If you were to ask a group of transportation analysts where freight rates are heading, most would say higher. That’s not surprising, considering we’re riding one the “best global growth rates in seven years,” according to Logistics Management magazine. Many carriers, shippers and industry analysts associate increased costs with the driver shortage, ELD mandate and external factors that are out of one’s control. However, there are ways for shippers to control costs despite the dynamic market and rate volatility.
Digitizing core logistics operations is one of the most effective methods for driving overall cost savings and efficiency. A recent JOC.com article discussed one component of the digital transformation in logistics noting the transition from paper to electronic BOLs has a, “far-reaching impact” on controlling LTL costs, yet the LTL industry still handles about, “75 percent of shipments using paper.”
The key to digitizing core logistics operations, like adopting electronic BOLs, is effectively integrating your business systems with carriers and logistics service providers.
4 Ways Integration Drives Cost Savings
- Automate business processes – When you integrate your business systems with carrier and logistics service providers’ (LSP) systems, you create a powerful orchestra of real-time information exchange between carriers and your ERP, order management, WMS, back-office accounting, and more. This helps you reduce manual entry, improve accuracy and free your staff to focus more time on revenue-driving projects.
- Increase visibility – When your systems are talking to carrier and LSP systems, businesses can see where shipments and capacity are in real-time. Tracking updates can be automated, giving end-customers full visibility into their orders and increasing customer experience levels.
- Faster, better decisions – Integration enables businesses to access and aggregate big data from all your business systems. Apply analytics and business intelligence to data to cultivate pricing and revenue strategies that drive true competitive advantage. From a logistics standpoint, integration of information helps businesses make better carrier decisions, reduce unnecessary accessorial charges, forecast transportation spend and even help decide the best location for a distribution center.
- Shipper of choice status – Integrating with carriers reduces the amount of paper processes on their end, as well as yours. When you help carriers become more efficient, you become a preferred partner. In capacity strained times, being a shipper that carriers want to work with helps you secure capacity, avoid the spot market and keep your rates stable.
Advanced Integration Without IT Resources
When people hear “advanced integration,” many assume it also comes with high cost and extensive IT resources. Fortunately for shippers, TMS vendors, like GlobalTranz, are providing advanced integration and custom development resources so any size business, even without in-house IT resources, can integrate their systems and digitize their supply chain. And all at a price point that’s affordable for any company.
Learn more about how you can integrate your entire supply chain without a budget or IT Team. Call 866-275-1407 or connect with an expert.