Freight Audit & Payment Data Insights Can Help Shippers Forecast for Supply Chain Peak Season
Trax reports data insights as essential for reducing risks and optimizing shipping costs this peak season
Data insights are key to a successful 2023 peak season, regardless of transportation mode. Spikes may not be as drastic this year due to the change in consumer spending behavior and initiatives by retailers to spread out the peak season over a longer period of time using discounts and other incentives. However, Trax Technologies (Trax), the global leader in Transportation Spend Management (TSM) solutions, advises supply chain leaders to leverage a data-rich peak season shipping strategy to minimize inefficiencies, risks and costs.
The large amount of data collected by the freight audit and payment (FAP) process enables Trax to support a portion of the data-driven decisions companies require to estimate costs and optimization opportunities surrounding peak-season forecasts based on historical data and monitor costs during peak season itself. Effective use of transportation related cost data, including freight, fuel and the multitude of surcharges by mode of transportation and service permit a deep dive on how companies can accurately forecast and optimize shipping before, during, and after peak season.
Transportation management is the process of planning, executing, and optimizing the movement of goods. When successfully executed, a transportation management strategy makes it easier for shippers to achieve an error-free, cost-effective, fast, and smooth flow of products.
Maximizing the value of data, such as freight audit and payment (FAP) data, are a material part of the overall control tower strategy most companies rely on as they improve the end to end governance of processing related to supply chain logistics. Good data improves visibility, decision-making, and operational efficiency. During peak season, strategies often need to shift to accommodate increased demand and limited capacity, which often impacts the cost of moving goods.
Diversifying the modes of transportation, for example, by choosing rail instead of over-the-road (OTR) options can alleviate some transportation costs. Using data insights from transportation spend tools and knowing that each segment of the logistics industry will experience its peak at different points over the next few months, will prove beneficial in such instances. Backed by data, shippers can be confident in decision-making and easily navigate the remainder of 2023.