Friday, November 5, 2010

Finding Profit in the Last Mile

Logistics managers work tirelessly to find efficient ways to move their companies’ products to market. Negotiating smart terms for international freight, cross-country trucking and warehousing ensures that those goods get through the supply chain with the lowest possible cost. All that remains is to move the products down the last mile and into the hands of the end customer. While that seems simple, it’s often this last link in the chain where profits are lost.

Only One Way to Go

Consolidators like UPS and FedEx offer a range of services, but look closely and you’ll see what they don’t offer. Shippers have to be agile and adaptable to changing conditions, so they need a last-mile logistics option that maximizes flexibility. Too often, consolidators force their customers to adapt to their logistics model. They offer one option and one price—take it or leave it.

That’s where independent carriers come into play. Couriers and LTL truckers have the capacity and flexibility to deliver when and where shippers need it. Traditionally, these carriers didn’t offer the range of services or the shipment visibility that major shippers require. In the last few years, that situation has changed dramatically and companies in pharmaceutical, retail, bio-sciences, high-tech and a variety of industries are realizing how independent carriers can meet their needs while reducing shipping cost.

Managing the Process

Keeping up with hundreds or thousands of individual shipments consigned to dozens of carriers would be an impossible task without the right tools. Carriers who want to handle this type of work have already invested in their operations systems. They can supply all the shipment details from pickup to delivery, but the volume of data would be overwhelming.

Fortunately, advanced technology now provides shippers with the business intelligence tools they need to effectively manage the last-mile transportation process. Web-based platforms unite large numbers of carriers and have the capability to consolidate shipping data into a manageable form. The most advanced technology will even provide a dashboard capability that graphically depicts the overall progress of your shipments while allowing you to quickly drill down to an individual shipment should the need arise.

Better Service and Higher Profits

Independent carriers are able to offer more flexibility in their service and the competitive nature of their industry ensures that shippers will get the best value for their logistics spend. Rather than be bound by the rigid practices of huge consolidators, smart shippers are utilizing a ready resource for faster shipment at a lower cost. Building a customized network of independent carriers ensures that they will deliver not only their company’s products, but improved profits, too. The business intelligence they need to efficiently manage this emerging transportation option is readily available and as close as the nearest web browser.