• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » How to Take Control of Your Inbound Logistics

How to Take Control of Your Inbound Logistics

November 7, 2011
SupplyChainBrain

Companies have long relied on suppliers to manage their inbound shipments, but that attitude is changing. According to Greg Aimi, research director with Gartner, buyers might come to believe that a supplier is charging too much for the freight component of a product - or even making money on the shipment. "In certain circumstances," he says, "your scale and size might be able to generate more efficiency [on freight rates] than a small supplier."

Often the freight cost is "baked into" the total price, making it difficult for the buyer to assess that portion of the purchase. Breaking out the total cost into product and logistics elements can become the subject of negotiations between supplier and buyer. The success of that effort could depend on the relatively power of the two parties.

Still, says Aimi, the question of gaining control over inbound shipments is rarely an "all-or-nothing" decision. "You should not expect that you're going to take over the freight of every supplier. Even the best are achieving 60 to 70 percent of inbound control." In many cases, the supplier might be able to get a better rate, particularly if it has extensive experience in the mode at issue.

Buyers can convert ownership of inbound by changing the terms of freight, says Aimi, adding that there are multiple options that define the point at which the receiver actually takes control of a shipment. The key is to model the network and "see what makes sense." For example, if a retailer has a fleet of its own trucks that return empty, it might discover opportunities to maximize equipment usage through taking control of booking.  It might even end up selling the capacity - becoming, in effect, a carrier itself.

Once a consignee has taken over a portion of its inbound, it must then take steps to ensure that its choice of carriers is being followed by internal staff. Aimi says the task can be accomplished through the use of static routing guides, as well as a more dynamic approach that involves consultation with the supplier.

To view video in its entirety, click here

    RELATED CONTENT

    RELATED VIDEOS

    Logistics Global Logistics Transportation & Distribution Supply Chain Finance & Revenue Management Inventory Planning/ Optimization Sourcing/Procurement/SRM Transportation Management Supply Chain Planning & Optimization Supply Chain Visibility Business Strategy Alignment Global Supply Chain Management All Warehouse Services
    KEYWORDS All Warehouse Services Business Strategy Alignment Global Logistics Global Supply Chain Management Inventory Planning/ Optimization Logistics SC Finance & Revenue Management SC Planning & Optimization Sourcing/Procurement/SCM Supply Chain Visibility Transportation & Distribution Transportation Management
    • Related Directories

      Kuebix

      Tecsys, Inc.

    SupplyChainBrain

    Russia Expects 2023 Trade Volumes with China to Exceed $200B

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Popular Stories

    • A WOMAN STANDS WITH A TABLET COMPUTER IN A WAREHOUSE, SURROUNDED BY SYMBOLS FOR SHIPPING METHODS

      Five Tactics for Enabling Smart and Sustainable Supply Chains

      Data Management (Big Data/IoT/Blockchain)
    • A MEXICAN FLAG FLIES IN A RISING SUN

      Mexico’s Future as U.S. Go-To Trade Partner Depends on Investment, Infrastructure

      Logistics
    • A WOMAN IN HER LIVING ROOM GESTURES IN DISMAY ON THE PHONE OVER AN OPEN SHIPPING BOX

      Using Artificial Intelligence for Returns Management

      Reverse Logistics
    • A close-up of solar panels can be seen in front of a sunset. Photo: iStock.com/JONGHO SHIN

      Is the Biden Administration Undercutting Its Own Policies on Chinese Solar Imports?

      Sourcing/Procurement/SRM
    • On-Demand-Webinar-Deloitte-Ep1of6-Sep-26.jpg

      Navigating to Net-Zero: Procurement's Role in Supplier Emissions

      Webinars

    Digital Edition

    Scb august 2023 lg

    2023 100 Great Supply Chain Partners

    VIEW THE LATEST ISSUE

    Case Studies

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

    • Convenience Store Client Maximizes Profit and Improves Customer Service

    • A Digitally Native Footwear Brand Finds Rapid Fulfillment

    Visit Our Sponsors

    Antuit Zebra Anvyl AutoStore
    BEUMER Group Blue Ridge Global Brother
    CHEP Cleo Coenterprise
    Data Capture E2open Enveyo
    Eva Air ForwardX Robotics Frayt
    GAINSystems Generix Geodis
    GEP Global Supply Chain Marketing Summit GreyOrange
    Here Holman Logistics Infor
    Inmar Kinaxis Lexis Nexis
    Locus Robotics Logility LogistiVIEW
    Lucas Systems MCA Connect MPO
    Old Dominion OneRail Overhaul
    PartnerLinQ (Visionet) Port of Virginia Ryder E-commerce by Whiplash
    Saddle Creek Logistics SAP Shyft
    Sourcemap SPS Commerce Tecsys
    TGW Systems Thomson Reuters Veho
    Verusen Walmart Workshop
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Your Subscription
      • Newsletters
    • Resources
      • Events Calendar
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing