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Speed and Service Strategies

Shipping methods that are faster usually come with a higher cost compared to slower ones. The question is, is it worth paying the extra amount? The answer is not the same for every situation. There are times when cost is more critical, and there are times when speed takes precedence. Providing your associates (both internally and externally) with the right skills and information to make the correct decision can provide you with the best of both worlds. At Freight Think, we can assist you in building a list of dependable carrier options at various service and cost levels and provide the necessary training and tools to make the appropriate choice each time. This is especially critical for companies receiving goods that are shipped "collect." In these cases, people outside of your company are spending your money. It is imperative that they not only make the right choices, but that they are aware (and compensated) if they make the wrong ones.

// FREIGHT THINK IN ACTION

A manufacturer had managed to negotiate competitive rates for LTL services but lacked a framework to determine when expedited shipping was necessary.

 

Consequently, the supplier was shipping goods at an expedited service level most of the time, incurring a cost premium of around 30% to reduce transit times by one or two days unnecessarily.

 

Implementing a standard decision matrix -- as well as some internal and external training --  reduced their spend greater than 20%.

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