Most customers of logistics companies are mainly interested in their outbound freight shipping needs and related costs. They often neglect to realize the benefits of controlling their inbound needs and costs.
Many firms have not yet gone through the exercise of comparing the cost of their inbound products versus the cost of products and transportation allocation. There is important potential cost savings for consignees in switching the terms of the bill of lading from prepaid to collect and using their own logistics provider.
Advantages of using your own transportation logistics provider
Beyond saving the administration fees of vendor managed transportation, taking control of your inbound freight movements will enable you to separate out transportation costs from vendor invoices leading you to better manage your overall transportation budget. Your negotiation power with your service provider will increase substantially, by combining your outbound/inbound transportation. In addition to the tangible cost reductions, taking control of your inbound transportation will increase your visibility into your supply chain, help better plan freight receiving and consequently reduce warehouse congestion.
Most logistics companies will assess your transportation supply chain at no cost
If your company does not have the expert resources to take over such an important cost saving analysis, an efficient third party logistics provider can proceed with a no-cost comprehensive study of your current situation.
If the results are conclusive, the Logistics provider can manage the process for you. They will monitor carrier compliance, arrange your day-to-day transportation needs and increase your visibility on all inbound movements through cloud based Transportation Management System (TMS) or other technology.. All your inbound/outbound shipments will be invoiced together from a single provider, reducing the time and costs consumed in freight bill auditing.
With enough data, you will be able to reduce your freight transportation costs
Once you have streamlined your processes and have collected enough data, you will be provided customized reports from the Transportation Management Software (TMS) to evaluate your shipping/receiving patterns and determine how you can consolidate your inbound movements and/or coordinate with your outbound movements to further reduce your overall transportation costs.