In today’s competitive environment where profit margins are slim, more manufacturers are turning to premium freight logistics in order to meet their shipping needs.

premium freight

In the past, companies have historically used this method of shipping as a means to keep production lines running during a parts shortage, however, a paradigm shift is underway with more companies factoring in the use of premium freight in their overall contingency plan when considering new supply routes that require robust 24/7 solutions.

While this method of shipment can add to transportation costs, manufacturers are becoming increasingly aware that their use of premium freight logistics is not necessarily due to inefficiencies in their production or supply chain, rather they are able to treat these occurrences as occasional but necessary expenditures within their budget that help to maintain overall production efficiency.

With a variety of logistic challenges facing today’s manufacturers, such as the need to meet increasingly tight distribution and re-stocking deadlines and a desire to mitigate warehousing costs, the use of premium freight logistics is becoming more necessary and widespread.

FREIGHT LOGISTICS: ADOPTING A LONG-TERM PERSPECTIVE

Manufacturers are discovering that they can achieve significant savings by incorporating the use of premium freight logistics as part of a long-term strategic plan to reduce overall transportation costs.

Many times a company will include premium expenses in their general transportation budget rather than breaking down these expenses into separate line items that would facilitate closer scrutiny and analysis.

Through investigation of the causes and expenses associated with expedited freight occurrences, manufacturers can identify potential inefficiencies and look for issues to address that may result in reduced costs and a better ability to meet critical production and distribution deadlines.

STRATEGIC PARTNERSHIPS

Companies who develop close working relationships with third-party providers (3PL) such as Skyfer Logistic begin to view them as strategic partners and valuable assets who bring to the table specialized resources for analysis as well as key insights based on their extensive industry experience across multiple modes of transportation. Through effective and timely communication and analysis of inefficiencies these partnerships can result in overall cost reductions to transportation budgets and increased supply chain efficiency.