Top Transportation Logistics Risks A 3PL Can Help Mitigate

by | Jun 8, 2020 | 3PL

Numerous factors—including demand fluctuations and how much capacity is available—regularly affect the trucking industry, with environmental and political issues adding to the mix. To employ optimal logistics management and stay ahead of the competition, shippers need clear understanding of the top transportation logistics risks they face.

Supply Chain Risk And Freight Rate Assessment

When capacity shifts, regulation changes and other factors affect freight rates, freight costs can increase. The use of traditional manual-heavy processes as well as numerous other factors also influence the spend on freight, and for the best possible risk assessment and rates, the whole picture must be considered:

  • Transportation Mode: Rates are affected by modes like Less Than Truckload (LTL) and Parcel as well as if shipment is by truck, rail, etc.
  • Available Capacity: Correct information regarding such factors as driver availability, freight acceptance preferences, and shipper data, as well as adequate time are needed by both truckers and shippers in order to schedule timely deliveries.
  • Shippers of Choice: Shippers wanting to ensure having the very best drivers to move their freight can make the effort to earn “Shipper of Choice” status. This lets carriers know that their jobs at their loading and unloading docks will be made easier, and a driver—who has a strong say in the matter—will be less likely to cause conflict or even decline picking up from them.
  • Drivers’ Influence on Rates: Since drivers do the heaviest lifting, so to speak, their preferences are made known to their carriers. Shippers providing the best driver experiences tend to receive the best rates.
  • Timely Deliveries: Consumers are demanding and always want their deliveries sooner rather than later. Shippers can formulate the best possible demand forecasts through the use of freight information, analytics, transportation data, and the most current technology.
  • Freight Consolidation: Costs can be reduced when smaller shipments are combined into larger ones, but this requires more planning aided by time-sensitive and correct data.

The Best Information Leads To The Best Results

Freight expenses are rarely set in stone and can even be reduced up to 50%. For example, a willingness to schedule outside peak times, when picking up, can lead to dramatic savings. However, considering the seemingly endless factors that can influence freight management, and the ample time needed for thorough assessment of the best possible processes for varying shipments, a Transportation Management System (TMS) can be one of your organization’s most powerful tools.

To get the absolute best from your TMS:

  • Provide it with only the most timely and specific shipment data.
  • Consider partnering with third-party logistics (3PL) provider for access to the most comprehensive range of carriers.
  • Let accounting and auditing features reveal how to gain back past costs.
  • Acquire a big picture view of your operation, and gain fresh insights—as well as performance improvement—via data analytics.
  • Boost performance and processes planning with evaluation of relationships with carriers, rates during peak season, and outsourcing, well in advance of the industry.
  • Employ thorough ROI analyses to gain understanding regarding ROI timing and reinvestment strategies.
  • Enhance collaboration and stakeholder communication with tools like reporting and analytics.
  • Support your organization with a web-based platform that will work in real-time in the supply chain to keep everyone informed and responsive.

A TMS Built To Empower Shippers

Amware’s proprietary, web-based 3PL software platform, Amrate, is a proven leader in LTL Freight Management Software and can provide everything from shipment tracking and tracing, freight bill auditing and payment, and customized reports to real-time carrier management and claims resolution. With Amrate, a lower annual freight expense is guaranteed! Click below to request a free trial of our newly updated Amrate 7.0 and start saving today!

About Dan Ramella

About Dan Ramella

Dan Ramella is a member of Amware's executive team, helping drive growth and manage key relationships. With over 20-years experience in the transportation and logistics industry, Dan has helped Amware become one of Northeast Ohio's premier 3PLs