The Hidden Costs of Freight: Why Freight Spend Analysis is Crucial for Your Business

Are you tired of feeling like your freight spend is costing you more than you budgeted? It’s time to take a closer look at where your money is really going. Hidden fees, inefficiencies, and mismanagement can significantly inflate freight costs. In this blog, we will explore the importance of freight spend analysis and reveal the often-overlooked aspects of freight expenses that could cost your business money without you even realizing it.?

Hidden Fees??

In 2021, logistics costs in the U.S. soared by 22.4% , reaching nearly $1.85 trillion. This shows how important it is to manage your freight expenses effectively. Hidden fees are a major contributor to unexpected freight costs. These can include rebills, accessorial charges, and detention fees, among others. Businesses should review freight invoices and contracts carefully to avoid unnecessary charges. This lack of oversight can result in paying for services that were not required or overcharged.???

Using a third-party logistics provider (3PL) can be beneficial, as they have expertise in negotiating contracts, auditing invoices, and managing transportation costs that can provide better visibility, identify discrepancies, and minimize hidden fees.???

Implementing a TMS?

According to a McKinsey & Company report , nearly 14% of operation teams use manual spreadsheets for planning. This outdated approach often results in inefficiencies such as poor route planning, underutilized transportation capacity, and delayed shipments. These inefficiencies can inflate costs and lead to lost sales and customer dissatisfaction.?

Leveraging a well-implemented Transportation Management System (TMS) can provide visibility into freight spend, optimize routes, and automate billing processes, leading to potential savings of 5-10%.??

Lack of Visibility??

The lack of visibility into freight spend can be costly. Without visibility into your freight expenses, inefficiencies and hidden costs can easily go unnoticed, resulting in substantial revenue losses. Due to a lack of visibility, companies could lose up to 20% of potential revenue. Freight spend analysis provides the visibility needed to identify and correct these problems.??

How We Can Help: Managed Transportation Services??

?At Synchrogistics , we specialize in Managed Transportation Services that eliminate hidden fees and offer transparent pricing. Our approach includes:??

• Comprehensive Freight Spend Analysis: We provide a free freight spend analysis to help you understand your current expenses and identify potential savings.??
• Transparent Pricing: Our pricing is completely transparent, ensuring you know exactly where your money is going with no hidden fees.??
• Expert Management: Our team of experts uses the latest technology and data analytics tools to optimize your freight operations, reduce costs, and improve efficiency.??

Get a Freight Spend Analysis | Synchrogistics?

?At Synchrogistics , clients save an average of 14.9% reduction in transportation costs in the first year. Don’t spend more than you need to. Contact us today for a FREE freight spend analysis and take the first step towards more efficient and cost-effective operations.?