80/20 rule is the 99/1 rule in the Freight Industry
The 80/20 rule definitely doesn’t apply to Freight. When managing freight, it’s closer to the 99/1 rule. That means 1% of Freight users are generating 99% of the Freight Savings.
There’s a reason for this! It’s because most people use Freight either:
incorrectly or
ineffectively.
Those consistently generating freight savings employ seven specific strategies.
Transportation Management System (TMS) to manage the shipping of all orders in a paperless environment, minimizing human error and extra steps in your work flow process.
Key Capabilities all under one roof: Rate Shopping, Booking Engine, Electronic Pick Up Notification, Bill of Lading Creation, Electronically Capturing Carrier Tracking #s, Tracking Shipments In-Transit to Delivery Completion.
Execution that is consistent and reliable for scheduling order pick up and ensuring on-time delivery.
Purchasing power to leverage best-in-class pricing with carriers by partnering with a logistics provider who does millions of dollars of freight spend with many carriers.
Diverse portfolio of good performing carriers to give you multiple options to obtain available truck capacity and good freight prices. Having a diversity of carriers prevents the “having all your eggs in one basket” situation. This can be a problem when your sole carrier has trucks that are in short supply or if their service levels start to fail.
Data analytics so that you can measure freight cost and carrier performance, and make more accurate forecasts and effective decisions for the upcoming year.
Invoice payment system that will pre-audit each invoice and match the invoice amount to your contract rates that are in effect. This gives you an effective and efficient process to prevent and control carrier billing errors before you make payment to the Carrier.