Checklist for transportation cost management

10 questions about freight spend optimization

If there’s one thing supply chain managers have in common, it’s the pressure they’re under to drive down the costs related to producing and supplying goods. For many companies, transportation spending is a perennial target of budget-cutting exercises and a large, multi-faceted cost centre; many spend three to six percent of their materials costs on transportation alone. So transportation spend and payment handling are contributors to the overall performance of a company.

Because transportation spending includes several dimensions, there are multiple strategies for reducing the overall transportation spend while increasing the efficiency of your supply chain. Leveraging IT is one of them. Digitization enables shippers to trim costs and ensure that their transportation spending supports their overall business goals. It is important to connect all partners across modes and regions, and not only focus on tender exercises but also ensure that the contracted agreements are fulfilled. Therefore, analysing and automating true freight spend on a regular basis is a priority. This requires frequent updates to information from multiple sources and an understanding of the KPIs and drivers of freight costs.

To help shippers gain better insight into how to achieve successful transportation spend management, Alpega TMS and Supply Chain Media have created this checklist. Is your company managing its transportation spend effectively? Find out now.