Smooth warehouse operations rely on the efficiency of many aspects. From the manufacturing of goods to unloading at distribution centers. Carrier ratings of a facility can be a crucial aspect that determines whether a driver prefers delivering to a particular warehouse or not.
Why do facility ratings matter and how can that impact a warehouse’s performance and bottom line?
Let’s dive in…
When a facility has a high rating, its service level and inventory in stock position are aligned. Carriers prefer delivering to facilities that foster an easier and faster unloading process which allows them to move on to their next load (and next payment). This results in an increased carrier load acceptance rate, and the warehouse receiving manager can anticipate and optimize the stock position, making it easier and faster to unload the goods, leading to more unloading efficiencies.
On the other hand, when a carrier is not comfortable delivering to a particular facility, they are likely to charge more in freight rates to deliver goods as it might take longer to unload at that facility. Carriers need to get paid for their time, and if they can’t get to the next load as quickly, they end up charging unloading fees to make up for lost time between loads. This increases the cost of goods associated with high transportation rates. Which forces retailers to choose between a lower profit margin or pass the additional cost to customers.
When a warehouse needs a specific product in a timely manner, and there is more freight than carriers available. Carriers will pick and choose to accept freight loads based on the delivery location and the ease and speed of that delivery. Facilities with higher ratings have a higher carrier load acceptance rate. Resulting in on-time delivery and making the warehouse managers’ job easier. By delivering the goods on time, the warehouse managers can provide better service to their customers. Improving the overall performance of the warehouse.
Having a good facility rating is crucial to a smooth warehouse operation, happier carriers, and improved bottom line. By understanding the importance of facility ratings, warehouse managers can…
Improve Service Level & Optimize Inventory Stock Position
Better Manage Cost of Goods Associated with High Transportation Rates
Improve Carrier Load Acceptance Rates & Receive Goods On Time
FreightSmith Inbound Management Systems can help solve these problems and create better relationships between drivers and warehouse managers. By working together, you can create a hassle-free delivery process that benefits everyone involved.
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