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Everyone in trucking talks about cost per mile. Cost per hour gives you a real-world, down-to-the-minute view of how productive your operation actually is. And too many small carriers are watching the clock but not calculating its cost. And it starts with calculating your cost per hour. What Is the Cost Per Hour?
And that not only has to do with addressing problems, but also being fair with [issues such as] rent negotiations and addressing various costs so that both parties come away with a win.” Cost optimization is another benefit 3PLs bring to the table. The key is being able to have open dialogue—conversations,” adds Holland.
Dockworkers at India’s 12 major ports have resolved to commence an indefinite strike starting August 28th due to unsuccessful prolonged pay negotiations. For example, labor stoppages have recently impacted ports in Germany and Belgium. A strike could disrupt these supplies, possibly resulting in higher prices and shortages.
Image source: Pexels | 7 Cost-Saving Tips Every Supply Chain Manager Should Know Managing costs effectively is crucial for success in the competitive supply chain world. With logistics, labor, and inventory costs on the rise, finding targeted ways to reduce expenses can have a significant impact on your bottom line.
This visibility supports better negotiation with carriers and helps avoid overpaying. This new feature strengthens procurement and negotiation strategies by helping users understand when rates are likely to dip or spike, allowing for more effective timing of negotiations with carriers.
For example, for a small container ship between 0 and 4,000 TEUs, the unloading and loading time is three times higher than the most-efficient port. The main motivation of automation as I gave in the example above is productivity gains and lower handling costs. To give one example of the labor cost on the U.S.
The Factory Gate Pricing (FGP) and Primary Freight (PF) strategies, as adopted by major grocery retailers, are causing a shudder up the spine of many retail suppliers. What are Factory Gate Pricing and Primary Freight strategies? The product pricing therefore becomes ex works. Now, the issue.
Supply chain management is a career that perfectly matches the skill set of the Millennial generation—if they can be persuaded to pursue it. Now they are not only being asked to give that over to the machines, but they have to learn yet more skills. Innovation, creativity and communications are the skills on that next rung.
Supply chain volatility is nothing that a fixed-price contract can’t fix, write Sarah Rutnah, Thomas Winstanley and Sonia Vilar of Dentons Law Firm. In times of economic and political volatility, fixed-price contracts offer welcome protection for businesses seeking certainty in and control of their supply chain costs.
Piston addresses a critical need in the fleet payments industry: eliminating fraud and excessive costs associated with traditional fuel cards. Through their firsthand experiences managing fleets, Sekhon and Shah identified significant inefficiencies in existing fuel payment systems, especially concerning card fraud and retail price markups.
Your inbox quickly fills with concerned emails highlighting rising costs, delayed materials, and your teams urgent efforts to assess the situation and determine the next steps. manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy.
Sure, automation, artificial intelligence, and other tech advancements are impressive, but skilled professionals are still essential for efficiency and success. Tech can help optimize routes and predict demand, but it can’t replace the critical thinking, decision-making, and problem-solving skills that seasoned pros bring.
In e-commerce, profitability hinges on a brands ability to control costs and manage margins. Product costs, fulfillment operations, marketing efficiency, customer service overhead, and return rates all influence the bottom line. There are many levers a brand can pull to lower expenses. Each carrier calculates these factors differently.
When tariffs rise, fuel prices spike or international trade agreements shift, those cause ripples across all freight modes — truck, air, rail and ocean. They offer flexible service and cost-effective pricing, especially for domestic shipments. But that speed comes at a cost — and not just financially.
Freight shipping costs can eat into your margins faster than you think. Many businesses unknowingly pay 20-30% more than they should on Freight Shipping Rates due to misclassifications, poor planning, and lack of negotiation. What Drives Up Your Freight Costs? Class 50) cost significantly less than higher-class shipments (e.g.,
Supply chain efficiency focuses on improving your processes whilst also reducing costs. In my experience the tipping point is around 6 vehicles – thats when the complexity of manually managing your fleet starts to outweigh the cost of proper routing and scheduling software. What is Supply Chain Efficiency?
For example, you can negotiatepricing with different carriers and choose the most cost-effective routes for each segment. This reduces your workload but limits your ability to negotiate on individual legs of the trip. It can be more cost-effective, especially when shipping large volumes over long distances.
Electric forklift rentals provide a practical and cost-effective solution for businesses seeking flexible equipment solutions without the substantial investment of ownership. In case you are just here for the pricing? If you need a forklift for daily, long-term use, buying is often more cost-effective over time.
Have you conducted a cost-to-serve (CTS) analysis for your enterprise? And that is the sole purpose of cost-to-serve analysis. If you were going to say, “What is a cost-to-serve analysis?” When costs begin to spiral out of control, the result is usually a loss of revenue in proportion to sales.
LTL shipping rates would historically depend on freight class and the cost per hundredweight . In the past, calculating freight class depended on the physical weight of an item, as well as what else could be shipped within the same truck to set a cost per hundredweight (CPW). Density plays a role in the form of dimensional pricing.
Knowledge Graphs are emerging as an important tool for building advanced AI capabilities. What Celanese has accomplished is the single best example ARC is aware of employing agentic AI and copilots at scale. These agents can communicate, negotiate, and collaborate to solve complex problems. Celanese is an exception.
Or are you a Logistics Manager curious about what it costs to become a freight broker either because you want to know that whom you are working with has done all the right things (you know, since they'll be managing your freight) or because you yourself may want to be a freight broker? The Cost to Be a Freight Broker. Licensing Costs.
Whether you’re managing a construction site, setting trusses for a building, or moving heavy materials on uneven ground, renting a telehandler can be the most practical and cost-effective solution. But before you book your rental, its essential to understand what drives telehandler rental costs and how much you can expect to pay.
Archives When it comes to choosing the right international freight forwarder for your shipping needs, cost plays a factor in your decision. An experienced forwarder or third-party logistics company (3PL) can help you improve your bottom line by reducing your soft costs in addition to saving you money on hard costs. Our TrakIt!
In 2025, chemical companies face heightened challenges in freight management due to increased regulatory complexities, volatile trade policies, and rising operational costs. It will provide actionable insights to identify and rectify these cost leakages, ensuring a more efficient and cost-effective supply chain.
Warehousing and distribution management is nota core skill. Related to the core skill issue, often organisations that have a strategic focus other than in transport or warehousing, cannot attain the desired performance levelsand key performance indicators (KPIs) required by their customers. Performance is sub-optimal.
The last time they raised prices? So much attention is paid to negotiating the price of the goods and coordinating the delivery that very little thought goes into the quality of the relationship and how improving it might help you both. If I don’t like the price or the quality, I just go elsewhere!
Our data showed that over 90% of enterprise shippers had to reroute shipments during this period, with an average cost increase of 35% per container. That’s over 1,100 hours annually that could be redirected to strategic initiatives. Rate sheets become obsolete almost as soon as they’re negotiated.
Factors such as cost inflation, network imbalances, and differences between long- and short-haul freight can introduce misleading signals in rate data. Spot rates excluding estimated fuel costs (NTIL), shown in orange in the chart above, may lead or lag rejection rate trends. Conversely, OTRI increased from 2.9%
LTL shipping rates are affected by many different factors, so it can be pretty easy to make these simple changes and see your shipping costs decrease. While these tips may not be possible for everyone or every shipment, hopefully, you’ll find one you can start implementing to reduce your freight costs.
The more KPIs, the more difficult the negotiation process. For example: Inventory Record Accuracy has to be 98-100% accurate daily. Cost Reduction is another major goal. As the two partners implement Continuous Improvement or Kaizen cost reduction will follow. 3PL/SLA Skills/Knowledge.
Whether your company is a big or small player in terms of shipping volumes, and regardless of your chosen transportation modes (road, rail, ocean, air), the health of your bottom line depends in no small part on the competitiveness of your freight prices. So how can you be sure you’re getting the best freight rates possible?
That’s why the only way to figure out a real commission plan rests with knowledgeable sales. Managers will need to train carrier sales teams to understand the importance of using the correct carrier at the right time, and they must be able to negotiate effectively in order to maintain recurring revenue.
For example, if it was act of nature or shipper error, you should not be liable for damages. Red Flag 7 – Quick Pay That’s Not Really a Good Deal Many brokers offer “Quick Pay,” but here’s the catch: 2-day pay = 3% fee 14-day = 1% 21-day = free Example: For a $2,500 load, a 3% fee is $75. Don’t just sign to “get the load.”
Example: Dispatch SOP Load board checks begin at 6:30 AM Prioritize direct shipper freight first Use the RPM goal chart for lane selection All loads must be booked with written rate cons Dispatch calls drivers by 8 AM with daily plan Update TMS after each booking That’s how you remove guesswork. They try to hire help without a playbook.
Judah Levine Optimize your logistics tendering, vendor selection, negotiations, and procurement Book a Demo Weekly highlights Ocean rates – Freightos Baltic Index Asia-US West Coast prices (FBX01 Weekly) increased 3% to $1,609/FEU. Asia-US East Coast prices (FBX03 Weekly) climbed 7% to $2,357/FEU. kg China – N.
A TMS is an excellent investment and according to Logistics Management Magazine, has been shown to reduce transportation costs by up to 30 percent. Freight Accruals Cost Allocation Carrier Scorecard Least Cost Carriers Power Lanes. Freight accruals can give you insight to your transportation costs in your logistics analytics.
It’s not for a lack of trying—investments are made in box on demand machines, carrier rates get negotiated, and consultants get consulted. Despite these efforts, cost and waste control are only marginally improved.
In 2025, chemical companies face heightened challenges in freight management due to increased regulatory complexities, volatile trade policies, and rising operational costs. It will provide actionable insights to identify and rectify these cost leakages, ensuring a more efficient and cost-effective supply chain.
As freight transportation costs continue to rise year-on-year, manufacturers, wholesalers, retailers and any other organisations that are part of a supply chain must think smarter about pushing down the cost of moving goods from A to B. Is it easy for them to handle and load into their vehicles?
Retailers also took steps to contain costs and preserve margins as they reoriented toward e-commerce like never before, including putting solutions in place to more effectively navigate carrier capacity caps and improve the visibility, accessibility, and mobility of inventory. More to give the organization.
A KPI is a practical and objective measurement of progress, either: Towards a predetermined goal, or Against a required standard of performance It might help to think of a KPI as something like an instrument on a car dashboarda speedometer, for example. Why Are KPIs Important?
The opportunity cost of choosing the wrong mode of transportation. All things considered, 78% of shippers were concerned with reducing shipping costs in general. Using proprietary technology and analytics, businesses can understand the opportunity cost of every transportation decision placed in front of them.
Understanding the Crisis: Implications for Container Availability The strategic importance of the Red Sea as a maritime route cannot be overstated. Dynamics Behind Freight Rate Increases Various factors influence freight rates, including supply and demand dynamics, fuel prices, and geopolitical events.
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