Modern supply-chain can avoid unnecessary, exponentially-growing costs by simply improving logistics. Often, the easiest way to improve logistics lies in the use of a freight collaboration tool. Integrated freight collaboration tool benefits range from faster processing of shipments to decreased risk for cargo loss. In fact, studies on the value of an integrated freight collaboration tool have uncovered millions of dollars in potential improvements.
According to the Logistics Bureau, “sharing costs and bringing prices down through economies of scale, depending on the type of collaboration, can help each company’s bottom line. US food company Sysco offered an example when eyeing joint operations with U.S. Foods a few years ago. Sysco indicated that over three to four years, it expected annual cost savings of at least $600 million from improved logistics, supply chain, and associated efficiencies.”
Thus, freight forwarders and brokers need to know a few things about risk and how an integrated collaborative infrastructure and platform can make a huge impact – especially as a smaller to medium-sized, independent organization.
What’s the Risk With Disjointed Freight Management?
Take a moment to think about modern logistics management. A company may work with other supply chains horizontally, such as working with logistics service providers. The company may also works vertically to take advantage of freight management services, freight forwarders, freight brokers, and more – explains an article published by the Asian Journal of Shipping & Logistics.
Horizontal failures in collaboration may lead to poor sharing of data and failure to collaborate with other like businesses to help keep costs under control. For example, if Johnny Shipper needs help with consolidation before scheduling freight, the consolidation services provider would need to know the information.
Meanwhile, if Johnny Shipper works with a freight forwarder, the forwarder would also need to work with carriers. These examples of vertical and horizontal communications rely on the accurate, timely sharing of shipment data. Without this key information, quotes may be inaccurate, consolidation may not be possible, and delays will occur.
How an Integrated Freight Collaboration Tool Lowers Risk
An integrated freight collaboration tool allows the supply chain to coordinate deliveries and maintain efficiency. Obviously, several risks lie outside of the control of the freight forwarder – such as overall freight rates. But even in this situation, visibility into all freight rates and the ability to understand rate expectations will help keep total spend under control.
According to Global Trade Magazine, shippers have often turned to improved collaboration as a means to manage global vendors. Document storage and centralization, global visibility, shipping collaboration and consolidation, and consistency form a successful shipping strategy.
An integrated freight collaboration tool connects the systems of the various supply chain partners, eliminating the risk of inaccurate data and improving efficiency along the way. Instead of scheduling a single shipment or quoting a specific carrier, today’s freight forwarders could leverage advanced technologies to rate a shipment across all modes, validate shipping details, and schedule bookings.
It’s that simple – more visibility and accuracy lower risk and helps companies make more timely and informed decisions.
Tips for Improving Collaboration in Your Supply Chain
Improving collaboration within the supply chain requires the application of a few tips to maximize its return. These include:
- Deploy automated data capture, reducing the risk of manual data entry errors.
- Leverage application programming interfaces (APIs) to further automate the freight forwarding quoting process.
- Eliminate the hassle of paperwork by leveraging digital documents where possible and storing them on a centralized platform.
- Improve compliance with regular, automated auditing of documents and processes to identify opportunities for improvement.
- Implement analytics to further understand operations and how to drive more value from operations.
- Get all supply chain partners involved, encouraging digital integration between systems and further driving efficiency.
Next Steps for Better Collaboration Are in Your Hands
The demand for collaboration has given way to the sharing economy. While maintaining individuality, companies have turned to the internet and advanced software, including a freight collaboration tool that can leverage APIs, to seamlessly move data and reduce inefficiencies, reports INFORMS.
As the global supply chain grows more complex, stakeholder collaboration will become an increasingly important step in the process. And since complexity increases risk, a proven resource to improve collaboration through technology will become paramount to success.
Find out more about how your company can lower risk and improve collaboration by visiting CargoLogik online today.