Developing a transportation strategy plays a major role in several facets of business. Whether you are moving finished goods or raw materials, having the right strategy can affect cost, service, reputation, and the bottom line. Below we identify four key areas of consideration when developing the transportation strategy for your business.
1. Determine Priorities
When developing a transportation strategy, businesses should evaluate and prioritize items most important to them and their clients. Are the priorities to increase visibility and communication throughout the process? Improve on time pickups or deliveries? Reduce freight costs? The transportation industry has several moving pieces, external forces, and market impacts. These weigh in even on the most bullet proof strategies. The key is for businesses to complete due diligence and control what they can.
2. Reduce Freight Costs
A reduction in freight costs can come with investing in freight optimization software, creating a request for proposal, and implementing contractual prices to negotiate stable and consistent rates with clients. Additional reduced costs can come from the consolidation of freight running to similar regions or areas.
3. Establish Balance
Often times, businesses strive for maximum cost saving with minimal service failures. Understanding that one of these typically comes with the sacrifice of the other, it is crucial to find the balance for your business. Developing a transportation strategy that allows for exceptional service, while maintaining a fair profit margin is crucial to both reputation and the bottom line. Both of which are an integral part of future growth.
4. Chose Quality Carriers
When seeking carriers, the “cheapest option” may not be as cheap as one might think. How often is the lowest price selected only to have something go wrong at the last minute? Choosing the low price may have its appeal. However, when things go wrong, how much opportunity cost is lost due to reworking a given load, sourcing another carrier, and battling capacity at the last minute?
Spending the extra dollars on the carriers you know deliver a high-quality level of service, support a positive relationship with clients, and ensure that communication, service, and a long-term strategic partnership is in place may actually lead to an increased bottom line at the end of the day.
When developing a transportation strategy for your business, think carefully about what is most important. Build your plan around those items. This strategy is often what determines how customers view a company. Although this may seem like a small part of the supply chain, it is often where the manufacturer comes in contact with its suppliers and its customers. It can make or break a company.
The England Logistics Full Truckload division offers a range of services for companies of all sizes. Dedicated team members are available day and night to offer solutions and assistance with all logistical needs. Regardless of the transportation mode, our market and seasonal specialists provide flexible shipping solutions and are committed to helping every step of the way.