Last week, in my "What blew your freight budget?" blog post in Logistics Management we addressed the fact that a whole bunch of shippers are living with blown freight budgets in 2018. I think that is why I have received several calls/ emails from folks who are asking for help in gathering information to prepare their 2019 freight budgets.
One common theme in all of these conversations is that their 2019 freight budgets better be much more accurate in 2019 than they were in 2018, or else....
When they ask me the percentage increases they should include in their freight budgets, my answer is pretty short: "It depends!" If they are adopting a status quo, or "we're not going to change anything" approach then their budgets will reflect the magnitude of rate increases from their carriers.
However, if they are willing to consider some straightforward changes, they may be able to mitigate these increases and, in some instances, actually reduce their freight costs. As I have mentioned in some of my talks, if your company is still using the same transportation and distribution network you have used for the past three to five (or even more) years, there's a pretty good chance you're paying more to move your freight than a competitor who has adjusted to the realities of the marketplace.
To give you a better idea of what these realities look like and also help you build a better budget, we're hosting a webinar on August 30 at 11am CDT in conjunction with NASSTRAC and CSCMP.
We have an outstanding panel of shipper and carrier experts lined up to give you insights that will improve your transportation experience in 2019:
- Michelle Livingstone, VP Transportation at The Home Depot
- Avery Vise, VP of Trucking Research at Freight Transportation Research Associates
- John Janson, Director of Global Logistics at SanMar
- Darren Hawkins, CEO of YRC Worldwide
- Dave Yeager, Chairman and CEO of Hub Group
Finally, if you haven't contacted us yet about our C-Level review, you're making a big mistake. Over 600 executives have participated and the feedback has been off the charts! The presentation provides insights about how the current transportation marketplace is impacting your company and facilitates a dialogue that helps C-Level executives understand the role they can play in supporting efforts to reduce your freight costs. This is a great resource for your team—sign up here to learn more.
We provide all of this because we're on your team, here to help, and passionate about seeing you be successful.
