Managing freight costs is getting more difficult by the day. Everyone thinks managing freight costs are important, but they typically just see it as simply cutting carrier costs. There is so much more to it than that!
Yes, there are shippers who are paying too much and in these cases rate cuts are possible, but the really powerful solutions involve looking at the entire process of freight management. Let's look upstream - who is managing the process and how? How does our packaging and palletizing of freight impact our rates and costs? What order quantities are most economical? How about the auditing and freight bill processing systems? What is our carrier strategy and lineup - is it cheap and poor service, expensive and top-quality, or is it the best combination of each dynamically selected for each shipment? Do we have a system to track and audit every detail so we know how to manage our costs?
C-level: Let's be honest, no one will care more about the potential to add X% to your net income and increase capital than you, so don't pass this opportunity down the line. 2013 has been the year of dramatic change with hidden cost increases in the freight world. It’s time to get involved!