Best Practices to Reduce International Freight Costs

The drive to capture the business benefits of low cost country sourcing has far out-paced the processes and systems needed to efficiently manage the global supply chain. A recent survey by Aberdeen identified that higher than expected transportation expenses was the primary factor in landed cost budget variances.

By · February 7, 2012

The drive to capture the business benefits of low cost country sourcing has far out-paced the processes and systems needed to efficiently manage the global supply chain. A recent survey by Aberdeen identified that higher than expected transportation expenses was the primary factor in landed cost budget variances. Most importers do not have a formal solution to manage international transportation. Today’s TMS solutions are oriented to managing domestic transportation and cannot handle the complexities of containerized transportation and airfreight. Yet, technology holds the key to containing escalating international transportation costs.

According to AberdeenGroup’s recent report, Winning Strategies for Transportation Procurement & Payment, 81% of 380 enterprises surveyed with freight spend over $25 million plan to implement new transportation procurement and payment technology. And, the majority of respondents believe that a more sophisticated procurement and freight audit solution can save an average of 8.8% on their overall freight budget.

Amber Road delivers the transportation management and supply chain visibility capabilities you need to realize these savings through the manage, audit, and pay processes. Beyond execution, the solution also collects key operational metrics to better manage your transportation providers in areas such as invoice accuracy, booking performance and delivery performance. These can become important non-price attributes for the next sourcing cycle.


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