By their very structure and nature, logistics and supply chain processes require multiple management levels. They involve many different parties to get products from Point A to Point B. That’s especially true for leveraging architecture for large scale supply chain innovations throughout day-to-day operations. Management requirements remain often distributed and cut across multiple organizations and domains, making it challenging to keep everyone connected, informed, and up to date. Naturally, it has become expected that logistic service providers and shippers will face a plethora of problems when trying to get these vastly unique systems to come together into a single cohesive unit. This is where freight data recording and analysis can help with the supply chain’s internal adding value.
The Costs of Not Using Freight Data in Managing Logistics
According to Inbound Logistics, “In today’s data-rich world, the logistics industry as a whole is surprisingly behind the times. It’s been said that there are two ways to increase profits: raise prices or reduce expenses. Moving product around spends money. Whether a shipper is taking inbound deliveries of raw materials or sending a finished product to an end-user, those shipments cost money and a lot of it.” These expenses can come from more claims being filed by customers, increased costs due to visibility and planning limitations, being more exposed and susceptible to fraud, and missed opportunities for new client acquisitions. All of this means shipping providers must take on more financial responsibilities.
Freight Data Increases Market Share
For businesses’ growth and sustainability, the key remains to share information in real-time, with clarity and precision, across all platforms and stakeholders. This becomes best accomplished by taking advantage of freight data analysis. Here listed are several ways logistics service providers can use freight and shipping data to increase market share:
- Identify the key factors that impact the bottom line and increase overall freight shipping costs, using data to create new processes to overcome them.
- Setting up automated approval systems can make fee approvals and additional cost allowance quick and easy.
- Maximize the recorded data and apply it to all aspects of the transport process for maximum end-to-end transparency.
- With accurate freight data, it will become easier to see how your shipping patterns can affect overall gains and market shares.
Best Practices in Using Freight Data
Well-organized architecture that works within the logistics environment must keep any business straight on the path to success. The goal is to develop and implement the careful selection of practices that will give you the biggest bang for your buck. Here are some ways to maximize the power that freight data management can provide:
Get data in real-time. Shippers and freight management companies can make necessary on the fly with confidence when the best accurate and up-to-date data is available.
- Validate data against external companies. Stay ahead of the competition with data comparison, making it easier to see trends and meet customer demands.
- Share data with freight management parties/partners. Keep open lines of communication between all parties, management teams, and organization tiers.
- Use data to justify or refute all freight claims. Reduce costs, wasted time, and unnecessary spending by quickly addressing issues and concerns effectively.
- Apply data to predict rates. Seeing the current trends and knowing the possible upcoming trends can help everyone prepare and stay ahead of the competition.
- Use freight forecasting resources to understand market fluctuations. Keep close tabs on local, state, national, and global trends with accurate freight data.
- Tender freight based on demand, not just an assumed cost. Maximize profits and stay up with current charge rates to remain productive and, ultimately, competitive.
- Diversify your suppliers/carriers to source more capacity. Keep fleet opening and dock loading availability filled to ensure market share is maintained.
- Use data to guide new bidding processes. Keep up with an annual RFP process to make it easier to negotiate rates and costs with third-party partners.
Unlock New Market Share With a Unified Supply Chain Tech Stack
The right supply chain systems enable continuous improvement and seamless collaboration. Shippers and logistics service providers need to start thinking about freight data applications and how it will inevitably benefit all trading partners and customers. Contact Turvo to get started and see how freight data management can help logistics service providers maximize market share gains.