Freight management is the practice of managing inbound and outbound goods for transport.

Any organisation that deals with cargo movement, no matter how big or little, must figure out how to deliver freight on time and at the lowest possible cost strategically using multiple means of transportation, middlemen (carriers, distributors, vendors, and shippers), and technologies from its point of origin to its final destination.


What is involved in freight management?

Freight Management is a large umbrella term that covers a number of processes that go into moving goods throughout the supply chain. It encompasses the management of everything from the moment the goods leave the warehouse until they arrive at the customer’s doorstep. Here are some key things involved:

  • Route optimisation: ensuring the fastest and most efficient route(s) for transport, then allocate cars, drivers, and load balance. This is critical for owned fleets because your carrier will select the most efficient routes for you
  • Rate negotiation: finding the right price with the right carrier and services
  • Accounting and auditing: tracking and improving the numbers involved in freight forwarding
  • Claim management: organising and handling scenarios (insurance or otherwise) of lost or damaged goods
  • Data collection: tracking routes and processes to gather insights about more effective operations
  • Document, tariff and regulation management: ensuring the goods and transportation are compliant with government protocols. This includes completing the necessary documentation, managing insurance, and ensuring that goods and transportation meet government regulations.
  • Warehouse distribution: handling organisation of packages in warehouses throughout the transport process
  • Carrier and vendor management: maintaining relationships with everyone along the supply and transport chain. If using a third-party carrier, make sure you choose the correct one by negotiating pricing, terms, and expectations
  • Integrations: working with organisation departments, transportation management systems (TMS), and enterprise resource planning systems (ERP) to centralise and streamline
  • Tracking and tracing shipments: This involves ensuring freight visibility and transparency. Vehicle tracking is normally provided by the carrier, but you can also track each shipment and container separately
  • Load planning: The idea behind load planning is to transport more cargo while minimising the space it occupies while in transit. Load planning should complement route optimisation as you need to consider the order in which your team unloads the items

Want to save money and streamline freight shipping for your business?

Chat to us for a consultation about how we can customise a unique plan for your individual freight management needs.

Or to learn more check out our pages on freight management or digital supply chain technology.