Lead Time: Why It's So Important

Lead time can be critical in ensuring better rates and securing capacity in a tight market. Under conditions like the one we’ve seen over the past year, increasing lead time can help you mitigate some issues that have been plaguing the freight market since the Covid-19 Pandemic changed the world.

Consumer behavior has forever changed, and the freight market will never return to 2019’s form. The good this is by building-in additional lead time shippers can secure capacity and potentially reduce costs associate with freight services models that are in high demand.

WHAT IS SHIPPING LEAD TIME?

Lead time refers to the total time between order origination and shipment to customer.

The best possible results are produced when shippers make arrangements for transportation immediately following customer orders.

Shippers with large, strategic transportation departments are able to carry out many of the operational processes and can make arrangements for transportation more transactionally. Their internal knowledge will unlock those operational efficiencies associated with increasing lead time.

Shippers with smaller transportation departments without specific training could take the Managed Transportation approach. Here, providers work as an extension of their team utilizing its industry knowledge and software to execute the shipper’s day-to-day operation. This provides a strategic advantage to these shippers and improve the operational processes like reducing lead time.

HOW DOES INCREASING LEAD TIME MORE BENEFICIAL?

Carriers have had a firm grip on pricing for a while, however when a provider is given more lead time on orders the more likely they are have control over:

· Partnering with top providers

· Price Negotiation

· Scheduling and On-time performance

· Finding Efficiencies

· Overall better service

Aside of the potential reduction of rates and improvements in performance, lead time can impact other areas of a shipper’s supply chain and operation.

WORK WITH OnGO.

OnGO Transportation offers a variety of services aimed at improving shipper’s performance. By partnering with us, shippers gain a holistic view of their transportation performance and data. Access to this critical information, along with continued consultation from OnGO Transportation’s Account Executives enhances a shipper’s service to their customer at the most competitive rates the market has to offer.

#LeadTime #Rates #Efficiency #Capacity #OnGO