There is a lot more that goes into choosing the best carrier for your shipment than most people think. When deciding which LTL carrier to work with, many businesses or supply chain managers will only take the upfront cost of transportation into account. There are a few strategies we will explore that you can use when choosing the best carrier for your company. Here are three simple, strategic ways to reduce supply chain costs:
1. Reduce DSO and Collect Faster
You can reduce your DSO (days sales outstanding) if you reduce the amount of time your shipment takes to get to your customer. Choosing a carrier with a fast transit time is essential to accomplish this. Finding a carrier with dependable ship rates can allow you to begin collecting right away by offering discounts for those who pay within 5 or so days of delivery.
2. Take Freight Transit Time into Account
It is important to consider transportation time as well as price when you are choosing a freight carrier. If your LTL carrier can provide a faster transit time at a standard or slightly higher rate, you will be able to carry less warehouse stock while improving fill rates. When selecting a carrier, you should compare the money you have spent and saved to see if you are actually reducing your supply chain costs.
3. Reduce Claims
Overlooking a carrier’s claim ratio can cost you both money and client relationships. It is important to do a thorough investigation of carriers and rates, and their damage reduction processes before choosing them. Investigating these carriers can benefit your supply chain. Also, it can impact your ability to expand sales, earn you referrals, and save you money. Using companies like GoShip.com makes it easier than ever to compare LTL carriers.We even offer full-coverage all-risk freight claims insurance to our customers.
4. Implement Automation and AI
AI significantly reduce supply chain costs and time spent on tedious processes with automation. The rapid development of AI in the supply chain has made moving packages more seamless than ever. From online assistants, robotics, analytics, and autonomous vehicles, AI technology has provided sophisticated solutions to supply chain and logistics operations worldwide.
GoShip.com is one way to use automation for all your shipping and reduce your supply chain costs. From getting your first quote to delivery, we can save you time and money. Start with a free quote below and see how we can help you improve your shipping strategy.