Boost your bottom line: 5 strategies to cut transportation costs
It’s only through accurate data sets that you can get a holistic view into your transportation costs. Keep reading to learn how to find that data and implement it.
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5 minutes to read
More often than not, the data necessary for a holistic view of your transportation spend is trapped in paper documents, people, and disconnected systems.
Between messy data, missing tracking IDs, and more file cabinets than you care to admit, identifying opportunities to save on transportation costs is nearly impossible.
But you don’t have to risk overpaying. An accurate, holistic, data set opens up a world of possibilities to boost profits. Using the below strategies with logistics-AI will eliminate overpayments, maximize profits, and improve resilience.
5 ways logistics-AI cuts transportation costs
1. All of your data, in one place
Before you do anything, you need your data in one place. This central repository establishes a baseline to track anomalies, identify issues, and run comparisons. Allowing you to accurately measure growth, monitor performance trends, and unlock cost-saving opportunities and optimize your decision-making.
With logistics-AI, all you have to do is forward your invoices and contracts via email, and the proprietary models do the rest. Our platform centralizes all key data points so you can zoom in to the SKU level and zoom out to analyze your data at a network level.
2. Use AI-driven audits to prevent overpayments
Roughly 20% of invoices have errors that result in overpayments. Accurate audits are crucial, but how do you ensure they’re accurate and efficient?
Eliminate manual processes and leverage AI. Logistics-AI is uniquely trained on supply chain and spend data, enabling it to contextualize artifacts, spot errors down to a penny, and link disconnected invoices and documents.
The best in class audit services also include root-cause analysis to explain why each inaccuracy on an invoice occurred. With data that backs up your claim, resolution is fast.
3. Establish supply chain resilience
Having supply chain resilience means weathering potential disruptions with minimal financial loss or shipment delays. You need a diverse carrier network you can turn to if, for example, a shipping lane grows too expensive or a carrier goes on strike.
With logistics-AI and the right data, you can create informed strategies, as well as allocate resources and costs better. You’ll be able to make your logistics network more agile and resilient overall.
4. Run scenario planning and analysis
High-quality data helps you determine if you’ve planned the right routes between your facilities and your customers’ or suppliers’ destinations. You can instantly assess whether you have a suitable carrier and correct lane for any shipment.
Even if your current route seems efficient, are there options that reduce the tolls or taxes you pay? Centralized data and logistics-AI can help proactively identify other elements that can save you money.
It’s difficult to ensure that your entire team adheres to low cost routing or carrier compliance without data analytics. It’s why you need to track your team’s shipments to make sure they follow your routing guide and select the right service and carrier to minimize costs.
Planning volumes per freight class, lane, and service type
Improving carrier relationships
Projecting impact of new carrier pricing and discounts
Coming to negotiations with leverage
Centralizing your transportation data simplifies ongoing monitoring of carrier performance so you can ensure your contracts are in your favor.
Get a holistic view of your transportation spend
Inaccurate invoices and workflow inefficiencies lead to high transportation costs. Real-time transportation data lets you pull back the curtain to know where bottlenecks live, where controllable expense opportunities are, and how to resolve them.
Loop extracts premium data that you can use to support decision-making and optimize your transportation infrastructure. Use it to effectively cut costs and unlock profit trapped in your supply chain.
