The four stages any entrepreneur goes through   

The four stages any entrepreneur goes through   

Running a business is not something easy to do and while some people manage to succeed although they do not have a lot of experience, others may fail even if they are More »

Steps to starting a small business

Steps to starting a small business

If you are interested in setting up your own business, then there are a few important steps to follow in the process. Because the business world is highly competitive, it is more More »

Keeping your social media fans engaged – how to attract new followers

Keeping your social media fans engaged – how to attract new followers

Considering that social media marketing is more popular than ever and can have a very important influence on the success of a company, managers will need to always be careful with their More »

 

Smarter logistics: minimizing freight costs by increasing efficiency

The freight transportation system consists in moving products from point A to point B fast and cheap for excellent customer satisfaction. However, with approximately 4 million miles of public roads, tens of thousands of miles of navigable waterways, over 5000 public-use airports and approximately 150 000 miles of railroad tracks, the incredible distance makes it very difficult for companies within the industry to maximize profits. Staying up to date with the latest technological innovations and implementing them successfully becomes fundamental in order to gain competitive advantage. Freight costs make a good part of a shipping company’s overall expenses, which means that looking for various options that could minimize those costs represents a big step in the right direction. Therefore, whether you are shipping nationally, internationally or both, the company will grow in time meaning that if you want to continue delivering quality services for every single customer, you must find ways to not only reduce costs, but also save valuable time.

 

Identifying the most cost-effective mode of transportation according to the distance

Depending on the travel distance and the types or quantities of goods transported, each company has the mission to identify the most cost-effective mode of transportation. For instance, if you are shipping internationally, the distance that you have to cover is obviously extremely long, which means that instead of choosing air shipping, you should direct your attention towards the ocean. On the other hand, if you need to transport something closer to home, then rail is more convenient than trucking. A mix of transportation, also known as hybrid transportation, might prove to be necessary in certain situations so companies should not overlook this strategy. Moreover, collecting data from booking systems and kontering av frakt with the help of transport analysis and invoice control can help the company determine potential improvements in both the internal and external processes because cost-effectiveness also includes the warehouse and order department, besides the actual shipping of goods. Another smart move that will reduce overall expenses refers to consolidating less container load shipments into larger shipments.

Switching to automated processes will reduce wasted time and money on the long term

Shipping companies should not hesitate to invest in technology, such as frakt kontering software if it helps them cut costs on the long-term. Just like mentioned above, automation might seem daunting at the beginning, but it reduces paperwork, prevents human errors and delays. The transport and logistics industry should rely on automation more than any other industry because performing tasks manually takes up precious time and resources. Since the shipping field is extremely competitive, mastering technological trends and making smart decisions represents the only advantage. Furthermore, minimizing freight costs will prove to be useless if companies do not opt for the proper inventory insurance because you can never foresee hazards. Even if they have supplier’s insurance, making sure that it is up to date is crucial. Reviewing fuel usage might also become imperative. After all, developing a fuel reduction strategy will consequently cut down the expenses.