For years, logistics professionals and shippers have had to rely on manual freight rate calculations, phone calls to carriers, and — most recently with the advent of the internet — carrier websites to retrieve freight rates. Logistics coordinators are often faced with internal policies requiring three freight rate quotes at minimum to ensure objective selection processes and, most important, to select the lowest-cost carrier each time.
The way of the past
In many shipping offices, the use of post-it notes is still common, upon which shippers write multiple passwords, as are color-coordinated maps to help facilitate the freight rate shopping process and allow shippers to make educated decisions on which carriers to use. These old-fashioned tactics have carried on as a way of doing business. Because of this, the process consumes a lot of time and multiple resources and, after a while, breaks down when shippers find themselves with one-size-fits-all carriers or select only a carrier or two for all their shipments. The result is typically a nice Christmas gift from carriers at the end of the year — and higher freight costs.
In this day and age, it is critical that shippers negotiate good contracts as well as compare rates and service levels among their carriers to remain competitive. Ensuring their carriers deliver goods as quickly and efficiently as possible for the lowest cost while being on time is imperative.
The new age of technology
Take a step back and evaluate how you obtain freight rates. If you find those within your company are spending time shopping the “old-fashioned way,” look to using a transportation management software (TMS) platform to save time and improve your shipping process.