In today's highly competitive marketplace, companies large and small are scrutinizing every aspect of their operation to improve quality and find more cost-effective ways of doing business. Surprisingly, in their quest for savings, a lot of companies overlook the transportation function, which they consider to be a more or less fixed expense.
Fact is, there are a variety of ways you can lower your transportation costs, while achieving increased levels of control over your outbound and inbound freight flow in the bargain. As one of America's oldest third-party logistics providers, we've gained a vast amount of experience with all types of freight and with all modes of shipping.
At Tucker Company, we've helped some of America's best-known companies get the most value for their transportation dollars. If you're looking for ways to help your company maximize its transportation dollars, here are a few thoughts to consider:
Your core carrier program may not deliver all the benefits you hoped for.
Reducing the number of carriers you deal with can have its advantages; such as simplified billing, better rates and increased control. But what you may gain in cost savings by instituting a core carrier program, you could lose in terms of service; particularly when the economy expands and carriers must choose which of their customers will receive priority treatment. Because Tucker Company deals with thousands of carriers, we offer our customers the ideal transportation solution; better rates, increased control and exceptional service; 52 weeks a year, in good times and bad.
The best "discount" is not always the best way to go.
While many carriers offer discounts of 50% and more, many shippers fail to examine the base rates against which these discounts are applied. So, for example, a discount of 45% on a base rate of $100 offers you more actual savings than a discount of 55% on a base rate of $125. Keeping track of hundreds of carrier company base rates, as well as the discounts they offer, is just one of the ways we save our customers money. LTL consolidations on truckload carriers is another.
Do you know how much you're really paying for inbound shipping?
Many companies have no idea what they're paying in inbound freight expenses because these costs are often included in their vendors' product prices. As an independent logistics provider, Tucker Company can help you find out exactly where your inbound freight dollars are going, and help you get the best possible service for every transportation dollar you spend.
Is your private fleet driving up your transportation costs?
A lot of companies began operating their own fleets for good reasons; such as high common carrier costs, customer service and special equipment requirements. But since deregulation, for-hire trucking rates have fallen considerably, and your fleet costs may no longer be justified. Tucker Company can help you determine the cost-effectiveness of your in-house fleet, and show you a range of cost-saving options. Alternatively, we can find outside sources of paying freight for your fleet.
The question is no longer when but how much you should outsource.
Corporate America has discovered that outsourcing non-critical functions allows a company to cut costs and focus on its core business activity. As a result, more and more shipper companies are turning to third-party logistics firms like Tucker Company whose core business is providing its customers with the best possible transportation rates and service. Some shipper companies have outsourced their entire transportation department, but the trend is toward outsourcing repetitive and labor-intensive chores while keeping management and accounting "checks and balances" in-house. Tucker Company offers a complete range of logistics services, and we can help you decide which logistics functions should remain in-house and which can be performed better and more cost-effectively by an outside firm.
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