Transportation spend management — it sounds like a complicated topic. However, it is not one that you should ignore and hope goes away. By controlling your transportation spend (costs) you can save money and provide better service to your customers. There are three important steps in the process. The most important thing to remember is that you do not have to do it alone.
The first step is to sit down with the head of your shipping department and start talking numbers. Once you understand the basics, I am sure you will want to learn more about the money your firm is potentially throwing away.
The second step is developing a plan. Analyzing your current supply chain system is key in getting the most from your carriers and shipping department. This is where it may make sense to work with an outside organization. They will work with you to align your transportation your goals with your overall management plan. You may decide to make some cuts or you may increase your spending to ensure customer satisfaction.
Finally, comes time for implementation. This is the hardest step because it never stops. Transportation and shipping logistics are not something that you can “set and forget.” You will constantly be making adjustments and implementing new ideas to improve your current system and build towards a better future.
After you have done completed these three steps, you have a great start–then it is just a matter of following through and making something happen for your firm.
If you would like to learn more about transportation spend management, and how a 3PL company like 4 Way Logistics, Inc. can help you and your business, visit our White Papers page and download “5 Questions You NEED Answered Regarding Transportation Spend Management”. We would love to help you better understand how important shipping and freight logistics is to your operations and your bottom line!
