Vendor Inbound Freight – Why Care?

Direct-to-consumer retailers spend an average of 2% – 4% of gross sales on vendor inbound freight ranking it among the top eight operational expenses.  While often overlooked, supply chain management impacts:

  • gross margin
  • purchasing staff productivity
  • inventory control
  • receiving efficiency and
  • fulfillment operations

Applying industry best practices can help supply chain managers improve company bottom lines and take charge of  inbound vendor freight. If your company is responsible for freight, require vendors to ship collect or third party with your carriers. A well designed vendor routing guide is an important tool to manage inbound freight.

 

Vendors will always want to use their carrier and add freight to their invoice.  We call this “prepay & add.”  It’s good for the vendor improving their efficiency and their bottom line.  Some companies even generate profits from outbound freight. However, it’s costly for most companies receiving freight.

Don’t let your vendors bundle freight into the cost of goods.  Free freight is not always free, it’s just hidden in product costs. Ask your buyers to unbundle freight if possible and do the math.  Is it really less?

Are your current LTL carriers are giving you the best deal possible? An experienced transportation consultant can help you test the waters with a competitive bid process.  Make sure you do your homework; leverage volume with a few good service carriers; and, negotiate cost not discounts. You may benefit from a Buying Consortium that leverages multi-company volume to obtain economies of scale.

Kline Global (KG) provides consulting services for: domestic LTL & truckload freight; and international Air, Ocean, Warehousing & Customs. We use industry best practices to monitor and route vendor inbound freight.  We make sure vendors use the lowest cost carrier and provide reliable pickup and delivery.  Kline Global can help you take charge of your vendor inbound freight and optimize your supply chain saving 10-30%. To get started contact Jeff Kline.

Posted in Domestic Freight - LTL Expert, Global Freight Expert, Global Supply Chain Tagged with: , ,

LTL Expert Case Study – 26% Savings

Savings AheadHerschend Family Entertainment (HFE) owns, operates and manages 26 themed entertainment properties across ten states. Having multiple purchasing and receiving departments HFE wanted to leverage the transportation buying power of their goods coming into their properties, improve visibility as to where those goods were and create a vendor compliance program they could enforce. After looking at their options HFE realized their best choice was to find a company who could manage that process for them.

Herschend Family Entertainment looked for a company whose background was managing inbound transportation and had experience with both attractions and resorts. They knew this unique combination of experience and knowledge would be hard to find but selected Jeff Kline whose company would later be known as LTL Expert.

In 2003, Kline began working with HFE. He conducted an analysis of their inbound transportation and identified ways to reduce Herschend Family Entertainments costs by 26%. Kline recommended a freight management company that leveraged volume from hundreds of clients to provide freight savings. The company also provided HFE cost-free services including: freight bill auditing, general ledger coding, consolidated invoicing, claims management and vendor routing/compliance. HFEs properties across 10 states would be able to use a proprietary web-based transportation management system at no additional cost to them. It would enable them to have full visibility to all of their inbound orders. The new program reduced their freight costs 26% and helped HFE streamline operations.

Today – HFE continues to rely on Jeff Kline to help manage their inbound freight. For over 10 years, Kline has protected HFE from LTL carrier general rate increases that averaged about 5% every year. Retail Planner Barbara Stanley at HFE Corporate has seen firsthand how Jeff Kline has orchestrated freight savings. According to Barbara, “while the savings have helped her budget, the main reason that HFE has such a long history with Jeff is his expertise and customer service. He is always willing to go the extra mile.”

 

About Kline Global

With more than 30 years of experience in transportation solutions, Kline Global (www.klineglobal.com) is uniquely qualified to help your company reduce freight costs. LTL Expert provides transportation consulting services for Domestic LTL and Truckload freight; and, Global Freight Expert specializes in International Air, Ocean, Warehousing & Customs.

 You’re Invited to save – If you want low freight rates and a staff of experts working for you like in a Logistics department of a billion-dollar company, Kline Global can help. They can conduct a cost-free, no obligation audit of your LTL, truckload and international shipments and help your company reduce freight costs.

Contact Jeff Kline at 901-850-0645 or jeff@klinetrans.com.

Posted in Domestic Freight - LTL Expert, Operations and Fullfillment

Kline Global Opens Houston Office

 

Kline Global Opens TX Office

Kline Global – Transportation Consulting opens office in Tomball, TX a suburb of Houston.  Located at 27920 Highway 249 Business Suite#250.  The new office allows KG to grow and  provide added value to global supply chains.

 

 

Posted in Domestic Freight - LTL Expert, Global Freight Expert, Global Supply Chain, Operations and Fullfillment

Attention Footwear Shippers & Receivers

LTL Expert Joins with FSAFSA Logo

 

shoe_truckTogether we can reduce freight costs for footwear.  LTL Expert is working with the Footwear Shippers Alliance (FSA) to bring members the best transportation services at costs lower than members can negotiate on their own. Help fight back against our industry’s high freight classification. FSA provides members with increased negotiating leverage that comes from moving thousands of shipments each week.

FSA has engaged a professional transportation management company to negotiate carrier contracts that are specifically tailored to reduce the product class, and meet the needs and unique requirements for the footwear industry. In addition to below market rates, Alliance Members  receive cost-free value-added services including: web based Transportation Mgmt. System; claims; freight bill auditing; and, custom reports. There is no cost to join FSA.

Contact us to help determine cost savings for your footwear business.

 

Posted in Domestic Freight - LTL Expert

Falcone Global Solutions – Service, Technology & Savings Too

Kline Global has partnered with the award winning Falcone Global Solutions (FCS) to provide international services. John Falcone, CSO for Falcone Global Solutions, discusses what sets his company apart from others in the logistics industry and what he envisions over the next five years for his firm. Personalized service and cutting edge technology has been the key to their rapid growth and recent awards. While other 3PL logistics companies claim to reduce costs, Falcone delivers premium service, unsurpassed technology and freight savings too. For more info contact info@klinetrans.com.

 

Posted in Global Freight Expert

Kline goes Global with Falcone Capital Partnership

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Kline Management Consulting, LLC launched a new consulting practice Kline Global www.klineglobal.com and announced a partnership with Falcone Capital Holdings, LLC. www.falconecapital.com.

Kline Global (KG) provides transportation consulting services for:

According to KG President Jeff Kline, the search for a great international partner is over. Falcone Global Solutions www.falconeglobal.com wins hands down. FGS Companies cutting edge technology, premium error free service and double digit cost savings to our clients has been unmatched. The strategic partnership with Falcone has enabled us to grow and provide intrinsic value to global supply chains.

Posted in Global Supply Chain

LTL Expert to Present Webinar: Join a Freight Buying Consortium to Save on Freight Costs!

LTL Expert in partnership with F. Curtis Barry & Company hosts another great webinar this month. We look forward to seeing you online!

Inbound freight management impacts gross margin, purchasing staff productivity, inventory control, receipt processing and fulfillment operations.  Direct-to-consumer retailers spend an average of 2% – 4% of gross sales on vendor inbound freight; ranking it among the top eight operational expenses.

A consortium is an association of two or more individuals, companies, or organizations with the objective of participating in a common activity or pooling their resources for achieving a common goal. Many small to mid-sized companies are finding that there is power in numbers. Your company may qualify to join special industry consortiums designed to provide freight savings and other value-added services.

This webinar will:

  • Introduce buying consortiums for specific industries;
  • Highlight strategies to reduce freight costs;
  • Outline best practices to take charge of inbound freight; and
  • Demo a transportation management system available to many consortiums.

This webinar will be presented by:

Click Here to sign up!

 

Posted in Domestic Freight - LTL Expert

LTL Expert Hosts Webinar on International Logistics

Sourcing goods overseas can be complicated.airliner with a globe and autoloader with boxes in a container

F. Curtis Barry & Company, LTL Expert and Falcone Global Solutions recently held an educational webinar entitled: Importing Goods to the US: Saving Money and Streamlining Process. Industry expert John Falcone helped demystify the import process and provided practical tips to make improvements and reduce costs.

If your company is new to importing or just wants to improve your process and lower costs – LTL Expert can help. We have partnered with Falcone Global Solutions (FGS) a leading International Freight Forwarder and global supply-chain company. They are experienced professionals in international air, ocean and customs clearance. For more information on international logistics click here or contact LTL Expert.

To view the replay and download a copy of the presentation, click here.

Posted in Global Freight Expert

LTL Expert Hosts Webinar on Probematic Inventory

Got slow moving, excess or obsolete inventory on your books and taking up space in your warehouse?

WarehouseF. Curtis Barry & Company, LTL Expert and Corporate Barter Advisors joined forces to hold an educational webinar to explain how to use problematic inventory to pay your freight bills. Corporate barter can result in 3-4 times more value than traditional cash liquidation.

In this webinar, Jim Parsons described how Corporate Barter Advisors has developed a program with DM Transportation Management Services. Parsons said, “Our unique program may enable your company to avoid write-offs, write-downs and reserves for problematic inventory and reduce the cash required to operate your business. We can help you utilize your slow moving or excess inventory to pay for your transportation needs with DM Transportation.”

For more information on problematic inventory solutions click here or contact LTL Expert.

To view the replay and download a copy of the presentation, click here.

 

Posted in Problematic Inventory

LTL Expert at the Operations Summit April 25th

Jeff Kline, President of LTL Expert will be speaking at the upcoming Operations Summit in Columbus Ohio April 24th-26th.  Don’t miss out on his presentation: Proven Tips to Manage Your Supply Chain.

Inbound freight management impacts gross margin, purchasing staff productivity, inventory control, receipt processing and fulfillment operations.  Direct-to-consumer retailers spend an average of 2% – 4% of gross sales on vendor inbound freight ranking it among the top eight operational expenses.  This session will provide you with proven ideas to reduce inbound freight costs and manage your supply chain.  Attend this session and learn how to:

  • Take charge of vendor small parcel  shipments
  • Avoid vendor “prepay and add” freight
  • Require vendors to follow your routing guide
  • Monitor and enforce vendor compliance with routing guide
  • Join a buying consortium to reduce costs
  • Negotiate FAK class exceptions to further reduce costs
  • Mitigate LTL general rate increases
  • Use the right tools to manage your inbound supply chain

Walk out this session with specific solutions you can implement to improve your bottom line.

Posted in Operations and Fullfillment