When considering which LTL carrier to work with, most business owners or supply chain managers only take the upfront cost of transportation into account. However, there are quite a few different strategies you can employ in sync with low rates to boost fill rates, reduce inventory and warehousing costs, reduce claims and expand sales. There’s much more than meets the eye when it comes to choosing the best carrier for your company, and today we want to explore those strategies.
At FreightorGator, our mission is to make the shipping processes at your company run as smoothly and efficiently as possible. Not only do we provide easy-to-use technology to support the more difficult tasks like determining freight class, but we also work to provide you with the best, most current information about the industry as we can. If you’re in need of an LTL shipment quote, head over to our homepage now, otherwise, read on to learn which questions you should consider when choosing a carrier.
3 Strategic Ways to Reduce Supply Chain Costs
1. Take Freight Transit Time Into Account. When choosing a freight carrier, consider transportation time in addition to price. For example: If your LTL carrier can provide a faster transit time, at a standard or slightly higher rate, you’ll be able to carry less warehouse stock while improving fill rates. We suggest comparing money saved vs. money spent on carrier rates to make sure you really are reducing costs, but generally speaking, at standard rates, finding a faster carrier will improve upon stock pipelines.
2.Reduce Claims. While it should go without saying, overlooking a carrier’s claim ratio can really hinder costs and client relationships. Claims are expensive and with enough of them, relationships with your clientele can become strained. Instead of simply looking for the lowest cost carrier, do a thorough investigation of their claim rates, their damage reduction processes and their loading/unloading networks. While it may not appear so at first, the amount of money you can save long term will greatly benefit not only your supply, but also your ability to expand sales, earn referrals and keep carrier continuity. You’ll also end up saving money by not having to do emergency air-ships to replace lost or damaged goods.
3. Reduce DSO and Collect Faster. By reducing the amount of time your shipment takes to get to your customer, you can reduce your Days Sales Outstanding and be able to collect faster. This means choosing a carrier with fast transit times for both short and long haul. In fact, if you can find a carrier with dependable ship rates, you can begin to collect right away by offering discounts for those who “pay within 5 days of delivery” or something similar. The key is finding a carrier who will pull through on ship rates in order to keep customers happy and willing to pay sooner.
Choose the Right LTL Freight Carrier To Improve Your Supply Chain Cost
At FreightorGator, we make it easier than ever to compare and contrast LTL carriers and choose the one that fits all your shipping needs. By entering in your LTL shipment information, our system finds the best rates and carriers for your needs and delivers them in an easy-to-choose format so you’re not left with the headache of filtering out hundreds of carriers. Head to our homepage now for a free quote!