Whether your business procures raw materials or transports goods, a freight procurement solution will increase efficiency and drive cost savings. But, achieving successful transformation requires the right leadership and capacity.
Automated Processes
Business process automation refers to implementing a system of rules that automates manual tasks. By assigning repetitive processes to software or hardware systems, employees are freed up from monotonous, time-consuming work that may lead to a decrease in quality or even human error.
With freight procurement solutions, companies can reduce the amount of paperwork and manual labor often involved in manually managing freight rates. These solutions also reduce the need for rework due to errors and help businesses save money in the long run.
Freight procurement is a complex process with many factors to consider, including multiple modes, varying capacities, innumerable regulatory requirements, and safety issues. Digital tools like sourcing optimization tools enable shipping companies to analyze and evaluate bids in a streamlined and efficient manner.
Real-Time Data
With real-time data processing, companies can take action on data as it comes in. This speeds up decision-making and allows businesses to respond to fluctuations in the freight market with greater agility.
For example, a company may use data analytics to spot and alert employees of potential system or process errors as they occur. This can save time, money, and resources in the long run.
This can be especially useful when dealing with spot and contract purchasing volatility. By automating processes and eliminating manual calculations, procurement professionals can spend more time focusing on strategic decisions. This enables them to build better relationships with their carrier partners and improve overall business performance.
Increased Efficiency
Freight procurement is a necessary process that ensures your business gets the goods and services it needs to fulfill customer orders on time and at an affordable cost. This includes transportation, warehousing, and storage procurement.
Historically, freight procurement teams have used annual or bi-annual RFP processes that involve the negotiation of fixed terms. However, due to supply chain disruptions and unexpected demand changes, spot buying has become increasingly common for procurement teams. Digital freight tools enable a repeatable, seamless spot purchasing process. This helps logistics teams manage contracts, strategize procurement, and make cost-effective bids. They also allow for visibility into carrier rejection rates and lane performance to identify carriers with capacity and reliability. This reduces the risk of overpaying for services and improves the efficiency of sourcing.
Increased Flexibility
The past year’s global supply chain turmoil has revealed fragilities in many companies’ freight procurement strategies. It’s essential to develop a flexible approach that is resilient against the unexpected.
Carefully choosing suppliers and carriers contributes to greater risk management by reducing the negative impact of supply chain disruptions. This includes minimizing production interruptions and customer dissatisfaction. Using digital procurement tools enables businesses to streamline and automate their contract freight sourcing processes, resulting in faster, more efficient results. For shippers, this means increased price transparency, reduced time spent on sourcing, and improved asset optimization.
Higher Return on Investment
Procuring freight efficiently and cost-effectively is vital to your business’s success. Using a logistics management solution with freight procurement capabilities can save your company time, money, and resources by streamlining workflow and optimizing transportation processes.
Companies that leverage technology and freight procurement solutions enjoy a higher ROI than those that don’t. With a comprehensive approach to freight management, you can ensure that your supply chain is resilient and can handle any change in market conditions. When it comes to procuring freight, there are three basic types: direct, indirect, and third-party logistics (3PL). Freight e-procurement allows you to use a digital platform to book uni, inter, and multimodal transports faster, reducing costs and time spent on manual processing. It can also help you identify opportunities for cost savings in your transportation costs.
