Controlling Shipping Costs via Multi-Modal Freight Rate Visibility

As global trade shifts with the changing times, shipping management is becoming more important, more time consuming, and more expensive for companies.

Amazon’s disruptive effect has put two key strains on supply chain professionals: to ensure inventory availability across a broader network of distribution points, and get products to the consumer in days, if not less.

This effect bears down on every step of the shipment process to ensure reliability and accuracy.

Smart logisticians are properly orchestrating the fastest and cheapest means of moving goods from factory to consumer. But it isn’t simple.

In a 2017 study and report from American Shipper magazine, 58% of shippers stated their highest concern today is rising transportation costs.

We are already seeing shipping rates rise much higher than in the past, much of it blamed on the more challenging home delivery promises made by e-commerce marketplaces and consumer expectations.

This year especially, the industry is realizing the greater cost of online sales return shipping. 

For shippers, managing every stage of the shipment - over the ocean and the last mile – can be extremely complex. Even some large companies struggle with distribution challenges and excessive transportation costs. This makes visibility and accuracy of rates a critical component of cost management that is often missing.

Some transportation management systems (TMS) are accustomed to handling contract rate and schedule data for domestic trucking and LTL haulers but don’t typically encompass ocean and air carriers, too.

Other point solution providers have developed support for ocean and air freight without the trucking / LTL capabilities, but the reality is a single, multi-mode solution is lacking in most TMS solutions.

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