Sending freight costs time and money. But is it costing you too much time and money? Many businesses make the mistake of assuming their freight costs and timelines are set in stone. In reality, freight optimization could help you lower costs, speed up shipments, and result in happier customers. That’s all good news for the growth of your business.
Let’s examine freight optimization, what you should consider, and how this process can help your business grow.
What Is Freight Optimization?
Freight optimization is the strategic process of improving how products are moved to customers while maintaining desired service levels in the supply chain. You want to move products in the most efficient, cost-effective way possible while ensuring customer satisfaction. To achieve this goal, you’ll need to examine every aspect of your supply chain, from the moment the product leaves your warehouse until it reaches its final destination.
It’s a big task and a key performance area for any supply chain manager. The payoffs are worth the effort, though. By optimizing your freight, you can enhance your supply chain’s overall performance and see huge benefits across your organization.
Factors to Consider When Optimizing Freight
Freight optimization takes more than finding a cheaper carrier. While cost will play a part in your optimization process, the best optimization happens when you take a comprehensive approach to how your freight moves.
Here are some of the factors you’ll want to consider in freight optimization:
Routes
Use advanced software and route planning tools to determine the best routes while considering distance, traffic, and delivery times. You’ll want to monitor your routes continuously with real-time data to ensure they remain the best option. This will reduce your transportation costs and improve your delivery times.
Modes
Evaluate the best transportation mode for every leg of the journey and every shipment that leaves your warehouse. Consider the cost, speed, and product type. Sometimes, over-the-road trucking is the best option, and other times, air transportation might be best. Explore opportunities to combine different modes as needed.
Costs
Every penny you spend on transportation reduces your profit margins, so of course, you want to optimize this. But don’t cut costs at the expense of your customer service. Negotiate with carriers to get the best rates and terms for your products while ensuring the best service and transit times.
Services
Consider what value-added services a carrier might offer, such as packaging, labeling, or cross-docking. These services can streamline your supply chain, but you might not need them for every product.
Consolidation
Combining smaller shipments into larger loads can reduce transportation costs and improve efficiency. Ensure trucks are loaded to maximize the available space and reduce how much you pay for empty miles.
Automation
Transportation management systems and other tech can streamline the transportation process, improve visibility, and provide valuable data for better decision-making.
How These Steps Can Help Grow Your Business
Optimization is good, but how does the process help you grow your business? By making you more responsive, efficient, and competitive within your industry.
Efficient freight movement helps you meet customer expectations. They want timely, reliable deliveries, and you want to be the company that offers that service. This can strengthen the customer relationship and lead to higher satisfaction scores. You can also be more responsive to market changes and potential transportation issues, giving you an edge over your competition and keeping customers happy.
Optimizing freight can also help reduce fuel consumption and emissions, making your supply chain more sustainable. Consumers care about sustainability, and they’ll seek out a company working to reduce its carbon footprint.
Remember, too, that every dollar you save on transportation is a dollar you can reinvest in your company. That can bring new growth opportunities, improve your bottom line, and build a more resilient business.
Let BLS Optimize Every Mile Your Freight Travels
Beitler Logistics Services knows the essential role transportation plays in the success of your business. We’ve also seen firsthand how transformative freight optimization can be. Our team of logistics experts can help you streamline your supply chain, making it more efficient and cost-effective than ever. And we’ll do it all while keeping your customer’s best interests in mind.
Partner with Beitler Logistics Services and benefit from our expertise, technology, and commitment to exceptional results. Contact us today to learn how we can help you with freight optimization.