Building a Successful Inbound Freight Management Program
Managing inbound freight is one of the most crucial parts of managing a successful supply chain, but the fact is… it’s hard!
Kuebix Founder and President Dan Clark discusses in a recent video how a company can better manage their inbound freight by following a detailed process that ensures their product is delivered to the distribution center with the optimal carrier, at the optimal price.
Frequently overlooked and often pushed to the bottom of a shipper’s supply chain agenda, good inbound freight management can help companies improve shipment visibility, save money, and enhance customer service—all of which add to the bottom line and boost profitability.
With outbound freight management, shippers are in control of the operation, managing their own picking orders and delivering to their own customers. With inbound freight, shippers are dependent on suppliers to pick orders, load and deliver to a distribution center. This takes collaboration and accountability among participants, and visibility into operations to know what is happening.
A successful inbound program must follow a detailed process for all freight delivered to the distribution center. The program needs to ensure that freight is delivered by the optimal carrier at the optimal price. It requires an infrastructure that creates a win-win relationship with suppliers and carriers that leverages available capacity to ensure freight will be delivered on time, claims free to the distribution center.
With real-time alerts and a real-time collaborative infrastructure, shippers can track shipment delivery times and better organize their docks so carriers aren’t left idling in the yard. A well-planned inbound freight management program uses LTL consolidations to make fuller trucks to reduce the number of deliveries arriving at the same time and utilizes backhaul opportunities to reduce shipping costs and improve efficiencies.
A well-orchestrated inbound freight management processes establishes a win-win program with suppliers to keep costs in check. It helps with managing supplier allowance programs for LTL and TL, streamlines the unloading process, establishes vendor inbound compliance and fosters dynamic capacity-based selections, where whoever has the capacity is the one selected to deliver the orders.
A superior inbound management program must be built on compliance and accountability. It requires a comprehensive routing guide that details the requirements for each stakeholder and each process. Everyone needs to understand the program and their responsibilities for its success. Enforcing these new compliance policies ensures cost reduction objectives will be met.
This will create an environment that makes it efficient and cost effective for all stakeholders involved in the process.