Today more than ever, you will hear the term 'competitive advantage' frequently. No, it is not a simple cliché obtained from a motivational talk; the reality is that today this concept is more relevant to explain the ability of a company to differentiate itself from the rest.
This goal will come to fruition as long as the modality it will operate is correctly chosen, especially in the competitive logistics and freight transport sector.
The supply chain depends 100% on several factors for its optimal functioning. From the transfer, distribution, supply of cargo to logistics costs and customer service, all of these scenarios directly influence its development.
In the case of road transport, less than truckload(LTL) and full truckload(FTL) modalities are the two main bastions for its operation, so having a good diagnosis on which one should be used will be essential to obtain the competitive advantage that is so desired.
Less than truckload and its advantages
Unlike the full truckload (FTL), where the operator goes directly to the final destination of his merchandise, the less than truckload transportation is better for all those shippers who do not have enough load to occupy all the space of the truck.
In this way, you can choose to consolidate your cargo together with the goods of other shippers or companies that carry a similar route, allowing advantages such as:
- More space optimization
- Costs reduction
- Reduction of storage times and expenses
- More profitability and flexibility
Less than truckload is ideal for those goods that are not large, when delivery times are not so tight or where special conditions of preservation of the product are not needed.
For a shipment to be considered consolidated, it must be represented by one ton per pallet (portable rigid platform). Less than one pallet could be qualified as a parcel service, depending on the weight.
In the case of local routes, carriers generally use trucks with a short cabin to be able to transport a greater weight of the products shipped.
The rates in this type of shipment depend on several factors, among which are the weight of the shipment, the density, the distance, the packaging, and the type of product, among others.
Difficulties of shipping a consolidated cargo
Despite these advantages, shipping a consolidated load today is extremely complicated, just as it is for any carrier who wants to get it.
From the outset, the planning processes are eternal. Finding the correct budget, route, and price for all shipments seems more difficult than finding the needle in a haystack.
In addition, there are the 'phantom' costs, mainly caused by logistics agents, who usually charge as if it were a full container and did not notify about the series of additional payments that must be done at the destination port, beyond only the cost of freight.
According to specialists, the foregoing means that transportation costs represent about 50% of the merchandise value (as long as the cargo is low-cost).
At the same time, the configuration of the consolidated shipment makes the products more prone to suffering some type of damage, so it is necessary to have constant monitoring of the load.
How can the shipment type be planned and scheduled quickly and efficiently?
At that point, it becomes extremely important to develop an in-depth and conscientious analysis, but how can all this be achieved? Technology is the answer.
TrackChain has an advanced transportation management system (TMS), which helps plan and schedule both full and consolidated loads according to demand.
Based on the cloud, TrackChain's open and FREE TMS can combine different senders, which can compare costs, capacities, times, stops, orders, and insurance in real-time.
Comparisons between different carriers to identify the most optimal cargo and/or shipment ensure that the customer acquires the best service and at the best cost.
Enter what, where, and when, and TrackChain's algorithms will find the correct quote, route, supplier, and price for all your truck shipments.
All this will prevent you from wasting useful time on those tedious calls and emails, which will increase your productivity and therefore your profitability.
You will be able to simplify planning processes, optimize routes, and, with digital documents based on permits and transaction history, you will achieve a faster reconciliation of invoices.
At the same time, the use of the TrackChain TMS software will allow you to take better control of the preventive maintenance of your units, reducing their wear and tear and increasing their profitability.
Do not hesitate and join TrackChain right now to streamline your operations, optimize times and procedures, save costs and achieve your goals. For your peace of mind, you can request a free demo.
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