3 Key Considerations When Planning Your Transportation Budget in 2021



It's no secret that we’ve been experiencing an economic downturn for the last year or so, which means freight logistics costs are not as they were. By the end of 2020, shipping costs were reported to have risen over 8%-15% compared to 2017. This means you are going to need to reevaluate your transportation budget for 2021 to mitigate your rising expenses. Let’s look at three key factors you should consider when planning your transportation budget in 2021.


Invest in automation.


If you are yet to automate your logistical process, now might be the time to do that. Automation is directly associated with lower freight spending as it helps lower the risks and inefficiencies associated with transportation. For instance, you can automate carrier scheduling and routing so as to ensure drivers take the most efficient route. If you had to make employee cuts because of the pandemic, automation could allow you to make do with fewer workers, thus eliminating the costs of having to hire additional help. Investing in technology can seem costly, but in the long run, you will realize massive savings.


Maintenance costs.


Breakdowns are unavoidable if your vehicle is always on the move. And if this is something you have experienced before, you are all too well aware of the substantial costs associated with towing and repairing. Let’s not forget the potential delays in deliveries, which may negatively impact your business through the loss of clients. For this reason, you should set aside expenses for preventive maintenance to ensure that your vehicle is always working at its best.


Reevaluate your supply-chain management system.


The supply chain management system you use can allow you to save costs on transportation. You need to monitor your freight as it is in transit, as this can help you avoid unexpected costs, delays, and disruptions. If you already have an existing system, consider how you can make it better. Investing in more optimal supply-chain management software can help you. Alternatively, you can consider automated collaboration with a 3PL logistics company. Logistics companies tend to consolidate shipments together and, as such secure favorable rates. These costs tend to be passed on to you.


Your transportation costs in 2021 don’t have to be high, provided you are smart and critical about the budget you set out. If you need a partner to help you make savings, Legacy Logistics USA is a no-brainer. Our vast experience in the industry means we know what it takes to reduce freight costs, and we are more than happy to share our knowledge with our clients.


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