BYEXPRESS Logistics watched as many CEOs and CFOs struggle to contain the impact of the rapid increases that happened to freight costs in 2019.
It’s no gainsaying that many in the industry were less than prepared to take on this challenge.
The trucking industry is expected to keep on growing through 2019, even if not at the same pace we saw in 2019. As a CEO, what should your company do to protect your supply chain, your services to customers, and your profits as well, from incessant rises in freight costs?
1. Reduce wastefulness to increase efficiency
One of the first things you should set out to do is eliminate bad business practices that impede efficiency. These can include one or more of not shipping goods in their optimal sizes, using LTL instead of FTL, using small space in place of LTL, moving on off-service days, among others.
2. Efficient leadership and management practices
Transportation teams, especially in these precarious times must be very creative and should have the necessary skill sets to successfully manage the company’s supply chain.
BYEXPRESS Logistics thereby recommend that CEOs across the US, Canada, and the whole of North America thoroughly assess their transportation teams so they can make changes where they are needed.
3. Collaborate with both customers and carriers
Your freight carriers will be one of your most important business partners. Why not encourage and foster better communication and relationship with carriers so you can both come together to improve services and reduce transportation challenges. The same should be done with customers as well.
Discuss service intervals, shipment sizes, set targets, and much more to improve efficiency while also reducing costs.
4. Improve communication and integration within the team
Teamwork within your organization will definitely influence the success of your supply chain.
The organization must encourage an atmosphere that allows communication and understanding to thrive. As expected, this will play a role in how efficiently your team will be able to deal with incessant freight costs increases.
5. Educate team members and invest in tech
A lot is going on in the transportation industry, from Artificial Intelligence to Blockchain, to Autonomous Vehicles, etc. Team members must be informed about t new practices not just to better their current performance but also to be able to withstand shocks that may happen in the future in relations to the supply chain.
6. Stay in touch your company’s supply chain
BYEXPRESS Logistics believes that CEOs must also stay in touch with the supply chain for regular updates on supply chain strategies, as well as their tactics and plans. Ask what plans they have to combat freight costs increases and see if this makes much sense to you.
7. Create an expense management plan
Put a plan in place to weigh the financial impact of each and every one of your transportation decisions. By measuring the impact of management decisions, it will be much easier to decide what impacts other decisions in the future can have on the organization’s finances.
BYEXPRESS Logistics believes that the previous year should be an eye-opener for not just transportation teams but also company CEOs and CFOs. A lot should be put in place to cushion the effects of freight costs increases, going forward.
At BYEXPRESS Logistics, we are ever committed to linking supply chain teams with the best carriers available. We believe that efficiency and value should be important virtues to supply teams and we are greatly invested in helping businesses achieve this with their transportation.
Log on to our website at www.byexpress.com for free and competitive quotes from different carriers.
You can also contact us at info@byexpress.com for more info.