Do you control your transport costs?
Logistics is an area that is growing very fast in most companies, and transport costs are als rising accordingly. But many companies do not really know what exactly they are paying for. In this article we would like to show you some examples
First some facts to the topic of transport costs in companies. It is fact that more than 80 % of European companies pay to high values for freight forwarding. By the constant export growth in Europe, which is connected with rising forwarding costs and individual requirements for the logistic service provider, it is getting more and more complicated for companies to prove these costs on their correctness.
A factor that leads to high transport costs is that companies work with a lot of service provider together and these serve a lot of clients with different performance requirements. Contracts and tariffs come in many different forms. Important aspects are, for example, the receiving country, which regions are to be supplied, the type of Transports (LTL, FTL) and many more.
The cost of transportation will increase rapidly as a result of currency differences, waiting times different from country to country or non-existent consolidation proposals. These are just some of the more obvious points which lead to high transport costs. Other such as e.g. Different discount structures and tariff structures, where it is unclear how certain cost items are rounded off or how the weight is actually measured, are usually unfamiliar to the customers of the freight forwarders.
The HDS International Group ios one of Europe’s largest consulting companies in the field of logistic Controlling and transport costs Management. HDS analyzed the actual costs, making cost comparison with alternative models condition and provides vulnerability analysis for logistic processes and- costs.