Freight costs appear to be on a never-ending upward trend. Manufacturers, retailers, wholesalers, 3PLs and just about everyone else is feeling the negative effects of rising logistics costs. But while most companies recognize the importance of optimizing outbound freight spend, many shippers are falling short when it comes to driving costs out of their inbound transportation.
Depending on the industry and business model, up to 35% of transportation costs are associated with inbound freight. Taking control of your inbound transportation can have a significant impact on supply chain costs. Why aren’t more companies owning and optimizing their inbound freight? For some firms, the obstacles to moving from prepaid to collect appear daunting:
While there’s no doubt that taking control of inbound transportation brings complexity and risk, the path to realizing the potential cost savings can be cleared through inter-departmental communication of the opportunity / business case as well as carefully considered change management. Here are a few tips for successfully managing the cross-functional change required:
By taking a cross-company approach, clearly articulating the business case, and carefully managing change, your company can realize reduced inbound transportation costs and gain a competitive advantage.
Need help with inbound transportation planning? Contact us! (201) 940-7311.
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