Effective dock scheduling and end-to-end visibility are critical components of cost control in your organization. Inbound freight costs account for approximately 40% of an organization’s total freight spend, reports Aberdeen Group via Logistics Management. These costs are driven by poor dock scheduling, increased delays and detention fees, and other unexpected issues. For shippers to reduce the inconsistencies in issues and dock scheduling and detention fee impact, they need to understand their effects, how scheduling software reduces such risk and their benefits.
The Lasting Effects of Demurrage, Poor Dock Scheduling & Detention Fees
Depending on the specific industry, the effects of demurrage, poor dock scheduling, and detention fees can add up quickly and result in additional issues in your supply chain, notes Dave Albanese of Inbound Logistics. Key effects may include:
- Impact on subsequent stops/deliveries.
- Poor customer service.
- Potential perishing of cold-chain products.
- Delays in getting life-saving products to patients in Pharma supply chains.
- Loss of shipper-of-choice status.
- Freight refusal by private and carrier drivers.
- If carriers are not hitting you with detention fees directly, don’t kid yourself; they’re jacking up your rates - they know you!
- Added fees in the form of hidden “free time,” which can add up to 10% more to inbound freight spend per day.
Better Dock Scheduling Reduces Risk of Delays
Improved dock scheduling effectively lowers the risk of delays for drivers. Since drivers already have an expectation of two hours for unloading/loading, any additional lost time will adversely impact their ability to make money. Unfortunately, a trend among shippers continues to plague the industry: only 10% of Truckers are able to collect detention fees at a rate of 90% or higher leaving the other 90% of truckers collecting detention fees below a 90% rate of their attempts to collect. In other words, many shippers do not pay the fees which can have a severe impact on future relationships with carriers, as well as risk refusal to pick up and deliver to your facility. Since truckers know this risk exists, eliminating all uncertainty with guaranteed dock scheduling and load planning is critical. Faster loading and unloading, as well as efficient dock scheduling, amounts to better processes throughout the remainder of your supply chain. In other words, more vendors, carriers and business-to-business customers are likely to work with your organization.
The Benefits of Better Dock Scheduling in Your Organization
The benefits of better dock scheduling are not just limited to a reduced incidence of poor dock scheduling and detention fees. Consider these additional benefits of optimal dock scheduling:
- Coordinating warehouse capacity with vendor purchase orders and customer shipment orders.
- Leveling workload on the dock throughout the shifts, and days of the week.
- Improved customer service resulting from faster shipping processes, getting shipments into customers’ hands at Amazon-esque speeds.
- Advanced visibility allows for better labor and equipment planning.
- Reduced fees charged by suppliers that were added-on without your knowledge. In other words, taking control of inbound logistics will effectively reduce inbound freight costs.
Start Saving Money With Fewer Delays
Delays are the worst-case scenario for today’s supply chain professionals. Each delay amounts to a potential setback further down in the supply chain. Shippers need to take steps to eliminate their impact, improve dock scheduling and ensure positive, timely customer experiences. In other words, it is time to upgrade your dock scheduling software. Avoid the costs of detention and lost hours for your drivers by requesting a demo of C3 Solutions’ software or calling 1-514-315-3139 today.