Transloading – is the process of transferring a shipment from one mode of transportation to another. It is commonly used to reduce costs, such as when a final destination is a great distance away from the port of origin. It is cheaper to transload freight from a container to a van for delivery. You only pay for the transload service and truckload rate one way versus paying for a container delivery that incurs the cost of the container return trip. Another reason to transload is when one mode cannot be used for the entire trip. An example is when goods must be shipped internationally from one inland point to another. In order to effect delivery, a shipment could require transport by truck to an airport for loading into an airplane to move overseas, and then be delivered by truck to the final destination. Another example would be a bulk shipment (grain, coal) loaded via rail at the mine or co-op subsequently transloaded to a ship at a port. Please call or email Kinetic Supply-Chain Services at firstname.lastname@example.org or 866 572 7552 for more information or help with your transloading needs.
How to benchmark freight brokers
How to Benchmark Supply-Chain Costs: Transportation Costs Aﬀect Your Bottom Line
Ask people in your industry who they use and why.
This is one area that competitors are usually more than willing to discuss. Most new and small companies go through a painful learning curve while trying to successfully manage their supply-chains. Ask your competition what their percentage of supply-chain costs are versus sales. That is an excellent way to determine what you should expect to pay.
Investigate web-based transportation management systems (TMS).
Don’t rely on one carrier to handle all of your supply-chain needs.
Be open to new ideas.
Save and develop your shipment database from day one.
Build a database of your shipments. You can do this by requesting a monthly service report in excel from your carrier(s) or third party. Just about every major carrier requires speciﬁc shipment data from you before they oﬀer pricing.
Know your carrier’s limitations of liability in regard to loss and damage.
All carriers move freight at reduced levels of liability, especially if the shipment moves on a spot quote. Most coverage on spot quotes is limited to $1 per pound. If your shipment is worth more than the coverage, the carrier will only pay up to the limit of liability speciﬁed in the quote or in their rules tariﬀ.
If you will be shipping LTL, know your freight class.
Ask a carrier or third-party logistics provider to provide you with the National Motor Freight Classiﬁcation (NMFC) number for your product. Most freight is now classiﬁed based on density.
Talk to an industry professional.
Many companies have little or no supply-chain experience. Often they give the task of managing transportation to the person in charge of shipping. That person usually makes many mistakes on the way to becoming competent. Why not shorten that learning curve by talking to someone who has worked in the industry for many years? Why do you think most established organizations have hired professionals who have advanced degrees in supply-chain and logistics?
Every dollar saved in supply-chain costs goes directly to your bottom line.
Freight costs can eat up a signiﬁcant percentage of your proﬁt dollar, both in pure and administrative costs. Sending out broadcast emails for quotes can initially be eﬀective in helping to benchmark truckload and large volume shipment costs, but not using that information to build a database to draw from will actually add costs in the long run. It is better to develop a database and use the technology available to save money on both the administrative and actual costs of transportation.
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