For Cost Savings, Focus On Transportation Management
Transportation costs account for a significant part of logistics-related expenses. Businesses can see up to 62.8 percent of supply chain costs impacted by which transportation method they choose to use, according to a report by Supply Chain Digest.
This makes transportation management an essential part of controlling expenses. Poor logistics can diminish profits and customer satisfaction, so it is natural that companies watch distribution costs closely. Improving efficiency in distribution and freight management could significantly reduce overhead. A growing number of companies are turning to data analysis to streamline operations.
Reviewing the movement of goods through supply chains could help organizations minimize delays, reduce risk and handle additional volume. Increased efficiency will be essential as freight tonnage has increased by 2.3 percent in the last year, according to a separate article by Supply Chain Digest.
Transportation management strategies give companies the ability to handle additional goods without requiring more resource. The increased productivity is a central part of maintaining a streamlined supply chain that keeps shipping costs down. Businesses could dramatically improve their profit margins by focusing on their distribution networks and transportation tactics.