If you are looking to truly maximize your efficiency, consider freight audit operations. A service like this focuses its energy on enabling you to save money by doing pre-audits, current-audits and examining payments. Each of these activities can considerably change your business model and make it that much more valuable to your business entity.
When you are looking at your operations, you need to be able to track metrics. Managing efficiently means regular metrics and their assessment. This is what will allow you to properly optimize your entire logistics operation and your supply chain methods. You can discover problems that are recurring and work to fix them. Closing down these issues adds up to more efficient and leaner management.
Your freight audit operations will also help you to define what metrics are integral to your specific business. There are general metrics that every business has to manage, but there are also metrics that are unique to your industry, or even business. An auditor can look at these and create the right system of checks and balances to incorporate these into your weekly dashboard. This is the easiest way for you to assess them—all in one spot—and understand their total impact on your business and its bottom line.
Though an auditor will help you create these metrics, they aren’t the total picture. Beyond that, freight audit operations will offer you solutions that include corrective actions. Step-by-step you will get information on what you need to do to improve the shortcomings of your freight transport system. This is where true value can be seen. Not only is the problem emphasized, but it is eliminated by a carefully constructed and custom-made plan of attack.
The tracking of core metrics includes:
• Outbound freight costs as an element of net sales
• Inbound freight costs as an element of total purchases
• Freight’s transportation timeline
• Percentage of claims submitted
• Billing accuracy as calculated by errors
• Accessorial percentage on total freight
• Efficient truckload capacity use
• Optimal mode of transport as compared to selected mode of transport
• Turnaround time of trucks
• Amount of carriers used per shipment
• Shipments on-time
These core metrics and their consistent monitoring will give you a good picture of where your business stands in terms of efficiency and viability. They provide a useful collection of data that can tell you whether or not you have to change your system of delivery.
Your freight audit operations company can help you to zero in on exactly what areas need improvement. They also can give you the tools to monitor future progress. In today’s competitive market, it is critical to have your business streamlined to maximum efficiency. A professional can guide you through the assessment process and get you on the road to complete shipping success.
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