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The Ultimate Guide to Freight Management

By March 16, 2023January 22nd, 2024No Comments

Freight management done right – it’s crucial for any business with products that need to get from point A to point B (that is to say, a lot of businesses). There are so many moving parts that go into successful freight management (literally), which is why many companies opt to hire a freight management service. Freight management services oversee many things, including the successful shipment of your business’s products, so it’s a good idea to have an understanding of what they do. Today, we will take a look at what exactly freight management services are, what they do, why they’re important, and more. Let’s get going!

What is Freight Management?

Freight management is the process of strategically using a variety of transportation methods, technologies, and 3rd party shippers to move freight from one point to another. A few other names for freight management that you may come across are supply chain management, transportation management services, managed logistic services, and inbound freight management. No matter what it’s called, they all have the same goal in mind – to safely transport your products where they need to go, to the correct destination, and in a timely manner that reflects positively on your business.

Businesses that provide freight management services have experts who specialize in coordinating the logistics necessary to move freight, which is why so many companies choose to outsource these services. Freight management is best done by those who know what they are doing. Oftentimes, business owners simply do not have the time to manage these logistics on their own, and a good working relationship with a company that specializes in freight management services can save them time and money. 

Why Freight Management is Important

Shipping products can get expensive in a hurry – and it can also be time-consuming to manage the logistics involved when making sure that they get to the right place at the right time in one piece. Luckily, this is where freight management comes in! 

Freight management services provide a solution for companies to deliver their products on time at the lowest possible price. Another benefit that these services provide is that they fulfill orders efficiently, which also help to save time and money. With this less expensive and less time-consuming option, companies can focus on other parts of their business knowing that experts are taking care of their logistics and freight needs. 

Types of Transport Used

In the US and Canada, the most common type of transport used is ground transportation. Different types of ground transportation that you might already be familiar with include full truckloads (freight that fills an entire semi-truck), less than truckload (LTL), and parcel transportation – which is often used to fulfill e-commerce orders that include smaller deliveries. 

Although ground transportation might be the most common way to deliver freight, it is far from the only option available. Freight can also find its way to the correct destination by rail on a train, through the air on an airplane, or across bodies of water on ships. 

Duties of a Freight Management Service

Ultimately, freight management companies want to make sure that a business’s products safely get to their destination in a timely manner. To do this, there are some extra steps that they take in-between. 

To keep costs low and products moving where they need to be, freight management folks use route and scheduling optimization to ensure that their carriers are taking the most efficient route possible. They may do this to cut down on mileage or reduce the time that their carriers spend in traffic – both of which can contribute significantly to saving money. In addition to optimizing the route, these companies also spend time load planning. This involves figuring out how to ship as many products as possible on as few trucks/vehicles as possible. Deciding how many and what type of trucks and vehicles to use is another important step, and is known as multimodal optimization. This step is another way that freight management services cut down on cost and time spent to ship products to their destination. 

Of course, while it’s important to plan out the route and loading logistics of freight, it’s also essential for freight management services to track shipments throughout their journey. They do this using GPS tracking, barcodes, and RFID. If you’ve ever received a text or email notification about a package that’s being shipped to you, you’ve benefited from this tracking yourself!

In the midst of all this planning and logistics, freight management companies also deal with their fair share of paperwork. A few examples include Bill of Lading (BOL), Proof of Delivery (POD), tariffs for international cargo, and accounting paperwork to document their own finances.

The UCW Difference

The benefits that come from freight management can only be realized if you have the right partner with your best interests in mind. That’s why UCW should be at the top of your list when researching logistics solutions. 

UCW is different because we’ve been championing integrity in the logistics industry for years. Our customers are our priority, and we find the solutions that you need to get your freight where it needs to go, when it needs to be there. We have a proven track record of delivering customized logistics solutions for even the most unique situations and tight time constraints. We use truckload, LTL, oversize/OOG, expedited, and intermodal shipping methods to ensure that you don’t miss a deadline. Your success is our success, and we are determined to give you the quality service that you deserve. 

Interested in learning more about UCW and the solutions that we can offer for your business? We would love to speak with you!