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It goes without saying that to succeed in business, you’ve got to maximize your revenues while minimizing your expenses. When it comes to the latter, an often-overlooked area is transportation. It’s common for companies to dismiss these costs as necessary and static and then turn their attention to other expenses.
That’s unfortunate since there are several ways to lower your transportation management costs. In some environments, transportation cost reduction initiatives result in small savings. In others, a company can save many thousands of dollars annually. Either way, it’s all money that goes to the company’s bottom line or that can be channeled to other programs or projects.
Consequently, every business should periodically assess its transportation management expenses to avoid common mistakes that can adversely affect its finances.
Preventing Transportation-Related Errors Is Easy and Financially Advantageous
In our conversations with clients in many industries, we’ve learned that there are six common errors they’re prone to making regarding transportation management. And when they identify and correct these mistakes, they subsequently enjoy significant cost savings.
Do any of these apply to your operations?
1. You don’t really know your shipping capacity. This isn’t to say that you “don’t know your business.” No doubt you do. But if your transportation capability has never been pushed to (or beyond) its limit, it’s difficult to identify that outer limit. That’s why it’s a good idea to spend a little time and effort determining your maximum capacity. That way, if a spike in shipping volume starts pushing you in that direction, you have time to react and, for example, secure rental semi trailers to prevent missed deadlines and the resulting cascade of consequences.
2. You’re still using spreadsheets. Time is money. If you’re using spreadsheets to coordinate your transportation operations, you’re spending more of it than you should…
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