- About Us
- Why Auditing
- FREE ANALYSIS
- Thought Leadership
- Contact Us
A crisis is defined as, a condition of instability or danger, as in social, economic, political, or international affairs, leading to a decisive change. The current supply chain crisis arrived without warning and turned well-ordered businesses into unscheduled chaos amidst states of confusion. To get through this difficult time it was, and still remains important to zoom in and decide what’s next and remind ourselves that we can’t change what happened and should strongly focus on areas where we have the power to prepare for the future. Once realizing you need a new plan, enlisting support will help you remain competitive moving forward. For better or worse we, as shippers, are becoming more flexible and adjusting in order to contend with the supply chain crisis. LJM Group is here to help.
When it comes to shipping, there are stabilizers that can absorb some of the negative effects of the supply chain disruption and provide short-term benefits.
Shipping Cost Transparency
Knowing what you pay is the first plan of action when it comes to cost transparency. Underestimating true parcel shipping costs will alleviate unnecessary expenses and overpayments. Though parcel Carriers make their rates public, there are additional fees that can significantly affect what is ultimately being charged. Common surcharges include peak surcharges and fuel surcharges. There are also after-the-fact charges that can amount to up to 35% of the original shipment cost – such as residential delivery, additional weight, additional handling, address corrections and delivery reschedules. Accurate data can help shippers move from reacting to market changes to proactively and effectively managing transportation costs and outcomes. By gaining increased transparency into fuel and freight expenses, shippers can develop a strategy to offset obstacles such as supply chain issues.
Tricks of the Trade
Embracing the power of technology and data not only increases awareness, but will help provide a roadmap for controlling spend. With the right data, shippers identify variables that impact shipping costs, isolate the highest levels of spend and use insights to optimize future spending. LJM’s TruCostsm data dashboard provides opportunities for easy analysis of all those miscellaneous accessorial fees charged from the Carriers after delivery. This provides easy visualization on how to optimize your position as a shipper and how to alleviate the burden of these discreet charges. Standard reports are included at no additional charge, including the weekly recovery report, which details every refund we have secured in the previous week. Special reports and specific general ledger coding/reporting are also available.
With lingering bottlenecks, supply will likely be playing catch up for some time, but the best offense is a good defense. Parcel Carriers are, and have been, adjusting by adding more workers and increasing their fleet capacities. As a shipper, you should be reacting by partnering with a good logistics expert who should be part of the plan to overcome the challenges being faced. In addition to negotiating optimal parcel rates, shippers should be armed with the knowledge of their contracts. The fact is, there is no better time to be proactive with your contract negotiations than NOW, rather than reactive to the environment of supply chain and shipping logistics.