“What you don’t know won’t hurt you.”
This last month I took my family on vacation. We drove close to 5,000 miles over a 3 week period. During this time, like all people, I drove a vehicle and trusted the safety and security of my family and belongings to that vehicle. Funny thing about this, I own a vehicle, and drive it all the time yet I’ve no idea what’s under the hood. Right! There’s the engine. It uses gas, oil and water to make it run properly and something about a spark, combustion and fuel/air mixture in the pistons…blah blah blah.
But, if the car broke down rest assured I’d open the hood and stare at that huge engine block with its wires tucked neatly under and plastic shields covering the vitals, and I’d do my best to make it look like I knew what I was doing by tapping on this or that. In the end…I’m probably calling a tow truck.
Whether you subscribe to it or not, the reality is, most don’t know a lot about what’s under the hood of our shipping costs. We do know carriers make general rate increases every nine to 12 months. We do know there are hundreds of added fees related to transit time and customized delivery. The proper response to all of this is not to do nothing about it. Be proactive. To help:
Here are 3 things that will save you the most money on shipping.
Freight Invoice Audit
Thousands of companies are contracted with an audit firm to help ensure their invoices are billing correctly. Many of those opt to add the freight payment component along with the audit to ensure invoices are coded and paid more accurately. Never overlook this necessary oversight when determining your best savings strategy.
Shipping Cost Transparency
Take 10 minutes this week and pull an invoice from each of your top logistics providers. After doing so, ask yourself this question, “Would my company be better off having more or less information on each shipment?” Providers such as AFS capture the details from every invoice (ship date, origin, destination, fees, etc.) and give you the ability to accurately quote customers and forecast your shipping costs without concern.
For better shipping results, your success hinges on developing metrics for feedback and accountability. Whether your company ships a little or a lot, you should never forsake the measurement of cost/unit, cost/pound, cost/zone, cost/shipment by service level, and so on. Find a provider who can work alongside you to provide your best dashboard of meaningful metrics.
What’s under your company’s hood?