Why is DCI able to find freight savings 80% of the time? At the end of the day, your logistics department’s main priority is to ensure your product gets from one place to another as reliably as possible and at an affordable price.
What you should not expect them to know or to have been trained in is the comparative analysis of freight tariffs – and this is precisely where large amounts of your money are either saved or lost.
You can be confident the DCI freight review will find savings especially if you answer , ”Yes” to one of the following…
- Do you receive most freight invoices by paper instead of electronically?
- Has it been more than two years since you received any external freight analysis?
- Do you have a shipping policy developed and understood by more than one person?
Several misperceptions can cost you money: If your company is using a freight auditor, do not assume all is taken care of. Some freight auditors are simply correcting arithmetic errors as they occur and checking to make sure that the carrier’s billing complies with the terms of the contract. That’s important, but no guarantee that you are on the lowest possible rate for the provider. In other words, a freight auditor checks to see that “2 plus 2 equals 4.” DCI asks, “Why is it 2 plus 2 instead of 1 plus 1?” Tariff analysis produces lower rates and lower than what you could get using the “least expensive” carrier.
If you use what you believe to be the “least expensive” carrier consider that one carrier who may have been least expensive at one time in the past for certain routs may no longer be the least expensive when times change or when carrier assets along those routs change.
If you do get a very low rate, you might still be shipping in the wrong mode. Some companies ship by parcel when LTL is more effective, or by LTL when truckload is more effective, and by truckload when an intermodal approach is more effective. DCI’s analysis does all this and takes into account the warehouse and distribution points to see if what made sense in the past is still the most time and cost efficient way to ship today and tomorrow.
Remember, it is common for have all vendors to offer large discounts of 70% to 80% or more so the discounts alone are not sufficient proof you are obtaining best pricing. Neither is getting annual competitive bids -which often are misleading and result in lost savings.
DCI evaluates services and rates, and then conducts a cost benchmarking process whereby we compare your rates to the best rates your carrier has offered companies similar to yours.
After obtaining optimum rates, the next step is to identify improvements to routing guides and internal shipping policies. This produces the most cost-effective freight solution while maintaining or improving your overall shipping performance.
Most freight users have perfect costs in at least one component of their transportation system. Few freight users have across-the-board perfection in all categories. This is why, like most companies, you will enjoy large savings in freight by using DCI Solutions.
Call 1-888-395-0809 for a complimentary review of your opportunities
