Tag Archives: freight transportation

How Does Supply Chain Management Work?

Supply chain management is a set of activities that includes supply, production, and distribution of a company’s goods. This production cycle plays an enormous role in any business. Proper supply chain management can reduce transportation costs and enhance productivity, and in order to succeed, companies should learn how supply chain management works.

What processes does supply chain management include?

A supply chain process can be described as a simple example: imagine a cake. First, raw eggs are transported from the farm to the grocery retailer. Then, the eggs are bought by a bakery to bake a cake. The cake is then either set out in the bakery or delivered to a grocery store to be sold to the final customer. All of the processes that stand in-between the raw egg and shelve-ready cake are classified as a supply chain.

So, how does supply chain management work? As a first look, the process can seem very complicated. However, supply chain contain many important key components that make it work properly.

What are the core components of supply chain management?


Essentially, transportation is one of the main components that make the supply chain work. Transportation plays a crucial role in every step of product movement, allowing companies to focus on arranging well-organized, smooth logistics for their goods.

Communication and visibility

Supply chains are different in every industry. No matter if it’s a small local business or a large enterprise, supply chain management is a complex process. With so many links involved, it requires proper handling. Without efficient communication between manufacturers, suppliers, vendors, distributors, and retailers, supply chains would fall apart in no time. That’s why consistent communication between all parties is crucial for efficient supply chain management. Another essential part of a successful production cycle is visibility into the supply chain. That means you can easily access and analyze all the needed information to make strategic decisions.


A complex supply chain suggests high financial responsibility. Bills, invoices, and reports are key points you can’t run production without. Accounting plays a large role in supply chain management since all of the payments have to be documented and stored in a proper way.

Final thoughts

Of course, supply chain management involves numerous other activities and processes. However, the above listed are the primary parts of any supply chain. Today, companies constantly work to enhance their efficiency by applying various supply chain management practices and technologies. With more innovations and automation, it becomes easier to focus on the strategic part of the supply chain management than on its execution.

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What Is Multimodal Freight and How Can It Benefit You

Transporting an object from one place to another doesn’t seem like a difficult thing to do unless it’s a volume of freight going within continents. In that case, companies have to utilize several modes of transportation to get their freight from origin to destination. These modes involve a ship, air, rail, and trucking, and can be consolidated in different ways. The two main ways to arrange such a complex combined shipment is either intermodal transportation or multimodal.

What is the difference between Intermodal and Multimodal?

The distinctive feature between these two transportation modes is different cargo handling. When a company manages to use intermodal, they sign multiple contracts with several carriers.

In case of using multimodal, shipping still suggests consolidating modes, but everything is signed under the single bill of lading since the freight is handled by one shipping company. Multimodal is often preferred by the shippers since it’s a solid, end-to-end solution.

Read Intermodal vs Multimodal

Why Choose Multimodal?

It depends on the company’s needs which mode will be a better fit. Of course, intermodal offers benefits to shippers, such as the opportunity to choose carriers with the lowest rates, more flexibility, and control. However, watching every step of the shipment and dealing with all the carriers is time-consuming, and certainly requires effort, which is not for every business. Here are some of the most comprehensive advantages of multimodal transportation:

Time savings

Since multimodal transportation is handled by one shipping provider, you’ll only have to communicate and get a report from one entity. This ensures less worrying about the shipment, and faster transit times, which eventually result in higher productivity.


It may seem like picking carriers with the lowest price is definitely a more profitable option. However, the lowest price is not always the greatest deal. Intermodal transport involves not only different contracts and carriers but also multiple shipment insurances. A much easier logistics coordination within multimodal can help you save a significant amount of money on transportation.

Less worrying

When a single carrier handles you freight from door to door, it ensures easier communication and efficient tracking. Moreover, it delegates a larger piece of responsibility and liability to the company coordinating your logistics.

To sum it up, your business could benefit both from multimodal and intermodal, depending on your company’s goals. However, if you don’t want to control every single move of your freight and deal with lots of paperwork, multimodal transportation would probably be a prudent solution.