Cost factor transportation - how can we save on transport costs?

Fifteen years ago, the presence of manufacturers on freight exchanges was met with negative commentary, primarily from freight forwarders who feared for their livelihood. Today, it’s no longer surprising that manufacturers utilize a range of supply chain management tools or TMS (Transportation Management Systems) with advanced modules, to the same extent as freight forwarders or logistics operators. In a constantly fluctuating market, transportation cost losses often shift from one pocket to another. So where can we find opportunities to reduce transportation costs?

Currently, freight forwarders are losing out on contracts because carriers in Europe won’t accept rates of 1 EUR/km – yet still agreements need to be fulfilled. Meanwhile, manufacturers working directly with carriers have been forced to renegotiate contracts for some time now. How can we save on transport costs?

“Since the beginning of the year, we’ve observed significant interest in how to optimize the use of cargo space among manufacturers, large freight forwarders, and the largest logistics operators”, says Bogumił Paszkiewicz, CEO of a Polish load optimization simulator for transport.

Every LTL logistics specialist’s eyes light up at the prospect of reducing transportation costs by 5% annually, with cases of reductions reaching even higher percentages. This is achievable by analyzing dozens of business cases and implementing new solutions that make such a tool more than just a Tetris game for measuring LDUs (Load Units).

What else interests shippers besides quick calculations? Primarily, multistops, sharing cargo space, and integration possibilities with other systems.

The ability to plan transportation using multistops was introduced in the planner’s latest version. Routes can be planned so that at every stop, there is control over trailer utilization. The logistics manager can also verify whether using a smaller and therefore cheaper vehicle will still allow the transport to be carried out.

There were also suggestions to allow sharing of the prepared project with others and for visible changes to be made by other logistics professionals. This feature was introduced into the system a month ago. A loading project completed by one person can be sent to another. If changes are made in the project, such as optimizing the truck or container filling, all parties will see each stage.

Importantly, the planner can be integrated with TMS, route planners, or other systems. Our API allows for automatic transmission of information about cargo space utilization along with visualization and the possibility of freely editing the arrangement. We invite you to test it out,” adds Bogumił Paszkiewicz.

The program does not require installation; to test it for 3 weeks for free, simply register. More information is available at https://promo.goodloading.com/manufacturers.

Cost factor transportation – how can we save on transport costs?

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