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Sales and Marketing

Freight price monitoring – what are the advantages of having this information?

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Fast delivery is a differential for the final consumer. For retail companies, monitoring freight prices and strategically managing it has become crucial to reach more assertive and successful results. In addition to delivery speed, freight charged in purchases made in online retail is an essential attribute that can increase customer satisfaction and, consequently, loyalty. This post will focus on freight price monitoring, given the importance of this subject for retailers and final customers.

Let us start by understanding how freight pricing works, how the record grain harvest can vary freight prices of land transport, and the importance that the use of data offers for the process to be more transparent, objective, and assertive.

In Canada, the cost of freight transportation is calculated based on some factors, including:

Size and weight play a crucial role in calculating freight costs, as heavier and larger shipments require the most resources and space.

Distance: the distance between the origin and destination of a product is a significant factor in the freight price.

Fuel costs: fuel costs are the most significant and major factor impacting freight prices.

Mode of transportation: whether by road, rail, air, or sea, will affect the freight price.

Other factors: other factors, such as the urgency of the shipment, the level of service required, and the type of goods being transported, may also increase the freight prices.

With the help of technology, freight price monitoring has become more straightforward. Effective monitoring solutions based on accurate and updated data are a significant differential. Data is essential to monitor and compare prices, assess the quality of services provided, identify possible price variations over time, make forecasts and plan future operations, make the methodology more effective, reduce the margin of error and manage to make projections to improve the company. Freight price monitoring has several advantages, like:

Identification of market patterns: with the monitoring of freight prices, companies can identify market patterns, such as changes in the behavior of competitors and market seasonal demand swings, thus, improving the company’s competitiveness.

Time optimization: identification of better prices and more efficient carriers allow the organization to save time in selecting and contracting carriers.

Cost savings: as well as optimizing time, freight price monitoring enables companies to point out more economical transportation options, ensuring that logistics costs are reduced, thus being able to compete more efficiently in the market.

Most assertiveness: monitoring provides valuable information for strategic decision-making, enabling companies to examine the available transport options and choose the one that best meets their demands.

Improved service quality: Tracking freight value helps companies identify carriers with a history of quality, ensuring goods are delivered on time and safely.

More transparency: with monitoring, companies can access more transparent information about the costs of transporting their products, which will help them make bold choices and negotiate better business agreements with their business partners.

More effective control in inventory management: as described above, the integrated work between freight price monitoring and inventory management will be more effective. Identifying price variations will allow companies to adjust their inventory strategies to minimize whether freight is needed urgently or not, thereby reducing overall costs.

Better planning: the feasibility of monitoring freight prices allows companies to plan the best transport routes and times and dates of shipping the products, maximizing the efficiency of their shipments.

The solutions offered more accurately assist decision-making strategically and make it possible to identify patterns in transport prices and trends. Through customized data collection platforms, it is possible to evaluate different transport options and make the best choices for the company, including the best route, time, and day. Some platforms can also generate monthly, weekly, or daily reports on the best mode of transport and transport supplier for each type of shipment. In addition, data can give the dimension of supplier performance, collect service data, and delivery time, among other relevant aspects.

Finally, using a customized data solution in freight price monitoring can benefit companies, including transparency, efficiency, assertiveness, and cost reduction. With data analysis platforms available, companies can make more proactive and strategic decisions regarding their product shipments, increasing the operational efficiency of their business and offering their end customers attractive options and costs that generate satisfaction and loyalty.

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