Improving Freight Transport Efficiency

Answer 1

The American economy depends on the efficient transport of freight from the manufacturer to the distributor and wholesaler and then on to the retailer and ultimately the consumer. The trucks and commercial vehicles that you see motoring up and down our highways and local roads make it possible for us to have the food we eat and the products we use. Businesses that do a lot of shipping can benefit greatly by having a carefully planned transportation strategy.

In our very competitive business environment, in order to stay in business and actually turn a profit, you must be extremely efficient in all areas of your operation. Your employees must be productive and you must use resources wisely. The 5% or 10% you save with a well-managed transportation strategy can be added directly to your company's bottom line. When you are spending hundreds of thousands or millions each year on shipping charges that can add up to a significant sum of money.

Companies can either have their own internal transportation department or they can outsource their needs to an independent transportation consultant or firm that specializes in arranging the most efficient routes with the best motor carriers for your particular needs.

The main advantage of an internal transportation department is that you have control over how it is operated. Employees working in your transportation department are closely involved with the shipping process and can detect and correct problems immediately. Any changes that need to be made can be made without delay.

An outsourced transportation coordinator also has certain advantages. For one, it is usually a lot cheaper to pay a firm a fee than to have to pay the salaries, taxes, insurance and other expenses involved with supporting your own transportation department. The level of expertise is often higher with a company that specializes in transportation logistics. They may have relationships with trucking companies all over the country and be able to negotiate better deals for the shipment of your freight.

Whether you deal with shipping internally or choose to hire an outside transportation consultant, most of the responsibilities are the same. Vehicles must be properly loaded, routed most efficiently and shipped with the best carrier for the particular job. There are many other things such as preparing documents like the bill of lading and freight bill which are handled through the traffic department or traffic consultant. Indeed, the efficient movement of freight is an important job that can either be handled internally or through an outside transportation consultant.