Freight Bill Auditing: Benefits, Process & Cost Control
For a supply chain to perform at its mostoptimal, it requires a fair amount of work. Working with a transportation management partner can help ease this burden. In this blog post, we'll explore how freight forwarding companies can help streamline your shipping operations and when partnering with one makes sense for your business.
There is an entire inventory to manage, paperwork to be updated, pallets to stack, and trucks to fill with goods. For large-scale shipping operations, you can go ahead and triple that workload.
And that's just the beginning of the shipping process. We're not even taking into account the daily ins and outs of a typical business day.
Furthermore, making sure the actual transportation of your products is safe and efficient is the most critical part of the whole operation. Freight still needs to be tracked while it is on the road. Needless to say, that is a rather large job all its own. Many smaller companies often find it difficult to fully dedicate themselves to fulfilling all of these roles in-house. So, they start to outsource bits of the process here and there, or they go all in and partner up with an experienced 4PL or 3PL service.
But, for those who want to avoid excessive costs from piecemeal outsourcing, there is a middle ground!
By outsourcing just a small portion of its shipping workload to a freight forwarding company, shippers can make massive gains, provide a better customer experience, and build more value into their supply chain.
But how do you know if this is the right move for your company?
What Value do Freight Forwarders Provide?
Hiring a freight forwarding company is all about improving your logistics operations. However, it is all too common for shippers to expect far too much in regards to what value third-party companies provide. Just as with hiring an employee, you must look at their strengths compared to their weaknesses. Doing so beforehand helps you determine if they are truly a good fit.
Freight forwarders are tasked with being the middleman between the shipper and the carrier. A good freight forwarder has a strong network of carriers that they can pull from. Additionally, they have the ability to negotiate transportation rates that are not available to the general public. Furthermore, they will have a proven track record of being able to represent their clients brand well. After all, your freight forwarder is responsible for ensuring the delivery of goods is up to the standards of your customers. If they mess up, experience constant delays or your deliveries are suffering frequent damages, it can severely cripple the impression your customers have of your business.
But when you work with a well-rounded and reputable freight forwarder, it can significantly improve your shipping operations!
What Services do Freight Forwarders Offer?
A freight forwarder is essentially just a middle man that facilitates agreements between a shipper and a carrier. They make sure that your goods are transported by experienced carriers and that your customer receives the best service possible!
Taking things a bit further, however, some freight forwarders go above and beyond just standard services for their clients. As a matter of fact, many freight forwarders offer multiple services that provide value throughout a company’s logistics network by helping them with several management tasks and reporting functions. However, freight forwarders are not the same thing as a 3PL and therefore not all of them offer additional services.
But, when you find one that does, some of the additional services may include:
- Analysis of the relation between supply chain networks and carriers.
- Improving the cost-effectiveness of shipping and receiving.
- Navigating evolving regulations for US-based and international shipping.
- Improving customer service and communications standards.
- Providing detailed shipment tracking and reporting.
Final Thoughts
When evaluating freight forwarding partnerships, it's important to understand what differentiates a true logistics partner from a transactional provider. And when it's time to choose one, it's helpful to know exactly what they can do for you and what you can expect.
If you are still unsure of how to go about partnering with a freight forwarder, or unsure if you even need one, reach out to learn how Redwood's Open 4PL approach can help. We can help you determine exactly what type of services you need to take your shipping efforts to the next level. More importantly, we can walk you through the process of optimizing your logistics operations!
Contact Redwood Logistics today to get started!
FAQs
What does a freight forwarder actually do?
A freight forwarder acts as the middleman between a shipper and a carrier, arranging transportation and negotiating rates on the shipper's behalf. In practice, that means helping move goods through the shipping process while making sure the carrier relationship supports the customer experience. A good freight forwarder also brings an established carrier network and shipping expertise that many shippers do not have in-house.
How are freight forwarders different from a 3PL?
Freight forwarders are not the same as a 3PL. A freight forwarder primarily facilitates agreements between shippers and carriers, while a 3PL may offer broader logistics services such as management, reporting, and operational support. Some freight forwarders offer additional services, but not all do, so it is important to confirm the scope before assuming they function like a full 3PL.
What services can freight forwarders provide beyond booking transportation?
Some freight forwarders provide more than basic transportation coordination. Additional services may include analyzing the relationship between supply chain networks and carriers, improving shipping cost effectiveness, navigating changing regulations for domestic and international shipping, strengthening customer communications, and providing detailed shipment tracking and reporting. The exact service mix depends on the forwarder, since not all offer the same support.
When should a company consider using a freight forwarder?
A company should consider a freight forwarder when managing transportation in-house is stretching the team too thin. It can be a useful middle ground for shippers that do not want to outsource everything but need help with part of the shipping workload. This is especially relevant when the business wants to reduce operational strain without taking on the cost of piecemeal outsourcing.
What value do freight forwarders provide to shippers?
Freight forwarders can improve shipping operations by connecting shippers with experienced carriers, helping negotiate better transportation rates, and supporting more reliable service. When they are well-rounded and reputable, they can also help protect the customer experience by reducing delays and damage. Their value comes from improving efficiency while keeping the shipping process more manageable for the shipper.
Do freight forwarders help with international shipping regulations?
Yes, some freight forwarders help navigate evolving regulations for both U.S.-based and international shipping. That support can be especially useful when a shipper needs help staying aligned with changing requirements while coordinating transportation. However, regulatory support is an additional service, not a universal one, so it depends on the specific forwarder.
How do freight forwarders affect customer experience?
Freight forwarders can have a direct impact on customer experience because they help ensure goods are delivered to the expected standard. If the forwarder causes delays or repeated damage, that can hurt how customers view the business. A strong freight forwarder helps keep delivery performance steady, which supports trust and satisfaction.
