Ops leaders on managing inbound freight amidst challenging macro conditions

In the world of supply chain, many things are opaque. 

Multi-colored shipping containers filling ports and highways. Sprawling, windowless warehouses filled with fluorescent lights. 

And also where the hell your shipment is and who the best partners are to get the job done. 

For most brands, inbound freight tracking and management requires significant full-time resources and manual work across systems — plus partnerships with multiple carriers and 3PLs. There’s a growing emphasis on diversification across their supply chains so if one piece of the puzzle fails, it doesn’t result in total collapse (but quickly adding carriers or forwarders is no easy feat). 

People are looking for some inkling of stability despite considerations like: 

• Ocean freight rates are on the rise, with costs from the Far East to the US up 36% to 41% from May to June. 
• Dockers from the International Longshoremen’s Association are planning to go on strike, starting October 1, if a new contract is not agreed upon by that date. European shippers are already scrambling to try and reroute east coast-bound containers. 
• 65% of execs said in a BCG survey this spring that they are prioritizing supply chain and manufacturing costs as their biggest lever for savings. 
• …and we’re just a couple of months out from the holiday season — the most challenging time of the year for most brands. 

“Companies want their inbound to be more fungible so they can easily onboard and offboard vendors throughout the year. With all of the stuff going on with the Suez Canal, Panama Canal, and the rail strikes in Canada…everyone needs to be way more nimble to survive,” an industry insider told Parabola. 

This all leads to very real concerns for leaders. They’re thinking about how to:

1. Strategically diversify their shipping methods and partners
2. Avoid costly demurrage or utilized container space fees
3. Improve inbound visibility across carriers and forwarders without the manual emails and system updates
4. Stop getting ripped off by carriers and actually follow up on violated SLAs
5. Stay afloat when you can’t control things like strikes or freight costs 

It’s a lot. 

We wanted to see how leaders were managing their inbound freight with all of this in mind, so we reached out to five ops practitioners to get their tips, tricks, and advice for staying flexible during these chaotic times. 

Here’s what they had to say. 

Take advantage of tech that lets you combine shipment data from multiple providers

Director of Logistics at bedroom furniture company 

“In terms of our understanding of our full container pipeline, we own that relationship for the booking process with our suppliers, as well as our ability to match all of our POs to containers and task manage all of our ASNs in NetSuite, which we have to create manually.

Being able to see that full list of everything that’s going on is a way better way to proactively manage this than to make assumptions that everything is traveling as planned. So we built a container tracker that shows more of the day-to-day management as well as full visibility. 

There are plenty of container visibility platforms out there that we could have plugged in, but Parabola gives us a more customizable way to actually build something unique to our business — it’s more dynamic than just layering on a container visibility solution.

Since we use two providers, finding a way to put all of this data together is really key.”

Small savings can bring big gains

Alex Maibum, former ops director at Melin and Medterra

“What we’re all trying to accomplish is improving the business EBITDA. 

Now, on the operations side, the impact is harder to see because you’re not revenue generating — you’re a cost generating part of the business. Everybody else can talk about top-line numbers. The only thing operations can do is impact the bottom line numbers, and those just don’t have the same sexy ring.

So the key here is finding the small optimizations, the small percentages that multiple into very large amounts. Inbound freight can be a big dollar budget item for many businesses, so you start talking one percent, two percent, and multiply that over 200 or 300 shipments on $10,000 invoices, you start talking about a lot of money real quick.”

“You can’t manage what you can’t measure”

Matthew Chapa, Senior Transportation Manager at Crunchyroll 

“It's difficult because there are varying levels of technological expertise on the carrier side, freight forwarder, whoever. Freight forwarding is inherently chaotic, with at least five or six different people handling a shipment from origin to delivery, so consolidating all that information is extremely difficult.

To make matters more confusing, you might also only be in contact with your freight forwarder via phone or email, which means you have no real visibility or clear understanding of what's happening.

You need a way to funnel information from carriers and freight forwarders so you can manage shipments effectively. The old saying, 'You can't manage what you don't measure,' applies here: You can either consolidate all your freight with one technologically advanced forwarder and analyze within their system, or find another solution that provides the necessary information.

It requires some way of capturing and organizing these details internally. This could involve integrating APIs with multiple partners or using a solution like Parabola to consolidate information, enabling you to measure and manage your freight visibility internally.”

Don’t forget about controllable accessorials 

Paige Zachs, VP of Supply Chain, Operations, and Customer at Coterie

“We are receiving automated invoice data from our carriers via email that feeds into Parabola, which effectively cleans up and formats the data that allows us to not only monitor our actuals to budget, but also keep our eye on controllable accessorials. 

Some controllable accessorials require constant conversations with our receiving warehouses to reduce things like waiting time, unloading detention, etc. while some controllable accessorials require conversations with our carriers on how to reduce things like storage, chassis, etc. 

Also, this has been incredibly helpful as we plan for 2025 budgets/financial model because we have the right level of visibility to estimate our costs effectively where before it was more of a black hole and best guess.”

Look upstream for low-hanging improvements

Megan Kiwada, Senior Director of Logistics at Tracksmith

“There’s no magic wand unfortunately! Inbound always required flexibility and a lot of oversight, but this season does seem trickier than most. 

We’ve made decisions to air more than we normally would in the short term, and focus on improving upstream (development schedules, PO management, communication) to give us more flexibility at ex-factory. It’s not an immediate fix but will allos us to be more proactive in the long term.”