EXACT Inbound Freight Control

INBOUND FREIGHT: UNDER CONTROL AND PRECISELY MEASURED

Inbound Freight Can Steal Your Profitability.

Not knowing a given cost component in manufacturing is the surest way to move away from precision ROI—and toward lower profitability. Yet when it comes to inbound raw materials, many companies settle for vendor-billed freight, essentially losing control of optimal costs. In an environment where fractions of pennies can make a huge difference in profitability, leaving inbound shipping in a vendor’s hands in not longer acceptable.

Why You Should Control Every Aspect of Your Inbound Freight

What is the benefit of negotiating lower raw materials costs when vendor-billed freight enables them to make up all or part of their cost concessions?

And requiring a vendor to use your routing guide saves you virtually nothing in freight costs. Why? Because routing guides are only a starting point for freight costs, not a static price list that carriers must abide by (now you know why it’s called a routing guide). Read more about “The Truth About Routing Guides” below.

There is now a way to SAVE TIME, CUT COSTS and PRECISELY PINPOINT your RM costs efficiently and easily.

Introducing Customodal’s EXACT Inbound.

EXACT is the only program of its kind that takes the power of inbound cost controls and puts them squarely in the hands of the manufacturer. Through Customodal’s online portal, buyers can set load parameters and receive quotes in seconds that are based on multiple inputs and the most current available information.

By taking control of their inbound freight, manufacturers save from thousands to hundreds of thousands each year on inbound freight, all of which goes directly to their bottom line because there is no infrastructure or setup cost involved.

It’s just doing the same thing a different way. And gaining control, saving money and reaching the end of the day without any headaches. Or at least no more headaches from freight.

EXACT Control = Precision Costs and Optimal Savings.

Now your purchasing department knows the EXACT cost of shipping, and by taking control, has ensured the company is receiving the absolute lowest cost for incoming freight. No more routing guides. No more vendor markups.

Added Bonus: Fingertip Control of Freight Tracking

In the age of minimizing inventory costs, it has become critical that manufacturers know in detail the progress of all incoming freight. EXACT enables quick online tracking of every incoming shipment. And if something goes wrong in transit, Customodal’s Customer Service Experts are here to help, and in many cases can make adjustments to your freight mid-stream to help fulfill your manufacturing objectives.

Call or message us to learn how EXACT can make a difference to your bottom line.

THE TRUTH ABOUT ROUTING GUIDES

Typical Routing Guides are made using data that is usually 12-18 months old. In today’s shipping economy, that’s several lifetimes and it’s costing you money every time you ship. Dynamic Routing takes the most current available data factoring multiple input variables and offers it in a “decision-now” environment, eliminating the wasted time and imprecision of routing guides.

The Rigidity of Routing Guides.

By their nature, routing guides are a uni-dimensional document that considers a single snapshot of a single shipment on a specific date comparing several carriers. The cheapest carrier under those specific parameters wins space in the routing guide and gains favor with a buyer.

However, everyone knows (including the carriers) that no two shipments are alike, which basically renders routing guides of little value except for that unicorn shipment that happens to match the parameters in the initial routing guide. In other words, routing guides as a cost saving tool are a myth.

An Example of Routing Guide Failure

A manufacturer has three shipments, all going to the same location. Each shipment has a different weight, volume and class. Because of the preset parameters of their routing guide, all three shipments are recommended to go on the same carrier.

Did that manufacturer receive the best pricing for those loads? Maybe for one, but the loss of savings on the other two shipments far outweighs any savings on the first.

Why?

While all three shipments are going to the same location at the same time, their specifications vary widely, as do subsequently, the prices for each. Because their routing guide made no accommodation for specifications outside their pre-selected spec, other carriers may be able to save the manufacturer significant shipping dollars simply because of the varied specifications.

So the routing guide pointed the manufacturer to a single carrier at a cost of, say, $1000. However, using a new technique that employs a broader range of variables and more current pricing data, the manufacturer might have spent only $750—for the identical shipments!

If that scenario played out just once a day, the manufacturer would save over $$65,000 in a year. With many manufacturers, however, that scenario occurs many times each week, with potential annual savings in the hundreds of thousands of dollars—with no extra effort on their part!

The conclusion: routing guides are costing manufacturers significant money that could have otherwise gone directly to their bottom line. Read on to learn how this is done.

Introducing Dynamic Routing.

While deeply flawed, routing guides were, until now, the best technology available to buyers. But those days are over.

Customodal’s Dynamic Routing through our online portal looks at every quote from several angles to determine a unique cost derived specifically for that shipment. From there, the top carriers are rated and presented on-screen from which the route/cost/transit time/carrier that best suits the buyer can be chosen.

And all this happens in less time than booking freight the old way.

Routing Guides are a Crutch. Dynamic Routing Saves Money.

By eliminating the Routing Guide and its one-size-fits-all approach to shipping and replacing it with Dynamic Routing to modernize and broaden shipping options with minimal time investment, manufacturers statistically cut raw freight costs by up to 25%.

When both outbound and inbound are considered on the broader company level, that often doubles the annual money saved, or more, with less labor invested. For some, that can mean millions.

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The Most Effective Path to Unifying Your Company's Shipping Efficiencies Across All Platforms