How to Optimize Freight Contracts

Of all the details shippers and businesses have to manage and track, transportation costs and freight audits can be the most overlooked and impactful. The pandemic brought massive and sudden changes to how consumers were shopping and spending their money, shifting supply chains from local lines to imports in numbers never seen before. And this led to massive backlogs and issues finding carriers and securing hauling contracts. As the The Washington Post recently pointed out, "The pandemic also exposed weaknesses in the nation's transport plumbing: investment shortfalls at key ports, controversial railroad industry labor cuts, and a chronic failure by key players to collaborate." With the state of the global and domestic supply chain currently and the still backlogged nature of many shipping lanes and modes, the need for personalized freight hauling services is higher than ever before. Optimizing freight transport and hauling services with freight contracts can be done by taking the following steps to ensure accuracy in auditing and management.

Unify Your Freight Contract Data With a Single Source of Truth

Unified TMS systems, cloud-based data sharing portals, and collaborative platforms can make it easier to optimize freight hauling contracts across the board. This is accomplished by ensuring everyone has access to a single source of truth and reliable data-backed strategies. It is all backed by sounds relationships between shippers and carriers.

Normalize and Analyze Data to Make Clear, Concise, and Insightful Views of Your Freight Contracts

Freight hauling services are most impactful when unified and optimized across all accounts, teams, and management. Tying everything together with freight data and statistics can improve day-to-day operations, speed up logistics, and make communications easier. Freight contracts are easier to maintain with a reliable source of data and insight available.

Use Metrics and Data to Know Which Carriers Perform the Best For Each Unique Load or Shipment

The balancing act of maintaining carrier and shipper contracts and monitoring freight hauling services is never-ending. Utilizing metrics, KPIs, and customized data points can make it easier to see which carriers offer the best services for specific load availability. This level of insight, in turn, makes setting up and managing freight contracts easier for short- and long-term arrangements.

Track Performance to Know When to Switch Between Modes or Shipping Service Levels to Lower Total Costs

Maintaining balanced and up-to-date freight contracts between shippers and carriers is critical to keeping supply chain operations smooth and costs low. Juggling multiple loads, requirements, transportation modes, and delivery timelines is challenging. Tracking overall delivery and shipping performance can make each hauling contract as profitable as possible.

Leverage Machine Learning to Gain Deeper Understanding of Problems and How to Fix Them

Implementing innovative AI and machine learning services can help shipping and transportation companies better understand disruptions and anomalies and deal with them effectively. Finding issues with current procedures can shed light on problems with freight contracts and help shippers and carriers improve freight hauling services to be more profitable.

Work With an Expert and Embedded Account Manager to Optimize While You Focus on Other Priorities

The key to successful freight contract management is tapping into dedicated freight partners and utilizing dedicated account managers. These skilled and experienced experts can come alongside management and serve as an extension of your team. The added insight makes freight hauling services much more efficient end-to-end with freight network optimization.

Start Optimizing All Freight Under Management Costs and Insight With Intelligent Audit

The best way to capitalize on current market growth and recovery and continued capacity demand from e-commerce shipping is to maintain multiple freight contracts with reliable carriers. The effects of the global pandemic brought massive and sudden changes to the world's supply chains.

Disruptions across the transportation industry were felt and are still being dealt with in some shape or form. Consumers changed how and where they spent their money and shifted supply chains and manufacturing lines in ways never anticipated. This, of course, led to massive backlogs and issues regarding shipper-carrier relationships and freight hauling service providers as both parties seek to lower transport spend costs.The best way to optimize freight shipping and hauling contracts is with a dedicated industry leader as a management partner. Contact Intelligent Audit today to learn more about how your team can start optimizing freight contracts in today's market.

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