Does your company manage its inbound freight? For many businesses, the cost and means of inbound deliveries get less attention than those of outbound shipments to customers. But the cost of getting goods and inventory to you can have as much of an impact on your bottom line as what goes out the door. How can you improve your management of this vital step? Here are five things to do.
1. Consolidate Vendors. Who do you use to carry inbound freight? If you have too many vendors servicing different shipments or departments, you can't develop a highly-effective relationship with any of them or leverage your scale and position as a customer. Instead, consolidate the number and type of shipping services so you can focus on building symbiotic relationships.
2. Develop a Rule Book. Do your shipping providers know the rules with which they must comply to serve you as a customer? The best way to standardize these is to create a written rule book or guidebook to give to vendors. This should cover things like labeling, packing methods, packing slip or bill of lading requirements, optimal routes, and rules for delivery at your site. With written guides, everyone is on the same page.
3. Use a Portal. A vendor management portal is one of the best ways to ensure your freight services know what's expected and have the tools to do their job well. A portal allows your staff to see everything coming and going at any given time, to confirm that shipments follow guidelines, and to see any changes as (or before) they happen.
4. Analyze Patterns. The more data you have, the more you can see patterns and make positive changes. A simple move like asking shippers to list freight costs separately on invoices helps you see the real effects of your efforts. And a company that tracks the times required to unload partially-filled trucks could compare labor costs to those of using only full truckloads.
5. Involve Procurement and Vendors. Improving both the costs and quality of inbound freight requires the participation of all stakeholders. The procurement team and suppliers, for instance, will be largely responsible for choosing freight services. So their buy-in of new standards is vital to your success. And both shippers and suppliers can help you strategize improvements if you make them your partners in exchange.
Better management of all your inbound freight is a big project, but it's increasingly important in a connected world. Want more ideas to improve how your own is handled? Start by meeting with a quality freight delivery service today.
Share30 December 2020
Hello, my name is Denver and this blog was created due to my fascination with various types of transportation. It all started when I was a child and I received my first train set for my birthday. As I got older, I also became interested in the big semi trucks that I would see on the highways while traveling with my family. It didn't stop there, I then became mesmerized by airplanes and helicopters. The subway system and monorails were next on my list of interests. I would constantly read books and try to find out additional information about all the different kinds of transportation. Because of this early obsession of mine, I am very knowledgeable about this subject. If you would like to learn about the various modes of transportation, I invite you to read my blog and to enjoy the information that I've gathered together.