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4 Tips for Transportation Sourcing: Choosing a Mode of Transportation



1. LEARN AS MUCH AS POSSIBLE ABOUT WHAT YOU'RE SHIPPING.

Know the product you're transporting, as well as the capabilities of the carriers and recipients. You'll make better transportation decisions the more you understand about your own goods.

For instance, shippers must be aware of the appropriate National Motor Freight Classification (NMFC) numbers and freight classes for goods that will be delivered less-than-truckload (LTL).


2. DETERMINE THE REAL TRANSIT TIME, NOT THE PUBLIC TRANSIT TIME.

Mode selection is influenced by both the availability of the product and the deadline for delivery to the intended location. However, choosing that method only based on the advertised transit time can be risky. Because of weather and terminal delays, the actual transit time typically differs from the announced time.


3. FIGURE OUT THE ENTIRE LANDED COST.

While businesses frequently prioritize cost, they should instead consider "total landed cost.

Although it is the least expensive option, ocean freight has the longest lead periods and the greatest degree of uncertainty.

An initial transport time estimate of 40 days could wind up taking 120 days. Because of this, carriers must take into account the extra cost of safety stock and inventory to account for the likelihood of late delivery. If the shipper can't deliver to clients on schedule due to delays, there is also a lost business expense.


4. APPRECIATE DIFFERENCE.

Instead of using just one mode, you might need to use a portfolio of modes. The shipper is shielded from disruptions or issues with one mode of delivery through mode diversification. Additionally, it might assist a shipper in obtaining the greatest pricing.

In the end, the majority of transportation experts concur that logistics professionals can source transportation more effectively if they have a thorough understanding of their goods.

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