Do you run a business that ships goods across state lines or even to other countries?

If the answer is yes, then you will know how expensive that can be, and how it can be something of a drain on your profit margins. So, if you are looking to cut back costs in this area, one part to look at is freight management. As the world of logistics and transport is, by its nature, exceedingly complex, there are a lot of factors that can impact the cost and efficiency of your operation.

So, rather than doing things manually, it may be worth looking into freight management software. It may seem pricey upfront but it can reduce costs across the board. How? Read on to find out!

Route Optimization

Freight management software can help you cut back costs via route optimization. This means that the software will look at the distance from point A to B, the traffic, the fuel and the delivery windows to help you to ship the item fastest, minimising fuel costs as well as driver time. This will also prevent issues of wear and tear with the vehicles in your fleet.

Better Carrier Selection and Rate Management

It can also help you by comparing and choosing the most cost-effective carriers for each shipment of goods. This can allow your shipping team to make the most informed decisions about how to ship items that will minimize shipping costs. If you also have independent carriers, it can even help you choose the best rates by assessing the carriers price profiles.

Improved Load Planning and Consolidation

You don’t want to be sending out a fleet of trucks to deliver items that could have safely and easily been shipped together. Therefore, this software can optimise the load distribution across shipments and reduces the number of empty miles that are travelled. This reduces the trips required, the fuel costs, the costs of the driver and can also go a long way towards making your company more sustainable, by also cutting CO2 levels down. Great!

Real-Time Tracking Options

The process of shipping goods moves quickly and so, you will want an option that allows for real-time tracking and visibility. The freight management software will provide you with a detailed and up-to-the-minute insight on the location and the status of shipments. This will allow you to address potential issues, such as delays and disruptions, before they can escalate into more costly issues. This also allows you to practically coordinate and reduce downtime, improving overall productivity and preventing losses. This will help your company to maintain high levels of customer satisfaction whilst minimizing costs for your business.

Automated Documentation and Compliance

Speaking of saving time, the management and compliance aspect of freight operations is a time heavy process, which is very prone to human error. The freight management software will automate this process, generate and manage the documents and invoices as well as compliance paperwork for long distance shipping. This reduces the administrative burden on your team, as well as reducing the overhead in relation to data entry and document handling. So, lowered costs across the board!