A transportation management software or freight management system is a valuable tool that can save you significant time. This software can assist you with organising your systems, keeping your reporting up to date, preparing your books for audits and tax season, and more.
3 Tips to Improve Freight Procurement in Your Supply Chain
Even when things are going well, freight procurement is crucial to the supply chain’s performance. No one can state its significance enough in these challenging times. Here are three pieces of advice that can help improve your supply chain and shipment tender.
#1 Use Modern Tools
The unpredictability of the industry continues to exacerbate the operation of shippers. Furthermore, pockets of available capacity appear unexpectedly. Shippers can improve their freight procurement strategies through software that anticipates when space will become available. They can also reduce their costs and ensure sending of idle cargo.
#2 Embrace Digitalisation
Shippers should expedite their digital transformation initiatives and collect the data needed for real-time decision-making. Logistics teams and shippers sometimes lack the data infrastructure required to handle delays. Many third-party freight procurement software partners typically function as a reporting black box, providing incomplete data. The internal procedures of each shipping business further exacerbate this fragmented picture of data, which creates additional hurdles to information exchange.
#3 Get Rid of Brokers
Overcome capacity constraints by getting rid of brokers. Port capacity and operations are at the forefront of today’s developing supply chain concerns. Shippers cannot obtain the space they require, whether it is due to a lack of available carriers or a driver shortage. Procurement prices also continue to rise since shoppers have no choice but to rely on brokers. It will be difficult for shippers to maintain this state of things, especially with the added burden of the epidemic.
5 Reasons A Business Should Use an FMS
A freight company’s logistics might be burdensome. Using freight procurement and management software is advantageous for your business. It can also save any shipping business a significant amount of time. If you are still not convinced, here are five reasons to use a freight management system.
#1 Broader Potential
An ideal freight management system allows you to optimise your shipping and receiving processes. It lets you combine numerous places and decision points to create an efficient and connected flow that will open many doors for you.
#2 Boundless Tracking
Using reliable freight procurement and management software lets you track your shipments in real-time. It implies that tracking efforts can predict fewer lost goods and late shipments. You don’t have to wait for a shipment tender before you get an update.
#3 Enhances Customer Service
Some FMS comes with freight rate management software that provides additional options for shipping less-than-load (LTL). Other systems include a view of time processing shipments, carrier alternatives, shipping cost options, transit cost options, shipment tender and more.
#4 Reduction in Inventory
An efficient freight management system can help you develop an accurate inventory prediction and budget. You can be confident that your customers will receive their proper shipments on schedule, giving you a more accurate picture of your inventory expectations.
#5 Improves Your Cash Flow
Using an FMS makes auditing and consolidating services more efficient. By keeping precise records throughout your job, you may minimise your invoice costs by up to 10% and save money on accounting services.
The number of jobs, processes, and intricacies in goods shipment might be intimidating. Moreover, punctuality and efficiency are crucial. A logistics and freight management system should also consider saving money, boosting efficiency, and implementing cost-effective improvements to the supply chain.
5 Benefits of Using a Freight Management System for Your Business
Saving money without sacrificing quality might be challenging for a lot of businesses. However, a freight management system (FMS) can deliver on all fronts as long as the shipper understands and uses an FMS that best fits their operations. Here are five benefits every shipper can receive.
A good FMS in place may save a shipper 5-10% of the initial cost, control inventory, and reduce waste. An FMS can also assist in reducing the number of workers that communicate with shippers. Nowadays, many cloud FMS solutions are scalable and flexible, making them ideal for plug-and-play systems.
#2 Expandability and Tailoring
FMS can assist small and mid-size shippers regarding individual needs without incurring additional operational costs per head, particularly when carrying LTL shipments. An effective freight procurement software can include round-the-clock analytics and data, allowing organisations to access a larger pool of carriers. FMS provides access to hundreds of contracted firms. It also provides organisations with alternatives from which they can pick and obtain the best cost.
#3 Access to Data and Analytics
When an FMS is in place, a shipper may get real-time performance statistics based on geography, location, and other requirements. An FMS assists you in eliminating the physical work associated with sending undesired correspondence. Shippers may also compare rates in real-time using freight and rate management software. It can help them make critical decisions. Data on crucial lead times can assist in selecting leaner stock and the optimal delivery choices.
#4 The Benefit of Using Cloud Services
Nowadays, FMS applications are cloud-based programmes that the shipper may lease and utilise from various suppliers. Cloud computing offers data security, so shippers don’t worry about losing vital data during shipments. A cloud system can also help a business gradually grow. Even a small firm can access modern tools and deliver high-tech services to its consumers.
#5 Organisational Progress
An effective freight management system is a significant competitive advantage for small to medium-sized businesses. It may deliver the benefits of a large-scale shipping company without the difficulties, costs, or paperwork that comes with running one.
Use Only the Best Choice for Your Business
Cargobase was founded in 2013 to improve communication between shippers and logistics service providers through its freight management system. Their innovative concept transformed spot-freight procurement. Cargobase’s TMS is now deployed in over 70 countries, providing automation, visibility, and efficiency to worldwide supply chains.