Thanks to e-commerce, business owners can now effectively expand their market coverage. However, with the rapid growth of e-commerce businesses, the demand for transportation services has also increased.
While large corporations have their own logistics department that manages the transport of their goods, most SMEs rely on third-party transportation service providers to deliver their products to customers.
This article will explain the importance of a transportation service company for your business. Moreover, it elaborates on how transportation companies can help you save time and money on freight transport.
Logistics companies provide logistics services to suppliers and consumers. These services include the procurement, storage, transport, and distribution of goods from one location to another. Logistics operations involve both inbound and outbound logistics. Inbound logistics is the acquisition of products from suppliers. In comparison, outbound logistics refers to the delivery of these products to the end-user.
Typically, logistics companies manage all supply chain operations, including freight forwarding, warehousing, and transportation. However, a logistic company can also outsource third-party providers, such as warehousing or transportation companies, to handle specific logistics operations.
Transportation service companies are mainly involved in the trucking and shipping of goods and materials. The shipping methods provided by a transportation company may include truck, rail, ocean, or air transport.
Transportation plays a vital role in every logistics operation. Freight transport must be reliable, efficient, and cost-effective to satisfy supply chain partners. Transportation service providers, such as Surus, usually offer various freight transport options that match your transport needs.
For example, you can opt for a Less-Than-Truckload (LTL) service for transporting a small number of goods to cut shipping costs. Alternatively, you can choose Full-Truckload (FTL) or Partial Truckload (PTL) transport for large and heavy loads.
Any business that requires freight transportation can benefit from the services of a transportation service provider. For instance, a manufacturing company that needs to move a substantial number of products to their customers can use a freight company's FTL or PTL service.
Some businesses can save money on transportation by using intermodal shipping to move large items with a flexible delivery schedule. Companies can utilize an LTL transport service for modest amounts of product delivery, allowing them to pay only for a portion of a truck rather than the entire truck during freight transport.
Transportation service companies utilize transportation management solutions that allow business owners to save time and money on freight transport. A transportation management software (TMS) system has capabilities that help you cut transportation expenses and increase freight transport efficiency.
Most TMS provided by a transportation company has a real-time tracking capability that allows you to monitor and track your delivery from the start until completion. Other TMS offers a freight matching feature that will enable you to locate regional carriers quickly, compare delivery prices, and select the truck carrier that best fits your transportation requirements, saving you money on unnecessary freight costs.
As a business owner who relies on transportation service companies to move products, you must be aware of the various shipping choices available to you to cut costs on transportation. While FTL transport may be cost-effective for large shipments, it can be costly for regular small package deliveries.
For one-time shipping projects, such as bulk orders or large product shipments, utilizing an entire truck for freight transport or opting for intermodal shipping can help you save transportation costs. However, these delivery methods can be unnecessarily costly for regular ongoing logistical projects with small orders. Freight consolidation is one approach to reduce extra freight costs on modest and regular shipments. Freight consolidation combines small freights from different shippers to a single truck using an LTL transport service. This way, shippers can avoid paying for the entire truck and leaving empty truck spaces to move small shipments to a customer.
Customer satisfaction is essential in every business transaction. Delays or issues during product delivery can be frustrating, and they can lead to losing customers, resulting in a significant loss of revenue. Hence, having a trustworthy and reliable transportation service company ensures that your product is securely transported, increasing client satisfaction.
To avoid significant revenue losses on product shipments, a transportation service provider must be efficient and cost-effective. Make sure you hire a transportation service provider that can deliver your products to your customers without any problems.
Surus is a transport service company that can provide fast, safe, and reliable logistics transportation services. We provide various freight transport carrier solutions to meet your company's product transportation requirements. With our TMS, we can also provide you with real-time tracking and detailed monitoring of your freight transport.
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Around the world, the transportation and logistics industry is experiencing unprecedented disruptions and recent challenges have further stressed the supply chain. Consumer demand remains high – with no signs of let up – but the typical flow of goods is continuing to be delayed due to rapid swings in the labor market and restrictions placed on industries.
Transportation costs have increased dramatically for many reasons and those price increases are passed onto companies shipping their goods and consumers looking to make purchases. Workforce demands, driver shortages, regulations, and potential new emissions legislation that could mandate commercial vehicles in Canada and the United States toward battery-electric or zero-emissions are just a few examples of how these costs could be affected.
As organizations try to figure out how to work around the supply chain issues, there’s also the need to determine how to manage the transportation and logistics that go along with it – and ensuring the cost of it all works in favor of every party involved.
How can companies in need of transportation mitigate some of the costs associated with these lingering issues? And how can the transportation and logistics industry help pass savings along to organizations and consumers without sacrificing safety or service?
5 Strategies to Reduce Logistics and Shipping Costs
Be agile in how you’re willing to transport goods.
The mindset of, “this is how we’ve always done it,” has been confronted with so much change in the last couple of years. Prepaid, online, or upfront payments might only seem like minimal cost savings, but those savings can add up.
Consider packaging changes and be willing to adjust quickly.
Something as simple as packaging goods differently can allow for stacking, Tetris-like packing, and utilizing vertical space in a seemingly horizontal industry.
Remain open to load consolidation.
Cut shipping costs on less than truckload freight with a third party that does the work to secure the most competitive rates, streamline shipment coordination, pick-ups, and deliveries.
Be willing to spend more to save more.
It might seem counterintuitive, but with current labor shortages, it’s important to weigh the cost of hiring additional help at potentially increased rates in order to fulfill demand. The benefits of being seen as a reliable delivery service can ensure continued business.
Find a transportation and logistics provider.
No two supply chains are the same and companies in need of transportation services can benefit from the relationships that are built by third-party logistics coordinators. Multiple pick-ups and drop-offs, expedited shipments, and just-in-time delivery service can help cut costs to companies used to handling shipments one at a time.