The logistics industry is as complex and competitive as ever before, especially when it comes to freight procurement. Whether it’s navigating capacity availability or adapting to changes in real-time, the world of freight procurement looks a lot different than it was just a few short years ago. So it makes sense that many companies are looking to use data to gain a competitive advantage.
From AI and machine learning to using the cloud, there are many tools companies can use to help overhaul their operations, make their decision-making smarter, and drive agility to prepare for the freight procurement landscape of tomorrow. But how does a company know if changes are needed? Here are three key questions that procurement teams can ask to uncover if a data overhaul is needed:
#1. Are transportation costs inline with the market?
It’s pretty simple: if shippers don’t know how their truckload costs compare to current market rates, it’s time to rethink data inputs. Otherwise, your company could be paying too much to ship goods or too little which could impact the quality of your service.
#2. Does transportation have solutions to perform the job successfully?
Can your transportation team pivot on the fly when freight markets flip? Do they have data to tell them where to get capacity when needed, and how much to charge? Are they as agile as could be? Most teams have yet to automate freight procurement or obtain the actionable data needed to make real-time decisions.
#3. How much revenue are we losing due to transportation issues?
Does your company know how transportation efforts impact revenue? Everyone knows that customer service is paramount in today’s world. For manufacturers, retailers, and distributors it is important that customers receive goods on time as planned, and in full. If your company is falling short, this could be the main reason which customer retention is slipping.