A logistics routing guide can mean the difference between success and failure of pickup and delivery in a supply chain network. These guides feature all the essential routing instructions and a detailed set of shipping guidelines or requirements for suppliers and carriers to follow, building enterprise freight management efficiency in the network. The logistics routing guide further includes details about the modes and carriers that prove influential. A routing guide also has any pertinent information about specific lanes, rates, service requirements, and best practices according to Brian Straight of FreightWaves. And technology is making it easier to prevent routing guide volatility and create more routing guide stability while increasing compliance.
Challenges in routing guide compliance
Inadequate or outdated data remains one of the most significant challenges that face managers when it comes to compliance with routing guides. Poor data utilization and access cost nearly incalculable amounts of money each year for shippers and carriers of all sizes. And without a well-structured logistics routing guide that can also provide insights and instructions, a few other common challenges are bound to occur, such as:
- Improper lane utilization and management.
- Poor rate prediction and monitoring.
- Slow communication between involved parties.
- Delayed response to disruptions.
- Wasted time and resources due to missteps.
- Faulty processes throughout the supply chain.
These are just some of the supply chain difficulties that get addressed with logistics routing guides. But it’s also essential to realize why they’re so indispensable within the chain.
Why logistics routing guides are critical for shipping success
A routing guide is essential for shipping success and should be carefully crafted to include all necessary information. The guide’s primary information should focus on the following aspects of freight management:
- Rate minimum and other required costs and fees.
- Lanes the carrier typically runs and any related data.
- Primary services and customizations the carrier provides.
- Shipment volume, capacity procurement and weight limits.
- Shipping origination and final destination of loads.
- Communication methods and preferences for carriers.
- Data access, analytic dashboards and supply chain technology.
Guides can also include resolution directions for challenges or issues vendors experienced with carriers. Issues with past delays and problems with specific carriers, shipment types, or locations provide valuable data to craft a more refined routing guide. Anything worth noting and sharing should be included in the routing guide and distributed to all members.
Why technology improves routine guide compliance
Leveraging technology makes it easier for shippers to see and respond to changes within the market and effectively address disruptions. Creating a logistics routing guide can seem like a daunting assignment, but technological tools can make it all more manageable and more streamlined. Technology improves compliance in several critical ways. For instance, consider these added ways to use technology to promote routing guide compliance and avoid risks in shipping:
- The dynamics of the logistics routing guide provide an easy-to-access place for everyone to share and exchange information.
- A high-quality routing guide allows for the use of automated processes to streamline routine tasks and functions.
- It further advances response time and allows for more informed decision-making in a pinch.
- The guide ensures data and information protection with cloud-based storage and distribution methods too.
- It promotes fast and accurate collaboration and communication in the network.
The right routing guide should further provide a way to apply predictive freight rates and boost procurement throughout the supply chain as necessary. Of course, it’s also beneficial to have additional ways to use technology
Tips for applying data analytics to avoid freight spend issues
A logistics routing guide driven by data and backed by real-time analytics will improve compliance and effectiveness with every load transported. As noted by Redwood Logistics, successful implementation and continued use of a routing guide must include several vital steps. These include:
- Coordinating and collaborating effectively with team members.
- Keeping clients, investors, 3PLs and other involved parties in the loop.
- Streamlining communications and responses throughout the network.
- Remaining up to date on trends, innovations, technology and advancements.
- Providing training and refresher classes for team members and partners.
- Finding reliable carriers, shippers and vendors to work alongside.
- Maintaining the logistics guide protocols will inevitably bolster efficiency within the modern supply chain.
Overcome logistics routing guide problems by getting the data today
Manufacturers, suppliers, shippers, carriers, wholesalers, forwarders, distributors, and logistics managers all need to pay attention to any logistics routing guide details. Everyone must understand the guide’s value, purpose and importance to follow it closely during shipment fulfillment. Overcoming common problems with logistics guide compliance is about making proper use of the tools, data, systems and available resources. And it all starts with a good logistics routing game plan and robust freight data analytics. Learn more about how data can be your ally in routing guide compliance by requesting a FreightWaves SONAR SCI demo or clicking the button below today.