When “business as usual” depends on the smooth and timely transportation of goods and products, many companies rely on freight management firms and processes to ensure their wares effectively make it from point A to point B. 

In this post, we’ll examine the value proposition of freight management for companies looking for a more effective and efficient transportation solution, while also maximizing their investment. We’ll also share some practical tips and key considerations for ensuring continued value from your freight management partner. 

The Value Proposition 

There are a number of reasons companies choose to partner with freight management firms. Below are some of the key ways in which freight management solutions bring value to their customers. 

Savings from economies of scale

Economy of scale is one of the most significant ways in which companies can enjoy value from a relationship with a freight management specialist. Freight management firms work with a number of different companies, allowing them to “buy in bulk” and pass savings on to clients. Such cost savings are especially evident with smaller loads that can be combined with other shipments, and thus the cost divided for these smaller runs. 

Negotiating rates, getting the best pricing 

For most smaller companies, pricing and negotiating shipping rates is one of many duties and functions staff must manage to ensure the business runs smoothly. Freight management companies, however, typically have dedicated staff well-versed in costs and regulations. These team members are experienced in negotiating rates and work continually to ensure you receive the best shipping rates; positively impacting your bottom line. 

Access to the best and latest tech

Freight management firms utilize specialized computer systems and databases for tracking, logistics and overall management of your loads. Access to this level of technology and information is cost prohibitive for most smaller companies and offers your business a customized shipping plan that can also provide benefits to your own customers; including advanced shipment tracking and other features.  

Cut the red tape and outsource administrative processes

Rules, regulations and the associated red tape can be a drain on staff time and often represents a time-consuming component of operations. Partnering with a freight management firm allows you to outsource administrative processes and entrust a dedicated team of professionals with navigating the regulatory requirements and rules that govern transportation of goods in your particular industry – in turn allowing your team members to focus on more important tasks and priorities. 

Tips for Ensuring Continued Value 

Before selecting a shipping partner, it’s important to do your homework. There are numerous freight management companies in the market and each one has its unique areas of expertise, shipping policies and pricing models. Determine what factors are important to you, gather information, request price quotes and then compare in order to make an informed decision that is best for your company. 
Audit and run rate comparisons
While your research and vetting should result in a relationship with an effective freight management company you can trust, it’s important to not become complacent in terms of monitoring rates, performance and key metrics as the market changes and fluctuates. 
Periodically “spot check” your shipments and do some research on the rates of other shipping companies to ensure your pricing is fair and competitive. Similarly, be sure to benchmark performance and shipping times. 
Monitor damage, adjust packing and handling 
Damage rates are another key metric to monitor. Check the numbers to ensure that the claims ratios you’re seeing through your freight management partnership are normal and acceptable. If you’re seeing numbers above the industry average, it may be wise to invest in improved packaging and handling processes – paying a little more on the front end in order to reduce damages and the associated costs later. 
Naturally, enhanced packaging and handling and fewer damages and claims positively impacts customer satisfaction as well. 
Benchmark and hold freight management accountable 
It should go without saying that it is not only important to monitor and track the metrics and measures mentioned above, but also make that information actionable by benchmarking it against other carriers. Ultimately, if your freight management partner does not stack up against the competition and you feel that the relationship is less than satisfactory, be sure to share that information and your concerns with them. If the arrangement does not improve after a candid conversation, it may be time to search for another solution that better meets your needs. 
A Freight Management Firm You Can Trust 
At Berger Transport, we understand how important your cargo is, as well as its timely and safe transport. We also know that you have options in the market, and that’s why we work hard to ensure competitive pricing and a quality shipping experience 
We work with you throughout the entire freight management process and we’re available 24/7 to support your shipment. Contact us today to learn more and receive a quote. 
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