Transport Management (4) How can I reduce freight costs?

Shippers face a constant challenge: to ensure their competitiveness, they must continuously optimize processes and cut costs. This also applies to the important business area of transport logistics. The fourth part of our series on Transport Management therefore focuses on the question of how shippers can use technology to make their supply chain more cost-efficient.

Transparent reporting on costs

Transparency about transport costs and the performance of service providers is an important prerequisite for efficiency improvements and cost savings.

As part of our Transport Management Service, we create an individual KPI reporting for you. This provides you with an overview of all relevant key numbers regarding your transport logistics: You receive data on the performance of your carriers as well as detailed information on costs, volume and frequency of your orders. This enables you to evaluate the status of your transport logistics and derive measures to reduce costs – for example, selecting the right procurement strategy. It also puts you in a strong negotiating position for pricing and performance reviews with existing and new service providers.

Building a large network of transport partners

Are you collaborating with only a few transport service providers? Then you are not alone. Due to limited personnel capacities, it is often impossible for shippers to build and efficiently manage a large carrier network. However, this can be useful, as it allows you to assign your orders to the appropriate specialists or regional partners according to the situation and requirements, and thereby usually achieve better prices.

Our digital Transport Management enables you to expand and improve your service provider portfolio by automating operational processes. You maintain cost control and the negotiating position with new carriers, and we take care of the vetting and management of your transport partners.

Adjustment of the procurement strategy

Another option to reduce freight costs is the adaptation of your procurement strategy according to market conditions and the execution of tenders. Through our Transport Management Service, we help you to use spot and regular business strategically and thereby reduce freight costs. 

Here is an example: You want to ship a load from A to B on a regular basis and ask our logistics experts for advice. They know that the market situation on this lane is favorable for shippers, as high capacities are available on a constant basis. In such a specific situation, it may make sense for you not to tender your transport order as a contracted business, but to let us execute it via individual spot orders. Thus you benefit from favorable daily prices.  In this regard, we pass the rates which have been agreed with the carriers on to you on a 1:1 basis as part of our freight cost neutrality. 

Through these measures, an efficiently managed transport logistics can become a cost advantage and thus a competitive advantage for you.

Would you like to learn how our Transport Management Service solves your individual challenges? Book a no-obligation conversation with our logistics expert Anna Formella – with just one click!