Few companies actually take control over their inbound shipment management, even though doing so enables companies to tap a significant source of potential savings. With services from Business Logistics, we’ll help your company get the best value for your inbound shipment operations.
Below are some common questions and concerns along with answers that have arisen with our own clients involved with inbound shipment management. This section will offer you some insights into how we will help you cut down on costs. If have a question that isn’t in the list, feel free to contact us directly.
Why is Inbound Shipment Management important?
In our experience, inbound shipments are highly under managed. Vendors of products and materials usually “call the shots” when it comes to selecting carriers for shipments to your company’s facilities. They determine what the freight charges will be and they add them to your invoice price, either “buried” in the form of prepaid delivered pricing, or as a prepay-and-add item. Most often, a freight bill is not provided to support these added freight charges, and in many cases vendors make money on freight, so you wind up paying more for your products than you should. In addition, you have little or no control over the carriers coming at you, which can result in delivery scheduling problems, delays, and poor overall service quality. Effective Inbound Shipment Management from Business Logistics services can enable you to gain control over this situation.
How can your Consulting Services help my Company?
First of all, we can probably reduce your costs considerably. By identifying the most economical and effective means of transporting products and materials from your vendors to your facilities we can eliminate waste costs that are drained through vendor over-pricing of your freight charges. We can also develop a group of preferred carriers that become familiar with your operations and needs so that your shipments move smoothly and in a timely manner without undue delay or confusion.
What Tools and Methodologies do you use to optimize our Logistics Operations?
We start by developing a list of your vendors and their freight pricing terms. This information is supplemented by receiving logs that we can provide in the event you are not currently tracking delivering carrier information. We then work with you to determine the difference between each vendor’s delivered pricing vs. F.O.B. origin pricing (or backhaul allowance); we then perform a cost benchmarking step to identify what the current market rates are for transportation & logistics services for each type of shipment made, comparing the numbers to see where gaining control over freight makes economic sense. In situations that have savings potential, we develop shipment routing guides and work with your purchasing staff, your receiving department and your vendors to convert to the more cost-efficient carriers.