High shipping costs can cause a domino effect of challenges for the transportation industry. They can even reach as far as impacting overall profitability and operational efficiency. UTS offers cutting-edge software to help your company overcome these obstacles by optimizing shipping processes, streamlining operations and being cost-effective without compromising on quality of service so that you can get your supply chain management costs under control.
Issues Caused by High Shipping Costs:
- Lost Sales and Customers: High shipping costs can significantly influence purchasing decisions. When shipping expenses are substantial, clients may seek out another service provider who offers more competitive rates. This results in missed opportunities to increase revenue and expand market share.
- Fewer Inventory Turns: Inefficient shipping processes and high costs can lead to delays in transporting goods from suppliers to warehouses to end customers. These delays can disrupt inventory management and reduce the frequency of inventory turns.
- Inaccurate Budgeting and Forecasting: High shipping costs can lead to budgeting and forecasting inaccuracies, as unexpected surges in transportation expenses can strain financial resources and disrupt revenue projections.
- Surprise Adjustments to Shipping Charges: With fluctuating prices and shipping regulations, enterprises may face sudden and unexpected adjustments to shipping charges. Such unpredictability can disrupt financial stability and create uncertainty within your organization.
- Margin Erosion: High shipping costs can directly impact profit margins, eroding the overall profitability of your enterprise.
Supply Chain Cost Reduction Strategies
Navigating the complexities of transportation logistics can be challenging. At UTS, we understand all the issues you may encounter and provide comprehensive transportation cost management services that streamline your shipping processes to alleviate common transportation problems and reduce supply chain costs.
Comprehensive Transportation Cost Management Services
At UTS, we offer comprehensive transportation cost management services tailored to meet your specific needs. Our team of experts analyzes your shipping requirements, volume and destinations to create a customized cost management and supply chain strategy. By leveraging our industry knowledge and cutting-edge technologies, we can identify cost-saving opportunities, negotiate favorable rates with carriers and eliminate unnecessary expenses—ensuring you get the best value for your transportation spend.
Carrier RFPs Specific to Your Priorities and Shipment Profile
Finding the right carriers to partner with is essential for smooth and efficient transportation. However, the RFP process can be time-consuming and overwhelming. Our team takes the burden off your shoulders by conducting carrier RFPs on your behalf. We take into account your shipment profile, delivery timeframes and priorities—ensuring that the selected carriers align perfectly with your business requirements. By fostering strategic partnerships with reliable carriers, we enhance your shipping capabilities, leading to improved delivery performance and customer satisfaction.
Supplier Compliance with Routing Instructions
Inconsistent supplier compliance with routing instructions can disrupt your supply chain and lead to unnecessary delays and costs. Our team works closely with your suppliers, fostering clear communication and ensuring compliance with your routing instructions. By establishing a well-organized and standardized shipping process, we reduce the chances of errors, increase efficiency and enhance your supply chain’s overall reliability.
Proprietary Best Value Carrier Ranking Methodology
Selecting the best carriers can be a challenging task, as it requires evaluating various factors such as service quality, reliability and pricing. Our proprietary Best Value Carrier Ranking Methodology simplifies this process, ranking carriers based on their performance and compatibility with your unique shipping needs. This approach empowers you to make informed decisions about carrier selection, promoting long-term partnerships that benefit your bottom line.
Audit of Carrier Charges for Accuracy and Validity
Transportation charges can be complex and errors in billing can lead to significant financial losses. At UTS, we take the responsibility of auditing all carrier charges in your supply chain network to guarantee their accuracy and validity. Our team scrutinizes each invoice, cross-referencing it with the agreed-upon rates and service levels, and rectifies any discrepancies on your behalf. This approach not only saves you time and effort but also helps you reclaim any overcharged amounts, contributing to cost savings and financial transparency.
See How UTS Can Help Resolve High and “Surprise” Shipping Costs
If high shipping costs are affecting your organization, UTS may be able to help. See how our full-service approach to transportation management can help streamline your ordering processes and ensure your shipping costs are reasonable and accurate. Request a demo today!
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