What is Freight Management?

As a business owner, you would not agree to make a purchase that could impact your profitability without first understanding the cost associated with that purchase. Likewise, it is important to know and understand the true freight cost of shipping products and goods. Awareness of shipping procedures and rates can help prevent wasteful spending.

However, small businesses often can not afford to hire a logistics or supply line manager. So what can they do to stay competitive and informed about freight management? Enlisting the usage of a direct freight or freight matching service is both an effective way to control freight cost and manage inventory. Freight management involves controlling cost, maintaining accurate records, and sustaining warehouse inventory levels.

The actual cost of shipping cargo is much more involved than just the actual shipping cost associated with the transportation company. The total freight cost also includes the cost of storing inventory, packaging material, salaries of shipping clerks, computer system to track and monitor shipments, actual freight rates, and cost associated with delayed shipments. Each of these areas must be watched and monitored to ensure careless spending habits do not develop. Learning to package merchandise with the least dimensional space can be accomplished so that shipping costs are kept down.

Another very effective way to keep freight cost down is to employ the help of a freight management company or website. There are organizations that can help match a clients shipping needs to shipping companies looking for loads. This is a great way to approach freight management because not only does this type of service keep cost lower by promoting competition, but also because they often include the usage of an information database. Being able to track trends, inventory levels, and previous time and cost to ship cargo can assist companies in making future shipping decisions.

Keeping accurate shipping records is key to a smooth running supply chain. Understanding inventory trends can help control cost by insuring that a company is not stuck with a lot of overstock. Storing inventory is one of the most costly expenses in the shipping process. In addition, being able to track a shipment makes the trucking company more accountable to deliver their loads on time. Late shipments can affect customer satisfaction levels and thereby affect repeat customer sales. If a business wishes to grow and be financially successful they must have high customer retention levels.

Finally, in order to become profitable, a company should closely manage inventory levels of their own stock and the stock of their retailers and wholesalers. If a retailer can not get the products that they need from a business because inventory levels have dropped too low, then they will find another supplier for that product. However, on the contrary, if a manufacturer has overstock then the supply does not meet the demands and the products cost goes up. It is a delicate line to walk to controlling inventory to aid in cost-effective freight management.

Without controlling freight rates and cost and maintaining proper management guidelines and regulations, then a company’s profitability will suffer. Whether freight management is done through a logistics professional or through a third party administer, it demands proper attention.

What You Need To Know About Document Management System

A document management system is an electronic filing cabinet that provides a framework for organizing paper and digital documents. The system can work hand in hand with a scanner to make it possible to convert paper documents into digital versions. Using sophisticated search engines, the system offers quick access to any given file or document. Businesses both large and small stand to benefit from a system that helps them manage documents.

Functions of a document system

There are so many functions you can use a document system for and the most common include:

  • Storing all types of documents include PDFs, emails, spreadsheets and even word processing files
  • Retrieving previous versions of documents that have been edited
  • Restricting access to sensitive business documents
  • Searching a huge file library using individual keywords for quick easy access
  • Monitoring viewership of the documents and tracking any edits being made to them
  • Accessing, editing and sharing of the relevant documents using mobile devices
  • Regulating and controlling deletion of documents that are out of date

With all these functions, it is clear that all kinds of businesses stand to benefit from a document management program. Most businesses are embracing the systems to have an easy time handling the ever increasing documents as the businesses progress and expand.

System benefits to users

Businesses that decide to have a document management system in place stand to enjoy a number of benefits including:

  • Easy access to documents from computers instead of having to go searching in a stockpile of physical files when the need arises
  • Easy, quick searches of documents from the system using keywords so the specific files are found without much trouble
  • Improved collaboration through elimination of hard copies that can be tedious to handle so employees have an easy time working as a team
  • Enhanced security because companies can track viewership and editing of every document in the system; it is also possible to designate which employees gain access what files using the document management software
  • Space saving because of reduced paper documents for the digital versions that are easier to store and handle even as the business continues to grow tremendously
  • Better recovery from disasters considering that critical documents are stored online and are therefore protected against damages and destruction like it is the case with physical filing cabinets

Choosing the best document management system

There are so many systems designed to offer document management solutions and they are not made equal. It means you would have to pay attention to features that matter most to be able to choose the best for your business. Some of the factors you should consider when looking for the best system are:

  • Ease of use
  • File structure
  • Searching options
  • Mobile access
  • Scanning functions
  • Security levels
  • Integration possibilities

When looking at the solutions, you should also remember that you have the option of selecting a self-hosted system or a cloud hosted system. They each come with their pros and cons and comparing them will help you choose the best system for your business needs.

Freight Management – Optimizing Efficiency in Shipping Goods

Freight Management is a strategic system to optimize the efficiency of freight and commercial transport. When you think about it, the numbers of big rig trucks you see on the major thoroughfares they seem countless. We realize that the trucks are transporting goods and more than likely transporting the majority of goods. We don’t realize however what the system that lies behind all that transport is. It’s like a huge puzzle where each piece fits together perfectly and intrinsically. That’s where logistics plays a key role. Logistics takes into consideration shipping practices as a whole which includes the shipment size, vehicle type, mode of transportation, facility sites, and frequency of shipping.

So many factors come into play for freight management, with the priority being to minimize freight costs. Take into consideration the dramatic increase in fuel prices leading up a year ago and how they greatly affected shipping costs involved with transporting products and goods. Suppliers passed on their increased freight costs either by increasing the cost of the goods directly, or indirectly by charging surcharges on shipping. In the end, consumers paid more for items in stores or at restaurants. The bottom line is the bottom line. Freight management helps to keep freight costs lower which directly affects the bottom line and the price paid by all of us for goods and supplies.

There are a number of approaches to implement freight management in the transportation of goods. When possible shippers are encouraged to utilize either water or rail systems. Standard trucking of goods can cost as much as ten times more then shipping by water or railroads. Other ways to optimize shipping through logistics and freight management include optimizing truck loads by improving the routing and scheduling to avoid empty trucks on return trips. Organizing regional deliveries to reduce trips, not only saves on energy expense, but also the benefits to the environment while minimizing freight costs to the shippers. The two go hand in hand when you consider the costs involved in the energy utilized and the pollution expended during the process of shipping.

Freight costs are a considerable expense to take in to account when one who produces goods determines a fair yet profitable price to charge for their product. Freight management is the tool used to not only help minimize that expense but also help the in the determination of the set price. A freight management company can provide an analysis to the manufacturer the exact cost per product of the anticipated freight cost.

Not only does shipping involve shipping your product across the country and around the world, but also the regional delivery of your goods into the hands of the final destination or the consumer. It’s a web of events that has evolved into a major undertaking too great for an individual producer or smaller company to take on. Again, it all goes back to efficiency and minimizing freight cost which is the purpose of freight management.

Uses of Audited Financial Statements

There are many uses of audited financial statements. Some of the common uses include submitting to the relevant authority such as company commission and tax offices. These are the two interested parties of these statements. Other interested parties include investors, creditors of the company and shareholders as well.

So, what are the purposes of audited accounts and why is it has to be audited before presenting or submitting to the relevant interested parties? Let us discuss some of the reasons as follows.

One of the main purposes of audited accounts is to provide the accountability, accuracy as well as financial credibility of a business. This is because all entities whether they are public owned or privately owned has to prepare a complete of accounts on their financial performance and position.

A unqualified audited report indicates that the financial statements prepared for a business are free from material misstatements, found to be correct and presented fairly according to general accepted accounting principles.

Another important reason of having your accounts audited is that it gives interested parties such as bankers and shareholders an unbiased opinion with regard to the credibility and accuracy of the accounts prepared by a company.

Interested parties especially bankers use audited financial statements to assess the financial performance and position of a business for loan approval purposes. Therefore, it is always mandatory for a business to submit its audited financial statements to the banks if they need assistance from the banks.

In a nutshell, audited financial statements are used by many parties. Thus, it is important for a business to keep its accounting records properly and on a timely manner.