What is transport cost management?
When trying to define transport or freight cost management, the general idea would come down to “the monitoring and analysis of all transport service providers and services selected in the shipping process to gain control of the transport costs and lower the organization’s total spend”. In more accurate details, it includes the management of costs for packing, palletizing, documentation, loading/unloading charges, carriage costs, freight insurance costs and administration fees, and in getting your goods delivered accurately without drilling a hole in your organization’s pocket.
Challenges in managing transport costs.
The global markets and international trade have considerably changed over the past few years. Shipping volumes are growing, and consumer behavior and trends are shifting, making freight cost management a complicated process. Therefore, shippers need a reliable solution, one that will give them the ability to deliver at the right time, at the right place, in the right quantity and at the lowest possible transport cost.
Why is transport cost management an important component of any logistics business?
Freight cost management is a long and endearing process, but one that is necessary to gain a clear overview of the cost of each logistics operation, with access to data to compare prices and expenses, which will allow you to choose the better option and better allocate your budget.
What is essential to be highlighted in this entire process is that organizations, whether big or small, and regardless of their shipping volume, need to pay attention to their logistics and different transportation charges to ensure that their transportation costs do not exceed their budget.
This is why the tool you use for transport cost management should:
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Simplify the process of freight cost management.
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Improve relationships between carriers and suppliers.
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Give a thorough real-time insight into logistics budgets.
Our solution for your transport cost management
Alpega TMS is a reliable cloud-based freight cost management software that covers all types and modes of transportation. It automates the process of generating invoices and transport cost claims, collecting and analyzing historical transportation data to be able to benchmark market prices and digitalize the RFQ process. In doing so, our solution frees-up time for more high-value work and better strategic transport decisions, and reduces your extra costs to internally allocate your budget in a more effective manner.
If this didn’t sound convincing enough, the platform unlocks 100% transportation cost visibility and advanced options for transportation cost analysis, supporting international currencies, exchange rates, various units of measurements and VAT. This means you get access to tangible data to help in not only getting your goods from point A to point B at the best rates, but also ensuring effective negotiations and compliance with regulatory requirements.
Because they are data driven, the freight cost management capabilities of Alpega TMS let companies gain comprehensive insights into their freight costs and identify opportunities to save money, thus gaining a step ahead of the competition.
Ready to ditch the excel sheets? Take your transportation processes to the next level with a tool that will effectively give you a competitive advantage while significantly reducing your costs! Contact us now for more information.
