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The Importance Of Reviewing Your Freight Solution

There are few third party services that are as essential to a business operation other than domestic freight. The carrier partner you have represents you and is an extension of your business. With this in mind there is understandably a fair amount of risk when a change in supply chain occurs. So why change?

The usual questions come into play, will this be better than what we currently have? Will there be negative disturbances to our customers? Will this save our staff time? Will we achieve the cost outcomes as projected? They are all valid questions to ask although we overcome these with a simple truth: the freight industry is forever evolving. There has never been more options and innovation in the freight industry than now. Options in variety of carriers, technology & customer service support. Why wouldn’t you want to make sure you’re using the best option available to you?

There are certainties I would argue in the industry that makes it essential to have regular reviews of your domestic freight / supply chain.

  1. Costs Change
    Carriers have volatile and high overheads. Where there is a workforce, weather, or infrastructure issue you can bet that’s severely affecting carriers performances and the resources they have available (which has been compounded with the Covid restrictions).
  2. Carriers are making their services more and more niche
    Building on the above point, this has driven carriers to become more specific in the services, freight profile, and delivery points they offer and specialise in. They are pushing away freight and customers that are no longer profitable for them and their business structures. This can leave customers either paying a lot more or to a clear decline in service.
  3. Technology Advances
    Automation is a game changer for logistics where through technology investments the chance of human error, reduction in staff work time, and accuracy of information to report on is high up on the positive outcomes. A carrier simply cannot only provide the means for something to move A to B. We live in a new age where people expect to have tracking visibility, notifications, and seamless access to this. A business has to figure out how to be able to provide this.
  4. Service Based Industry – people change
    Freight is a service based industry; they say you are only as good as your last job. People in your business, as well as the freight business, will always change and you can be certain that will change the way your domestic supply chain works. A good business relationship of proactive understanding and good support is foundational.

Every operation is different and logistics doesn’t have cookie cutter answers. So let’s be proactive reviewing our processes and the partners that optimise that. Otherwise you are at risk of being left behind as the market drives forward.


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