In today’s dynamic and ever-evolving business landscape, optimizing logistics for service excellence and cost efficiency has become a critical imperative.
Market shifts over the past year – coupled with a looming recession – have inspired shippers to take a more cost-driven approach to transportation decision-making in recent months. Many companies are striving to recoup from pandemic-triggered overspending and create breathing room in their budgets ahead of a possible demand free fall.
Balancing Cost Reduction and Service Quality
John Leach, CEO of FLS Transportation Services, remarks, “Shippers endured the unforgiving disruptions of the COVID-riddled supply chain for two long years. Now, with a more favorable market, they are harnessing this moment to trim expenses.”
However, Leach also reminds us that the best shipping partners are those who collaborate to cut costs without service degradation. After all, the hidden costs incurred from poor service can easily outweigh the initial savings gained by opting for less reliable providers.
In the face of market volatility and economic challenges, shippers are increasingly turning their attention to cost-driven decision-making. The allure of cost savings should never come at the expense of compromised reliability, as the hidden costs of poor service can far outweigh any initial savings.
Making Informed Decisions
Kristina Goodall, Branch Director of FLS Transportation in Oakville, Ontario, emphasizes the importance of making informed decisions in the pursuit of cost optimization. Opting for the lowest-cost carrier may look great on a profit & loss statement, but without proper due diligence, it can lead to unexpected financial repercussions.
According to Goodall, missed pick-ups and deliveries, for instance, can result in:
- Penalties/fines from big box chains and retailers
- Additional labor costs from keeping a crew on site when freight isn’t delivering, hiring a crew to come back to load/offload, overtime, and after-hours costs
- Loss of future sales to end-customer as a result of service failures
The Convergence of Service and Cost Savings
In the face of these challenges, there is hope for shippers seeking a harmonious convergence of service and savings.
“Choosing the lowest cost option does not always mean service is at risk. A carrier is able to provide high-level service at low costs too,” according to Nick Ryan, Branch Director of FLS Transportation in Dallas.
Ryan reminds us that choosing the lowest-cost option does not automatically imply compromising on service. Ryan stated that carriers can indeed provide exceptional service at competitive prices. However, he also warns that shippers must remain vigilant, as some low-cost carriers may cut corners, ultimately leading to higher costs in the long run.
Partnering with Trusted 3PLs
Trusted and reliable third-party logistics providers (3PLs) like FLS Transportation Services, have teams dedicated to meticulously screening carriers and continuously monitoring their performance, ensuring that shippers align themselves with reputable and cost-competitive partners.
By prioritizing this crucial due diligence, shippers safeguard their own interests and the satisfaction of their customers, mitigating risks and optimizing supply chain operations.
Shippers can partner with a trusted logistical powerhouse 3PL like FLS Transportation, to ensure they are working with reputable, cost-competitive carrier partners. Doing so lets the shipper focus on growing their business, rather than spending additional time and resources vetting thousands of carriers.
FLS Transportation’s Approach
With nearly four decades of experience, FLS Transportation has honed a unique approach that emphasizes both service excellence and cost optimization.
“Almost four decades of experience has allowed FLS to carve out its place as the most trusted customer service-oriented, cost-competitive logistics partner in North America,” Goodall said. “It is our commitment to our customers that they will receive on-time deliveries, in-tact, at competitive prices, with unparalleled service.”
High-performing 3PLs give shippers instant access to a vast network of reliable carriers who have undergone rigorous screening and continuous performance monitoring. This ensures that every link in the supply chain is fortified with trustworthy and cost-competitive partners.
Data-Driven Decision-Making
Delays and disruptions can wreak havoc on a company’s bottom line. Recognizing that exceptional service is a non-negotiable priority, FLS Transportation employs clear, honest, and proactive communication throughout the shipment lifecycle.
Their customer care teams:
- Leverage best-in-class advanced transportation management and tracking visibility tools, giving shippers transparency on their shipment details and locations.
- Provide ongoing, and proactive flows of communication to make a proper decision and achieve the best possible outcome to minimize the risk of service-related setbacks.
- Utilized historical transportation management data and visibility tools that provide decision-making insights for future shipments.
This data-driven approach not only enhances efficiency but also fosters a competitive advantage in a rapidly changing marketplace.
FLS Transportation’s commitment to service excellence facilitates lower transportation costs, as it streamlines operations, and reduces inefficiencies.