Are you looking at your total transportation spend?
A couple of weeks ago, we talked about how many companies are throwing money away because they aren't accurately tracking their total freight spend. Apparently, this struck a chord, as I received a lot of e-mails asking me for examples.
In this week's video, I talk about a recent meeting I had with a company who asked me to help them identify ways to improve their supply chain. When I asked what their transportation spend was, they quoted me the $5 million that was showing up in their general ledger. But after looking at their total revenues and benchmark data for comparable industries, it was obvious: There was an additional $20 million worth of freight activity that wasn’t being measured or managed. In fact, it was what we call "Unseen freight activity"!
Do you think there are elements within that $20 million worth of freight activity that have an impact on the price of their goods or their ability to compete in the marketplace? You bet! If you aren’t looking at your company's total transportation activity, you are missing out on opportunities to improve your supply chain.
These situations are why we often recommend our rapid assessment to shippers. We can help you identify and take a look at your whole transportation management operation and find opportunities to improve.
We're on your team, we're here to help, and we're passionate about seeing you be successful. If you have any questions, give us a call at 630-833-0890 or send us an email.
Mike Regan
