Improving Accountability In Freight Management
Posted by World Trade Distribution
Filed Under: Container Freight
Many companies ship their goods all over the world. In order for these companies to meet the demands of their consumers, it is important for them to have a reliable mode of transportation. This is where freight management is key. Of course, during this process, it is important for companies to track where their goods are every step of the way. This allows them to identify and correct problems before they enlarge. There have been many attempts to improve accountability in freight management over the years. One case study demonstrated how streamlining the process can improve accountability in freight management.
A Case Study in Supply Chain Management and Freight Accountability
Recently, a technology company that manufactures sensors and controls sought to streamline its supply chain and freight management processes. This company is responsible for shipping aircraft parts all over the world. Their parts are distributed to 12 different countries by every mode of transportation imaginable. This includes airplanes, ferries, trains, trucks, and even hand-delivered services. Because of their spiderweb of distribution networks with multiple modes of transportation in countries all over the world, the company was inefficient. They started looking for ways to improve their freight management and supply chain services.
The Goals of the Company
This technology company’s goals were to cut costs, increase transparency and improve the logistics of their operations. The first step was to find a partner that could meet their needs. They decided to rely on a third-party transportation management system that had a track record of being able to handle companies with international distribution needs. The two partnered up and started a pilot program that gradually expanded to include all of this company’s international locations.
Added Functionality Led to Streamlined Procedures
This third-party company worked to streamline all of the company’s procedures. In order to do this, hundreds of employees were shifted from the technology company to this third-party specialist. This third party implemented technology that coordinated all of the company’s international shipping. Using advanced technology, the processes were streamlined. Within the first year alone, this third-party was able to save the technology company more than $2 million. Using tracking technology, this third-party has complete visibility on every order that is shipped. They are able to coordinate every action along the supply chain with the click of a button.
This represents a major shift. Prior to this third-party’s coordinated involvement, the technology company was only able to see the requested delivery date. Now, with the help of this third-party, orders are shipped in a cost-efficient manner that helps save the technology company substantial sums of money. Everything is now integrated directly with the carriers, yielding more transparency and more information that can guide the decision-making process.
The Result is Improved Accountability in Freight Management
With this new information, decisions are made in a cost-efficient manner. The increased transparency has led to improved accountability in the freight management process. This leads to improved customer service, loyal customers, and reduced overhead costs.