Managing freight costs can be a complex and challenging task, especially for businesses with high volumes of shipments. In this post, we'll take a look at 5 common failure points that businesses may encounter between $5 million and $100 million in freight cost.
1. Lack of visibility: One of the biggest challenges businesses face when it comes to managing freight costs is a lack of visibility into the entire supply chain. Without a clear picture of what's happening at every stage, it can be difficult to identify opportunities for cost savings.
2. Poor rate negotiation: Another common failure point is poor rate negotiation with carriers. Without a strong understanding of the market and the ability to negotiate favorable terms, businesses may end up paying more than necessary for their shipments.
3. Inefficient routing: Inefficient routing can be a major source of unnecessary costs. By optimizing routes and consolidating shipments, businesses can reduce their freight costs significantly.
4. Lack of collaboration: Collaboration is key to managing freight costs effectively. By working closely with carriers, customers, and other partners in the supply chain, businesses can identify opportunities for cost savings and improve efficiency.
5. Inadequate technology: Finally, inadequate technology can be a major barrier to managing freight costs effectively. Without the right tools, businesses may struggle to track shipments, optimize routes, and identify opportunities for cost savings.
Managing freight costs can be a complex and challenging task, but by addressing these 5 common failure points, businesses can improve their bottom line and achieve success.
That's why Traqo is here. Traqo makes your supply chain management smooth with its top-notch transport management solution. You can reduce your logistics costs, save 70% of the time in Vehicle Finalization and Increase logistics efficiency by 68%. Traqo will help you to manage the fleet and reduce vehicle detention.
Try Traqo today.