Reasons for Poor Freight Management

Based on 25+ years of freight management experiences, it is our belief that over 80% of all companies currently do a less-than-desirable job of managing their annual freight expenses. The reasons for this management deficiency include:

  • Low Expectations - Many companies operate under the misconception that they have limited, or no ability, to improve the control and management of their freight expenses.
  • Poor Visibility - Many companies do a poor job of tracking their actual freight expenses. As a result, they don't really know how much they actually spend annually on their freight expenses. Without this overall visibility, they operate under a false sense of security relative to how well they are managing their current freight expenses.
  • Poor Tracking - Tracking actual freight expenses require the management of hundreds, if not thousands, of individual transactions each month that can include rather small amounts of freight expenses. Additionally these transactions can be initiated by a multitude of people that are located in several departments through out the company.
  • Poor Accountability - The responsibilities for managing freight expenses are typically not well defined, and are typically very decentralized. Many times the assigned staff rationalizes that they don't need to improve their control of freight expenses because 1) the majority of these expenses are being managed by their vendors, or 2) the majority of these expenses are being passed on to their customers.
  • Neglect - Most executives lack a knowledge of commonly used freight terminology which is a prerequisite for developing a high level understanding of the world of freight management.
  • Intentional Complexity - Over time freight carriers have intentionally made their pricing and service levels so complex that their typical customers have difficulty understanding them, have difficulty validating their freight invoices, and have difficulty getting valid freight quotations.