In the latest edition of the Logistics Managers Index, industry experts are reporting that transportation costs are plummeting at unprecedented rates. While the overall economic outlook for the logistics sector is down (in-line with seasonal expectations following the peak season rush), this reduction in transportation costs provides a massive opportunity for any shippers poised to take advantage.
For individual shippers reading that report, they may be asking: Where are these lower prices? Many shippers locked into single carrier portfolios may not be seeing the effects of this price reduction on their bottom line. That’s because when the overall market shifts, the trend may not be reflected in shipments with any one carrier.
We’ve spoken on this blog before about the advantages of a multi-carrier portfolio when it comes to by-passing supply chain bottlenecks. But aside from keeping things moving, perhaps the biggest advantage of having a multi-carrier portfolio is the ability to choose the least cost carrier.
The carriers themselves may not want shippers to know this, but there are a lot of options out there when it comes to shipping, both freight and parcel. Different carriers are under different constraints at different times, and their prices fluctuate with their ability to handle demand and seasonality. Having a multi-carrier portfolio allows shippers to rate-shop for the best price between different carriers, and thus book shipments at the lowest rates possible at any given time.
Before the Digital Revolution, rate-shopping multiple carriers was simply not an option. Few companies had the time or resources to call multiple carriers and manually compare rates. Technology has come a long way since then though, and with the modern Transportation Management System included in our advanced logistics platform, FreightOptics, it’s now easy to rate-shop however many carriers you want. Our system also allows users to select carriers based on desired delivery times, and then track those shipments end-to-end, all with one login. Bouncing around multiple carrier websites for rates, tracking updates and invoices is now a thing of the past.
The market doesn’t lie. There are in fact lower shipping costs out there.
The question then is: What are you going to do about it?
If you would like to start saving money on transportation costs across the board, reach out to us today for a Free Demo. Your supply chain will thank you.