One thing is the procurement of raw materials or finished products, but it is a series of challenges to process them from one location to another. Regardless of whether you are responsible for the purchasing or how and where the items come from A to B, the procurement equation is automated on both sides. Opt Freight Procurement.
Automation provides the possibility to develop a strategy for each form, mode, capability and service of carrier for shipping companies and third party logistics suppliers (3PL). Customers who deal with logistics suppliers who immediately take advantage of these processes by ensuring that their logistics partner maximises capability and costs with technology.
The Challenges of Freight
Freight supplies are a unicorn in the field of procurement… With multiple modes, different capacity, numerous specifications for regulation and safety issues, it is unique and complex. Furthermore, it is difficult to pick which suppliers you are interested in submitting to an RFP, with all these factors to consider.
How can you evaluate differences or even compare providers accurately if you still handle all of this information manually? You can choose the “best price” provider by default, but it can be costly or even worse security.
It Is Time To Get Back on Track
Advanced sourcing solutions are called by industry experts as extremely relevant for the procurement of freight. By 2022, these experts expect that 50% of all businesses have acquired at least one procurement software programme by 2022, leading to the rapid digitization of business process functions. Furthermore, 48% of freight companies will introduce or intend to apply for sourcing and procurement over the next 12 months.
This large use of digital resources not only indicates the maturation of procurement, but also the centralisation and the objective of rationalising processes to better tackle the obligations so that the company can have greater value.
Data is king
How about providing an acquisition platform that can handle both inside and outside of those carriers’ attributes and detail the historical performance, safety records, carrier modes and capability of a provider.
Imagine analysing existing transport gaps and resolving them in your RFP as core requirements. What does this mean for your enterprise, processes and business?
The accuracy of decision-making includes smart data. Many TMS have recruitment as a core feature, but are often unused because of immature characteristics and low acceptance. There is something that you like.
Consider dizzying the tablets and investing in a more organised and accelerated freight procurement process while developing the department budget and planning for the next year. Companies will explain to you how easy and profitable it can be.
Times change very easily. Almost every day, with the introduction of new technology, companies and industries change. The same applies to the transport sector. The present and future developments in this field are just as worrying as other sectors.
The latest macro developments generate volatility and confusion in businesses in this market. These adjustments include the free-trade commitments by President Trump to the technological effect.
Another factor affecting the freight forwarding industry is the uncertainty of the global economy. The internal problems that lead to the disasters for businesses, be they big freight forwarders or small, put away all these external factors.
Bunker Fluctuations
Bunker fuel is an immense expense to oil tanker firms. Bunker fuel is the sort of oil refined from crude oil to those of you who don’t know. It is available in various categories. These categories are described by their chemical composition, usage and boiling point.
Compared with other forms of gasoline, we see that bunker fuel is highly polluting, extremely crude, and also highly viscous. This form of oil must be heated prior to using most engines cannot be treated. This form of oil can only be treated by large motors. It is also only used in ships, because it can be heated before it is used.
Freight supply is a unicorn in the field of procurement. With numerous modes, varied capabilities, countless regulatory requirements and safety concerns, this is special and complex. Furthermore, it is difficult to choose the suppliers that you want to send to an RFP, with all these considerations to be considered.
What if there was an acquisition platform that could manage all the inputs of some carrier attribute and detail the historical performance, safety records, carrier modes and capacities of a supplier. Imagine analysing and addressing existing transport gaps as important criteria in your RFP. What does this mean for your company, your processes and your business.
When oil prices fluctuate on the international market, the freight forwarder is directly affected. The higher cost of fuel has a direct effect on transport prices. Fuel supplements also have an effect.
The rising price of gasoline raises the surcharges and both of them add up to the freight rates. The issue of credit and rising inflationary demands comes with these additional expenses.
The freight forwarding market, businesses and people employed in this sector are all highly affected by these factors. Opt Transportation Intelligence.
