Freight Management

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Efficient and effective handling of freight will definitely bring competitive advantages to the firms.  The need of the freight management is increasing day by day demanding the service of freight management companies. These companies extend their services from third party logistics (3PL) to 4PL and going beyond.
According to the Global Third Party Logistics (3PL) Industry report by Report linker, 3PL  industry expects a growth up to S$577 Billion by the year 2025.  Further, they have identified the major 3PL competition among:
  • CEVA Logistics
  • C. H. Robinson
  • DACHSER SE
  • DB Schenker
  • DHL INTERNATIONAL GMBH
  • DSV Panalpina A/S
  • Expeditors International of Washington, Inc.
  • FedEx Corporation
  • FM Logistic
  • GEODIS
  • Hitachi Transport System, Ltd.
  • J.B. Hunt Transport Services, Inc.
  • Kuehne + Nagel International AG
  • Nippon Express Co., Ltd.
  • Sinotrans  Logistics Limited
  • UPS Supply Chain Solutions Inc
  • XPO Logistics, Inc.
  • Yusen Logistics Co., Ltd.
Why Freight Management is Important?
From the time of sourcing/manufacturing materials, warehousing, transporting, selecting the right delivery method until final product delivered to the consumer and handling reverse logistics should be effective to have a proper freight management system to a firm. In simple words, we could say the combination of inbound logistics, outbound logistics and technology could bring an effective freight management system to a firm. It is not a one time process, you have to continuously monitor the freight activities, so you get the maximum out of it.
So do you need to pay extra attention on your freight management system? Yes, of cource… because it has the power to break or make your business
08 Reasons to have a Freight Management System
  • It ensures the quality of the final product. Because you cannot expect a quality product by sourcing rotten materials
  • Select the best suit transporting method for your cargo which guarantees the cost efficient yet essential method
  • It helps to negotiate with the suppliers and make sure you will not loose the game
  • Selection of best warehousing system and inventory management system for the business
  • Identify the hidden costs which could be avoided
  • Optimized route selection
  • It ensures to deliver the product to the market on time
Most of the companies use the service of 3PL providers for freight management as they are specialled , knowledgeable and experienced on the particular job. Selecting the right 3PL partner is crucial despite of what business categories you are going to outsource to them or get their services. Your freight forwarder or the carrier will offer you competitive rates, so you can minimize the transporting cost, The best warehousing practices ensure your products/materials will not get obsolete/ expired and will be on the market shell to meet customer demand. Further the overall cost of logistics could reduce to ensure maximized profits/revenue.

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