By: Berlin Packaging Specialist
Date: October 28, 2019
Most people consider logistics and transportation a magic act. An order is placed, the buyer waves their magic wand and the shipment magically arrives, right? Wrong. Behind the scenes there are many people involved in moving a shipment from location to location. It is also important to understand the shipping costs of each shipment. Whether you are dealing with truck, intermodal, air freight or ocean transportation, one thing is clear, ensuring the product ships and arrives on time and on budget is just as important as making sure the machines get turned on to produce the product.
Having the right people in place to manage logistics and transportation is the key to making any transportation program a success. Whether there is a team dedicated to transportation or members of your organization that also have additional responsibilities, monitoring your transportation service providers will give your company the added security of knowing where your shipment is throughout the entire supply chain.
According to the white paper ‘Effective Risk Management in Global Sourcing,’ “Overlooking logistics complexities is a common risk.” When you are involved in logistics and transportation having a good understanding of how the shipment is moving and the cost involved will give you the greatest visibility to your shipments progress and the impact it will have on your business. Additionally, keeping track of ancillary costs such as fuel surcharges, lift gate and inside delivery fees and adding them to your product cost will ensure that you are maximizing your earnings and not selling your product at a loss.
With a growing supply base of both domestic and international suppliers, it is important to utilize all of the services that your transportation service provider has to offer. For domestic shipments that need to travel across the country or at a great distance, consider using an intermodal option. Intermodal shipments typically reduce the cost of your transportation and do not have a large impact on the transit time. Your transportation service provider can give you more information on the types of specific services they offer.
It takes a dedicated team, a clear understanding of costs and the right combination of services to get a shipment from location to location. With this powerful combination, you can convince anyone that transportation is magic trick; and you hold the magic wand.