10 January 2019
How to properly assign shipments?
To ensure the required service level to the customers without affecting the competitiveness of the economic conditions, it is usually organized a freight tender, after the completion of a comprehensive tender document.
Once completed the market tender, it is necessary to step-up to the next level: establish shipments assignment rules and therefore create a freight policy.
Depending on the company organization, such policy must be customized to a certain degree (plants, warehouses, branches, …).
An adequate shipment policy should consider:
• Assignment rules base on geography
• Assignment rules based on the necessary/required service level
• Assignment rules based on weight/volume breakeven thresholds between parcel e road groupage on one side and between parcel e air groupage on the other side
• Rule on additional insurance covers
• Rule for service type selection according to transit times
• Consolidation criteria and consolidation windows.
Once the shipment policy has been created, it is important to monitor it on a continuous basis. Low or no observation of the policy rules, indeed, can cause:
• Cost increases;
• Service levels decrease;
• Cost increases associated with service level decreases;
• Customers’ complaints.
For a free check-up on your shipment policy, please contact Smart VCO at the following address: firstname.lastname@example.org.