Data insights are key to a successful 2023 peak season, regardless of transportation mode. Spikes may not be as drastic this year due to the change in consumer spending behavior and initiatives by retailers to spread out the peak season over a longer period of time using discounts and other incentives. However, global supply chain leaders must now leverage a data-rich peak season shipping strategy to help minimize inefficiencies, risks and costs.
How to optimize your shipping processes
The large amount of data collected by the freight audit and payment (FAP) process enables the Trax Technologies solution to support a portion of the data-driven decisions companies require in order to estimate costs and optimization opportunities surrounding peak-season forecasts based on historical data as well as monitor costs during peak season itself.
Effective use of transportation related cost data, including freight, fuel and the multitude of surcharges by mode of transportation and service permit a deep dive on how companies can accurately forecast and optimize shipping before, during, and after peak season. What’s past is prologue when it comes to demand spikes, particularly when it comes to the peak season.
The accuracy of Trax’s transportation spend management (TSM) portfolio of solutions provides a baseline for what our clients can expect, and plan accordingly. As supply chain leaders hold out hope for this year’s peak season they’re evaluating the impact of inflation on consumer spending therefore making accurate forecasting more strenuous than in the past.
Getting it right requires good data and utilizing data will be crucial, in addition to nurturing good relationships with carriers and suppliers. The better your data, the better your decision-making processes. Accurate forecasting including the ability to order early, mitigate overflow and stockouts, and keep your transportation costs at a competitive level of service is key.
Transportation management is the process of planning, executing, and optimizing the movement of goods. When well-executed, a transportation management strategy makes it easier for shippers to achieve error-free, cost-effective, fast, and smooth flow of products.
Maximizing the value of data, like FAP data, are a material part of the overall control tower strategy most companies rely on as they improve the end to end governance of processing related to supply chain logistics. Good data improves visibility, decision-making, and operational efficiency. During peak season, strategies often need to shift to accommodate increased demand and limited capacity, which often impacts the cost of moving goods.
How Trax’s solutions can help
As a global leader in transportation spend management or TSM, Trax’s freight audit and payment solutions help global enterprises manage transportation contracts, gain visibility into transportation spend drivers and performance, and simplify complex business processes.
Utilizing actual shipment data from the $24bn in transportation spend invoices Trax audits annually, FAP tools provide shippers with data insights used to make well-informed decisions to avoid shipping delays and optimize costs. Diversifying the modes of transportation, for example, by choosing rail instead of over-the-road can alleviate some transportation costs.
Using data insights from transportation spend tools and knowing that each segment of the logistics industry will experience its peak at different points over the next few months, will prove beneficial in such instances. Backed by rich invaluable insights and data, shippers across the globe can be confident in decision-making and easily navigate the remainder of 2023.