Inbound freight deals with the delivery of raw materials or goods coming into a business. Efficiently managing the inbound flow of goods to your business is getting more complex as customer demands increase in terms of their expectations of service levels. The management of inbound freight area also affects overall warehouse productivity, inventory control, and customer service level.
Inbound freight management promotes better relationships between supplier-carrier-customer, eliminate the need for extra inventory, improves reliability across the supply chain. As you begin to examine your inbound freight practices, you must develop objectives that will help guide your decision-making process. Objectives can be developed in the following areas:
1. Reduced freight costs and improved “bottom line”.
2. Improvement in on-time deliveries
3. Reduction in purchasing lead times
4. Fewer handlings and damage
5. Lower inventory levels and reduced carrying costs
6. Providing maximum visibility into the process
7. Improvement in warehouse productivity
8. Increased customer service