Yesterday we put on a 60 minute webinar entitled, “The Value of a TMS and Logistics Services for Effective Inbound Logistics Management.” We had a great turnout with over 100 logistics managers, supply chain officers, and those in the transportation world registering and attending the webinar. Below you can download the Inbound Logistics Management presentation with notes and also view the webinar in its entirety.
In the webinar we covered the following material around best practices for inbound logistics management:
inbound logistics management webinar 300x277 The Ultimate Inbound Logistics Management Best Practices GuideThe 45 to 60 minute webinar on how to combine both technology and expertise to tackle ever increasing inbound freight costs will cover the following material:
An Introduction to the Landscape of How Big is the Problem of Inbound Freight Management:
-3 Challenges Logistics Executives Face in Inbound Freight Shipping
-8 Objectives to Consider and 4 Areas of Focus for Confident Inbound Freight Management
-How TMS Automation Aids in Inbound Freight Management and What to Require in a TMS
-The Advantage of Combining both expert service and technology for Inbound Freight Management
-Introduction to “Who is Cerasis?”
-Conclusion and Wrap Up
-Q&A Session
“Our freight desk, manned by our team of inbound freight routing specialists, handles more than 1,000 phone calls per week managing and processing inbound freight and optimization for our customers,” said Ginny Devlaminck, Freight Desk Manager. “Our inbound freight routing specialists work with our customers’ suppliers and anyone inbounding freight to our customers. It takes a tremendous amount of burden off our shippers saving them both process time and money, as all inbound freight is routed through our proprietary TMS.”
Inbound Logistics: The Power of a Transportation Management System and Freight Management Services
1. Welcome!
Welcome to The Value of a TMS and
Logistics Services for Effective Inbound
Freight Management Webinar
Presented By
READ MORE ABOUT FREIGHT BEST PRACTICES AT THE CERASIS BLOG AT
http://cerasis.com/blog
2. Introduction
Attendee Screenshot
To Listen by phone vs.
listening through your
computer simply dial:
• Phone: +1 (702) 4890001
• Access Code: 515252-278
• Audio Pin: Provided
once you join
meeting on panel.
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
3. Introduction
Presenter: Adam
Robinson, Marketing
Manager
Adam Robinson oversees the creation
and execution of the marketing
strategy for Cerasis.
Company: Cerasis
Cerasis is a non-asset based third party
logistics service provider who specializes in
freight technology solutions and integrated
freight management services.
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
4. Webinar Agenda
This 45 to 60 minute webinar will cover the following material around inbound freight
management:
• An Introduction to the Landscape of How Big is the Problem of Inbound Freight
Management
• 3 Challenges Logistics Executives Face in Inbound Freight Shipping
• 8 Objectives to Consider and 4 Areas of Focus for Confident Inbound Freight
Management
• How TMS Automation Aids in Inbound Freight Management and What To Require in
a TMS
• The Advantage of Combining both expert service and technology for Inbound Freight
Management
• Conclusion and wrap up
• Q&A Session
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
5. State of Inbound
Freight
How big is the problem of inbound freight management?
Shippers report
inbound freight
management is
a key focus
point.
More than 40%
spent on inbound
shipping.
40%
75%
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
6. State of Inbound
Freight
How big is the problem of inbound freight management?
One Company Example Showing the
Sheer Volume:
• $18 Million in Inbound Freight
• Over 100 Carriers, despite
negotiations to have only 5 preferred
90%
90% of Shippers
surveyed in Aberdeen
say they are not
prepared to manage
inbound freight!
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
7. 3 Inbound Shipping
Challenges
Lack of Visibility
• Where is the freight?
• When will it arrive?
• How much will it cost?
The Manual Process of Inbound Freight Management
•
•
•
“It gets there
when it gets
there.”
Piecing together information from internal paperwork to get
info such as tracking, Bill of lading, etc.
Going to multiple Carrier Websites to make phone calls
Putting together comprehensive reports
=
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
8. 3 Inbound Shipping
Challenges
Lack of Control
• Companies develop routing guides and
plans for suppliers but have little control if
they are followed and no way to enforce
efficiently
• Most POs are “Ex Works” (EXW) & buyer
pays inbound freight costs & takes on risk
of delivery
• Focus is on Outbound for customer
service, meaning resources for inbound
are limited.
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
9. 3 Inbound Shipping
Challenges
Rising Freight Costs
Aberdeen Research Group
Rates Survey Last 2 Years
• Increase of 14.5% in truckload rates
• 11.5% increase in LTL and ship rates
• 15.1 % increase in international air rates
Other areas of Cost Savings Logistics Managers Must Consider:
• Reductions in staff size
• Smaller IT services budget
• Increase centralization of shipping
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
10. 8 Objectives for Inbound
Freight Programs
Inbound Freight Management is An Area Each Shipper
Can Improve
Savings in inbound
freight go directly to
the bottom line!
Management of
inventory is
critical to
business
success
Inbound freight involves the
management and control of
freight from:
•Domestic and offshore vendors,
•Consolidation of vendor shipments,
•Direct shipments to Retail sites and customers
at home, multiple shipping points, and
•Warehouse cross dock opportunities for Retail
replenishment and backorder processing.
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
11. 8 Objectives for Inbound
Freight Programs
Effective Inbound Freight Management
Increased customer demand requires better
inbound flow of product for improved
customer service!
Management of Inbound Freight
affects:
• Inventory Control
• Overall Warehouse Productivity
• Customer Service Levels
Factors Increasing Difficulty of
Managing Inbound Freight:
• Rising Fuel Charges
• Increase in offshore product
sourcing
• Carrier changes & rate increases
• Multi-Channel
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
12. 8 Objectives for Inbound
Freight Programs
8 Inbound Freight Objectives
1.Reduced freight costs and improved
“bottom line”
2.Improvement in on-time deliveries
3.Reduction in purchasing lead times
4.Less handlings and damage
5.Lower inventory levels and reduced
carrying costs
6.Providing maximum visibility into the
process
7.Improvement in warehouse productivity
8.Increased customer service
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
13. 4 Areas of Focus to Meet
Inbound Freight Goals
4 Key Issues or Areas that Warrant Attention In
Inbound Freight Management
•Vendor Compliance
•Freight Paid vs. Freight Collect
•Visibility and System Control
•Vendor Relationships
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
14. 4 Areas of Focus to Meet
Inbound Freight Goals
1. Vendor Compliance
A Vendor Compliance
Program (VCP) should:
1. Define vendor
expectations
2. Measure and report
on performance
against expectations
3. Insure consistency and
reliability in inbound
freight
management
Key Performance
Indicators in a VCP:
• On-time delivery
• Meet damage and
accuracy demands
• Providing proper
paperwork
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
MISSION
CRITICAL:
PROVIDE &
CONTROL THE
ROUTING GUIDE
15. 4 Areas of Focus to Meet
Inbound Freight Goals
2. Freight Paid vs. Freight Collect
Converting from
prepaid freight to
freight collect
increases:
• Cost Reductions
• Overall Control
Shippers have
realized the words
“Free Freight”
Raises a RED FLAG!
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
16. 4 Areas of Focus to Meet
Inbound Freight Goals
3. Visibility and System Control
Visibility allows for:
• Control of inventory
movements
• Visibility into Freight
data
• But…….
…There must be an
information system to
manage the complex
processes, such as a
Transportation
Management
System or TMS
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
17. 4 Areas of Focus to Meet
Inbound Freight Goals
4. Vendor Relationships
Trust allows for
collaboration and
transparent
communication,
giving you the
keys to success.
Benefits of trusted
relationships:
• Reduced inventory
& safety stock
• Improved
warehouse
operating costs
• Enhanced customer
service
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
18. TMS for Inbound Freight
Automation
Transportation Management System
Make sure your TMS that is:
• Carrier neutral
• Encompasses the entire
shipping ecosystem
• Has a Web-services architecture
• Is permission based
• Has a powerful, flexible rules engine
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
19. TMS for Inbound Freight
Automation
5 Must Have Automation Features in a TMS
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
20. TMS for Inbound Freight
Automation
1. Real Time Freight Rates:
No more theoretical savings, but hard ROI
based on live, vendor neutral access to realtime market rates
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
21. TMS for Inbound Freight
Automation
2. Organizational Control
Gain Control Using a TMS
that:
• Has a rules engine, based
on optimized plans and
routing guides
• Is flexible to accommodate
custom business rules
• Allows for user control
• Usability matches logistics
expertise
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
22. TMS for Inbound Freight
Automation
3. Visibility and Data Analysis Reporting
For true shipment-level visibility and
reporting, a TMS must have:
• Carrier neutral, mode-agnostic data
repository.
• Up to date trends and patterns
• Forecast supply and demand of
carriers to make real-time decisions
based on actual data rather than
guesswork.
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
23. TMS for Inbound Freight
Automation
4. Speed and Scalable
A TMS Should Support:
• Rapid Growth
• Ease of use with little training
• Practical & delivers results
immediately
• Work as effectively at 2 inbound
shipments per day or 100
• Provides long term sustainable ROI
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
24. TMS for Inbound Freight
Automation
5. Dedicated Technology and
Up to Date Web Standards
A Cost Effective TMS Must:
• Be based on open standards & SOA
architecture to allow for integration
• Allow for rapid deployment (typically
web-based/cloud)
• Dedicated technology team who
develops freight technology.
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
25. Technology + Expert
Logistics = Success!
Effective Inbound Logistics is Truly a
Combination of Technology and Expert Service
TMS solutions allow
• All in the inbound freight ecosystem to be
managed.
• Control Costs
• Gain visibility
• Increasing control over such decisions as
carrier choice, routing, and price
• Ensure compliance by suppliers and
employees to the routing guide
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
26. Technology + Expert
Logistics = Success!
Inbound Logistics &
Integrated Freight Managed Services
Integrated Freight Management Services
alongside a TMS:
• Address the problem of supplier compliance
• Integration of players into the new program
ecosystem guided by expert logisticians
• Allows for carrier relations management and
upkeep in the TMS
• Easy exchange of information about each
shipment for better freight accounting, claims,
and risk compliance
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
27. Technology + Expert
Logistics = Success!
Best Practices To Expect for Inbound Logistics
from a Freight Management Services Provider
In order to effectively manage all aspects of inbound logistics, a managed service must be able
to:
•
•
•
•
•
•
•
•
•
•
•
Provide the ability to track and trace shipments for multiple customer roles
Process shipment for all modes of transport
Demonstrate logistics expertise in carrier relationships
Manage shipment scheduling, processing and execution
Manage contract negotiation and renewals
Monitor and enforce business rules
Seek dynamic, vendor-neutral freight bidding for transportation,
as needed
Provide comprehensive real-time reporting
Understand and manage reverse logistics
Provide full freight claims management
Provide freight accounting services
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
28. Cerasis: Your Inbound Freight
Management Partner
•
•
•
•
Who is Cerasis?
Founded in 1997
Third Party Logistics Provider Specializing in Freight Management
State-of-the-Art Cloud Based TMS and Mobile TMS Application (Android, Apple)
Comprehensive Freight Management Services Including, but not limited to:
• Analysis and Audit of Existing Shipping Practices and Carrier Rates
• Carrier Rate/Rules Negotiations and Bidding Services
• Contract Management
• Inbound Routing and Compliance Program
• Volume/Spot Quotes, Truckload Routing (dedicated lanes & brokering)
• Invoice Auditing and Consolidated Weekly Billing
• Claims Processing and Maintenance
• Shipper Compliance Auditing
• Solutions Custom Tailored to Meet Your Needs
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
29. Cerasis: Your Inbound Freight
Management Partner
Modes Supported
LTL North America
FTL
Intermodal
Specialized Dedicated Transportation
Services
FedEx Small Package
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
30. Cerasis: Your Inbound Freight
Management Partner
Cerasis Inbound Freight Solutions
Your team needs more time to focus on core competencies.
Solution: Cerasis can give your team back valuable time by handling some of the time consuming
duties associated with freight operations including routing inbound shipments , scheduling pickups,
shopping for volume/spot quotes, re-routing shipments in transit, auditing invoices, resolving
invoice discrepancies, and processing claims.
Suppliers don’t always comply with our routing guide.
Solution: Cerasis Freight Desk will route your inbound shipments ensuring they are routed
to your specifications at the best possible rates. There may be situations in which you would prefer
to route inbound shipments yourself and with our system, you have that option.
Need ability to monitor compliance for all shipping locations.
Solution: Our least cost compliance feature requires shippers to input a reason when they do
not ship via the least cost carrier. Our Least Cost Compliance Report sorts non-compliant
shipments by reason and displays lost savings data.
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
31. Cerasis: Your Inbound Freight
Management Partner
Inbound Freight Solutions (Cont.)
Need for standardization of procedures.
Solution: Cerasis will partner with you to implement a process designed to get all of your locations on
the same page; following the same procedures.
Need more visibility and control over all shipping operations for all locations.
Solution: Cerasis TMS with organization views.
No easy way to determine impact of freight costs on customer profitability.
Solution: Freight expenses can be sorted by customer and exported into Excel for analysis.
Auditing freight bills and researching variances is a drain on resources.
Solution: Cerasis will audit your freight bills using a three step validation process that
enables us to resolve carrier errors before you are billed and obtain supporting
documentation for invoices that have been correctly adjusted. You will receive a pre/post audited
weekly consolidated invoice from Cerasis.
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
32. Cerasis: Your Inbound Freight
Management Partner
Inbound Freight Solutions (Cont.)
Accounting has to spend time allocating freight costs to G/L accounts.
Solution: G/L codes will be loaded into system and assigned to shipments at time of processing.
These codes will follow the shipment all the way through invoicing and reports can be sorted by
these codes and exported into Excel for further analysis.
Shipment handling expenses not being recouped.
Solution: Cerasis incentive feature allows you to add a handling charge to the freight cost
that remains transparent to your customer.
Buyers need a quick way to estimate freight charges for raw materials and supplies purchases and sales staff
needs a quick way to estimate freight charges for customer bids.
Solution: Quick quote feature in Cerasis TMS.
Customers have to contact sales or shipping staff for delivery updates, tracking info, and POD’s.
Solution: Customers will receive automatic shipment notification emails with tracking links.
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
33. Cerasis: Your Inbound Freight
Management Partner
Cerasis TMS = The Cerasis Rater
True lane based rating engine.
Shipments rated and presented on screen in least cost order with carrier transit and limit of liability
information.
Shipment control panel to expedite shipment processing and auto-schedule pickups.
Guaranteed shipment costs allow you to bill product and freight costs simultaneously without waiting for
the freight bill!
Quick quote feature for sales and purchasing personnel.
Complete visibility of all shipment activity.
Inbound receiving report to assist with planning and scheduling.
Powerful tools and reports to help you manage trends and ensure compliance.
Organization views to facilitate management of all shipping locations.
Online invoice center provides electronic invoice access, adjustment requests, and payment options
enabling you to go “paperless”.
Customer satisfaction tools including automatic email shipment notifications with tracking links.
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
34. Cerasis: Your Inbound Freight
Management Partner
Cerasis Process Approach
Customize a solution designed to meet your specific transportation needs
Execute a partnership agreement
Negotiate rates with carriers on your behalf
Conduct a commodity review
Collaborate with your management team to implement our custom solution
Follow up to ensure your staff is fully trained and compliant
Provide you with outstanding service and support on an ongoing basis
Conduct quarterly account review meetings
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
35. Cerasis: Your Inbound Freight
Management Partner
Cerasis Team
An Exceptional Group of Experienced Freight
Professionals Striving to Exceed your Expectations
•
•
•
•
•
Dedicated Customer Service Representative
Freight Desk
Claims Specialist
Carrier Relations Group
Implementation Team
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
36. Cerasis: Your Inbound Freight
Management Partner
Cerasis Technology
In-House IT Department
Integration
XML Web Services
Custom Reports
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
37. Conclusion
Conclusion of Effective Inbound Logistics
Management
Technology + Services =
•
•
•
•
•
Improved Visibility
Controlling Processes
Better Cost Management
Impact Bottom Line
Improve Operations
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
38. Q&A
You may
type your
questions
in the chat
area and
we will
answer as
many as
possible.
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
39. THANK YOU!
http://cerasis.com
RSS | LinkedIn | Facebook | Twitter | Google+ | YouTube
The Value of a TMS and Logistics Services for
Effective Inbound Freight Management Webinar
Editor's Notes
Thank you for joining today´s presentation entitled: The Value of a TMS and Logistics Services for Effective Inbound Freight Management WebinarBefore we get started, I want to review a few housekeeping items and let you know how you can participate in today´s session. I've taken a screen shot here to show you an example of the Attendee Interface. You should see something that looks like this on your own computer desktop in the upper right corner. You have joined today's Webinar listening through your computer's speaker system by default. This means, if you can hear music through your computer, you will be able to hear the presentation. If you would like to call in using the phone, just locate your Audio Pane and select Use Telephone. The dial-in information and access code will then be displayed. You also have the ability to ask questions using your Questions Pane. Simply type in your question and click Send. At the end of the presentation we will do a Q & A session and take as many questions as we have time for. Do we have any questions at this time? (PAUSE) Okay, let´s get started...
Adam RobinsonAdam Robinson oversees the creation and execution of the marketing strategy for Cerasis, including website, social media, trade show, email and webinar marketing.Live in the Dallas areaCerasisCerasis is a non-asset based third party logistics service provider who specializes in freight technology solutions and integrated freight management services. Cerasis is headquartered in Eagan, MN, with sales and marketing in Dallas, Carrier Relations in Houston, Technology in Tulsa, and offices throughout the United States.
Inbound logistics is receiving a lot ofattention as businesses continue to look for ways to manage shipping costs.If you’re looking to save costs on shipping, take a look at inbound shipping. Depending on the industry and size of the company, a business can spend more than 40% of its annual freight budget on inbound shipping, according to the Aberdeen Group, a research firm in Boston. A more efficient inbound freight program can minimize delays, save money and even reduce confusion.75% of companies surveyed by the Aberdeen Group report that inbound freight management is a key focus point & Total freight spend is between 3.6% and 5.2% of surveyed companies’ total sales, according to Aberdeen’s results.
In one example, just to show how complex and varying inbound freight management programs are, a company with over $18M per year in inbound freight costs reported paying invoices from over 100 carriers – despite having negotiated preferred terms with five carriers and stipulating their use on each order.Unfortunately, 90% of shipping executives surveyed said that their current systems, including their Transportation Management Systems (TMS), are inadequate for addressing their inbound shipping needs.Shipping managers need a practical way to seize control of the inbound freight problem. One alternative, and the focus of this webinar, is to use new,specialized managed services, in combination with available technology, to specifically address the inbound freight challenge.
Logistics and Supply Chain Organizations face three primary challenges when it comes to gaining the upper hand on inbound logistics spend.Lack of Visibility:Logistics executives are constantly requested by operations, sales, planning, purchasing, and accounting groups more accurate and timely information on inbound shipments. Today, identifying what’s in transit, where it is, when it will arrive, and how much it will cost, requires piecing together information from internal paperwork, carrier websites, and phone calls – a time consuming, inefficient process. And that’s for one shipment. A comprehensive report might take hours or days to prepare.In addition, transportation managers who must rely on predominately manual processes to track and trace freight, find themselves answering “it gets here when it gets here”. This lack of predictability has ripple effects throughout the company, leading to excess inventory, sales obstacles, and variances in the company’s performance of their supply chain. In most organizations, the lack of reliable, easily accessible, real-time data means they must reach out to suppliers for shipment details (carrier name, carrier tracking number or bill of lading, etc). This is an inefficient and labor intensive process, and ultimately, a costly way of dealing with inbound shipping.
Lack of ControlMost companies have developed carefully optimized plans and routing guides that specify how users and suppliers should ship material. However, they have little control over whether these guides are followed, even though they are paying the freight charges. They must rely on their suppliers and employees to execute on routing instructions and guidelines, without any means to enforce these optimized plans.This is less of a problem with outbound shipping spend, since companies typically have direct control over their outbound freight. But most purchase order terms are “Ex Works’ (EXW), where the buyer pays the inbound shipping costs and assumes the risk for the delivery of the goods.The buyer, in this scenario, is dependent upon the supplier to follow the supplied routing instructions. Unfortunately, suppliers do not consistently follow routing instructions, due to their focus on shipping product to hundreds of customers on a daily basis.The bottom line is that when a supplier fails to adhere to the shipping request (e.g., carrier selection, service level selection, account number identification, special instructions, notifications, etc.), the buying company bears the additional freight expenses, as well as the costs resulting from delays in receiving purchased items, supply chain disruptions, and a lack of visibility into the shipment. Costs that usually cannot be tracked back to the product level for accurate Cost of Goods (COGS) calculations.In addition, once items are en route, the buyer has no means to make changes, whether reacting to external events such as a weather event, or the need to split a shipment for separate delivery destinations.It may be weeks or months before the increased costs are visible because the invoices for the inbound shipping must be entered and paid before finance can generate a spend report. Even then, all one knows is the total cost. To break down the data in more detail requires going through paperwork manually, logging into multiple carrier shipping portals, and compiling the information various ways to analyze the problem. So, unless a specific question arises or someone makes a project of analyzing the inbound shipping spend, the true costs of inbound shipping remains unknown.
Rising Freight CostsAccording to the Aberdeen Research Group, on average, surveyed businesses experienced an increase of 14.5% in truckload rates, an 11.5% increase in LTL and ship rates, and a 15.1 % increase in international air rates over the last two years.Clearly, external shipping rates are outside the logistics manager’s control. But that means that careful management of the inbound shipping ecosystem is of greater importance. In addition to increasing visibility and control as discussed earlier, logistics managers are forced to look to other areas of savings:Reductions in staff sizeSmaller IT services budgetIncrease centralization of shippingHowever, such changes may only exacerbate the problem. So how do shipping managers control outside costs with fewer internal resources?
After each fiscal year, many companies task their operations to figure out new ways to reduce costs for the upcoming year. Every aspect of the company’s factors which impact the bottom line should and does come under review. However, not every area of the business is given equal scrutiny. One of those areas that shippers traditionally do not give the attention deserved is inbound freight management.Often more than not, savings in inbound freight costs can go directly to the bottom line. Most successful companies who have paid attention to inbound freight view inbound freight management as controlling inventory in transit. Since inventory is, in many cases, a company’s largest asset, the management of inventory is critical to business success. The proper management of this function plays a key role in achieving inventory, productivity, and service goals.Inbound freight involves the management and control of freight from:Domestic and offshore vendors,Consolidation of vendor shipments,Direct shipments to Retail sites and customers at home, multiple shipping points, andWarehouse cross dock opportunities for Retail replenishment and backorder processing.The variety of processes supported by the inbound freight process make its management a complex undertaking.
Effectively managing the inbound flow of product to your business is a complex process which is only getting more complex as customer demands increase in terms of their expectations of service levels. Increasing the difficulty is the shipper’s desire to effect cost reduction while maintaining reliable service. In addition to the more obvious and visible impact of inbound freight costs to overall profitability, the management of this area also affects inventory control, overall warehouse productivity, and customer service.Making matters even more difficult are issues such as rising fuel charges, the increase in offshore product sourcing, and the ever changing array of carriers and their service offerings. Furthermore still is the increasing trend of multi-channel businesses operating out of multiple warehouse facilities. In addition, direct shipments to Retail locations and Direct customers make controlling inbound activities in a cost effective manner much more complex.
As you begin to analyze your inbound freight practices, you should establish objectives that will help guide your decision making process. Objectives can be established in the following areas; among others:Reduced freight costs and improved “bottom line”Improvement in on-time deliveriesReduction in purchasing lead timesLess handlings and damageLower inventory levels and reduced carrying costsProviding maximum visibility into the processImprovement in warehouse productivityIncreased customer service
In order to meet your objectives, there are a few key areas of attention that can provide the focus for the analysis. Four key issues or areas that warrant your attention are:Vendor ComplianceFreight Paid vs. Freight CollectVisibility and System ControlVendor Relationships Let’s cover each in more detail.
Vendor ComplianceHaving a current and complete Vendor Compliance program is the central area of focus for effective inbound freight management. The program should, most importantly, define vendor expectations and provide for a method of measuring and reporting on performance against those expectations. It is one of the most effective ways to insure consistency and reliability in the management of the inbound freight process.Basic measures such as on-time delivery, meeting damage and accuracy expectations, and providing the proper paperwork are among the key metrics to monitor. With the increase in imported product and the diversity of domestic vendors and an increasing use of consolidators, providing a routing guide is a critical piece of any Vendor Compliance program. By controlling the routing and timing of deliveries from your vendors, efficiencies throughout the supply chain are possible.
Freight Paid vs. Freight CollectA growing trend in the industry is the ability to convert from the prepaid freight concept to a freight collect policy. Those who have performed the due diligence of the comparison of these two concepts are realizing significant cost reductions and overall control. They have realized the words “Free Freight” should raise a red flag and precipitate further discussion.Although it is sometimes very difficult to gather the required information to make an informed decision, the effort can be well worth your time. Even if there are no changes made, the discussions you have with your vendors and carriers often prove beneficial in other areas.
Visibility and System ControlOne of the key elements in an effective inbound freight management program is the ability to have visibility into the supply chain to track and control inventory movements, as well as visibility into your freight activity and data. This control has to be supported by an information system that helps manage this complex process, such as a robust Transportation Management System.Many software vendors offer products that help manage the process in a variety of ways. You should always develop a set of functional and process requirements that you expect the software to meet before you begin the search. During the search, an evaluation of their responses to these requirements and a combination of reference calls, site visits, and system demos should be completed. Making sure you know what you want is the first step in obtaining a system that meets your needs and expectations.
Vendor RelationshipsOne of the most overlooked factors in a successful inbound freight program is the relationship you have with your vendors and carriers. Those companies who have taken the time to foster a productive and collaborative relationship consistently reap the benefits. As in any relationship, having a feeling of trust and the ability to have an honest and meaningful dialogue are the keys to success.Many companies try to manage the relationship through rigid contracts and performance measures. While these are important, having the ability to deal with someone you trust supersedes any legal restrictions you can place on the process. Many ideas for improving the process come through this dialogue and collaboration, rather than through the strict enforcement of an agreement. In addition, with the speed at which the total supply chain is evolving, having a good relationship is a real asset in keeping up.Those companies who have paid attention to the management of the inbound freight process have seen reductions in overall freight costs, reduced inventories and safety stock, improved warehouse operating costs, and enhanced overall customer service. It is worth the time and energy to investigate this often overlooked area in your supply chain.
Automation of the routing guide, shipping processes, and reporting are important to effective outsourcing of logistics to a managed services provider. One which all participants of the ecosystem can access with appropriate permissions simplifies and accelerates logistics execution thus, an on-demand web-based TMS is important to achieving the cost savings and decrease inefficiencies (and costly errors). The managed services providers should be using a system that is:Carrier neutral – allowing buyer to choose the most costeffective shipping method, such as Full Truckload, Less-Than-Truckload (LTL), or small package (FedEx or UPS)Encompasses the entire shipping ecosystem – suppliers, carriers, transport modes and employees.Has a Web-services architecture – allows for integration with partners and internal systemsIs permission based – Allow real-time, anytime anywhere visibility into all shipments.Has a powerful, flexible rules engine – Companies can globally enforce and update routing instructions, carrier selection and special shipping requirements in a flexible, user-friendly environment.
As with any best-of-breed application, an automated inbound shipping management solution must have "five 9s“ (or 99.999%) availability, a market-leading feature set, and a reasonable cost of ownership. To overcome the obstacles facing logistics organizations, however, the inbound shipping management TMSmust also have more specific traits to include the following 5.
Real Time Freight Rates:To combat rising transportation costs the application must make it easy for users around the country to execute policies that deliver immediate freight savings. Today, that means the application must be built with a state-of-the-art web services architecture, in order to receive live carrier rates over the Internet. No more theoretical savings, but hard ROI based on live, vendor neutral access to real-time market rates.
Organizational Control: To regain control over inbound freight management, freight costs, and mitigating risk, a best-in-class application must have a rules engine, based on optimized plans and routing guides. The system must be flexible to accommodate custom company business rules, yet powerful enough to force all users, both internal and external, to follow the policies that ensure efficient and cost effective shipping. The system’s usability must be such that controls can be designed and implemented by logistics experts with decades of hands-on experience in logistics, rather than by computer technicians.
Visibility and Data Analysis Reporting: For true shipment-level visibility and reporting, a carrier neutral, mode-agnostic data repository is critical. On-demand, managers must be able to identify up-to date trends and patterns, accurately forecast demand and supply, and make real-time decisions based on actual data, rather than guesswork.
Speed and Scalable. The TMS must be able to support rapid growth demands, while not feeling bloated with unnecessary features requiring onerous training or orientation. Busy logistics professionals need practical tools that deliver results immediately. A system should still work as effectively whether you have 2 inbound freight shipments per day or 100. Inbound freight management, over time, with a scalable system, should start to see greater returns as your company grows.
Dedicated Technology and Up to Date Web Standards: The technology driving the automation must be based open standards and an SOA architecture to allow easy integration with existing systems, including ERP. The inbound freight management shipping application must allow for rapid deployment. Delays due to IT controls and backlog reduce savings and put the success of deployment at risk. A dedicated technology team behind the TMS and logistics service provider will eliminate such updates and backlogs. Ask the provider if they themselves develop and iterate the application/system, or if the provider outsources to a software company.
Clearly, managing inbound shipping is challenging, as stated in our previously by a lack of control, visibility, and a constant fight of rising freight costs by logistics executives and shipping managers alike. Fortunately, there are now practical, inbound logistics managed services that enable companies to manage processes, increase visibility, and gain control of their inbound shipment costs. A complete managed service solution combines expertise in complex logistics and with an on-demand system, such as a transportation management system for both outbound and inbound logistics management.Transportation Management Systems (TMS) automation features in inbound logistics are a key component of a successful managed service for inbound freight because they allow all the participants in the ecosystem to be managed – suppliers, carriers, partners, employees, and customers. In Aberdeen’s Transportation Management Benchmark report, it was noted that while 70% of companies have seen freight costs increase, a few leading companies have actually reduced their total freight costs over the last 2 years. They did so by using software systems to increase the visibility into shipment status, and by increasing the control they have over such decisions as carrier choice, routing, and price. In addition, well designed integrated managed services delivered by logistics experts and powered by TMS ensures compliance by suppliers and employees to the customer’s optimized route guide.Require and Acquire Logistics ExpertiseMoving freight around the country, is an exception-driven process with unforeseen changes taking place regularly. For example, how to avoid a superstorm on the East Coast, a sudden supply problem in Georgia or a transportation strike in Los Angeles. A dynamic logistics environment requires domain experts to manage daily activities, communicate issues with stakeholders and make decisions on-the-fly. When outsourcing, select a provider whose logistics teams expertise is both deep and broad so they can handle every imaginable contingency. Compared to hiring in-house staff with such expertise, outsourcing can be a very cost-effective option.Automation and domain expertise is a powerful combination to achieve savings.
The role of integrated freight management services, as a compliment to a TMS technology offering, is to address the problem of supplier compliance, reduce costs, and to bring logistics expertise to bear on every inbound shipment. Offerings vary in the degree of automation, the integration of the players in the ecosystem, and in depth/breadth of expertise. The best freight management service providers use a TMS software and connect the suppliers directly into the system. The TMS software also gives them the ability to both implement rules and process – and change them rapidly. Compliance by suppliers is achieved initially through the customer’s request. Once suppliers benefit from the reduction in errors, they prefer the managed service and the improved customer satisfaction. The customer uses the same TMS as the freight management services team to track and trace inbound shipments, finally gaining complete visibility, and process control over the entire inbound logistics element of their global supply chain. When a TMS is not used, the primary benefit to the customer is the expertise of the managed service provider.
In order to effectively manage all aspects of inbound logistics, a managed service must be able to:Provide the ability to track and trace shipments for multiple customer rolesProcess shipment for all modes of transportDemonstrate logistics expertise in carrier relationshipsManage shipment scheduling, processing and executionManage contract negotiation and renewalsMonitor and enforce business rulesSeek dynamic, vendor-neutral freight bidding for transportation, as neededProvide comprehensive real-time reportingUnderstand and manage reverse logisticsProvide full freight claims managementProvide freight accounting services
Founded in 1997Lead Logistics Provider Specializing in Freight ManagementState-of-the-Art Cloud Based TMSComprehensive Freight Management Services Including, but not limited to: Analysis and Audit of Existing Shipping Practices and Carrier Rates Carrier Rate/Rules Negotiations and Bidding Services Contract Management Inbound Routing and Compliance Program Volume/Spot Quotes, Truckload Routing (dedicated lanes & brokering) Invoice Auditing and Consolidated Weekly Billing Claims Processing and Maintenance Shipper Compliance AuditingSolutions Custom Tailored to Meet Your Needs
LTL North AmericaFTLIntermodalSpecialized Dedicated Transportation ServicesFedEx Small Package
Your team needs more time to focus on core competencies. Solution: Cerasis can give your team back valuable time by handling some of the time consuming duties associated with freight operations including routing inbound shipments , scheduling pickups, shopping for volume/spot quotes, re-routing shipments in transit, auditing invoices, resolving invoice discrepancies, and processing claims. Suppliers don’t always comply with AER’s routing guide. Solution: Cerasis Freight Desk will route your inbound shipments ensuring they are routed to your specifications at the best possible rates. There may be situations in which you would prefer to route inbound shipments yourself and with our system, you have that option. Need ability to monitor compliance for AER shipping locations. Solution: Our least cost compliance feature requires shippers to input a reason when they do not ship via the least cost carrier. Our Least Cost Compliance Report sorts non-compliant shipments by reason and displays lost savings data.
Need for standardization of procedures.Solution: Cerasis will partner with you to implement a process designed to get all of your locations on the same page; following the same procedures.Need more visibility and control over all shipping operations for all locations.Solution: Cerasis TMS with organization views.No easy way to determine impact of freight costs on customer profitability. Solution: Freight expenses can be sorted by customer and exported into Excel for analysis.Auditing freight bills and researching variances is a drain on resources.Solution: Cerasis will audit your freight bills using a three step validation process that enables us to resolve carrier errors before you are billed and obtain supporting documentation for invoices that have been correctly adjusted. Youwill receive a pre/post audited weekly consolidated invoice from Cerasis.
Accounting has to spend time allocating freight costs to G/L accounts. Solution: G/L codes will be loaded into system and assigned to shipments at time of processing. These codes will follow the shipment all the way through invoicing and reports can be sorted by these codes and exported into Excel for further analysis. Shipment handling expenses not being recouped. Solution: Cerasis incentive feature allows you to add a handling charge to the freight cost that remains transparent to your customer. Buyers need a quick way to estimate freight charges for raw materials and supplies purchases and sales staff needs a quick way to estimate freight charges for customer bids. Solution: Quick quote feature in Cerasis TMS.Customers have to contact AER sales or shipping staff for delivery updates, tracking info, and POD’s. Solution: Customers will receive automatic shipment notification emails with tracking links.
True lane based rating engine.Shipments rated and presented on screen in least cost order with carrier transit and limit of liability information.Shipment control panel to expedite shipment processing and auto-schedule pickups.Guaranteed shipment costs allow you to bill product and freight costs simultaneously without waiting for the freight bill!Quick quote feature for sales and purchasing personnel.Complete visibility of all shipment activity.Inbound receiving report to assist with planning and scheduling.Powerful tools and reports to help you manage trends and ensure compliance.Organization views to facilitate management of all shipping locations. Online invoice center provides electronic invoice access, adjustment requests, and payment options enabling you to go “paperless”.Customer satisfaction tools including automatic email shipment notifications with tracking links.
Customize a solution designed to meet your specific transportation needsExecute a partnership agreement Negotiate rates with carriers on your behalf Conduct a commodity review Collaborate with your management team to implement our custom solution Follow up to ensure your staff is fully trained and compliantProvide you with outstanding service and support on an ongoing basis Conduct quarterly account review meetings
Dedicated Customer Service Representative Freight DeskVolume/Spot Quotes Truckload Quotes Routing of Inbound Shipments Hotshot, International, and Guaranteed Shipments Assistance with Freight in Transit IssuesClaims SpecialistCarrier Relations Group Rate and Rules Negotiations Carrier Contract and Relationship Management Carrier Performance MonitoringImplementation Team Oversees New Account Setup and Account Specific Bid Process Conducts Commodity Review Works with Your Management Team to Implement your Custom Solution Provides Training
In-House IT DepartmentIntegrationWorking with your IT Staff, we can help design a solution that will pull order information from your ERP system and write fulfillment and accounting information back to your system.XML Web Servicesour TMS System to perform most of thecommon tasks related to shipping. This allows you to rate/ship from a custom built application, retrieve shipping costs for use on E-Commerce sites, and provide shipping costs and tracking for online store sales. Custom Reports
The advantages of such a turnkey system are numerous. The best pricing is secured for both at will shipping, as well by applying pre-negotiated carrier contracts to regular inbound shipping. Thorough tracking of all logistics activities provides more informed shipping history when negotiating new contracts.Logistics expertise in the freight management services provider ensures business rule development and enforcement is performed by professionals able to monitor the processes, execute modifications as exceptions arise, and recommend long-term changes as the shipping environment changes.Invoice consolidation and visibility into the true costs of inbound shipping enable businesses to implement process changes, if necessary, and reduce costs.Outsourcing both the technological solution and the logistics expertise, eases the burden on internal shipping organizations, as well as IT staff. A service empowered by a TMS solution is fast and inexpensive to deploy, requires no new hardware or software, and provides access to users company-wide depending on role.Improving visibility, controlling processes, and better cost management through a managed service empowered by an effective inbound logistics program, through both technology and integrated services, reduces costs and improves operations.
