A contract between a business and the transport service provider is how contract owners have the right to buy and sell at freight prices for future dates. This practice encourages competition and production as it extends the spatial boundaries of commodities and labor markets. So, let’s see why your business would need to develop its freight agreements.
You can enhance customer service
Customers have high expectations when it comes to their packages. And if you can’t deliver them as fast as possible, they’ll find other companies that can provide these services. Therefore, you need to manage the freight agreements better to deliver products quickly.
Fraktavtaler software can help you get the best transport prices and make price adjustments when needed. Such a system can simplify the registration and maintenance of the customer’s agreements, making managing the customer invoices easier.
You’ll also be able to improve freight accuracy by reducing pain points, like validating addresses before the products are shipped or changing the manual data entry process to a digital one.
You’ll improve logistic data
To ensure your business is running smoothly, you must keep all your data safe and organized. Managing it would be easier if you had one place to keep all the company’s logistic information. By having one software with all the suppliers, you can manage the landed cost better, as you can control the purchasing orders.
Some key metrics are crucial for supply chain businesses, from the freight cost savings to the volume and quantity of shipments. So, by improving logistic data, you’ll be able to make efficiency changes, route adjustments and implement new procedures to grow your business.
You’ll reduce freight costs
A transportation management system will help you reduce freight costs by calculating the best path for the transportation from loading to delivery in terms of speed, fuel cost and driver overtime. Plus, you’ll be able to standardize the shipment payment terms through a centralized billing system, from which you can anticipate cash flow and make better budgeting choices.
You can also reduce freight costs if you switch to more green practices. For example, 3 Pl software can reduce your company’s footprint (and expenses) by measuring the Co2 levels. This way, you can see the emission impact of your shipments by having environmental reports that allow you to make more sustainable decisions.
You’ll negotiate contracts better
Managing freight contracts is not easy when you have international clients. But you also need new transactions, so negotiating contracts can become overwhelming as each client has different policies. A software system can help you compile all contract details, from rates and quantity commitments to supplementary changes.
You need such a system because it’ll be easier to find what new contract can make you save money with a new freight carrier. Plus, you’ll be saving plenty of time, as you’ll be able to find all the information needed in your system. Therefore, you can focus on more strategic projects and the company’s pain points in order for your business to flourish.