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How can you optimize transportation performance in low-volume, low-cost logistics management?

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Transportation performance is a key factor in logistics management, especially when dealing with low-volume, low-cost shipments. How can you optimize your transportation processes and reduce costs, delays, and errors in this scenario? Here are some tips to help you improve your transportation management skills.

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Anand Sharma

Transportation Technology Lead Global | Passionate about Digital Transformation

1 Plan ahead

One of the most important steps to optimize transportation performance is to plan ahead and anticipate the demand, supply, and delivery of your shipments. This means you need to have accurate forecasts, inventory levels, and order information, as well as a clear understanding of your customers' expectations and requirements. By planning ahead, you can avoid last-minute changes, rush orders, and excess inventory that can increase your transportation costs and risks.

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JOHN CALLAS

Director of Operations at Piedmont National
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Distribution companies are finally focusing on transportation and the cost associated. Logistics optimization is finding the most efficient and cost-effective way to plan, organize, and execute the movement of goods and services from one location to another. This can lead to reduced transportation costs, optimized inventory levels, and improved utilization of resources. Enhanced Customer Service is another benefit while logistics optimization enables companies to deliver products to customers more quickly and accurately. Load consolidation reduces transportation expenses and improves delivery efficiency. By maximizing load capacity, businesses can achieve cost savings and streamline logistics operations.

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2 Choose the right mode and carrier

Another crucial step to optimize transportation performance is to choose the right mode and carrier for your shipments. This depends on several factors, such as the size, weight, value, and urgency of your shipments, as well as the distance, destination, and service level of your delivery. You should compare the costs, benefits, and drawbacks of different modes and carriers, such as truck, rail, air, sea, or intermodal, and select the one that best suits your needs and budget. You should also negotiate the best rates and terms with your carriers and monitor their performance and quality.

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3 Implement technology and automation

Technology and automation can help you optimize transportation performance by improving your visibility, efficiency, and accuracy. You can use various tools and software, such as transportation management systems (TMS), GPS tracking, barcode scanning, and electronic data interchange (EDI), to streamline your transportation processes and data. These tools can help you optimize your routes, schedules, and loads, track and trace your shipments, communicate and collaborate with your carriers and customers, and generate reports and analytics to measure and improve your performance.

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Anand Sharma

Transportation Technology Lead Global | Passionate about Digital Transformation
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Technology is sure the best way to achieve, however, how to achieve is a little tricky in terms of business processes and technology. It depends on which market you operate in, for example, if in the US company can leverage EDI or open source APIs to connect with load boards like DAT, CHRW, Uber, etc. to get the market bench market rates or get the carriers that offer the best rates this will allow company not to have expensive contracts instead leverage spot market.

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4 Optimize your packaging and loading

Packaging and loading are also important aspects of transportation performance, as they affect the safety, quality, and cost of your shipments. You should optimize your packaging and loading by following the best practices and standards for your products and mode of transport. You should use the appropriate materials, sizes, shapes, and labels for your packages, and ensure they are well-protected, sealed, and secured. You should also optimize your loading by using the optimal equipment, methods, and techniques to load and unload your shipments, and avoid overloading, underloading, or wasting space.

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5 Monitor and control

The final step to optimize transportation performance is to monitor and control your transportation processes and outcomes. This means you need to have a system and a team to track and manage your shipments, identify and resolve any issues or problems, and ensure the quality and satisfaction of your customers. You should also collect and analyze data and feedback from your transportation activities, such as costs, time, service levels, errors, complaints, and compliments, and use them to evaluate and improve your performance.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Nagesh Pujari

Dy. Manager - Logistics
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Stratergies include - Consolidation of cargo, route optimization, rate negotiation, technology integration & lean method to eliminate waste in entire Logistic to reduce cost.

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How can you optimize transportation performance in low-volume, low-cost logistics management?

1

2

3

4

5

6

1 Plan ahead

2 Choose the right mode and carrier

3 Implement technology and automation

4 Optimize your packaging and loading

5 Monitor and control

6 Here’s what else to consider

Transportation Management

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How can you optimize transportation performance in low-volume, low-cost logistics management?

1

2

3

4

5

6

1 Plan ahead

2 Choose the right mode and carrier

3 Implement technology and automation

4 Optimize your packaging and loading

5 Monitor and control

6 Here’s what else to consider

Transportation Management

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