3 Key Components to a Successful Shipment Execution Strategy

Effective load planning and order management means nothing without a proper execution strategy. Execution means putting that strategy into play to efficiently and economically move freight from one place to another.

But effectively executing requires ongoing communication with carriers. Appropriate documentation, record-keeping, and proper forecasting are also essential to anticipate bumps in the road before they arise.

One of the best approaches for implementing a successful execution strategy is to forge a partnership with a reliable logistics management team. By partnering, shippers can streamline processes and ensure plans are executed according to strategy.

Effective carrier communication

Shippers can only respond to bottlenecks or delays in the supply chain when they know about them. A trustworthy supply chain management partner ensures efficient and hassle-free communication by automating communication between supply chain teams and carrier partners through a transportation management system (TMS) solution.

A supply chain management team combined with a TMS allows shippers to communicate directly with carriers through a web-based portal. They can share essential freight details or discuss potential issues. By streamlining communication, delays are minimized, and shippers can devote less time to manual tasks.

For example, shippers can send carriers a tender, or an offer for a load, electronically through an Electronic Data Interchange (EDI) or Application Programming Interface (API). The carrier can either accept or reject the offer. Instead of a time-consuming back-and-forth, this platform allows for immediate responses.

Simplified document generation

Streamlined communication means faster documentation and record-keeping. Documentation is a necessary part of any contractual agreement between shippers and carriers.

One of the most critical documents that shippers and carriers require is the bill of lading (or BoL). A carrier issues this legal document to a shipper that details the type, quantity, and destination of the transported goods.

The document generation process is simple with a supply chain partner and TMS. The built-in data capture technology from TMS automatically pulls and logs important information about freight shipments.

Once the information has been logged, documentation is completed electronically. The data elements required for invoice validation are automatically captured, including the purchase order and freight cost details.

Finally, shipment and BOL records get mapped to the freight audit system for matching. This level of automation means staff is not bogged down with tedious paperwork. As a result, records are more accurate, and documentation is more precise—without spending valuable staff hours to complete everything manually.

Efficient spot quote management

A spot rate, also known as a spot quote, is a one-time fee that a shipper pays to move a load at current market pricing. Shippers often rely on spot quotes when they need to move freight quickly but don’t have enough carriers with capacity.

Therefore, it’s better to secure a reliable carrier at a competitive rate to avoid a potentially costly spot quote in the future. An effective shipment execution strategy helps shippers secure the most competitive carrier rate with ease.

By leveraging a TMS like CTSI-Global’s Honeybee TMS™, shippers can enter a competitive bidding environment from a stronger negotiation position. Through the web portal, carriers now vie for the attention of shippers rather than carriers dictating high rates. That way, shippers have easy access to a vast network of carriers at the best price.

Execute on strong ideas

Smooth shipping operations begin with planning and follow through with a strong execution strategy. With over sixty years of experience and relationships with more than 20,000 carriers, CTSI-Global is uniquely positioned to help shippers hone their execution strategy—saving time and money in the process.

Execute your great ideas with an effective shipping execution strategy. Contact us today to get started.