How to Maximize Supply Chain Savings

Truckload rates look to rise and impact supply chain costs even as volumes are down for the first part of 2016 . supply chain truckload shipping

If you’ve shipped truckload, maybe price pressures have brought you a little savings.  Now’s not a time to take a wait and see approach.  Take advantage of the slight dip to maximize your supply chain savings.  Here’s how…

Do a Comprehensive Logistics Review

Many companies have big savings hiding in their supply chain.  A comprehensive logistics review will reveal them.

This analysis goes beyond rates.  It looks at what shipped, how it was shipped and where it was shipped.  The information uncovered creates opportunities for strategic thinking to reduce logistics costs.

It also identifies areas where savings exist.  Claims is an area we often find huge savings opportunities.  Partial truckload shipping in place of LTL and truckload is another area of big opportunity.

You won’t find any of these without the review.  If you haven’t analyzed your supply chain in awhile, click here to contact us and learn more about Longshot Logistics’ complimentary logistics review.

Identify Customer Requirements

Now it’s time to plan.  Start by evaluating your customers.  Do any have special requirements?

Some of these might be hazmat, reefer, or flatbed.  Some customer’s may need additional services.  If you can anticipate these in advance, then you can make sure you’ve got the services lined up and priced to your need.

It also gives you an opportunity to find other areas of cost-savings.  Will you ship more truckload or LTL?  Does it make sense to find a carrier who can do both?  Will you ship local, regionally or cross continent?

Based on the answers to these questions you can build a plan in advance to lower the costs.  This way you don’t have to negotiate rates when the best direction of your focus is meeting your customer’s delivery schedule.

Find a Supply Chain Partner

Ok, so you’ve identified areas of savings and planned for future needs.  Now use that information for leverage.

Find a logistics partner who will help you strategize, build the plan and secure your rates.  If you decide to go carrier direct, you’ll have to do this yourself.

If you look to a third party logistics partner, or 3PL for short, they’ll do the work with you.  A 3PL will do the analysis, review the data and help you plan for the future.

Another advantage of the 3PL is their database of carriers.  Rather than relying on one carrier, they give you access to dozens.  In some cases, they have a database of thousands.  In instances like these, carriers actually bid on your business.  That keeps your rates low and helps to avoid GRIs.

For example, Longshot Logistics is a truckload 3PL who can provide complete logistics management and LTL services as needed.  For more information, contact us.