Introducing a new and improved Freight Module in HIMPACT that will help you overcome new and rising shipping challenges.
While life seems to be returning to normal for many, the shockwaves from COVID-19 are still presenting challenges for buyers. Whether from supply chain disruptions, truck driver shortages, higher fuel costs, or a continued high demand for eat-at-home, an increasing number of distributors are utilizing different shipping carriers than normal.
Many distributors who have predominantly relied on prepaid freight from vendors are also increasing their use of carriers who charge freight simply to get more supply more often. One of our distributors increased their number of freight carriers from 19 to 87 vendors in just a few months in order to continue high service levels to customers, and many are considering increasing their backhaul network as well. One CEO mentioned he put his vendors on notice that in light of the rising fuel costs, freight allowances would have to adjust significantly.
This is the current reality. Those who can adapt quickly will manage this change the best!
How do you go about tackling this challenge?
Most forecasting and inventory optimization solutions are limited in this capacity. Many solutions simply help you shop for carriers and compare rates. While this can be helpful, it isn’t quite enough information.
You need to know the total cost of your shipments. Knowing what you are spending on freight in order to get to a more accurate landed cost is key. Without knowing the total item costs, you can’t set accurate sales prices and may have lower margins as a result. Calculating landing costs manually is time-consuming and is prone to errors.
HIMPACT can solve this challenge for you. With the new Freight Module, buyers can record freight by PO, apply freight costs to get to an accurate landed cost, see a complete picture of what they are spending. In HIMPACT, the landed cost calculation takes into account:
- Off Invoice Deals
- Bill Backs
- Freight and Freight Allowances
The new freight module enables you to:
- Select from multiple delivery options (Vendor Prepaid, Backhaul, 3rd Party Carrier.)
- Allocate freight costs to the PO items (fixed cost for the delivery)
- Can calculate a total cost, (a cost per unit or by percentage)
The new freight module provides additional features and settings, providing you with complete control and flexibility over freight, allowances, and the allocation of them to your items.
Get a more accurate view of your freight costs and save your buyers’ time. Contact the Herlitz team today to get started with this new module or to learn more about how HIMPACT can help you simplify your buying process.