International Transportation Management for Shippers
The logistics costs associated with
operating a global supply chain can be 6% - 11% of revenue. This is roughly 3 -
5 times more than a domestic supply network and many companies simply don’t have
the right type of
Transportation Management System solution.
Over the years, investment has gone into
managing private fleets or to optimize truck load, less-than truck load and
parcel. Going global, however, requires that both shippers and
logistics
providers automate their sea freight and air freight moves by optimizing service
selection.
This process is complicated by:
▪
Continual contract amendments
combined with frequently fluctuating assessorial levels such as Fuel Adjustment
Factors.
▪
Total shipment cost can entail over
ten different charge elements that
are not traditionally available from a single
source.
▪
Determining all available routing
options under contract
and comparing costs is nearly impossible with
spreadsheets.
The net result is that costs escalate
with little or no ability to capture increases.
Our
International Transportation Management solution gives shippers the tools
they need to automate critical processes and develop strategies to effectively
contain these costs with the following capabilities:
▪
Manage contracts and amendments
centrally and maintain an approved carrier list.
▪
Securely share contracts with
business partners such as forwarders or freight audit companies.
▪
Compare alternative routing options
side-by-side to determine optimal carrier selection.
▪
Evaluate and analyze all possible
routes and carrier service options.
▪
Compare total bottom-line costs,
including base rates and all applicable assessorials.
▪
Audit freight bills to identify
over-charges and resolve issues with carriers.
▪
Use extensive contract and carrier
rate data to support negotiation strategies.
▪
Support Sarbanes-Oxley compliance
requirements with a powerful
contract and audit solution.
Aberdeen Research reports that of 380 companies with freight spend over $25
million, the application of International TMS solutions can reduce costs by 8.8%
across their freight budget.
With fuel costs increasing the savings
opportunities are still real, but may be more about containing costs increases.
