 2010. It appears the added regulation will increase carrier costs and reduce available truck capacity.