Transportation Budgeting and Planning
Leverage Predictability and Reduce Variability in Your Transportation Spend
Improve Forecasting and Maximize Cost Predictability
Annual transportation planning begins by assessing primary customers, volumes, and shipment types and analyzing historical costs to identify areas for improvement and optimization. Setting your annual budget based on this data, however, can be challenging with ever changing market conditions and variable costs. Without the right tools, process, and data insights, it is not uncommon to experience a blown budget before the end of the year.
Your goal throughout the annual transportation planning and budgeting process should be to build in a higher level of predictability and consistency. By leveraging expert route optimization, supply chain engineering, and fleet management skills, a dedicated transportation provider can help you accurately forecast your shipping needs and minimize surprises to help you reduce variability and stay on budget.
Rate Predictability
- A fixed contract with a clear pricing structure delivers consistency and helps avoid fluctuations in the market—and unplanned price increases
- Avoid spot market rates and demand swings with dedicated drivers and capacity
- Implement fright technology such as a TMS [transportation management system] and incorporate a routing guide with diverse carriers to reduce dependency on one single provider
Operational Efficiency
- Route optimization eliminates empty miles and minimize transit times, which reduces fuel consumption and delivers a bonus of meeting supply chain sustainability goals
- Avoid paying for excess capacity and mitigate the effects of increased capacity needs with the scalability of a dedicated transportation provider
- Dedicated carriers give you more control over shipping times, routes, and overall delivery performance which helps eliminate unnecessary costs by minimizing delays and disruptions—which can also improve inventory planning and carrying costs
Improved Forecasting
- Analyze your data to identify opportunities to budget smarter and more accurately—and reduce costs by better forecasting future transportation needs
- Leverage detailed data from your transportation provider or TMS to closely monitor key performance indicators (KPIs) and be proactive in addressing issues that could impact costs and your budget
- Monitor market and industry trends to try and get ahead of potential disruptions that drive up costs
- Consider dynamic pricing models that factor in capacity constraints and market conditions, making forecasting more adaptable to real-time changes
Reduce Costs with a Safety-Oriented Supply Chain
Leveraging a safety-focused transportation service grounded in well-being and risk management can deliver incentives and wide-ranging benefits. A safety-first strategy ensures a strong industry reputation, reduces legal and financial liabilities, eliminates OPEX in driver recruiting-training-retention, and can help manage rising insurance rates.
