5 essential strategies to elevate communication with your transportation providers
In an ever-changing logistics environment where time and efficiency are key factors, shippers face a constant challenge: managing transport capacity and maintaining smooth and efficient communication with their carriers.
The coordination and allocation of transport orders to each supplier are often complex processes and, without good management, can lead to bottlenecks, errors and, ultimately, additional costs.
Given the forthcoming European directives that promote sustainability, it is not surprising that they will also do so through hyperconnectivity, digitalization of documents such as the eCMR and transparency of emissions, allowing companies to have clearer control over their environmental impact.
However, for the logistics sector, sustainability is not only about reducing emissions, but extends to the way companies manage their resources, how they treat their employees and how they interact with their communities, known as ESG (Environmental, Social and Governance).
In terms of efficient management of the supply chain, which involves multiple actors, from suppliers to customers and transporters, cooperation is key to the pursuit of this 360º sustainability. It is no longer enough for each company to optimize its processes in isolation; the real change comes when all links in the supply chain, from suppliers to carriers and customers, work together in a coordinated manner.
Let’s explore how technology can solve the communication problems that often arise:
1. Communication simplification and elimination of redundancy
One of the most frequent problems in the assignment of transport orders is the lack of a unified channel for communication. Shippers find themselves having to send multiple emails and make phone calls to confirm details, adjust timelines and ensure that everything is in order. This can be especially problematic when orders are handled manually and there is no centralized system.
CargoON’s Freights module allows you to manage all transport orders in one place, eliminating the need for separate tools or multiple channels as it easily integrates via API to your TMS or ERP. This means that we can act as connectivity from, for example, SAP assigning the order to the carrier they already have determined or play with the algorithm and allocation according to availability and best price and route. All this facilitates communication between shippers and carriers, reducing duplications and avoiding confusion in the allocation and confirmation processes.
2. Automated Order Assignment: Saving Time and Accuracy
Assigning transport orders manually is often a time-consuming process, especially when it comes to analyzing each carrier’s availability, cost and transit times. With a digital solution like Freights, the shipper can automate this assignment, which not only speeds up the process, but also allows shippers to take full advantage of their suppliers’ capacity, distributing freight more effectively, reducing the risk of delays and empty miles, and pre-planning several transports at once for fractional delivery.
3. Transparency and real-time access to data
One of the most important aspects of the relationship with suppliers is transparency. Without explicit visibility of information, both shippers and carriers can face delays and misunderstandings. CargoON, through its Freights module, allows shippers to share real-time data on each transport order, ensuring that each carrier has access to the details essential to its management. In the same way, the carrier can report any problems en route and even record extra costs, such as those related to downtime, so that the arrival of the invoice does not come as a surprise.
Thanks to this transparency, the need for follow-up mailings or calls is reduced, as both the shipper and the carrier are aware of the requirements and status of each order. Information flows efficiently, thus reducing communication problems that often lead to setbacks and additional costs.
4. Improved collaboration and relationship with carriers
Efficient communication not only has operational benefits, but also strengthens the relationship with transportation providers. By having a unified system that facilitates the flow of information and automates processes, carriers can focus on their main task – the delivery of goods – without having to worry about last-minute reconfirmations or adjustments.
For the shipper, this improved relationship translates into more collaborative and reliable work, in which carriers are true logistics partners. This not only increases the quality of service, but also creates a more robust and efficient transportation network.
Likewise, the possibility of measuring the performance of each carrier through the Reports module, an important KPI for any logistics department, allows for the renegotiation of rates and the rewarding and loyalty of those carriers that deliver on time and in full (OTIF) and therefore help us to offer a quality service to our customers, while avoiding financial penalties for not serving on time.
5. Turn technology into your partner
The adoption of digital tools implies breaking with the traditional work model and sometimes this is not well received by our own employees. When it comes to extending digital transformation to our partner ecosystem, the challenge can be even greater.
Often, carriers refuse to collaborate with their customers through new tools, either because it means extra cost for them or because there is limited access to training and support. In the case of CargoON, the business model is not based on pay-per-use by the carrier and there is a real support in the training of carriers.
Involving the carrier from the beginning of the process and taking into account their needs when dealing with the proposed technology will be key to the success of the project.
Conclusion: digital transformation as a solution to communication problems
Digitalization goes beyond modernizing processes, it involves transforming the way shippers and transport providers interact. For shippers looking to maximize efficiency and improve collaboration with their suppliers, going for digitalization of transport order allocation processes is a decision that will not only reduce costs and optimize times, but also drive stronger and more reliable relationships with carriers.
Tools such as CargoON’s Freights module, the best freight assignment engine, help optimize the efficiency of the entire process from quotation creation to freight order acceptance, and also simplify and structure the communication with our carriers.
Explore how to take your transportation management to the next level: improve communication with your carriers and strengthen your logistics ecosystem:
