News

Visibility over freight costs, do you have it?

Wednesday, January 13, 2010 by Tim Strawbridge

At eCargo our philosophy is to make the freight management process as simple as possible. We do this by hiding much of the complexity of moving freight, and providing an easy to use system to manage freight movements and costs.

A key component of simplyfying freight management is visibility, not only visibility of freight movements, but also visibility of freight costs. 

As a freight purchaser, can you comfortably say you have full visibility over freight costs, actual and accrued, at any point in time?

If the answer is no, then you are not alone. After years of providing freight management solutions we understand that many businesses have limited visibility over their freight costs. They usually rely on rough accruals and the receipt of invoices from freight suppliers after the fact.

Transportation costs are now a large component of manufacturer's expenses. These costs are regularly affected by changes in fuel and compliance costs, as well as base rate changes, changes in freight provider and changes to the manufacturer's distribution model.

Without a good understanding of current freight costs a business will find it difficult to forecast future costs, and understand the impact of changes to their supply chain.

Full visibility over freight costs requires an understanding of the following key components:

  • What has moved
  • What it cost to move
  • What has been invoiced

Having the knowledge of all three elements in an online tool such as eCargo becomes very powerful. You will have more control and visibility over one of your business' single largest expenses . Whether it be for road, rail or sea eCargo lets you manage your freight costs in a single system, providing instant analysis of current transportation costs.