Word on the street is that global freight transportation services are projected to grow by 4.7% annually until 2025. Undoubtedly, the logistics industry is becoming increasingly complex and competitive with such rapid growth.
But what exactly is freight management, and how does it work?
Understanding Freight Management
Freight management encompasses the strategic planning, execution, and control of the movement of goods from one place to another. It involves a range of activities, including transportation, warehousing, inventory management, and logistics coordination. At its core, freight management aims to ensure that goods are delivered on time, in good condition, and at the lowest possible cost.
What is the Objective of Freight Management?
The primary objective of freight management is to optimise the supply chain, ensuring efficiency, cost-effectiveness, and customer satisfaction. This involves selecting the right carriers, negotiating rates, managing routes, and tracking shipments. Effective freight management can lead to significant savings in both time and money while also improving service levels and reducing environmental impact.
Types of Freight to Manage
Freight comes in various forms, each requiring different handling and transportation methods. The four main types of freight are:
- Full Truckload (FTL): Ideal for large shipments filling an entire truck. FTL offers faster transit times and less handling, reducing the risk of damage.
- Less Than Truckload (LTL): Suitable for smaller shipments that don’t require a full truck. LTL consolidates multiple shipments, making it cost-effective but with slightly longer transit times.
- Intermodal: This method uses multiple modes of transportation, such as rail and truck, to move goods. It is often used for long-distance shipments, combining the strengths of different transport modes.
- Expedited: This type of freight is used for time-sensitive shipments that require fast delivery. It often involves air transport to meet tight deadlines.
The Freight Management System
A robust freight management system (FMS) is essential for modern logistics operations. An FMS integrates various functions, including carrier selection, route optimisation, load planning, and shipment tracking. By leveraging technology, an FMS provides real-time visibility into the supply chain, enabling businesses to make informed decisions and respond swiftly to any issues.
The Workflow of Freight Management
The freight management workflow involves several key steps:
- Order Processing: The process begins with receiving and processing customer orders. This includes verifying order details, checking inventory levels, and generating shipping documents.
- Carrier Selection: Choosing the right carrier is crucial for cost-effective and reliable transportation. This involves evaluating carriers based on factors such as cost, transit time, and service quality.
- Route Planning: Efficient route planning ensures that goods are transported via the most optimal paths, reducing transit times and fuel costs. Route planning also takes into account factors like traffic conditions and delivery windows.
- Shipment Execution: Once the carrier and route are determined, the shipment is executed. This includes loading goods onto trucks, coordinating with drivers, and ensuring compliance with regulations.
- Tracking and Monitoring: Real-time tracking allows businesses to monitor the progress of shipments and address any issues that arise. This enhances visibility and ensures timely deliveries.
- Delivery and Performance Evaluation: The final step involves delivering goods to the destination and evaluating the performance of the entire process. This helps identify areas for improvement and ensures continuous optimisation.
Satisfied Clients: Lutrra and Metafour Courier Software
Lutrra, a rising name in the freight forwarding industry, aimed to expand but faced significant challenges with their existing business processes. Their staff spent excessive time booking shipments directly with each courier, which became particularly cumbersome when handling customer inquiries. This inefficiency not only slowed down operations but also impacted customer service.
Seeking to overcome these hurdles, Lutrra turned to Metafour for an all-in-one solution to streamline their delivery process. Metafour’s advanced courier software automated and integrated various tasks, significantly reducing the manual effort required from Lutrra’s staff.
Additionally, the new system empowered clients with greater control over their deliveries, enhancing overall customer satisfaction. This partnership has enabled Lutrra to improve efficiency, reduce operational costs, and focus on business growth, showcasing the transformative power of Metafour’s innovative solutions.
Why Choose Metafour for Freight Management?
For courier companies using Metafour software or businesses seeking efficient logistics solutions, Metafour offers a comprehensive freight management system tailored to their needs. Our satisfied clients have experienced significant improvements in their logistics operations, from cost savings to enhanced service levels.
By understanding the objectives, types, and workflow of freight management, businesses can optimise their supply chains and achieve greater efficiency. If you want to streamline your logistics operations, contact the Metafour team today and discover how our freight management solutions can benefit your business.
