Freight network optimization and freight auditing services are the key performance areas that shippers want to track and monitor within the supply chain industry.
This essentially means optimizing and streamlining the movement of products and goods from Point A to Point B, maintaining desired service levels and customer experience through transportation network optimization. As highlighted by Redwood Logistics, "To complete any task efficiently, you must first have the right tools for the right job. The supply chain is no different. In fact, those who facilitate the movement of freight depend upon technology and daily operations that are efficient and customized for their specific applications. This is where the idea of network optimization really comes into play." This can be achieved within the modern supply chain industry by determining the most efficient means for shipping and transportation.
Transportation management, supply chain distribution network optimization, and data-backed strategies are essential components of supply chain optimization. This is especially true when dealing with margins, accessorials, and fees as global networks become increasingly broad and complex, involving more personnel, equipment, and processes.
Remember that an accessorial charge refers to shipping and transportation fees a carrier charges for services provided during transportation that goes above and beyond basic shipping services. This charge is in addition to any agreed-upon fees associated with line haul, mileage, and other related shipping expenses. The most common of the fees to monitor in pursuit of freight network optimization through freight audit data include the following:
Accessing industry-specific knowledge and insight is a big part of freight management and freight network optimization. Logistics managers, team members, third parties, and customers alike can benefit from the right approach to supply chain automation and data management. That's especially true as disruption continues throughout the industry. According to Logistics Management, "Global supply chain disruptions, port congestion, capacity shortages, increasing ocean freight rates and an ongoing pandemic have challenged shippers, ports, carriers and logistics providers during the past year. And looking ahead in 2022, experts estimate that the pressure on global supply chains will continue."
Approaching supply chain distribution network optimization the correct way takes careful planning and cannot be overlooked or ignored. With the right insight, management can enjoy the following benefits of logistics intelligence through optimization:
Following many of the latest innovations in supply chain network optimization techniques, shippers can more easily plan and prepare for short-term and long-term goals. Again, this is thanks to having access to valuable data, accurate logistics, and applicable automated processes.
Carrier search and optimization are more important than ever in light of continuing recovery and stabilization. While much focus has been given to last-mile delivery services, the need for a streamlined approach to shipping and freight network optimization at the very start is also needed. According to Supply Chain Digital, "This lack of standardization across the supply chain is becoming a serious operational concern. Not one of the now-standard aspects of efficient last-mile supply chain operations is being achieved in the first mile. One supply chain; two fundamentally different models." This freight network optimization during the first mile can be accomplished through the following steps:
Today's shippers need carrier optimization, an omnimodal approach to current markets, and transportation network optimization. To effectively coordinate and locate capacity while also maintaining affordable and reliable shipping services for their customers, optimization of the supply chain remains critical. Reputable carriers offer quality services and have access to an on-call pool of carriers for scheduled and rush orders. This is an excellent benefit for shippers, regardless of their niche market or specialty. As Modern Materials Handling pointed out, as "carriers adapt and respond to changing market dynamics, many have had to make relatively significant rate increases – in the range of 5% to 6%." Carrier and freight network optimization go hand in hand and help shippers deliver the best results. With the right approach to carrier optimization, shippers will be prepared for the following trends:
Managing shipping costs in 2022 and beyond will likely be an ongoing challenge for shippers. Given the growing economic uncertainty, volatility of global currencies, and escalation of industry-level competition, this contrast between shipping insight and focus creates several problems for supply chain managers. With a unified approach in mind, shipping and transportation managers can more effectively utilize transportation network optimization tools to improve carrier search and optimization in real-time. Optimization, in this regard, refers to network optimization techniques, supply chain tools, and integrated best practices. Shippers need proactive controls to understand their expenses through actionable insights, data-backed strategies, and a single source of truth for managing their carrier networks. These are then used to monitor and enhance network performance from end to end. For carriers, supply chain distribution network optimization can help improve the day-to-day process and increase profits while keeping costs at a minimum. It's a win-win for all involved parties. Contact Intelligent Audit today to get started.
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