Glossary

Freight Management

Definition

Freight management is the process of strategically planning, organizing, and overseeing the movement of goods from one location to another. It involves the selection of transportation modes, route optimization, carrier negotiation, shipment tracking, documentation, customs clearance, and warehousing. The goal is to streamline logistics operations, minimize costs, and ensure timely and reliable delivery of goods.

— sennder Team

FAQ

Some essential components of freight management include: - Transportation planning: Determining the most suitable mode of transport and the best route for shipping goods. - Carrier selection and negotiation: Identifying and negotiating with reliable carriers to obtain the best rates and service. - Documentation and customs clearance: Ensuring all required shipping documents are prepared and processed, and facilitating the clearance of goods through customs. - Shipment tracking and monitoring: Keeping track of the shipment's progress and addressing any issues that may arise during transit. - Warehousing and storage: Arranging for the storage of goods before or after transportation.
Technology has significantly transformed freight management, enabling greater efficiency, visibility, and control over logistics operations. Some examples include: - Transportation management systems (TMS): Software solutions that help plan, execute, and monitor shipments, optimize routes, and manage carriers. - Electronic data interchange (EDI): The electronic exchange of shipping documents, invoices, and other information between shippers, carriers, and other logistics stakeholders. - GPS tracking and telematics: Real-time tracking of shipments and vehicles, allowing for better monitoring and decision-making. - Internet of Things (IoT): Sensors and devices that collect and transmit data on shipment conditions, such as temperature, humidity, and location, to ensure optimal handling and delivery.
Effective freight management offers several benefits, including: - Cost reduction: Optimized transportation planning, carrier negotiation, and shipment consolidation can lead to significant cost savings. - Improved reliability and customer satisfaction: Proactive monitoring and issue resolution help ensure timely and accurate deliveries, enhancing customer satisfaction. - Enhanced visibility and control: Real-time shipment tracking and data-driven decision-making enable better management and control over logistics operations. - Risk mitigation: Proper documentation, customs clearance, and cargo insurance minimize potential risks and delays during transportation.
Example or usage in road freight logistics

A manufacturer wants to optimize their road freight logistics operations to reduce costs and improve delivery times. They implement a freight management strategy that includes route optimization, carrier selection, and shipment consolidation. By utilizing a transportation management system (TMS) and GPS tracking, they gain real-time visibility and control over their shipments, leading to more efficient and cost-effective transportation.

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