Shipping is one of the most important aspects of business. And with the growing popularity of e-commerce companies over the years, many people prefer having products shipped directly to their homes. To that end, retailers must rely on deliveries to maintain inventory and supply levels.
Indeed, using effective shipping and freight-sourcing strategies can help your company save money. It can also increase customer loyalty by improving reliability and helping orders get to customers on time. Here are a few freight-sourcing strategies to consider when searching for and comparing options for delivering products and services.
1. Bidding On Freight Often
The freight bidding process, a practice that enables businesses to fulfill their shipping requirements, can make life easier for management and other key decision-makers when trying to lock down low prices and prompt delivery time.
Of course, there are options to sign short- or long-term contracts with carriers and shippers. To that end, should shipping prices increase over the years — and that’s almost a certainty — and you want to keep company expenses low, deciding on the best option is critical.
However, in many cases, bidding without existing contracts — this is commonly known as mini bidding — more frequently can be further beneficial and give you more flexibility when comparing options. When sales volumes drop, businesses obviously won’t be shipping as many products.
Moreover, bidding on freight often lets you compare options, such as pricing, customer service, and response time and availability. Should your business’s shipping needs fluctuate, you can reduce or increase the number and amount of your bids.
2. Preparing For Changes And Monitoring Markets
After securing shipping agents, be prepared to adapt to changes and monitor carrier performance and markets carefully. To do so, consider creating a convenient scorecard for carrier performance that includes key performance indicators to make evaluations easy.
For example, you can ask customers and your employees to rate the carrier from 1 to 5 stars on categories like on-time pickups and deliveries, damage claims, billing accuracy, package tracking capabilities, and more.
These ratings not only can help you save money on future bids but can also play a key role in deciding whether to switch carriers or reduce your shipping volume with an existing provider.
Additionally, monitoring changing market trends will help make your business’s shipping strategy more effective. Many companies use data analysts to help predict market changes. For example, when certain products become popular and your customer base inevitably expands, make sure your organization has the capacity necessary to meet demand.
3. Using A Digital Freight Platform
Want to make life a little easier? Digital freight platforms provide online management tools to help you manage costs, track shipments, bid on freight services, make payments, and process returns efficiently.
Case in point: Choosing digital freight platforms like Loadsmart can help make your company more efficient by reducing employee workload.
Additionally, these online solutions can help you choose the best carriers, routes, and transportation modes. Not to mention, they also have the ability to generate the documents and records your company needs, audit shipping invoices when necessary, and monitor and analyze changes in performance, shipping availability, and other factors.
Build A Successful Business With Sourcing Strategies
Like anything in business, managing multiple carriers, effectively scheduling pickups and deliveries, and making sure your customers and employees get the products and supplies they need can present some challenges.
However, by adopting these and other smart shipping strategies, you have a better opportunity to increase profits and expand your business. Best of all, these solutions will help you adapt to supply chain issues quickly and avoid shipping delays. It’s a win-win for everyone involved.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.