Strategic Planning Pays Off
Managed solutions and contracted carriers avoid the pitfalls of quoting every load on the spot market by providing stable service agreements and pricing, as well as mutually beneficial partnerships with experienced teams. Managed solution providers are focused on ever-shifting market conditions like seasonality, regulatory and even weather (think Winter 2014 disruptions) that can impact your freight movements.
Providers invest in the tools to extend visibility across freight spend, helping shippers capitalize and leverage historical data toward lower costs and increased efficiency. Tapping a provider with these duties allow customer service resources to take freight out of their job description and focus on increasing order volumes and managing clients needs. Other benefits include:
Total Landed Cost:
Whether or not you have a 1 day, 1 week, 1 month, or 3 month sales cycle, wouldn’t be nice to know the cost of freight before the sale is made to protect margin?
Accruing / Budgeting Freight Costs:
You have a new client whose business will greatly expand the geographic footprint to which you ship, you can predict freight costs before committing to your sell price. Budgeting freight dollars in advance is a great way to project financials 3-6 months in advance if not farther.
Capabilities and Service Levels Agreements:
Contracted pricing and accessorial charges allow for a course of action when service fails; Become a shipper of choice – Consistency in freight volumes makes you a preferred client rather than a one-off spot market shipper.
Single sourcing allows for efficient management of all carrier/providers via a single accountable resource. KPI creation, monitoring, management can allow for dynamic monitoring and corrective management that can extend up (to vendors) and down to warehouses or clients.
Investing the time and effort to develop a long term transportation strategy with experienced partners will provide savings and increase efficiencies, and odds are, those companies will have more time to focus on driving success.