Lower Logistics Costs
ControlPay is over 14 years active as an EMEA and global player in the freight audit and payment industry. In all the years we are active we have had a strong focus on reducing logistics costs for our (global) clients. To help companies in the ongoing search for logistics cost reduction, we have listed 6 costs reducing tactics that work for our clients.
6 Tactics to lower logistics costs
1. Intelligent reporting for better inventory control. Keeping on top of your stock levels is vital, but if your data isn’t easy to read and analyse, it can be time-consuming or simply impossible. In 2016, a rising trend is intelligent reporting. Intuitive, graphical (visual) data with automated alerts to let you know when stock is low or nearing its expiry date!
2. Track and trace. Shipment tracking gives shippers the full control of carrier performance, and the ability to claim money back from logistics service providers if the system is automated with a Freight Audit solution. Make sure that KPI’s are registered accurately around delivery times, this will enable you to manage your carrier’s performance to the finest detail.
3. Carrier AND invoice consolidation. Take your in- and outbound shipments for a deep analysis to discover patterns and intent to discover where you’re paying multiple transportation and logistics providers to perform the same services in the same geographic areas. But don't just stop there with consolidation! Often several shipments go from 1 shipping site to 1 end destination. Leaving exceptions aside, in practice, these shipments should be seen as one what would result into a lower cost then if they would be charged for separately. Check this blog to learn more about financial consolidation of shipments and how it can reduce logistics costs!
4. Freight rate optimization. Shippers should keep in mind that a deep analysis of freight rates often lowers logistics costs significantly. While comparing rates with shipment profiles and historical data, focus on key findings around the optimal usage of weight brackets, the optimal use of accessorial costs and their harmonization. Rate harmonization and shipment consolidation provide cost savings opportunities.
5. Freight Tender Software. Another trend in logistics and transportation is the increasing improvement and implementation of (cloud-based) software systems. This really suits Freight Tender management. Many companies tender freight at least once a year in the search for the right prices. This practice is often not the core job for logistics professionals and therefore a structured system is missing. What people often realize afterwards, is that many costs are hidden in the freight tender exercise. Look for the right freight tender tool in order to reduce (hidden) costs and save time on the ever-returning freight tender process.
*For more information, read this blog to discover how easier freight tenders can reduce costs and improve efficiency.
6. Audit your freight bills. Freight invoices contain errors and they cost you money. Plain and simple. The elimination over overbilling could save companies between 2-3 % on their freight spend. Taking a strategic freight audit approach means you can save up to 8% of your freight costs. For more facts about Freight bills, please read this blog with 10 interesting freight payment facts.
About ControlPay - Global Freight Audit and Payment
For more information about us, please visit the about page on our website, or take your time to visit our logistics content hub!