Freight management refers to the process of strategically and efficiently organizing both inbound and outbound goods for transport. At the same time, ensure that the right goods arrive in the right place on time. It is the process of coordinating all the processes that revolve around the preparation, shipping, storage, transportation, and receiving or freight. It means coordinating all parties, that is, carriers, distributors, shippers, and vendors, through the entire process of handling freight.
Freight management aims to ensure that cargos arrive at the target destination safely and on time. Freight management goes beyond managing simple orders on an e-commerce website and goods on vessels outbound to other continents or countries. Therefore, it is a complex process requiring extensive management to ensure that every package gets to the designated destination on time.
What is Entailed in Freight Management?
Freight management is a term that covers an extensive process of handling all the processes of moving packages in a supply chain. It involves the movement of goods from the warehouse to the point where the customer receives their order. At times, the process continues even after delivery, where the managers ensure that the customer is satisfied with their order.
It is important to understand that many steps and processes are taken to complete the entire freight management process. Some of these processes include:
- Optimizing the Route- Route optimization entails analyzing the available transportation routes to ensure that the fastest and most secure route is used when transporting goods. It ensures that goods arrive at their destination on time and safely.
- Negotiating Rates- Rate negotiation entails finding the most suitable price with the best carrier. It ensures that goods will be carried at an optimal price and in the best conditions to ensure that customers receive their orders while they are still intact and in the right state.
- Auditing and Accounting- Here, the process mainly involves tracking and managing the freight to ensure that the numbers keep improving and the best and most profitable services are being implemented.
- Claim Management- This involves organizing and managing all scenery such as insurance, in case of damage or loss of goods during transportation.
- Data Collection- This involves tracking the freight processes by tracking the processes and routes to gather insights into the effectiveness of the entire process.
- Warehouse Distribution- It entails handling the organization of goods in warehouses and through the entire transportation process.
- Integration- The process entails working with organization departments, enterprise resource planning systems or ERP, and transportation management systems or TMS to streamline and centralize the entire process.
- Vendor and Carrier Organization and Management- This process encompasses coordinating and managing the relations with all the parties involved in the supply and transportation process.
To help ease the entire process of freight management, most freight management companies use freight management software. Freight management software helps shippers and transporters manage and streamline the entire shipping process. It also helps them analyze and optimize the entire process, which increases their efficiency and processes.
Freight management encompasses the entire process of managing and streamlining the storage and transportation of goods. Freight management software helps automate this process, and it increases efficiency and productivity.