Question

Describe process to manage inbound freight?

Answer 1

The process of managing the inbound freight contains the below-mentioned steps=

                With the help of the supplier, determine the most efficient and cost-effective shipment methods and unloading method for the freight and develop a plan with the help of the supplier that can facilitate the mutual benefit.

Development of the standard routing guide is important for the supplier as it will develop the combination of compulsory parameters which has to be followed by vendor-controlled (VDS) and customer pick-up (CPU) shipments.

The manager must give a thought to use the consolidated inbound shipments to full truckload as it will be quite helpful in managing and reducing the freight and unloading costs. Greater efficiency can be obtained by having less number of individuals less-than-truckload in the distribution center.

It is always preferred to have long term association with the carrier that facilitates the most competing freight prices and these can be negotiated once or twice a year so that the fluctuation in freight costs can be managed.

It is important to have the automated Vendor Inbound Compliance Standards (VICS) so that the behavior and performance of the carrier can be monitored and managed for the better performance

Once this is done, now the manager has to look for the different penalties in case the compliances are violated by the carrier.

After this, it is important to establish the supplier portal system so that better coordination and communication can be established with the carrier so that any deviation can be avoided.

The performance of the inbound inventory carrier has to be recorded and analyzed in order to have some control or improve the performance.