Tracking and analyzing changes in market demand can help you make quick adjustments that will help facilitate the short-term and long-term growth of your business.
You can leverage transportation market trends to your advantage to help get the most value out of your transportation network. A sourcing strategy that continually assesses market demand allows you to re-evaluate your procurement process and make informed decisions that help avoid wasteful spending and improve your bottom line. Identifying the metrics that are most relevant to your daily business operations allows you to focus on specific key process indicators. Once you know how these indicators are affected by highs and lows of today’s transportation market trends, you can the implement an effective transportation management strategy.
Transportation Management Tips to Help You React to Market Demand
Working changes in market demand to your advantage relies heavily on finding a freight transportation company that does not compromise your delivery requirements or shipping budget. Your third party logistics (3PL) provider should fully understand your business’s needs and objectives. This will help you make adjustments based on the any sudden rise or fall of market demand. You can reduce costs at all levels of your business with these transportation management tips:
- Be Willing to Change: If you are not willing to implement new technologies and make decisions based on up-to-date data analysis of market trends, then you will continue to waste unnecessary time and money on your business’s transportation management.
- Leverage Big Data: How do you know how market demand truly affects your business if you do not have the data to back it up? Big Data helps you understand market trends at an intricate level by analyzing large volumes of traditional data, such as fuel costs and insurance rates, and non-traditional data, such as traffic and weather conditions. You can better qualify metrics that are affected by shifting market trends in order to reduce operational cost and improve efficiency.
- Know Your Total Cost of Ownership (TCO): As a shipper, you need to be able to determine the direct and indirect cost of every shipment, from taxes to storage costs. By understanding how your TCO can fluctuate with transportation market trends, you can continue to refine your management system to get most value for every dollar spent.
Avoid These Freight Management Mistakes
These common transportation management mistakes can severely limit any advantages you gain from transportation marketing trends:
- Limited Use of Transportation Management Software: Are you fully utilizing your transportation management software? If not, you are likely engaging in wasteful spending and leaving money on the table. This software can automate routine processes, increase visibility into your costs and resources, and help centralize control of transportation management.
- Decentralized Transportation Management: Do you have a centralized management system that everyone in your company understands and puts into practice? Implementing a transparent management system based on accountability where everyone knows how their decisions affect the processes in place can transform your business. It will help streamline your freight purchasing decisions, which should lead to a reduction in freight costs in the long-term.
A freight transportation company that can provide the advantages of both asset-based and non-asset based freight brokers will allow you to maximize your transportation management strategy. You will have the safeguards against price fluctuations and dips in capacity that asset-based brokers provide while also utilizing the expanded service options and broad network of carriers of a non-asset based broker.
If you expect more than just basic services from your freight transportation company, contact RCX Solutions today at 866-336-9697 for a consultation. We understand the importance of communication and collaboration and can help you reach your business goals.