From small breweries that distribute their beverages to a local area to large automakers that ship vehicles internationally, every production company has a shipping process that delivers its goods to retailers.
For small companies, product delivery can be as simple as hiring a local shipper to move goods on a weekly basis, while for large companies the delivery process usually consists of using a shipper who delivers products on a daily basis within a network of destinations.
In either case, the ideal system of transport is that which delivers goods in the least amount time and at the lowest possible cost.
To accomplish these goals, most companies opt for third party direct freight management.
Using logistics management software, direct freight managers make the delivery process as "direct" as possible and therefore reduce shipping costs.
For small companies, freight management is usually applied to a shipping process that is already "direct", meaning that the goods reach the retailer without making previous stops.
In such cases, direct freight management focuses on reducing delivery time by analyzing four aspects of the shipping process: traffic patterns, road construction patterns, speed limits and quality of road ways.
Because time is money in both the manufacturing and shipping business, finding a route that has less traffic can significantly improve delivery time; and the same applies to finding a route that averages less construction projects.
Similarly, judging delivery routes by quality of road way helps prevent flat tires that can be tragic to timely delivery.
Unlike cars, semi trailers require special assistance to change flats, and the total process can sometimes take hours.
By reducing delivery time, small companies save money by reducing length of transport costs.
While the same applies for large companies, the initial goal of freight management for large companies usually involves making the shipping process more "direct", particularly by eliminating frequent stops.
In some cases, frequently delivery stops are unavoidable, as when a product must be assembled in various steps at various locations.
But when a company assembles a product at one location and then ships it cross country, the product typically rests in warehouses as it awaits its next transporter, which results in warehouse fees, increased inventory fees and longer delivery time.
A common solution to these obstacles is shipping by air instead of ground.
While more expensive in terms of shipping rate, air transport is often more cost effective because it eliminates frequent stops and their associated fees.
Without the aid of logistics management software, direct freight management can be confusing.
But by delegating freight management to an experienced freight manager, companies can easily streamline their delivery process and reduce expense as a result.
In addition to the services mentioned above, freight managers also optimize shipment tracking and match carriers with destinations.
As a testament to the cost savings that can result from logistical freight management, studies show that companies who use logistics to improve their shipping can reduce their shipping costs by ten percent in the first year.