Optimizing Freight Procurement with a TMS

Introduction

Freight procurement is a cornerstone of logistics operations, but inefficiencies in the process can cost shippers time, money, and flexibility. Without a streamlined system, businesses often struggle with manual rate shopping, limited carrier options, and a lack of data-driven decision-making.

This guide will explore common freight procurement challenges and how a Transportation Management System (TMS), like Port TMS, can transform the process into a streamlined, data-driven operation.

What Is Freight Procurement and Why Is It Challenging?

Defining Freight Procurement

Freight procurement refers to the process of sourcing carriers, comparing rates, and managing relationships to move goods efficiently. It is essential for maintaining cost-effective and reliable transportation in supply chain management.

Challenges Without a TMS

Without a TMS, businesses often encounter the following hurdles:

• Manual Rate Shopping: Comparing freight rates manually is time-consuming and inefficient.
• Overpaying for Freight: Limited visibility into carrier rates results in higher costs.
• Restricted Carrier Networks: A small pool of carriers limits flexibility and cost-saving opportunities.
• Lack of Performance Data: Shippers cannot measure carrier performance or optimize freight spend without analytics.

Key Features of a TMS That Optimizes Freight Procurement

Real-Time Rate Comparisons

A TMS like Port TMS aggregates rates from multiple carriers instantly, allowing shippers to:

• Save time by automating rate shopping.
• Ensure they always get competitive rates.

Expanded Carrier Networks

A TMS provides access to a broad range of carriers, enabling:

• Greater flexibility in choosing transport options.
• Reduced reliance on a limited number of carriers, leading to better pricing.

Mode Optimization

A TMS helps compare different transportation modes, including Less Than Truckload (LTL), Full Truckload (FTL), and intermodal shipping. This allows businesses to:

• Choose the most cost-effective mode for every shipment.
• Reduce unnecessary freight expenses.

Carrier Performance Tracking

Using a TMS, shippers can track key performance indicators (KPIs) such as:

• On-time performance.
• Reliability and cost trends.
• Data-driven insights to negotiate better rates.

The Benefits of Using a TMS for Freight Procurement

Time Savings

Automating rate shopping, tendering, and carrier selection can free up valuable hours each week.

Cost Reductions

A TMS eliminates overcharges, optimizes shipping modes, and ensures the best carrier pricing.

Improved Decision-Making

With analytics and performance data, businesses can make informed decisions to optimize their freight procurement process.

Scalability

A TMS allows businesses to handle increased shipment volumes efficiently without adding extra staff.

Case Study: How Port TMS Simplifies Freight Procurement

The Challenge

A large retailer was managing procurement manually for hundreds of shipments per week, leading to inefficiencies and high costs.

The Solution

By implementing Port TMS, the company automated rate comparisons, tracked carrier performance, and optimized shipping modes.

The Results

• Reduced freight costs by 15%.
• Saved 10+ hours per week on manual rate shopping.
• Improved carrier selection through performance tracking.

Actionable Steps to Get Started with Freight Procurement Optimization

Step 1: Audit Your Current Process

Evaluate inefficiencies and areas where cost savings could be achieved.

Step 2: Identify Gaps in Carrier Networks

Assess whether you have sufficient carrier options and visibility into freight rates.

Step 3: Implement a TMS Like Port TMS

Adopt a TMS to automate procurement and improve logistics operations.

Step 4: Leverage TMS Analytics

Use data insights to refine and enhance procurement strategies continuously.

Conclusion

Freight procurement is complex, but a modern TMS simplifies the process, saves time, and reduces costs. With real-time rate comparisons, expanded carrier networks, and data-driven decision-making, shippers can achieve significant cost savings and efficiency gains.

Ready to optimize your freight procurement process?

Contact Port TMS today or schedule a free demo to see how we can help you save time and money!