Companies in the over-the-road trucking industry constantly strive to boost efficiency. However, increasing freight management efficiency can come in several different forms and can present a difficult challenge. With so many factors to consider, businesses in this industry may find it challenging to narrow down exactly where they should focus their time and money. And part of that includes recognizing when existing contracts fall short and when to re-enter mini-bids, significantly as capacity tightens, says the Loadstar. For instance, current projections show an increased predicted rate within the above FWSR.USA ticker. And rather than waiting until things go wrong, shippers, carriers and brokers can apply these seven last-minute thoughts can help bring to light what strictly a business should focus on and how to apply predictive rates to measure the likelihood of improved operations.
1. Avoid destinations with a lower likelihood of an empty backhaul
One significant aspect of freight management to consider is the risk of empty backhauls. Empty backhauls result from poor decision-making with regards to the areas that the freights travel. Thinking back to basics, the fundamental financially damaging aspect of empty backhauls comes from empty miles. Empty miles mean that a freight spends time on the road while not transporting any product. Essentially, this means that all the costs associated with shipping come into play without any of the income-producing benefits of shipping. Avoid destinations that have a higher probability of causing empty backhauls.
2. Recognize market volatility trends and their impact on replenishment lead time
Another beneficial action to boost efficiency with freight management comes from the recognition of market volatility trends. Market volatility can significantly impact replenishment lead time for restocking warehouses and distribution centers. Companies that can accurately predict market volatility trends, using indices with reefer data analytics, can ensure that they remain prepared in the event of replenishment issues.
3. Track carrier performance with the right KPIs
Tracking carrier performance with key performance indicators (KPIs) makes for another critical tool for improving freight management. These KPIs appear in a variety of forms, but two of the most important to track throughout the supply chain are on-time pickup and on-time delivery. Companies that make sure to track these crucial aspects of their business can gain a larger picture of how they perform.
4. Don’t limit your carrier partnerships
Shippers should also make sure not to limit their carrier partnerships. By keeping a broader range of carrier relations, shippers have more flexibility within the market. This means that they have more opportunities to have their needs met and introduce the possibility of lower freight spend. This makes for an excellent freight management tool and can make an impactful difference in a shipper’s efficiency.
5. Take advantage of EDI and API to reduce clicks and delays in the workflow
Shippers that leverage electronic data interchange (EDI) and application programming interface (API) find that their digital workflow improves. These tools assist in the reduction of unnecessary delays in freight management, as well as providing a more user-friendly interface. More insight via data analytics reduces the clicks needed to schedule and conduct business between shippers and carriers.
6. Consider the impact of other modes on trucking and how that will affect your shipping strategy
Shippers can also benefit from the consideration of other modes of trucking. Consideration of different modes allows for more flexibility in freight management strategy. This can greatly assist with capacity issues in the over-the-road trucking market. Shippers need to stay vigilant with regards to the market to remain strategic in their decision-making.
7. Collect and apply near-real-time data
Finally, shippers should collect and apply near-real-time data to their freight management system. Near-real-time data provides businesses with an incredibly accurate measurement of several key shipping aspects. Additionally, data allocation and logistics providers can organize it to derive meaningful, actionable insights that consider the effects of today’s market. With additional value through paid rates’ analyses, SONAR SCI continues the path toward increased supply chain execution and tactical advantage.
Increase freight management with the right data and resources in your toolkit
These last-minute considerations for operation optimization can make a world of difference. And by knowing what data to use, collecting it properly and leveraging technology, shippers can drive freight spend into retreat. Modern technology and professional business practices like these further ensure companies remain prepared to take on any challenge that may threaten their efficiency. Increase freight management efficiency with the right data and resources in your toolkit. Request a SONAR SCI Lane Acuity demo by clicking the button below to get started.