Transportation sourcing and management is critical to your company’s success.
March 10, 2016
As a supply chain professional, you know that freight procurement is unique, requiring specialized analysis and knowledge of the transportation industry. With relatively few barriers to entry, there are a wide range of providers in every mode, all with varying services and performance levels.
In addition, there are numerous requirements that carriers must meet regarding safety, Hours of Service rules for drivers and the ability to transport hazardous materials. The rate structure for the many transportation modes is also complex and differs based on the commodities moved and carrier pricing models.
You may do your best to forecast your lane volumes, maintain good relationships with your carriers and be prepared for the problems inherent in today’s environment of limited carrier capacity, but you spend so much time managing the process that it can be difficult to just get the bid completed - much less spend the time you need to to do complex analyses of the rate and service tradeoffs among your options! Existing tools for purchasing may help you purchase goods, but you need specialized solutions to transport goods.