Taking Control of Inbound Transportation: Change You Can Take to the Bank
By: John Blanchard
Freight costs appear to be on a never-ending upward trend. Manufacturers, retailers, wholesalers, 3PLs and just about everyone else is feeling the negative effects of rising logistics costs. But while most companies recognize the importance of optimizing outbound freight spend, many shippers are falling short when it comes to driving costs out of their inbound transportation.
Freight costs appear to be on a never-ending upward trend. Manufacturers, retailers, wholesalers, 3PLs and just about everyone else is feeling the negative effects of rising logistics costs. But while most companies recognize the importance of optimizing outbound freight spend, many shippers are falling short when it comes to driving costs out of their inbound transportation.
Depending on the industry and business model, up to 35% of transportation costs are associated with inbound freight. Taking control of your inbound transportation can have a significant impact on supply chain costs. Why aren’t more companies owning and optimizing their inbound freight? For some firms, the obstacles to moving from prepaid to collect appear daunting:
- Uncertainty around the product and transportation buying power needed to successfully make changes.
- Lack of support within the Transportation department.
- Entrenched Purchasing or Procurement departments that are unwilling to unbundle product and freight costs.
- Lack of a clear business case outlining the business case for an inbound transportation initiative.
- A physical logistics network that isn’t optimally configured to take advantage of inbound opportunities.
- Potential change to your core transportation providers.
- Lack of systems designed to support planning and execution of sometimes complex moves like backhauls, continuous moves or consolidation.
While there’s no doubt that taking control of inbound transportation brings complexity and risk, the path to realizing the potential cost savings can be cleared through inter-departmental communication of the opportunity / business case as well as carefully considered change management. Here are a few tips for successfully managing the cross-functional change required:
- Initiate dialogue with your counterparts in Purchasing and Merchandising to find out if you have willing partners.
- Work collaboratively with all stakeholders and executives to understand what could be in it for them, creating an incentive to participate.
- Leverage corporate-wide initiatives to reduce costs.
- Develop an air-tight business case highlighting potential savings and the detailed changes needed to realize them.
- Take the time to understand the dynamics among key internal players and constituencies.
- Craft a communication plan to support the project and leverage it consistently.
- Consider best practices in change management as well as inbound conversion.
- Fully understand all foundational requirements like technology before attempting a complex inbound conversion.
By taking a cross-company approach, clearly articulating the business case, and carefully managing change, your company can realize reduced inbound transportation costs and gain a competitive advantage.
Need help with inbound transportation planning? Contact us! (201) 940-7311.
Need help with inbound transportation planning? Contact us! (201) 940-7311.
Labels: controlling inbound transportation, inbound logistics, inbound transportation, inbound transportation for supply chain, inbound transportation management, inbound transportation planning
222 Comments:
«Oldest ‹Older 201 – 222 of 222-
Gulf Worldwide Logistics said...
-
- December 17, 2022 at 8:13 AM
-
Truck Bazi said...
-
- December 20, 2022 at 1:25 AM
-
Benoit Samuel said...
-
- January 21, 2023 at 2:09 PM
-
Truck Bazi said...
-
- February 13, 2023 at 12:39 AM
-
Krishna said...
-
- March 7, 2023 at 5:06 AM
-
SILK Logistics Shipping said...
-
- March 15, 2023 at 3:31 AM
-
Anonymous said...
-
- March 21, 2023 at 5:03 AM
-
Ahmad Khan said...
-
- April 2, 2023 at 11:54 PM
-
Ahmad Khan said...
-
- April 2, 2023 at 11:55 PM
-
Mary said...
-
- April 12, 2023 at 1:54 AM
-
Anonymous said...
-
- April 12, 2023 at 7:08 AM
-
James Walters said...
-
- April 15, 2023 at 5:28 AM
-
Anonymous said...
-
- April 21, 2023 at 5:07 AM
-
Anonymous said...
-
- May 1, 2023 at 4:57 AM
-
James Walters said...
-
- May 6, 2023 at 5:13 AM
-
James Walters said...
-
- May 8, 2023 at 2:24 AM
-
Anonymous said...
-
- May 26, 2023 at 2:28 AM
-
GwayERP software said...
-
- May 26, 2023 at 8:32 AM
-
Edu Master said...
-
- September 19, 2023 at 3:13 AM
-
Accivatravels said...
-
- June 4, 2024 at 5:53 AM
-
James Walters said...
-
- June 6, 2024 at 7:16 AM
-
TrucksBuses said...
-
- September 24, 2024 at 2:51 PM
«Oldest ‹Older 201 – 222 of 222
Nice Blog, Thanks for sharing valuable information
Best Airfreight in Dubai
Excellent info, Thanks for publishing such satisfactory and fundamental information. You are doing such a excellent job. This statistic is very beneficial for everyone. Keep it up. Thanks as soon as once more for sharing it. rotavator rate
Taking control of inbound transportation undoubtedly entails complexity and risk, but with proper change management and interdepartmental communication of the opportunity and business case, the road to code reduction beauty bay realising the potential cost savings may be cleared.
Really nice article. I sincerely thank you for learning so much from this article. Keep sharing the new ones. Thanks For Sharing knowledge.
https://www.truckbazi.com/
Thank you for sharing this blog. The blog was neatly presented. Literally these warehouse and logistics software are more useful for eCommerce retailers, manufacturers, wholesalers, and distributors. I heard about Shipping Agency Softwarewhich is optimize for inventory management that reduces waste, improves efficiency and saves time and money on shipping costs.
SILK packers and Movers is the best for home shifting services Packers and Movers in Rawalpindi goods transportation companyPackers and Movers in Islamabad Pakistan
Such a amazing post very informative and I will definitely suggest other people about it for sure.
Mahindra Truck
The Best Toronto Limo Rentals Company in Town.
Toronto Limo Rentals
Key replacement service is a valuable resource for those who have lost or misplaced their keys. Whether it's your car, home, or office keys, a key replacement service can help you quickly and easily obtain a new set of keys. With a key replacement service, you can avoid the hassle and expense of replacing locks and can instead have peace of mind knowing that you can access your property again. Additionally, some key replacement services offer 24/7 emergency services, ensuring that you can get help whenever you need it. If you find yourself in need of new keys, consider using a key replacement service for a quick and convenient solution.
I am really glad I have found this information.
Tata Signa 2821.K RMC STD 6S
Are you a passionate mobile gamer looking for a way to elevate your gaming experience? Look no further! ModApk is your ultimate destination for discovering mod APKs, giving you access to unlimited resources, unlocked features, and ad-free gameplay.
Lovely and useful content. Thanks for sharing this.
Eicher Tipper Price
Thank you so much for sharing this information.
Tvs Auto Rickshaw Price
WebRanky is a website dedicated to providing readers with unique and informative articles on a variety of topics. Whether you're looking for news updates, entertainment news, or travel guides, webranky has got you covered. With a team of experienced writers and editors, the website is committed to delivering high-quality content that readers can rely on.
Birthday wishes are an important part of celebrating someone's special day. It's an opportunity to show them how much you care and appreciate them. Whether you're sending a card, a message, or giving them a gift, taking the time to send birthday wishes is a thoughtful gesture that won't go unnoticed.
Yes, focusing on off-page SEO from the start may be pointless,
Tata Mini Truck
Thank you for providing us this informative content. custom erp software
Thanks for sharing this information
nursery school in gurgaon
Great job! Your hard work and dedication are truly appreciated.
hi
I just wanted to drop a quick note to say thank you for the valuable insights provided on your site.
BharatBenz 1617R price
Post a Comment
Subscribe to Post Comments [Atom]
<< Home