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The 25% tariffs on Canadian and Mexican imports and 20% tariffs on Chinese goods are expected to increase production costs, disrupt logistics networks, and force companies to rethink supply chains. auto parts are sourced from Mexico, making the tariff impact immediate and severe. Vehicle production costs in the U.S.
It creates a single source of truth for your rate management, automating RFQs and streamlining the entire procurement process. billion rate data points monthly to provide the most comprehensive view of the market, helping you identify savings opportunities and make data-driven decisions.
From sourcing and bid evaluation to warehouse slotting and dynamic routing, AI tools support faster and more consistent outcomes by processing large volumes of operational data and identifying patterns that human decision-makers may overlook. Integration allows seamless transitions from data insights to purchase approvals and execution.
Shippers that rely on imports have obviously been among the first to feel the financial strain as rising costs disrupt supply chains and profitability. Companies now must make strategic decisions regarding pricing, shipping, supply chains and overall logistics. The newly implemented 2025 U.S.
Home Container rates surging as shippers rush ahead of deadlines – June 10, 2025 Update The Freightos Weekly Update keeps you informed on international freight with key economic data, demand trends, and rate insights. Europe prices (FBX11 Weekly) increased 17% to $2,757/FEU. America weekly prices fell 1% to $5.27/kg.
Our data showed that over 90% of enterprise shippers had to reroute shipments during this period, with an average cost increase of 35% per container. That’s over 1,100 hours annually that could be redirected to strategic initiatives. Rate sheets become obsolete almost as soon as they’re negotiated.
Companies across all industries are dealing with rising transportation costs and a key question many CEOs, CFOs, and supply chain executives are asking is, “What can we do to better manage and control our freight spend in today’s market?” Rising Freight Spend . So, what can you do outside that cycle?”. Data-driven Optimization.
It creates a single source of truth for your rate management, automating RFQs and streamlining the entire procurement process. billion rate data points monthly to provide the most comprehensive view of the market, helping you identify savings opportunities and make data-driven decisions.
But with alternative routes and plenty of excess capacity available, operations should continue reasonably well, and freight rates are unlikely to spike to extreme highs. 18th, 2023, Source: Marinetraffic Since mid-November multiple ships have been attacked in the Red Sea by Houthi forces in Yemen.
The Factory Gate Pricing (FGP) and Primary Freight (PF) strategies, as adopted by major grocery retailers, are causing a shudder up the spine of many retail suppliers. What are Factory Gate Pricing and Primary Freight strategies? The product pricing therefore becomes ex works. Now, the issue.
In today’s fast-moving supply chain environment, data is as valuable as the freight itself. With global transportation costs climbing and carrier networks becoming more complex, transportation spend management has become a strategic priority — not just a back-office function. However, this data often suffers from: 1.
Home Meet Freightos Procure: The Next Evolution of SHIPSTA Freightos Procure rebrands SHIPSTA, enhancing procurement with market intelligence and seamless booking within the Freightos Enterprise suite, empowering shippers to manage the entire freight lifecycle efficiently.
GlobalTranz’s main service lines are freight brokerage – less-than-truckload and truckload – and managed transportation services. What the heck is going on in this freight brokerage/managed transportation sector? A truck broker helps companies find trucks to carry their freight on lanes they are having difficulty covering.
Without experienced managers in place, truck availability drops, repairs are delayed, and cost control becomes difficult. These individuals are key to maintaining operational efficiency, cost control, and compliance. Strong supplier agreements and pricing structures depend on consistent leadership. Rising costs.
Supply chains have experienced significant disruptions in the first half of 2022, from a global pandemic to wars, rising fuel costs, and a potential recession. Shippers, despite all obstacles, are expected to reduce freight spending, drive efficiency, and improve customer service every year with incremental improvements year-over-year.
Hazardous freight is the most likely to get “rolled” at the dock. On the one hand, we should celebrate the fact that the aggregate industry moved 38% more freight in 2021 when compared to 2019. We Assumed that Transportation Would Always Be Available And That We Just Needed to NegotiatePrice. Time For Action.
By adopting a logistics efficiency management approach, logistics related costs as a percentage of sales drops to 4% to 7% depending on industry sector. But, the bottom line is that when you outsource to an expert logistics provider, you will realize logistics efficiency, and thus total costs savings. That’s a delta of 5% to 7%.
In the last decade, many companies, especially those with manufacturing operations, have evolved direct materials sourcing from an administrative function to a strategic procurement process. As a strategic process, transportation procurement may still seem very tedious and challenging. Be demand driven.
Samuel is Director of Product Marketing at DAT Freight & Analytics ‘ Shipper segment. DAT operates the largest truckload freight marketplace in North America. DAT iQ provides freight intelligence to inform your budget and procurement strategies so you can navigate market volatility with greater confidence and agility.
About DAT DAT Freight & Analytics, a subsidiary of Roper Technologies (NYSE: ROP), boasts the largest North American truckload freight marketplace, with data representing over 400 million freight matches and $150B+ in annual transaction data. Greenscreens.ai’s dynamic pricing infrastructure built to grow and protect margins.
Introduction As global supply chains evolve, ensuring cost efficiency is crucial. One way to assess the cost performance of any function within the supply chain is through Cost Performance Index (CPI). What contexts can it be used in and how, as well as the benefits of using cost performance index in supply chain contexts.
Home Meet Freightos Procure: The Next Evolution of SHIPSTA Freightos Procure rebrands SHIPSTA, enhancing procurement with market intelligence and seamless booking within the Freightos Enterprise suite, empowering shippers to manage the entire freight lifecycle efficiently.
During the company’s Velocity event held in Chicago last week, McCandless emphasized this strategic direction: “In the past ten years, project44 has built the foundation necessary for today’s AI advancements. This includes resolving issues autonomously, calling carriers, rerouting freight, and executing bookings.
Is inventory bloating your costs? Control Costs: Track value beyond just the purchase price and manage inventory effectively. Struggling with the true cost of ownership or serving your customers? A lower TCO indicates better value sourcing, even if the initial purchase price isn’t the absolute lowest.
Rising costs, supply chain chaos, and economic swings put businesses under enormous pressure to protect their margins. According to McKinsey & Company, procurement accounts for 50% to 80% of a company’s cost base. That’s why organizations zero in on strategies to achieve procurement cost reduction.
Do You Have Hidden FreightCosts? Freightsourcing team article and permission to publish here provided by Katharine Barrios at xeneta.com. Freightsourcing and procurement is a critical component of the whole supply chain and is crucial to the success of the business. Market Knowledge.
Rising costs, geopolitical tensions, and tariffs demand a strategic and holistic approach to maintain profitability and competitive advantage. There are many ways an organization can cut supply chain costs. For many large enterprises, procurement makes up a large part of a company’s total costs.
They can proactively identify risks, optimize processes in real time, and even negotiate supplier contracts without human oversight. These AI agents leverage real-time data, predictive analytics, and generative AI to enhance resilience, reduce costs, and improve overall efficiency in AI-driven supply chain resilience.
“Freight spend is up 15% year over year and it is eating into the bottom line! Supply chain management leaders, especially in transportation, are under heavy fire from CFOs for the dramatic increases in freight spend that are eroding the profitability of shippers in every industry. Combating Rising FreightCosts with a TMS.
Optimize costs without compromising supply chain continuity. Logistics & Transportation Failures: Port congestion, rising freightcosts, and fuel shortages. Increased costs due to emergency sourcing. Improved Supplier Collaboration: Stronger relationships lead to better service levels and pricing.
The international inbound transportation service is only available to Walmart Fulfillment Services (WFS) sellers that source or manufacture goods in China, and all cargo must be shipped from Yantian, Shanghai, or Ningbo ports. according to the Walmart Marketplace website. according to the Walmart Marketplace website. from May’s 2.24
Reported May 20 Let me take a moment to comment on our global sourcing strategy. Today, more than 50% of our purchases are sourced in the United States. During that period, the vast majority of our supplier partners developed diversified sourcing strategies across several countries, including the United States.
The pandemic taught consumers that the most convenient and safest way to “get that thing” is to order it online and have it delivered, increasing not only the demand for qualified drivers but also the cost to hire. An impressive case study to be sure, but alas, the cost of the technology is still prohibitive for most companies.
The list of Incoterms is created and managed by the International Chamber of Commerce , and managing supply chain SLAs relies heavily on this decades-old list to ensure consistency and clear communications in contractual details for moving freight. The complexity is extreme. Such information may be defined within individual SLAs.
Cooper successfully coped with the crisis, but the high costs they had to pay for critical supplies and the late nights searching for those supplies convinced the organization that there had to be a better way. But there was a cost to this. It required “being up all night on the phone with people around the world.
From cost fluctuations to sustainability requirements, understanding and addressing these hurdles is essential for smooth logistics. Fluctuating Raw Material Costs The costs of key materials like resin for plastics or pulp for paper are subject to market volatility.
In this article, Eytan Buchman, Freightos’ CMO, discusses the importance of data and context in global freight and logistics. The future of global freight data lies in real-time information, contextual insights, and aggregated data that can help companies make better decisions and adapt to a rapidly changing industry.
Freight rates have plummeted, brokerages are struggling, and the industry is still bloated with excess inventory. HBR also cites technology’s ability to cut costs and to make “companies more agile and therefore better able to handle […] uncertainty and rapid change.”
Sourcing raw materials from Asia, coordinating freight with European logistics providers, or navigating distribution networks in the Americas cross-border operations rely on effective communication to make them happen. Procurement staff must send alternate sourcing orders.
Procurement professionals play a vital role in driving operational efficiency, cost savings, and strategic decision-making. You can successfully traverse the complexities of procurement processes with the knowledge, abilities, and tactics you gain during procurement training.
What is this going to cost? Besides providing fast, thorough answers to customers, today’s ERP, cloud-based SaaS, or 3PL-operated systems enable companies to manage the order lifecycle, control information and cargo flows, and reduce the total cost of goods. Your stakeholders can: Align sourcing, purchasing, logistics, and I.T.
The previous decade has seen many companies, mainly those handling manufacturing operations, change how sourcing of direct materials is executed – from an administrative function to a somewhat strategic procurement approach that has seen the creation of a new position “the Chief Procurement Officer.”
Now more than ever, companies – regardless of industry – are looking for ways to improve customer service while also cutting costs and growing the top line. While all have added value, let’s take a closer look at contract carrier freight rationalization. Contract Carrier Freight Rationalization. Contracted Freight Rates.
The Approach to Effective Freight Procurement by LSCMS Shippers’ Council Container shipping procurement faces a multitude of challenges shaped by global events, industry shifts, environmental mandates, and technological advancements. To thrive in this ever-evolving landscape, shippers must embrace a flexible and responsive approach.
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