A Brinks armored truck traveling down Interstate 70 outside Indianapolis this week had its rear doors open sending more than $600,000 in twenty-dollar bills exploding across all 8 lanes of rush hour traffic. In the ensuing pandemonium, people from cars and neighborhoods adjacent to the freeway swarmed to grab as much cash as they could as traffic ground to a halt before law enforcement could restore order. Although not as dramatic a spectacle, many shippers are wasting similar sums of cash across the nation’s freeways each year by operating with weak and inefficient controls over transportation logistics. Here’s how you may be hemorrhaging cash over the road and what you can do about it.
Inefficient Optimization of Routes | Empty miles, inefficient multi-stop route planning, poor visibility into last-minute changes to orders. All these things can be ameliorated through the use of a powerful optimization engine like this one.
Opaque Yard Visibility | Keeping track of assets on large freight yards is challenging as is maintaining proper security at the gate house. Allowing the yard to be a blind spot between TMS shipment tracking and WMS for optimized warehouse efficiency can lead to lost time and money. One needn’t spend a fortune on costly hardware to effectively monitor, manage and measure yard operations. Check out this YMS solution which relies only on existing 3G or WiFi connectivity and any handheld/tablet.
Lack of Carrier Rate Benchmarking | You can manage what you can’t measure. If you’re not benchmarking your common carrier rates in TMS, dollars may be flying (metaphorically) out the back of every truckload you move.
Inefficient Use of Private Fleet Driver Hours of Service | With driver hours even more restricted by stepped up hours of service rules enforcement, costs to operate a private fleet are further constrained. Does your TMS offer a private fleet management function alongside your common carrier management tools? This one does!
Imprecise Shipment Scheduling | Dwell times, detention, long lines waiting for the warehouse to free up an available dock door. These things slow throughput and eat into hours of service. Moreover, customers have grown to expect real-time shipment tracking at every step of the way to support their just-in-time inventory strategies. Advanced scheduling features like these are no longer “nice to haves”.
Overpaying in Settlement for Unplanned Accessorials | Time spent reconciling hundreds of invoices flagged as “exceptions” due to unplanned accessorials and other small ticket charges is time wasted and stolen from more strategic logistics endeavors. Best in class freight settlement tools should include the ability to set tolerances and allowances for minor deviances from quoted freight rates. This simple bit of automation saves countless hours in the processing of freight invoices.
Failing to nail down any one of these items leaves a small hole in your transportation logistics practice through which dollars will escape as your freight moves down the highway. Failing to address all of them is about the same as leaving the back doors to the armored car open at 65MPH!