How to Save Money On Inbound Shipping

Why Process and Logistics is so Important to Inbound Shipping Costs

I'm sure it's a question your board asks all the time - how can we save money on inbound shipping? As manufacturers are looking for more ways to save costs on shipping, they are finding that their inbound shipping programs can be better optimised for efficiency which can minimise delays and confusion as well as save them money. Depending on the size of the company and industry, a business can spend more than 40% of its annual freight budget on inbound shipping. By streamlining the process and understanding inbound freight management properly a company can reduce these costs.

Whether your company is a distributor taking shipments of important inventory, an industrial manufacturer receiving inbound shipments of parts to manufacture your goods, or a retailer looking to replenish their stock, inbound freight is a crucial part of your business itself and not just the supply chain. Many businesses do not take control of their inbound freight management because it complex and involves multiple departments in your organization that sometimes can be put in opposition with each other as well as multiple companies – vendors, carriers, trading partners – and various shipping agreements to understand and analyze.

Why look towards inbound shipping to lower your overall costs?

The results of efficiently managing your inbound freight are substantial when done right, so do not be discouraged by the complicated process involved. Logistics, supply chain management and transportation managers in organizations need to champion the cause to get control of inbound freight and ensure the C-level executives in the organization understand the benefits of doing so. Hiring an expert partner with experience in this field will help gain control of this complex issue can be very rewarding.

Some of the numerous advantages of implementing inbound shipping management strategies include securing the best pricing for both at will shipping as well as by applying pre-negotiated carrier contracts to general inbound shipping. Concise tracking of all logistics activities provides more informed shipping account when negotiating new contracts with clients.

Having logistics expertise in freight management services makes certain that business rule development and enforcement is performed by professions able to oversee the process, monitor all aspects of it, execute modifications as the need arises, and recommend long-term changes as the shipping industry and environment change. Consolidating invoices and offering visibility into the true costs of inbound shipping enable businesses to carry out necessary changes in process and reduce overall costs.

To help ease the burden on internal shipping organizations and IT staff, outsource both the technical solutions and the logistics expertise. Employing a service powered by a transportation management system is quick and inexpensive to roll out, requires no new software or hardware and provides access to users company-wide depending on role.

In summary, taking control of your processes, more efficiently managing costs and improving visibility through a managed service empowered by an effective inbound logistics program (through both integrated services and technology) reduces your overall costs and improves operations.