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Shippers may work with countless vendors in today’s world, and in the age of e-commerce, it is possible for shippers to work with vendors and suppliers from across the globe. Unfortunately, managing this complex vendor network and controlling inbound freight costs is difficult at best. However, the use of inbound freight data can help shippers know when to consolidate the business, and other words, shipments, to reduce freight spend, increase inbound freight volume and reap the benefits of more significant vendor discounts.

Furthermore, it is essential for shippers to understand and evaluate freight spend across the supplier base, including the impact of increasing freight costs, how inbound freight data offers alternative solutions to issues and a few steps to leverage inbound freight data to its highest potential.

Inbound Freight Costs Are Increasing

The biggest problem with inbound freight data derives from a common issue; inbound freight costs are increasing which is the result of general rate increases across all modes of transport, especially parcels and LTL freight. Unfortunately, the worsening of the capacity crunch and pushback from drivers that fall under HOS regulations will continue to result in higher freight costs. In some cases, shippers may be unable to even schedule inbound freight due to a lack of capacity available drivers as part of the reason shippers are working with each to gain shipper of choice status to make their freight more attractive and keep costs under control. However, merely gaining shipper of choice status is not enough to truly impact profitability.

How to Drive Inbound Freight Savings thru Improved Vendor Compliance Management

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Inbound Freight Data Helps Shippers Design Flexible and Creative Solutions

The road is changing, and inbound freight is no exception. As consumers have grown accustomed to an endless variety of products and services, more shippers are working to improve inbound freight relationships. Ultimately, better ways of managing inbound freight translate into better savings and customer service for inter-users. According to Jayne Marchesan of Talking Logistics with Adrian Gonzalez, shippers can turn to technology and inbound freight data to develop more flexible approaches to managing inbound freight also known as continuous flow optimization, allowing shippers to optimize processes and design dynamic distribution models that self-optimize continuously. Of course, deploying the right set of technology and tools necessary for such customization and optimization, including in inbound freight data-generating and -analyzing transportation management system (TMS), is crucial.

How to Use Inbound Freight Data Without Going Crazy

Inbound freight data offers excellent potential for shippers and is essential to gaining visibility in inbound operations. Unfortunately, inbound freight data is complex. Instead of merely managing outbound freight data, shippers must now add the inbound component to the equation. Shippers must have the tools and resources in place to analyze such data, and even when analyzed, shippers must know what to do with the data. Fortunately, those that follow these practices can put the power of inbound freight data to work without much of the stress associated with traditional data management and analysis:

  • Know your vendors, carriers, and consumers. Understanding more about the transactional relationships involved in inbound logistics will improve visibility and avoid potential issues.
  • Take advantage of IoT and AIDC capabilities to track information. Automating the data collection and analysis process through connected sensors and technologies will help shippers gain more knowledge, which can be poured into the TMS and other systems to generate more meaningful insights.
  • Consolidate shipments when data supports consolidation. Inbound freight data also provides a way for shippers determine when it is necessary and beneficial to consolidate freight or take advantage of other shipping options, including shipping director consumers.
  • Streamline reporting capabilities with automated notification of exceptions and handling of such issues. Issues may arise that do not fall within the set guidelines and parameters of the TMS, resulting in an exception, but exception automation effectively eliminates the manual processes of dealing with such issues.
  • Give suppliers, and vendors access to applicable systems. Getting suppliers and vendors on board with using the same system as your organization will reduce inconsistencies and ensure data is accurate and useful, improving overall inbound freight management.
  • Use data to score vendor performance. Another application of for inbound freight data is its use in scoring vendor performance, helping shippers identify problem suppliers and providing a pathway to a resolution to prevent such issues from recurring.

Listen to “[PODCAST] Why Do Missed Freight Pickups Occur & What Can Shippers Do About Them” on Spreaker.

Reap the Benefits of Inbound Freight Data Application Before You Lose the War to Your Competitors That DO

Utilizing inbound freight data can help shippers understand inbound freight costs, work with more vendors and suppliers, avoid violations to inbound freight routing and improve customer service by reducing company overhead. Depending on the specific use of inbound freight data, shippers may also consider new investments and processes, such as cross-docking, to further reduce costs.


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