If you're like most companies, you likely rely on vendors to arrange for your inbound shipping. But did you know that, in doing so, you're losing out on more than just visibility of your incoming inventory? Vendors typically include shipping costs in the price of their products, leaving your business in the dark regarding company rates and additional fees that may be accrued. Should you be unhappy with carrier performance or delivery options, you'll likely have little information to use to change carriers directly. That's why shifting inbound logistics management to an internal team gives your company a leg up by creating greater efficiencies and cost savings. We're here to walk you through how to turn your inbound logistics from a costly expense to a competitive advantage.
What are the in-house benefits of inbound freight management?
Considering bringing your inbound logistics management in-house? Whether you're looking to save on costs or gain more control over your supply chain, inbound logistics may be an ideal solution. Here are a few of the major benefits of maintaining your own inbound freight management.
Greater control over shipping costs
When a company manages its own inbound logistics, it has greater control over shipping costs and transit times since shippers can compare carrier rates and service options to best meet their unique needs and limitations. Costs can further be reduced by identifying and eliminating unnecessary accessorial fees. Plus, with better visibility and influence over the carrier's performance, dissatisfied shippers can switch to another carrier with ease to better fit their needs or budget.
Even carriers benefit from companies managing their own inbound freight logistics since shippers can choose to use the same company for inbound and outbound shipping. The carrier gets an extra shipment they may not have otherwise, lot congestion is reduced and separate pickup coordination requirements are eliminated, making the shipment more fuel efficient. Handling both your inbound and outbound shipments may also make carriers more willing to offer discounted or special loyalty rates.
Greater control over resource management
When suppliers arrange carrier pickup and delivery, the company is left without control over the truck's arrival and is typically left paying the dock crew added wages for idle time. When you take inbound shipping into your own hands, your company gains priceless visibility into when trucks will arrive for pickup and delivery and can schedule workers accordingly. Plus, you'll be able to make sure your inbound and outbound carrier schedules don't overlap. This helps to avoid chaos at the dock and makes both loading and unloading more efficient. When the lot is less congested, drivers spend less time waiting and you can save on dwell time fees.
More balanced inventory management
Not only does bringing your inbound freight management in-house help you gain supply chain visibility, but it also helps you better manage your inventory. Balancing product flow with inventory through inbound logistics will help ensure levels are cost-effective. An inventory management system gives companies visibility so they can submit orders when inventory is low, rather than allowing suppliers to replenish on a cycle - this avoids tying up cash with excess inventory.
Better enabled data analytics and KPIs
When you handle your own inbound logistics solutions, you have control over the technology and resources being used to keep your shipments on track. For example, using a transportation management system (TMS) for both inbound and outbound logistics gives companies a more complete picture of opportunities to optimize efficiency and cost savings. The data collected through a reliable TMS can be used by a third-party logistics (3PL) expert to identify optimal delivery routes, uncover opportunities for shipping cost reduction, determine whether shipments are candidates for consolidation or pooling, and decide if other different modes — or combination of modes — could improve cost savings and help manage dock congestion. Data analysis can also help establish key performance indicators (KPIs) to measure areas for improvement and identify any successful operational efficiencies to maintain.
How can a 3PL help with inbound logistics management?
Bringing your inbound logistics in-house can feel like a huge undertaking, but you don't have to go it alone. 3PLs offer the resources, technology and expertise you need to manage your logistics and transportation and oversee the vendor and carrier relationship to bring all your operations together in one wholistic strategy.
A 3PL will utilize TMS data and an end-to-end view of your supply chain to not only improve the inbound and outbound flow of goods, but also allow for easier carrier and rate selection. Plus, 3PL experts will work directly with you to reduce freight and warehouse costs, decrease wait time and improve both speed and accuracy. That's extra money in your pocket.
So, how can a 3PL help improve your inbound freight management? With a trusted 3PL by your side, your operations will be more efficient, leaner, more cost effective and reliable. As a further benefit, stakeholders in the organization will see the results and understand how improving inbound logistics can be thought of less as an expense than as competitive advantage.
Best-in-Class Inbound Freight Management from GlobalTranz
If your company is looking for ways to be more efficient and save money, managing your own inbound logistics may be the ideal solution. However, knowing where to begin may be a challenge you're not confident tackling by yourself. Luckily, GlobalTranz offers best-in-class shipping and logistics solutions, round-the-clock support from real industry experts, and industry-leading resources to help maximize all aspects of your logistics. Whether you're seeking less-than-truckload (LTL) or full truckload (FTL) shipping solutions, GlobalTranz has the tools and expertise to transform your supply chain. Ready to get started? Connect with an expert to learn more.