Success in the supply chain depends on increased freight carrier pick-up rates and the lowest tender rejections. And in turn, that all goes back to freight carrier optimization. And like all aspects of supply chain management, optimization must be an ongoing effort. As reported by WarehouseAnywhere, “given the complexity involved, supply chain optimization is a business activity that you might consider a marathon, not a sprint. The supply chain configuration that is currently the best mix of cost and service may change over time. This could be due to fluctuations in material costs, carrier changes, customer demographics or other factors that require continuous oversight.” As such, it’s important to understand how lacking an optimized carrier network results in added risk for tender rejection and why digital load matching can help.
Why Tender Rejections Rise as Optimization Declines
There is a simple reality in today’s supply chain. Optimization surrounds the processes and capabilities used to reduce the hassle of transportation management. In the context of the carrier-shipper relationship, limited optimization results in additional delays in tendering loads and determining whether to accept or reject those loads. At the same time, there is an element of shipper-of-choice that can go into the process and affect overall rejections as well. Ultimately, declining optimization and inefficiency coincide with an increased risk of tender rejections.
An Optimized Carrier Network and Collaboration With It Promotes More Efficient Processes to Make Your Freight More Attractive
A common challenge facing shippers and brokers goes back to a lack of digital processes. Approximately 90% of freight loads are still booked through manual processes. That results in countless hours and time wasted from quote processes, negotiating rates and vetting carriers. However, eliminating those concerns with a digital platform like neutral allows for a more seamless, integrated strategy.
Thus, carriers and shippers can focus on better optimizing their transportation strategies to get freight from point A to B quicker. In other words, carriers realize an incentive to pick up freight from shippers that make it easier. That is the basic premise behind all shipper-of-choice programs. By freeing your load plantings team, they can prioritize picking, packaging, and staging, reducing delays at the dock and creating a positive feedback loop to encourage carriers to continue accepting your freight.
Tips to Improve Carrier Network Optimization
The benefits of an optimized carrier network are extensive. It allows an organization to reap maximum rewards, to reduce the rate of rejections and create more autonomous processes. However, enabling digital freight matching and optimizing the carrier network can be difficult to achieve for small and midsized brokers or businesses (SMBs). Therefore, it’s always beneficial to have a few tips to rely upon, including:
- Share load data in real time with her trusted network of carriers.
- Give carriers the capability to accept or reject loads digitally and without tracking a dozen logins.
- Prioritize carriers with the best contracts.
- Diversify your portfolio of trusted carriers and partners to increase competition among those carriers.
- Leverage a digital, Internet-enabled platform that allows carriers access to your loads from a dedicated portal.
- Integrate booking confirmation and appointment detail data within your existing load matching solutions.
Put the Power of newtrul to Work to Reduce Your Risk of Tender Rejections and Optimize Your Network
It is time for shippers of all sizes to recognize the value of digital freight management and load sharing. And that is where an optimized carrier network can make all the difference. Find out more about how your team can tap these one-stop resources by requesting a newtrul demo today.