Mar 12 2018
Seven ways a 3PL Manages your Rail Freight
Choosing the right mode of freight transportation is one of the most important decisions you will make when planning the logistical processes of your business. Each mode has their own advantages and disadvantages to consider. Certain factors you should think about include: the speed, the cost, the dimensions/weight, and the value of the goods being transported.
Rail freight can carry a wide array of products, ranging from vehicles, livestock, grain, metals, chemicals, and common goods. It’s regularly used for the movement of these goods in countries with long distances, like China, North America, Russia, and other areas in Europe.
Rail and ocean transportation modes are considered to be the most environmentally friendly options, as trains use less fuel than trucks and planes. In fact, trains are relatively efficient and can move as many as 400 trucks worth of cargo, while only requiring one conductor. However, additional resources will be required as road delivery will be needed once the goods arrive at the rail sorting station. This switch over will also contribute to longer delivery times.
While rail transportation has its fair share of disadvantages, it still remains to be popular among shippers. A recent survey conducted by Better Transport found that 61% of surveyed individuals want more freight on railways, and only 2% want to see more freight on the roads.
The key advantages include:
- Reliable schedules
- Most efficient -- one train can move the equivalent of 400 trucks
- Cost effective
- Strong safety record
- Alleviates road congestion
- Environmentally friendly
How 3PL Providers Can Help
Third party logistics (3PL) providers have access to a large range of rail carriers. As revenues shrink, and rates climb -- rail companies need to haul more freight than ever to keep up. 3PLs network of rail companies allows them to make bidding more competitive!
3PLs have the ability to make rail freight movements profitable, without compromising quality of service.
3PLs can help you:
- Order cars
- Track car supply
- Entering shipping instructions
- Auditing and paying invoices
- Transloading processes
- Measurement and reporting
3PL providers will provide you with detailed reporting, enabling you to streamline your operations and gain visibility. Point blank, reducing costs is a challenge unless you are fully aware of how you’re spending.
Continually finding ways to drive efficiency and cost savings is not only the responsibility of logistics companies. If your company creates, sells, and/or moves goods in any capacity, it is crucial that you constantly work to improve your processes.
Optimizing direct and indirect costs will help companies stay agile and competitive in the fast-paced market of today, and beyond.
To learn more about how Seldat is becoming the global leader in technology-driven supply chain solutions, reach out to our team today:
Phone: 646.517.6767 x100
Email: Global Sales
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