Factors to consider for transport optimization in value chain management.

Category: Technology

High volume product businesses often struggle with choosing transporters, and managing the associated problems that invariably occur with supply chain management. Thankfully, a few intuitive questions about transport optimization and an efficient freight management system is all you need to start optimizing this process. One of the most important questions to ask is about the true cost of service. A lot of businesses choose transporters based on competitive pricing, but when the actual bill for transport comes in, it comes as a surprise. Here are just some of the important things to keep in mind for freight management when you want to calculate the true cost of transport service: ● Basic cost per kg ● Fuel surcharge ● Docket surcharge ● Insurance ● ODA/OPA charges ● Volumetric weight calculation ● Minimum cost per docket Another very important question to ask while considering transport optimization is whether the transporter offers real time tracking and proof of delivery for a better freight management. From the point of view of a customer, real time tracking and expected delivery time are very important. From the point of view of the internal team at the company, realization of revenue only happens once the product has been delivered to the customer, therefore, a POD delay can have a significant impact on financial reporting. A good freight management system, like the one that is a part of our proprietary SCM platform Maven™ will help us and our clients answer these and other questions based on solid data. Read more about the transport optimization process here https://www.glaucuslogistics.com/blog/digitise-automate-review-route-to-transport-optimisation/ If you’d like to discuss how to best optimize your supply chain operations, talk to us https://www.glaucuslogistics.com/contact.html