The Value of Direct Freight Management

From small breweries that distribute their beverageschange flats, and the total process can sometimes
to a local area to large automakers that ship vehiclestake hours. By reducing delivery time, small
internationally, every production company has acompanies save money by reducing length of
shipping process that delivers its goods to retailers.transport costs.
For small companies, product delivery can be asWhile the same applies for large companies, the initial
simple as hiring a local shipper to move goods on agoal of freight management for large companies
weekly basis, while for large companies the deliveryusually involves making the shipping process more
process usually consists of using a shipper who"direct", particularly by eliminating frequent stops. In
delivers products on a daily basis within a network ofsome cases, frequently delivery stops are
destinations. In either case, the ideal system ofunavoidable, as when a product must be assembled
transport is that which delivers goods in the leastin various steps at various locations. But when a
amount time and at the lowest possible cost. Tocompany assembles a product at one location and
accomplish these goals, most companies opt for thirdthen ships it cross country, the product typically rests
party direct freight management. Using logisticsin warehouses as it awaits its next transporter, which
management software, direct freight managers makeresults in warehouse fees, increased inventory fees
the delivery process as "direct" as possible andand longer delivery time. A common solution to these
therefore reduce shipping costs.obstacles is shipping by air instead of ground. While
For small companies, freight management is usuallymore expensive in terms of shipping rate, air
applied to a shipping process that is already "direct",transport is often more cost effective because it
meaning that the goods reach the retailer withouteliminates frequent stops and their associated fees.
making previous stops. In such cases, direct freightWithout the aid of logistics management software,
management focuses on reducing delivery time bydirect freight management can be confusing. But by
analyzing four aspects of the shipping process: trafficdelegating freight management to an experienced
patterns, road construction patterns, speed limits andfreight manager, companies can easily streamline their
quality of road ways. Because time is money in bothdelivery process and reduce expense as a result. In
the manufacturing and shipping business, finding aaddition to the services mentioned above, freight
route that has less traffic can significantly improvemanagers also optimize shipment tracking and match
delivery time; and the same applies to finding a routecarriers with destinations. As a testament to the cost
that averages less construction projects. Similarly,savings that can result from logistical freight
judging delivery routes by quality of road way helpsmanagement, studies show that companies who use
prevent flat tires that can be tragic to timely delivery.logistics to improve their shipping can reduce their
Unlike cars, semi trailers require special assistance toshipping costs by ten percent in the first year.