In the third step of our five step process of taking control of inbound logistics we are going to learn how to convert supplier prepay and add shipments to collect. Why? To stop allowing vendors to make big profits on freight and take better control of your own costs, but of course!
In the second step of our five step process of taking control of inbound logistics we are going to learn out to create inbound routing instructions. Why? To take all the guessing work away from your vendors about your intentions of controlling inbound logistics, but of course!
Without a doubt the hottest topic I've discussed with shippers over my past 18 years in the transportation space is the lack of control people feel they have within their inbound logistics operation. Many people seem to think they are getting scammed by costly prepaid and add programs or played a fool by vendor's "free freight" program. And they have good reason to feel that way because it's been my experience that many times they are.
Shippers are ill-prepared for all of the advancements that the small parcel and less-than-truckload carriers are making in the US.
I know that is a big statement but the disparity between freight carrier sophistication and the way most companies ship their product is not even close. Allow me to elaborate. Right now there are massive innovations in the way freight carriers are handling and pricing shipments. There are several items that are vitally important for the shipping public to know.
There is no more of a helpless feeling than getting a freight claim denied when you are sure the liability lies outside of your responsibility. You do have rights when it comes to claims but often times it may feel like you are guilty until you are proven innocent.
Knowing what to do when a shipment gets lost in transit can be a frustrating and tricky thing. People usually panic because they want to make sure the customer is happy. However, that's when a lot of mistakes can happen. What can be an easily solved mistake can turn into a comedy of errors.
As a lead logistics company, KDL is forced to always be coming up with ways to help its clients to get better. So we are always asking ourselves, "What burdensome task can we take away from our clients." One area that has been a huge help is the GL coding of their freight invoices.
There are way too many conflicting reports on how exactly to handle a shipment when there is freight damage. Because at KDL we do the whole freight thang for a living, we got the whole process down so pay attention...especially if you want to get paid in full on your claim.
IIn the midst of the Great Recession, employees were tasked with wearing multiple hats in order to keep their businesses afloat. During the hubbub of receiving orders, dealing with customer problems and getting product out the door, a lot of simple tasks got rushed and corners invariably got cut. As a result, mistakes piled up and far fangled patches were used to fix already broken processes…all at the expense of the company’s bottom line.
There are two bits of research that I believe are the best kept secrets in business today. First, according to Boston-based AMR Research, the average total return of companies in AMR's "Supply Chain Top 25" is 17.89%, compared with returns of 6.43% for the Dow Jones Industrial Average and 3.53% for companies in Standard & Poor's 500 Index. The second bit of info is from a Georgia Tech study that show supply chain glitches can all but destroy shareholder value. They indicate the total shareholder value loss associated with a glitch can be as high as 25%.