7 Ways to Drive Down TCO & Win the Game of Freight
2023 Update: Now There Are Even More Ways to Lower Freight TCO – View all 14 Ways Here and Download the PDF
From predictive analytics to non-commissioned reps, these are the top ways to minimize the total cost of ownership (TCO) while ensuring real-time communication and more on-time deliveries.
TCO of freight includes the costs related to the transportation of products in your supply chain. If you’re not careful or use the wrong carrier or freight broker, these costs can add up quickly. Involving both direct and indirect costs of shipping goods, the TCO of freight provides a cost basis for determining the value of services.
While freight costs can vary based on timeline, type of product, and more, here are seven ways to drive your TCO down and your ROI up:
- Select a primary logistics partner that offers a commitment to take 75-100% of contracted freight, reducing the need to run through the waterfall and onto the spot market.
- Work with a partner that employs non-commissioned reps. With commission-based reps, everything is negotiable. You can’t be sure of reliability, on-time deliveries or quality services because commissioned reps may cherry-pick the most profitable deliveries for them, which can delay the rest. At LiVe, our reps are not commissioned, allowing them to focus on successful deliveries rather than quotas.
- Utilize best-of-breed technology. Knowing where your shipments are is as important as monitoring freight cost variances and opportunities – all in real-time. With the right technology and predictive analytics, you can do both so that more loads are delivered on time and you avoid late payment penalties and chargebacks.
- Ensure your partner offers 24/7 track and trace to stay on top of deliveries. Best of breed technology is only as powerful as it is accessible to the client. At LiVe, we monitor your freight on a 24/7 basis using real people, FreightWaves, Project44 and more, reroute it to avoid problems, and communicate closely with you so there are no surprises. LiVe clients always know where their freight is and have a LiVe person to contact with questions.
- Partner with experienced logistics professionals who leverage honed processes and best of breed technology. LiVe’s team includes dedicated account managers – as well as backup teams – to communicate closely with you and manage all of your freight needs. Our executive team offers extensive freight experience having worked for some of the largest 3PL companies in the industry, while leaving the bureaucracy behind.
- Utilize shared truckload freight or multi-stop deliveries to further lower TCO during favorable market conditions. A trusted partner like LiVe can orchestrate and combine deliveries tapping into our enormous and varied network of carriers that also includes box trucks, sprinter vans and flatbeds with less-than-truckload (LTL) or shared truckload (STL) delivery options.
- Get better rates by scheduling your shipments 2-5 days in advance. Rates increase as you approach the day of your shipment, especially when they’re quoted on the same day.
LiVe’s Strategy for Driving Lower TCO
At LiVe, we focus on lowering freight costs while ensuring your loads arrive on time – not too late, or too early. Our logistics teams work directly with clients to outline the goals and needs of a project before analyzing freight options and providing an estimate of TCO.
With decades of experience in transportation logistics lowering overall supply chain cost, our team provides solutions that rival the largest freight logistics organizations in the U.S. while maintaining relationships with our clients that feel more like family.
If your TCO is getting out of hand or you’re expect to improve the overall return, contact us to learn how we can help reduce your overall supply chain cost. Give us your hardest loads and let us show you what we can do.