6 Key Benefits of Inbound Freight Management


What is inbound freight management?

Inbound freight management refers to monitoring and managing inbound shipments that come from suppliers or vendors. Transportation accounts for almost 50% of the average company’s logistics costs. Shippers can gain more control of these costs when they choose to make inbound freight management a supply chain priority. With inbound vendor management, attention is focused on shipment integrity, customer satisfaction and tracking information. Choosing to manage inbound freight gives shippers a chance to improve reliability, gain visibility and reduce costs.

How to improve inbound freight management?

Companies with imports should gain control of transportation in order to track shipment status and create better inventory management. Typically, inbound shipments are in the vendor’s hands, limiting visibility and control over cost.  Optimization of inbound freight starts with gaining control, however, management of inbound materials can be a complicated process, as internal operational changes are often required.

Successful control of inventory movement is linked to the use of a transportation management system (TMS). Using a TMS, companies increase supply chain visibility, as they have access to real-time data that can be shared across internal and external sources. Using this information, a company can identify weaknesses in its inbound freight such as inefficient receiving processes, lack of notice to interruptions and unproductive labor. This part of the supply chain also provides opportunities for result-producing solutions to typical problem areas such as lead time, dock scheduling and/or shipment/carrier consolidation.

Benefits of inbound freight management

Outsourcing your inbound freight management to a logistics solutions provider will yield increased profitability, production, and administrative support. With inbound freight management as a part of your transportation strategy, you’ll see results like:

  • Better inventory management, lower inventory levels, reduced carrying costs
  • Improved on-time deliveries
  • Less handling and damage, efficient receiving
  • Proactive notification of disruptions
  • Administrative efficiency
  • Increased customer satisfaction

Inbound freight with PLS

Contact an Inbound Logistics Expert today to learn how PLS can help your business analyze big data from a transportation management system and find new solutions for the supply chain management.

Do you manage and monitor inbound freight? Leave a comment about your experience on this overlooked part of the supply chain!

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