Freight management expenditure is subject to many influencers, and shippers operating conventional, unsecured, and manual-intensive processes will see a rise in transportation spend. Therefore, shippers need to take these factors into account when assessing freight rates and supply chain risk.
FREMONT, CA: The supply chain is innate with risk. Changing regulations, shifting capacity, and other risks affect freight rates and freight spend. Nonetheless, freight spend is subject to many influencers, and shippers operating conventional, unsecured, and manual-intensive processes will see a rise in transportation spend. Therefore, shippers need to take these factors into account when assessing freight rates and supply chain risk.
The particular mode of transport, like full truckload, less than a truckload, or parcel, will shape freight rates. Additionally, modes of transportation, such as ocean versus rail shipping, have a dramatic result in supply chain management.
Available capacity replicates a careful balance between driver availability, load planning, preference for acceptance of freight, and even shipper information. Failures to provide carriers and truckers with adequate data and ample time for scheduling will naturally lead to delays in delivery.
Drivers are another influencer in supply chain management. Without adequate drivers, shippers cannot move freight to other business-to-business partners and consumers. Alongside, drivers carry immense power with the capability to decline or disagree with freight pickups among certain shippers. Therefore, shippers should work to achieve the “Shipper Of Choice” status among carriers, reflecting the ease of loading or unloading at a specified dock.
• Preferences and Amenities
When it comes to driver preferences, the aspect influences freight rates as well. Shippers that operate multiple trucks will get feedback from their drivers, and those drivers with positive experiences likely lead to discounted and preferred rates, assisting shippers keep freight spend in check.
Time has a constant effect on freight rates. Consumers want their products at the earliest, and shippers cannot practically determine the accurate volume of freight to be distributed within the next 24 hours. Hence, they can use analytics, freight and transportation data, and advanced technologies to improve better demand forecasts that will have natural gains throughout supply chain planning.
Lastly, the footprint of supply chains affects the system’s performance. Those supply chain leaders with accessible facilities across the globe can meet e-commerce consumer demands quickly and with fewer delays.
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