Wednesday, February 6, 2013

3 Money saving Routing Guide strategies


The easiest way to meet your transport budget for 2013 is to eliminate overspending and make sure you are not incurring unnecessary freight expenses. The most common causes of overspending? Shipping goods with non-contracted carriers shipping with the wrong carrier or using unauthorized service levels. How does this happen? It could be your vendors, your clients or even your own staff. Not on purpose but because they do not have the right information.

Here are 3 Routing Guide strategies that will help you save money this year by ensuring compliance and gaining better control over your shipping process and costs.


Manage inbound vendor routing compliance

If suppliers operate under INCO terms that require them to make use of your contracted carriers for inbound shipments, then you need to manage routing compliance. You have spent a lot of time and effort in setting up the most cost efficient carrier network. A supplier that does not ship its goods with your designated carriers will cost you money.

The solution to manage routing compliance is to implement a Routing Guide. Commonly, these are PDF based versions that are emailed out to vendors across the globe or placed on corporate websites. Any changes require reworking the document and emailing the updated PDF or Excel sheet to all vendors. This is a labor intensive process and you run the risk of your suppliers having outdated information. By creating and maintaining your Routing Guide on-line you ensure all your suppliers have access to the most up-to-date shipping instructions all the time. Any changes or updates are made centrally and on-line eliminating the need to re-distribute de Routing Guide after each update. Providing your suppliers a login to the Routing Guide also eliminates the need to maintain email addresses.

Implementing online Routing Guide software is a strategy that ensures the highest vendor routing compliance at a low cost. It will avoid you having to account for overspending expenses on your budget due to incorrect carrier usage. 


Up to date sales managers cost less

Many sales managers are confronted with not knowing the shipment costs or other vital transport details during a sale to a potential client. Not having up to date shipping cost information can cost them a sale. Or it can cut into your profit margin by selling with too low a transportation cost as part of the deal.

An online Routing Guide tool can help your sales people have access to all relevant shipping information at all times. Information like who is the carrier, shipping frequencies and costs can all be at their fingertips via an up-to-date online Routing Guide. No more need to make an urgent phone call to the shipping department during a sale. Via your website they can have access to the on-line Routing Guide giving them all relevant information.

Increasing your sales force's selling success by implementing an on-line Routing Guide saves you money.


Guide customer return flows (B2B and B2C)

Customer returns are a high cost factor in today’s transport environment. Uncontrolled returns by business clients and end users are a nightmare for every logistics operation. 

Controlling your customer return flows is one of the ways to keep the costs in check. This means that the people who return goods need to have a clear and up to date return instructions available at all times: how to package returns, what documentation to provide, who to contact but most importantly, which carrier to use based on their location. A Routing Guide solution can help you with this. By providing your customers access to a Routing Guide you allow them to find the correct carrier for their returns. But you can also give them access to the correct instruction and documentation. You could even rebrand the Routing Guide to make it look like part of your website and customer service environment.

You can create an efficient and cost effective returns network but a Routing Guide will ensure your customers use it as intended.


Implementing an on-line Routing Guide is easy. And remember the last time when an inbound shipment was sent using an outbound account? Or when a low priority shipment was sent using an express service level? And remember what the cost was? Even avoiding one of those errors will often already pay for a Routing Guide. If you are interested in learning more about the savings possibilities a Routing Guide can offer you, contact us at info@xzisu.com


 

Xzisu is a global transport & logistics tender/RFP management specialist. With a proven track record of service excellence Xzisu uses its industry knowledge, combined with technology to manage complex tender processes .


 

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