Few things in life cause more anxiety for shipping and supply chain managers than volatility in shipping costs. Volatility has been the theme this past year in the freight shipping industry, especially less than truckload (LTL). With LTL pricing increases likely to continue, supply chain professionals should consider the following tips for the coming year(s).
Plan for the Long-Term
Managers who plan ahead will benefit and save the most on their annual LTL spend. For the most accurate and cost-efficient rates, managers must understand the goods being shipped. For example, a shipper must know:
- How far shipment will travel
- Appropriate insurance
- And – this is crucial – freight rate based on the correct class
Paying a higher rate based on the wrong class just one time might not be that detrimental, but choosing the wrong class consistently can result in thousands and even hundreds of thousands of dollars of unnecessary annual LTL expense. Shipping modes also need to be selected with care.
Leverage the Power of the 3PL
3PL’s ship millions of pallets each year for clients across the country. Their volume spend with freight carriers grants them the most aggressive LTL rates. They can then pass those discounted rates along to their LTL customers. Customers shipping a few pallets can get the same rate as someone else shipping a hundred pallets with a carrier directly. Working with a 3PL can also save both time and headaches as a 3PL will work with your LTL carrier to ensure:
- You’re receiving the best rate for your freight
- Your shipments arrive at their destination as expected
- Any customer service issues like damage or loss are handled with the carrier by the 3PL
While individual LTL carriers will offer quoting and ordering systems for their clients, a 3PL like Amware offers LTL shipping clients a Transportation Management System (TMS), which can aggregate quotes from hundreds of carriers, not just one. This unique feature allows us the ability to promise LTL clients savings of 30% or more annually. Another significant benefit is the ability for clients to import existing carrier rates. This is great for companies who have existing relationships and preferred rates with individual carriers.
Using a cloud-based TMS like Amrate simplifies and streamlines LTL quoting and management without the hassle of having to manage shipping software internally. For those businesses that utilize an ERP system, Amrate offers integration services so clients can access LTL quoting within their existing environment. Other features include, but are not limited to, live customer service, real-time carrier management, and tracking and tracing for selected carriers.
Contact us today to start saving on LTL or request a free 30-day trial of Amrate below.