Today we're going to talk about freight management services. First, what does that mean?
Freight management services can cover a wide range of specific offerings. From a third-party provider like Lojistic, freight management services include helping you secure better rates, managing traffic and shipments from point A to point B, and technology. And in Lojistic’s case, that also extends to auditing freight bills.
Why Do Businesses Need Freight Management Services?
These services simplify freight management for customers and provide visibility to what shipments are doing.
After all, most companies are not in the freight business. They're in the business of whatever their business does. Managing freight, however, is a very high-cost line item. In a very real sense, it can help or hinder their success.
With that in mind, most companies have to decide if they want to become in-house freight experts — which they didn't go into business to do — or find an outsourced solution. And companies like Lojistic exist to provide those options, which turn out to be the right choice for lots of businesses.
What Issues Do Freight Management Services Solve?
First and foremost, building an in-house transportation department requires time, money, and a very carefully executed plan. Hiring a third-party company like Lojistic, in contrast, provides instant savings because you don’t have to make those investments.
Another major benefit is ensuring that the transportation to your customers is actually happening as it should. You know that your carriers are doing what you've contracted them to do, you're paying the rates that you should pay, and that you're not overpaying.
And with Lojistic, you can get more value from the information at your disposal. You also have an archive of shipping histories that you can use to plan for next year and beyond.
Let's consider an example. You’re operating a business that requires more and more freight services. You know that there might be a problem with your numbers but you can’t identify what it is.
If you’re a business owner or operations person, there are two primary indicators to look for if you think something isn’t working.
1. Increasing Transportation Spend
The first indicator that you might want to look for freight management services help is a significant increase in your transportation spend.
This can be simply a matter of economics, where transportation is in fact getting more expensive as time moves along. It could also be an indication, however, that something has gone wrong and you're not managing it very well.
2. Transportation-Related Customer Complaints
The second indicator is customer service.
Are you getting more and more complaints from your customers about transportation? Or that buyers’ goods are not being delivered as they should've been? Typically, that means you're falling short somewhere in the transportation network.
Working with a freight management services provider like Lojistic can make these concerns a thing of the past — and provide a lot of other benefits too.