3 Key Benefits of Freight Management

01 January 2020       Blog

Is your business struggling to keep up with its logistics? Inefficient freight management is a huge expense for most businesses, often resulting in inflated costs and unhappy customers. The good news is that you can recoup a large part of this expense by streamlining your logistics operations and outsourcing your freight management to experts like Freight People.

Every business, big or small, stands to benefit from a tighter supply chain and efficient and reliable freight management. It’s a win-win for both your business as well as for the freight management company because established companies like Freight People are able to take advantage of the expertise, technological advancements, and business connections in order to help you cut your costs.

Here are some of the key benefits to you and your business by letting us handle your freight for you.

1. Happier Customers

Let’s face it - if your business relies on prompt delivery of goods, there’s a good chance that some of your deliveries are late or that you’re too reliant on suppliers being on time. Diversifying your list of suppliers can help mitigate some risk, but you’re eventually going to run into supply chain problems unless you dedicate significant resources to streamlining your logistics.

Freight management companies can help reduce the time your precious resources spend on freight, and provide you with reliable logistics solutions that can help you achieve your delivery targets and KPI’s. This, in turn, results in customers getting their goods on time. 

Happy customers can turn into loyal customers, so don’t neglect the importance that timely deliveries can have on the profitability of your business.

2. Cost Savings

In addition to keeping customers happy, freight management can also increase your profitability by lowering your spend on logistics. Furthermore, you’ll be able to free up labour and wage expenditures that would have been spent looking after it yourself. Although larger companies tend to have their own procurement departments, not all businesses can afford or maintain such a department.

Small and medium sized businesses often lack the time or resources to devote towards forming an efficient supply chain. All along the value chain, the cost of your goods can balloon from profitable to unprofitable when your logistics aren’t running efficiently. That’s why it’s always a good idea to consider outsourcing your logistics to a company that knows how to consolidate shipments and cut costs without sacrificing your operations.

3. Leverage Profits

It’s a common misconception that in order to increase revenue, one must simply increase sales. Pouring resources into sales can certainly increase your revenues, but don’t neglect the power of leveraging procurement. Small reductions in supply chain costs (even fractions of a percent) can lead to far lower costs of goods sold and therefore higher revenues.

Freight management companies such as Freight People in Melbourne are able to negotiate better rates and consolidate shipments, which leads to lower unit costs. If you’re using economies of scale, you’ll begin to notice the difference in your bottom line.

Personalise your Logistics with Freight People

Freight management isn’t a one-size-fits-all solution. Every business has its own needs and requirements. Whether your business ships sensitive or fragile goods or you’re selling bulky items and are unsure of how to ship them safely and securely, let the experts do the work for you.

If you’re in Australia and looking for an ideal solution to your logistics, look no further than Freight People. Outsourcing logistics is an important decision for any business, so be sure to go with a company that’s trusted and reliable, but also adaptable and able to take advantages of the newest trends in smart logistics and digitalisation.