Challenges - Freight Forwarding Industry
Freight & Hub Capacity Planning
Labor Capacities and Transportation Assets are not aligned
In freight forwarding industries, the highest cost items are not real estate, sales, or marketing. Instead, budgets are typically dominated by labor cost for administration, goods movements at the freight hubs, and internal/external transportation costs, e.g. trucks and drivers.
Today, one of the major objectives of freight forwarders is to maximize the utilization of these expensive assets and improve upon historically low margins. Many mid-range planning decisions are based on past events and “gut feelings” about potential needs in the future, meaning that companies who can find smarter ways to forecast mid-range capacity needs will quickly outperform the competition.
To align their capacities with future needs, companies must validated forecasts for truck and labor capacities based on:
- Rolling forecast models
- Strategic consideration of future changes (e.g. customer demand, schedule changes, etc.)
Using high-quality mid-range forecasts, companies can:
- Improve labor utilization via strategic shift planning, keeping cost low and quality high.
- Secure transportation capacities at better costs, avoiding emergency situations.
By defining their demand earlier, freight forwarding companies will benefit from better rates and more reliable supply situations. Not only that, but with Logistics 4.0 these forecasts will be distributed to strategic suppliers of trucking capacities and to trucking marketplaces, thus allowing suppliers to also optimize their structures and enabling an entire industry to become more efficient and to leverage resources in the best possible way.
flexis Freight & Hub Capacity Planner enables freight forwarding companies to achieve that optimization, helping them to outperform the market.