Freight management system in Australia is becoming the most talked about subject of the logistics industry. Often times businesses struggle to bring the cost of freight down, but if done individually, companies might forgo the cost benefits of economy. To leverage economies one can always hire external companies to access and handle their freight management.
Outside companies are in fact being hired increasingly because they are able to analyze the current situation neutrally, without bias. Also, since these outsiders have simultaneously worked with many other companies in business, they have better statistics about the current freight rates and management systems. They offer specialized consultancy services and help you develop the most cost-effective freight policy and personalized strategy.
FMS Freight management system companies are meant to provide reliability, flexibility, sustainability and the best speed possible. Trust building also plays an important role in the logistics industry. Goods worth millions are handed over to freight companies, who must be responsible with the goods.
Apart from the above there are a few additional points, which must be kept in mind before hiring or outsourcing your company’s freight management system, to an external entity.
The first thing is never get carried away by discounts. There is a difference between actual rates and discounts, and while companies might try luring more companies by way of offering discounts as high as 75%. But these discounts may not always hold validity. Many times when companies are oblivious about actual rates, they get fooled into believing that they are being offered attractive discounts. So, even when you may not know all about the freight industry, try keeping in touch with the prevalent transportation rates.
Always make comparisons between the services and the prices offered by various players in the market. They may have a union of their won, and so enquiring about direct costs is not a bad idea.
Fuel surcharge is another highly sensitive area. While many dealers will mislead you in believing that there are certain standards that govern fuel surcharge and that they remain fixed. The truth is they are always subject to change. So do confirm with the freight management company and also avoid signing deals that standardize the rates of fuel surcharge.
Also do evaluate the daily cost you’d incur in employing your own team of freight managers versus hiring an external agency to do that for you. Sometimes when the agencies don’t have many clients, they have to distribute costs among lesser number of clients, which may cost each client added costs. In such a case managing your freight system may be more profitable. Or, instead opt for well established freight management companies, who can give you added benefit of shared economies.
And, although it is generally observed that freight consultancies are the best way to deal with the transportation management of your company, surveying the market prudently can further save you money. This will reflect in the price of your goods, making them more competitive and consumer friendly.