There are few businesses that do not use freight or couriers at some stage. No one courier company can provide complete geographical coverage for all freight needs. For this and other reasons, many businesses are unable to achieve the best possible value.
The freight industry has become fragmented with over 60,000 logistics suppliers operating across Australia. This has driven prices down over time to the point that it affects service levels.
Many larger transport suppliers have off-shored customer service to remain profitable. Many suppliers have also lagged behind on technology which has driven the emergence of wholesalers who have built their business with technology at their backbone. These providers are able to deliver greater value for freight and courier needs.
Businesses seeking to reduce the cost impact of freight often do so at the cost of service levels. This may make the job of managing freight more time consuming for employees. The opportunity exists to minimise freight costs, streamline visibility and still receive quality service.
There are some simple questions you need to ask yourself around freight.
Choosing from the large number of suppliers can be daunting. It all comes down to finding the balance between price and service required. At the end of the day, the decision of suppliers for your business is up to you. There are many factors to consider but here is some food for thought.
Monthly Account Fees
Some of the larger providers set monthly minimum fees which can come back to bite you. If you do not meet the predetermined value of deliveries you are still charged for what you do not use.
Most freight companies offer basic insurance as part of a standard fee. What is covered varies from supplier to supplier and it is best to get the right advice.
Some of the larger providers charge up to twice the cost of delivery to re-deliver.
The right approach for your business delivers a balance between price and service quality. It also provides the ability to use many different courier companies but pay only one invoice. Supply Clusters recommend using an intermediary to get the best of both worlds. Not all freight management companies are the same. Here are some key criteria to consider:
Supply Clusters has partnered with InXpress to deliver the best in class solution.
Supply Clusters members receive the following benefits through InXpress:
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