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Home » Keeping Your Transportation Costs in Line

Keeping Your Transportation Costs in Line

August 13, 2010
SupplyChainBrain

Putting freight out to bid on a regular basis and truly understanding the cost drivers associated with that freight are two ways that companies can ensure they are getting the best deal on transportation rates, says John Haber, a partner with NPI Consultants, which specializes in transportation cost containment.

Transportation capacity will tighten as the economy recovers and shippers need to ensure they are getting the best terms and prices from their carriers, he says. One tactic for doing this is to make sure they leverage the competition, he says. "We often see situations where a shipper has been using the same carrier for a long time and getting no competitive bids," says Haber. "It is very unlikely that these shippers are getting the best possible pricing."

Here's another tip from Haber: the more educated you sound when talking to a carrier, the more likely you are to receive the best pricing. "This means really understanding your shipment characteristics, your network and the cost drivers associated with your shipments," he says.

Finally, Haber says shippers should turn to a third party if they need help identifying opportunities for savings. "At NPI, we show a company the savings it could achieve and provide a strategy for achieving those savings," he says.

To view this video in its entirety, click here.

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Logistics Logistics Outsourcing LTL/Truckload Services Transportation & Distribution Sourcing/Procurement/SRM Transportation Management Global Supply Chain Management Pharmaceutical/Biotech
KEYWORDS Global Supply Chain Management Logistics Logistics Outsourcing LTL/Truckload Services Pharmaceutical/Biotech Sourcing/Procurement/SCM Transportation & Distribution Transportation Management
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