Establishing a practical freight routing guide helps outline essential rules of engagement for vendors, clients and supply chain managers. The purpose of these specialized guides is primarily to enable a quick adaptation of a shipment plan agreement between involved parties. The guides outline the goals and the specific needs of individual carriers, load types, destinations and industry niches. This is done by presenting in-depth insights in an effective manner, such as with an easy-to-view ticker lineup, such as seeing OTLT.USA compared to OTRI.USA side-by-side, but that can only go so far in helping to alleviate concerns with routing guide compliance. Maintaining good compliance to these informational guides is critical to supply chain management and relies heavily on current data and automation.
Missing data amounts to inevitable routing guide failures
Data is king in today’s ever-changing market, and it is only becoming more vital for supply chain operations and management. Without data and real-time analytics, it isn’t easy to accurately create and maintain an efficient supply chain flow. Routing guide failures are frequently caused by poor communication, misunderstandings, unclear guidelines, poor decision-making, outdated or missing data points, mismanagement of privately owned trucking fleets, and unavailability of automated tools and technology. Trying to maintain guideline adherence without the correct data is much like attempting to meet delivery deadlines without knowing the final delivery destination. Data is an essential part of the supply chain puzzle that must be in place to reach the full potential within the modern supply chain and empower your network with routing guide compliance.
Data-driven lane and contract management boost compliance rates
Inbound and outbound freight logistics are both critical parts of the modern supply chain’s freight market, though each one has been managed quite differently. This is particularly true when looked at in connection to routing guides and how lane management and contract procurement go. Keeping tabs on critical issues such as lane selection, capacity management, contract negotiation, and shipment tracking are all made more accessible and much more effective with data-driven technology. According to publications by Redwood Logistics, creating a helpful routing guide for carriers and shippers to utilize depends mainly on careful planning and insertion of crucial data points. Knowing what needs to be done and what aspects of the guide are vital to success makes it easier to promote and encourage compliance within the network.
Added benefits of data-driven strategies in managing the inbound and outbound flow of goods
Another benefit of ensuring routing guide compliance and adherence lies in the power of data-driven strategies that become easier to implement. Both inbound and outbound goods and shipments benefit from the inclusion of data and analytics, real-time tracking, automated processes, and modern technology. For instance, consider these benefits:
- Lower risk of stockouts. With improved end-to-end visibility and network transparency, all involved shippers and carriers can significantly reduce stock outages and inventory issues.
- Increased customer confidence. The ability to stick to the routing guide’s terms and goals makes it easier to keep everyone on the same page and keep customers happy.
- Better rates from carriers. When carriers know what to expect beforehand, it is easier to negotiate rates and agree on the specific terms of a shipping contract.
- Less risk of rejection. Lowering rejection rates and increasing profitability through successful deliveries is more accessible with real-time data application while adhering to the guidelines.
- Increased eligibility for shipper-of-choice status. Achieving this high ranking among consumers and clients becomes more attainable when modern automation and tools are utilized.
- A comprehensive review of carrier network performance. Maintaining a review process and keeping communication lines open is critical for the growth and success of the supply chain.
Keeping track of the flow of goods and the overall productivity of the supply chain network is more manageable with modern technology and innovation. How those data-driven strategies and game plans are implemented makes all the difference in the world.
Enhance routing guide compliance with lane-by-lane data insight
Routing guide failures are frequently the result of issues within the network, whether that is poor communication, lack of real-time data, human error and mistakes, bad predictive planning, or an absence of visibility. Improving insight and communications and ensuring comprehension and adherence from all involved parties can help ensure guide compliance throughout the supply chain. And that’s now possible thanks to the advent of SONAR SCI (Supply Chain Intelligence) to enable day-one use and review of current rates and market positioning. Request a FreightWaves SONAR or a SONAR SCI demo by clicking the button below to get started.