Negotiating freight rates for your shipments is a time-consuming ordeal. You often have to do a ton of research and comparisons, and you have to have a good understanding of the industry to comprehend what you are looking at. Logistics and transportation software can help you in your negotiations to get better rates.
Getting a reasonable rate is not as simple as sitting down with a carrier, they offer you a fair deal, and you agree to it. The key to getting a good rate is negotiating. Shipping freight is expensive, and saving a bit of money on your shipments will significantly impact your company’s profitability.
Let’s go over how you can use transportation and logistics software to negotiate better rates and how it can help your business save money.
Save An Upfront Investment In Your Logistics Department
The great thing about logistics software is that it is already developed and ready for you to use. You simply purchase your software or subscription and get going. Unlike hiring a whole logistics department, the process of implementing logistics software is simple and easy.
You don’t have to go through the time-consuming hiring process. Or review skills to check that your logistics team will get you the best deal. Often transportation and logistics software are very simple to use and user-friendly, requiring a short learning curve to get them up, running, and helping you negotiate better rates.
Checking The Spot Market Rate
One of the great ways that logistics software can help you navigate your negotiations with carriers is by having access to the spot market index.
A spot market rate is a price that a carrier offers a client to move a shipment from point A to point B at a specific moment in time. Spot market rates are fueled by a basic economic principle – supply and demand.
When there is an increase in freight equipment supply in a given lane, the price comes down since you can negotiate a lower price for your shipment as there is a higher level of competition on the supply side.
Having access to the spot index in a quick and easy-to-understand format makes your job easier. Logistics software, including the new & improved Draydex™, was designed to allow you to quickly review the rates in real-time for your lane and establish if a freight carrier is offering you a fair deal for moving your shipment.
Software That Brings Transparency To Your Shipments
Logistics software such as a TMS (Transport Management Systems) gives you greater transparency on your shipments.
The problem that even enterprise-level businesses face with their freight is transit times and visibility of their shipments. Seeing where your freight is, what it is doing, and where it is going is vital. However, the logistics software that keeps track of these things is often costly and not something that mid-level companies can afford.
This is why Freight Management Inc. (FMI) developed an all-in-one TMS software called My Freight Manager®. Specifically designed for small to medium-sized businesses, it is a cost-effective solution to having clear visibility on freight.
It can seem almost impossible to keep track of the numerous factors you must take into account every time you send a shipment. My Freight Manager® centralizes your shipments’ critical details into one system. You and the carrier can use it to have shipping visibility and thorough reporting.
This visibility on shipments and reporting enables you to ensure that freight rates remain fair. It helps you ensure maximum productivity, saves time, and improves decision-making by presenting all transportation information in an easy-to-use interface.
Save Time & Money Today
Negotiating shipping rates is time-consuming. Going back and forth, understanding all the factors that affect the cost of a shipment, such as a spot market rate, location drop off, and more requires a lot of patience and level head.
Having transportation and logistics software in place within your business can help you negotiate the best freight rates possible. You can quickly and easily get access to a large amount of information that influences prices. And logistics software does not require the upfront cost or time that hiring your own logistics department requires.
Start getting better rates and better logistics management with Freight Management Inc’s managed services and their proprietary tools!