How 3PLs Can Help Manage Your Inbound Freight

When shipping inbound, vendors and suppliers often include freight as part of the purchase price at a percentage of the cost of goods. Although the percentage varies, it is always greater than shipping costs, making delivery fees a source of profit for vendors. Simply put, if you’re not controlling the cost of your inbound freight, they're reaping the benefits. By controlling your shipments and paying the true freight bill, you are able to immediately save a significant amount on your capital goods expenses.?

Why isn’t every shipper doing this, you ask? Inbound freight management is often overlooked by businesses when evaluating their priorities. Because it does not fall within the top 80% of spend, inbound freight management is typically not on procurement's radar, and a lack of visibility into pricing can make it difficult to determine the exact costs.?

This is where a 3PL can help! 3PLs have the knowledge and expertise to help minimize your inbound freight costs. Understanding your inbound freight spend will enable you to eliminate waste caused by prepays and add terms, optimize your spending, and improve freight receiving efficiency. Visibility of your freight spend is only the beginning of the process. Often, change management also comes into play – particularly in larger organizations, where, for example, the procurement department is responsible for the inbound product rather than logistics and transportation, or the buying team is resistant to change for fear of failing to meet delivery deadlines.?

The habits and behaviors of individuals have a great impact on the freight prices you're paying, so behavior modification is crucial - and something we've advised clients on countless occasions. Although change can be intimidating, it is important to remember that controlling your inbound freight spend will add money to your bottom line (not to mention make you look excellent at your next performance review).???

As a 3PL freight provider, Tucker Company Worldwide goes beyond just managing inbound freight for customers. We consider ourselves to be part of your team - your transportation department if you will. It is our goal to go beyond the superficial to understand your freight volumes and specific needs in order to optimize and bid on relevant shipments and lanes on behalf of our trusted network of carriers.?

Through this approach, Tucker can help you minimize costs while getting your goods delivered on time, and at market prices. Could you benefit from our expertise? See how Tucker helped a Fortune 500 company cut costs by 67% in the first year.

Download Case Study ?