Few topics stimulate more interest and conversation than automation in the supply chain. Automation provides shippers with a way to reduce freight costs and limit the inefficiencies and risks around managing freight.
Automation may be applied in a virtual setting, such as automated carrier scheduling and routing, or it can also be used through robotics to reduce freight costs through fewer workers, explains Supply Chain 24/7. While much hype remains around the topic of automation, shippers are also dealing with real challenges.
Rising demand and limited capacity threaten successful freight delivery. While automation may reduce freight costs, shippers must understand why automation is the solution to inbound and outbound cost control, and a few best practices to guarantee real results.
The High Costs of Manual Freight Management Processes
How Automation Reduce Freight Cost Spend
Best Practices to Deploy and Apply Automation to Reduce Freight Costs
Automation is not a one-size-fits-all standard. Any repetitive process can be automated, but the goals are to ensure automation’s success.
It can sometimes be difficult to identify the real benefits of automation, reports Inbound Logistics, especially as overall freight costs climb. With that in mind, those that have implemented automated freight management typically see only a 1.3% increase in freight spend, compared to 14% in those that rely on traditional approaches. To reduce deployment delays and apply automation, shippers should follow these best practices:
- Automate carrier contract management, including contact information.
- Track all added charges, including accessorials, inland freight charges, fuel surcharges, and more.
- Connect your TMS to carrier portals to ensure real-time rate quoting.
- Automate freight consolidation/deconsolidation practices, reducing the time to determine what gets consolidated and where it is going, notes Supply Chain 24/7.
- Audit freight invoices, taking advantage of third-party services to avoid pitfalls.
- Connect inbound freight vendor systems to your TMS, eliminating the concerns over replenishment routing and scheduling.
- Use your TMS to track and manage returns management, avoiding bottlenecks, and even reshipping undamaged returns to customers at discounted rates.
