Get Rates Right

Strategic vs. Tactical Sourcing

Any organization with a need for the physical movement of goods has dealt with the tough but necessary task of procuring transportation rates. Add to this pressure the challenges of aligning various modes, transportation rate structures, and differing carrier networks, the goal of generating transportation cost savings feels intimidating.

Nevertheless, supply chain organizations must try to procure rates in an organized fashion and do so in a myriad of ways. By placing transportation procurement options into two separate categories – strategic and tactical – we can help reduce the complexity of the task.

This distinction will help illuminate how organizations should consider differing objectives, methodologies and enabling technology to drive savings or control costs.