The Importance of Freight in Manufacturing Supply Chains

When you’re thinking about optimising the efficiency of your manufacturing processes, why not start with the root? Your supply chain relies on freight to function, so getting the best deal at this crucial stage can start you on the right foot for success.

At Allegro, we offer international and domestic freight forwarding services to enhance your manufacturing operations. In this article, we’ll discuss how freight impacts manufacturing, offer insight on 3PL for raw materials, and provide you with the benefits of using a freight forwarder in your supply chain.

Get started with freight forwarding for your manufacturing supply chain by getting in touch.

Freight is one of the core components of the costs involved with manufacturing. Raw materials need to be shipped from their procurement site to the facility in which they’ll be processed, and transporting large quantities of resources requires access to adequate freight infrastructure.

As the cost of a shipping container is bound to change, getting the best rates means utilising a freight forwarder. They can make sure your supply chain is as efficient as possible, offering you the most competitive rates for your freight processes.

The impact of freight on the manufacturing supply chain means less being spent on acquiring raw materials, cutting down on input costs so you can maximise your returns.

What are the Supply Chain Factors for Manufacturing?

While the supply chain is incredibly long and intricate for manufacturing, spanning all the way from raw material acquisition to customers receiving a finished product, the main steps and factors for manufacturing can be broken down into three categories.

Storage. This involves keeping your raw materials and finished products inside a warehouse while waiting for the next stage of the fulfilment process, along with their handling at the storage site. Depending on the quantity and requirements of the product, the costs here can vary greatly.

Logistics. This part of the supply chain contains many different stages to it, such as transportation, inventory management, and delivery to customers.

Freight forwarding. To get bulk amounts of freight from one location to another, you’ll want to make use of a freight forwarding service. This helps you to navigate customs and regulations while getting the best deal for your freight – whether its international, or within the UK.

Integrating freight and logistics can create a streamlined journey for your assets – find out more >

3PL, or third-party logistics, is a business which provides logistics services for a given industry. Common examples of 3PL are:

• Warehousing
• Transportation
• Last-mile logistics
• Inventory management
• Returns
• Freight forwarding

3PL fulfilment, therefore, is the process of completing orders using third-party logistics services. So why would you want to use 3PL over creating your own system? Here are our top three reasons:

Handling logistics and freight requires access to facilities, transportation, and technology. Logistics companies and freight forwarders use warehouses, inventory management software, and handling procedures to ensure your raw materials are delivered in a timely fashion with the appropriate considerations.

While you could manage these stages yourself, the amount of infrastructure you would need is incredibly costly. Additionally, it would require a further constant investment into the operation of this infrastructure, the training of staff, and the maintenance of your assets.

As such, using a reliable third-party like Allegro is the best way to go – especially when you combine our logistics and freight forwarding divisions into a single, comprehensive offering.

Navigating the world of freight requires connections and knowledge. You need to have a steady supply chain to link your facilities with procurement and the marketplace, as well as a firm understanding of the regulations involved.

3PL providers are rooted in the industry, meaning they have access to contacts and rates that would be virtually impossible to achieve otherwise. Furthermore, since they have a broad understanding of the industry, they can help you to manage the regulations and best practice of raw material freight with ease.

By handing over the reins to a third-party, you free up valuable admin time that would otherwise be spent arraigning storage, transportation, and assuring your raw materials are being transported efficiently and by a given timeframe.

With 3PL, you can instead leave the repetitive and rather monotonous tasks of securing the optimal route for your materials to a freight or logistics professional. This saves you on both time and money, letting you invest both back into other aspects of your business such as speeding up your processing facilities or securing new contracts.

Start making use of freight forwarding for your raw materials today by contacting the team.

With freight being present throughout the manufacturing process, from raw materials to end-user product, it’s no wonder getting a good deal on your freight forwarding is a great way to improve your supply chain.

At Allegro, we take care of the freight for your assets so you can get on with business better-than-usual. Your end-to-end solution is just a call away – get in touch with our friendly team today. Or, read on with some related articles to find out more about freight forwarding!

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