Advanced Transportation Strategy - Four Key Goals

Posted On 17th April 2016

You are the new CFO, Traffic Manager, Transportation or Logistics, or Supply Chain Director and are tasked with supervising and managing logistics.

What should be your goal? What legacy will you leave your company?

We believe your company will be best served if your goals are:

Built-in Flexibility

Developing a system that takes advantage of every capacity option available in each lane will ensure lower transit times and happier clients. The goal of lowering risks of failure, managing costs, and customer satisfaction is vital.

To attain such goals one must be open and transparent, and actively seeking all market options. This means aligning shipment requirements to the best carrier that best suits that lane and customer.

Eliminate Fuel Price Volatilities From Your Budget

You are not in the transportation business. Your transportation provider should buffer you from the ups and downs of fuel price volatility.

A 3PL or 4PL should be willing to provide flat pricing to you in return for 2-3-year contracts. If they are not, talk to Eliminate this risk to your supply chain and your budget; it is not yours to bear!

Eliminate Surprise Expedited Shipping

Expedited shipping costs often blow up a company’s shipping budget and eat away at profits unnecessarily. Clearer communication to the customer, management of expectations, and more realistic estimates of ready dates will enable you to control expenditures in this area.

A late delivery that costs your client money cannot become your company’s risk and loss. The division of risks and responsibilities must be communicated clearly by sales and customer service to the client so that expedited shipping costs do not become your responsibility.

Systemization via Automation

Integrating your enterprise system with a TMS, or adopting existing systems can provide you with the visibility you need at each of your shipping or vendor locations and ensure your transportation strategy is being implemented correctly

Develop a plan to achieve the goals above and you will have built an efficient, transparent, and flexible logistics engine that will protect your company’s bottom line, provide it with extra growth capacity, and win acclaim for the farsighted individual who executed such a plan.