The role of high-performing and high-level shipping services is growing. Retailers and small businesses have to keep up with the increasing competition, and at the same time provide quality products and services to their customers. Essentially, breaking the bank to keep all the processes running is difficult, and businesses are looking for ways to save costs. One of the possible solutions to cut unnecessary costs is to look into your inbound freight shipping strategy.
Why is inbound shipment management important?
Inbound freight shipments are a critical part of every retailer’s supply chain. Many companies decide to let vendors and suppliers manage inbound loads on their own. This is a common error that often leads to poor visibility into the transportation process, hidden costs, and overspending.
The first step to cut costs on inbound shipments is taking control over the freight management process. This way, you can define gaps and opportunities for optimization. Apart from cost-efficiency, analyzing and improving your inbound freight movement can positively affect shipment performance, improve delivery speed, and eventually increase customer satisfaction.
There are many practices to make your inbound shipments perform in a more effective manner. One of the common options for retailers is deploying a retail vendor compliance program.
What is a retail vendor compliance program?
A retail vendor compliance program is a predetermined agreement between a retailer or consignee, and the supplier, with the clearly stated terms and conditions of their cooperation. In this program, retailers outline delivery times and various performance requirements, and vendors have to comply. In this agreement, the consignee also mentions charges for the violation of terms on the supplier’s side. The vendor compliance program lets both parties have a clear vision of how they show work together, and greatly affects the performance of inbound shipments. For a retailer, it means visibility, the elimination of shipping errors and delays, and safety in case of failed shipment deliveries.
Essentially, the more transparent your inbound freight is, the better. You can access high visibility through specialized software. Most retailers use it either way to manage outbound shipments, but it’s a perfect solution for inbound transportation management as well.