Freight costs and freight budget adherence are among the most important and often overlooked aspects of transportation management. As the industry struggles to recover from the unprecedented global events of 2020, recognizing budget limitations is essential for industry growth and success.
The costs of logistics as a ratio of total expenses are too significant to ignore. For example, according to Global Trade Magazine, “One critical factor that executives should monitor closely is logistics management. This sector covers important activities relating to procurement, transport, and storage of goods. In most industries, supply chain logistics account for 5% to 50% of a product’s total cost.”
As businesses grow in this era of technology, they aim to enhance their efficiency and productivity. Technology makes businesses more efficient and productive in the best possible ways. The development of weighting technologies, such as a weighbridge, also contributes to improving the efficiency of businesses.
A weighbridge is a device that is used to measure the weight of loaded/unloaded trucks and vehicles. It is also used to manage the incoming and outgoing vehicles. The present-day weighbridges are so advanced that they provide data regarding stock levels.
Let us explore all the benefits of a weighbridge for a business.
After the eCommerce boom in 2020-21, the number of global digital shoppers is predicted to hit 2.05 billion U.S. dollars from 1.32 billion U.S. dollars in 2024. It’s a great time to capitalize on some of the trending ideas like the Amazon Prime Air service shipping solution that will deliver packages up to five pounds in 30 minutes or less using small AI-enabled drones for delightful delivery experiences.
This is the time online retail businesses need to optimize and improve their supply chain and logistics processes. They need to bring in advanced routing capabilities, improve visibility of end-to-end logistics operations, boost productivity, etc. All of these aspects empower retailers to meet customer expectations and stay profitable.
When it comes to choosing a shipping solution, businesses need to be resourceful and smart.
Many businesses rely on vehicle fleets to deliver their products or services to customers. For this reason, an efficient, well-organized fleet is key to maintaining a good workflow.
While there are many things businesses can do to improve the workflow of their vehicle fleets, one of the most important is to have a vehicle tracking system. A vehicle tracking system lets you know your fleet’s location in real time. You can also review historical data to identify patterns.
The Freight sourcing team and procurement are critical components of the whole supply chain and is crucial to the success of the business. Whether you are a BCO (Beneficial Cargo Owner), Freight Forwarder or NVOCC it is essential that you get this critical component right.
In order to achieve maximum efficiency in freight sourcing and procurement, you need a strong team to handle the requirements.
The goal of supply chains is to add value to the manufacturing and distribution processes. Supply chains can be differentiated based on characteristics such as price, time reliability, and risk, and value-added services provided depending on the markets and value chains they serve.
There have never been more product choices in the marketplace than there are now, thanks to globalization and technical developments in supply chain management.
Furthermore, whether purchased in a store or plucked right from their doorstep, buyers want to receive their products immediately and in excellent condition. That indicates that having popular products isn’t enough to guarantee success.
Today, they must also arrive swiftly, effectively, and in perfect condition, or you risk losing customers.
As most transportation of cargo and goods, whether in international waters or air space, involves multiple transit destinations and ports, logistics can be a complicated industry. Hence, it is always necessary to have a freight forwarder that can help in carrying out logistic operations.
A freight forwarder is an essential service provider, mostly for companies that are importing and exporting their cargo. This agent or company specializes in logistics and organizing shipments in place to transport goods.
However, the rise of competition amongst freight forwarding companies also gave emergence to fraudulent individuals who would take advantage of the situation. Freight forwarding has both good and bad sides, just like any other industry.
Understanding the nitty-gritty of the supply chain process, including the difference between a freight forwarder and customs broker, is extremely crucial to succeed in the international trading industry.
Regardless of how big your business is, knowing the entities that will bring your shipment to its intended destination efficiently is imperative to maintain efficient supply chain operations and meet the time requirements of your clients and the market.
For many import and export businesses, there are basically two entities involved in moving your shipment from Point A to Point B, which are freight forwarders and customs brokers.
While seemingly fulfilling the same role, both satisfy different requirements of trade businesses, and each delivers advantages which their clients would not be able to achieve in other ways.
In business it is not uncommon to hear the words “Logistics Management” and “Freight Management” thrown around interchangeably.
“Logistics” and “Freight” both conjure up imagery associated with the movement and transportation of goods whether by truck, car, rail, ocean liner or any other form of transportation.
But for those who are professionals working in the Supply Chain field there can be very unique distinctions in this terminology. This is extremely important when you consider the tasks at hand, the skills required, and how to fill these types of jobs.
Carriers such as FedEx, UPS, and USPS use shipping zones to determine the shipping cost of a package. Zones relate closely (but often not exactly) to distance traveled. In the continental US, most carriers break down the country into seven shipping zones, (numbered 2-8).
ECommerce businesses need to pay attention to shipping zones. Zones affect your fulfillment costs and delivery time.
A clear understanding of shipping zones should inform your fulfillment strategy. When you use zones to your advantage, you can reduce shipping costs and even offer free shipping.
The IMO’s (International Maritime Organization) new Sulphur regulations, IMO 2020, will have far-reaching consequences for the global trade community. During the 17th session of MEPC (Marine Environment Protection Committee) meeting at London on 28th Oct. 2016, International Maritime Organization (IMO) took a landmark decision which will enforce a new regulation from 1st of Jan. 2020.
According to this regulation, the marine sector emissions in international waters will be slashed even outside the emission-controlled area: ECAs (Emission Control Areas; The Baltic Sea Area, The North Sea area, The United States, Canada, and the United States Caribbean Sea area).
The ships now have to reduce their Sulphur emission by over 80% – 85% by switching to Lower Sulphur Fuel.
Even though we are increasingly immersed in the information age and the proliferation of digital technologies the movement of goods from point A to point B, any where in the world is the drum beat of our lives.
The combinations and permutations of transportation modes, routes, carriers and resources is infinite. As such the ways in which all of this is managed also has innumerable approaches. Given the importance of this aspect of Supply Chain we would like to spotlight our best articles on this subject matter.
Here are our Top 16 articles on Freight and Logistics!
LTL, or less-than-load, is a shipping method that involves using only a portion of a truck’s available space. Those companies who choose LTL trucking pay only for the space they use and the distance the product needs to travel.
Are you wondering if your company can benefit from LTL?
The cheapest quote may not always provide overall cost savings.
Both the suppliers and shippers will need to monitor market conditions and costs on an ongoing basis as they enter carrier rate negotiations. For the shipper, in particular, the use of freight cost benchmarking, market movement analytics and global container tracking will also be important to achieve additional insight and a better understanding of overall costs.
Freight costs are considered by many forwarders and shippers to be a major part of their total shipment cost.