The modern world has a high demand for goods of all types whether they are electronics, apparels, health products or house appliances. The mechanism involved in delivering the goods to the customers includes several processes like procurement of goods, warehouse management, selection of logistics partner and more.
The whole process of freight management has become increasingly important to make timely deliveries in less possible time, cost, and environmental impact. Today we are going to provide you a thorough guide to optimize your entire freight transport management which results in increased efficiency, decreased costs, and higher profitability.
Tips To Optimize Your Freight Management
- Devise a Proper Planning
The best way to accomplish a task successfully is to have a concrete plan. Planning your freight management will include various factors such as procurement of goods, the storage facilities such as warehouses, mode of transport to send the products to their defined location.
You should also factor in parameters such as cost, time, office equipment, necessary transport management software, freight management software and so on. Your supply chain executive would be able to come up with a flow chart for the whole process.
Any planning should stress on the reduction in costs, increasing efficiency and maximizing the profit. The manager should also be able to have contingency measures for any unexpected situations. This can be related to the products, unavailability of the mode of transport, and internal issues in the organization.
You should have a contingency or emergency plan to prevent any failure in logistics or freight management.
- Use Necessary Software
Gone are the days of keeping records by hands or maintaining extensive spreadsheets in your computer. Now you can adopt professional freight management software and transport management software which aid in carrying out the logistics and delivery process.
The solutions come with multiple features and functions to cut down on the manual tasks and automate the workflow. You can also consolidate your shipments, monitor numerous shipments and optimize your business.
You will be able to have overall control and visibility in your freight management with advanced reporting and analytics to drive your operations.
- The Power of Smartphones
Smartphones with their extended capabilities can help you in managing the freight and make the whole process more efficient. Many transport management software come with mobile extensions which can be used to track vehicles using GPS, access instant delivery logs, and grant confirmations.
The apps are able to monitor a number of factors such as fuel efficiency plus the time and route taken for deliveries. You will have a variety of data in your hands which can be micromanaged to increase the efficiency of the logistics and freight management and also increase profitability.
You can track brokers, numerous LTL carriers and create shipping labels and bill of landing on the go. The apps also let you schedule pickups and advanced reporting and tracking.
- Effective Warehouse Management
Proper warehouse management techniques for your logistics management can make things easier for you. It is imperative that your warehouse management should depend on the nature of the goods stored in it.
Look to optimize your warehouse storage space. For example, perishable items such as meat and fish will need your warehouse to have refrigeration facilities. Products like grains need to be stored in a moisture free environment. To minimize the wastage of goods, you should have a proper warehouse inventory in place.
Also, look to maximize your warehouse storage capacity. Many techniques can be utilized for the purpose like the use of vertical storage columns. You can also have a professional software that is able to sequence goods so that you don’t waste any time locating goods once the order has been placed.
Employees of the warehouse need to be trained to carry out the operations as per organizations needs.
- Effective Packaging
You may not think much of your packaging process, but if done correctly, it can lead to a significant reduction in costs and your shipping efficiency. Changes in packaging process can reduce the total cost of packaging, storage, and transportation by as much as 10%. It also helps cut down on the carbon and greenhouse gas emissions.
You should always look forward to moving more volume of goods through your freight capacity. Use more boxes so that you can fill the cube of outbound boxes as much as possible. You should also stop using the certain shape of boxes which take up more space.
The goods should be secured properly so that you can minimize the risk of freight damage and prevent freight claims. Goods that are fragile need special care.
- Go Green with Your Freight
Freight transport services are one of the top contributors to carbon footprint and greenhouse gases. It accounts for 16% of corporate greenhouse gas emissions in the USA. The current levels of emissions are set to grow beyond 40% by the end of 2040.
Cutting down on emission and the greenhouse gases have been recognized as top priorities by businesses all around the world. The move is not only to save the environment, but also to achieve a reduction in operational costs and increase the efficiency of freight management process.
You can follow a few simple principles so that you can create sustainability in your freight management-
- Try to maximize every move
Arrange your freight and adapt packaging so that you can get the most out of your cube utilization. The more you send in one cargo move, the greater is the efficiency and lower the costs.
- Go for the most carbon-efficient mode of transport
For one, you can choose marine transport over airplanes and trains. It’s a more carbon friendly option for you.
Coordinate and collaborate with suppliers, vendors, customers and all stakeholders in freight management and build opportunities to cut down costs and increase efficiency.
- Adapt your logistics network
Change and optimize your logistics network so that you can reduce greenhouse emissions and maximize cost savings.
- Go for greener and energy efficient equipment
Don’t go for fuel-guzzling old equipment and trucks; instead, adopt greener means of transport and cargo handling equipment. Try to reduce the air pollution at busy transport centers.
- Try to maximize every move
- Seamless Communication
If you are working with a freight transport management agency, you need to ensure that all details about your shipment are shared with them. They will be able to deliver the expected service only when they have full access to all the necessary information.
You will have the best chance to connect with your ideal carrier, and they can also serve your special needs if any. Develop a seamless communication both with your freight transport management service provider and carrier so that you can make timely deliveries and optimize the whole operation.
- Look for Newer Markets
Any business should look forward to expanding and penetrate new markets whether it is domestic or international. Some markets are more favorable for freight management companies and have higher opportunities for success.
You can expect to find multiple clients in countries which have a growing economy and high demand for services such as FMCG products, vehicles, housing, relocation, furniture movement, beverages, food, and so on.
Freight management companies can infiltrate such markets with fewer hassles and create their own niche driving profitability.
- Establish Metrics to Track your Performance
You should measure your sustainability efforts by creating performance-based metrics. Your efficiency in sustainable freight transport management is determined by the outcomes and establishing metrics helps you evaluate how far you have attained your goals.
Take a look at your current freight scenario and set a performance target that you want to achieve. Then start monitoring your results and adjust your operations accordingly to meet the performance target.
The process not only helps you cut down on carbon emissions and other greenhouse gases, but it also aids in achieving operational gains. Be sure to report the progress as you go so that you know what needs to be done.
You can establish metrics for different aspects of the freight operations such as costs, time, amount of good moved through logistics and so on.
- Value all Stakeholders
The efficiency of your freight management depends on a number of stakeholders and strong teamwork. The delivery guy is as important as the warehouse manager, and you should value each of them to ensure the growth and success of your organization.
You should look to train your employees and conduct workshops which make them aware of the latest trends in logistics. It will make them more productive and efficient while the satisfaction level of your clients will also shoot up!
- Adopt a Proactive Approach
Don’t rely on market conditions to give you business opportunities- research the market deeply and create your own possibilities of growth and success. The logistics manager should also have an intrinsic zeal to improve the security of supply of goods, drop high bargaining suppliers from the list, and reduce the overall spending.
By following the tips you can achieve higher profits and increase the efficiency of your freight management delivering goods in less time and costs.
Freight management can seem tricky and losses can build up easily if you aren’t careful. Why not make it easy for you with Truck Pulse?
Nitin Lahoti is the domain expert of Logistics and Transportation. He has 12+ years of experience in Design, Business Development and Startups. His expertise is in Product Ideation, UX/UI design, Startup consulting and mentoring. He prefers business readings and loves traveling.