You can have all your containers moving and trucks rolling — and still be losing money.
Logistics isn’t just about movement — it’s about margin. And some of the biggest threats to margin are hidden in plain sight.
🚨 1. Hidden Risks Live in the Gaps Between Systems and Teams
Most companies know to check for things like detention fees or incorrect billing codes. But the deeper risks come from:
- Underbilling due to misapplied surcharges
- Vendor overpayments from poor invoice matching
- Uncaptured costs because teams operate in silos
(For more on poor invoice matching and how to fix it, see my previous article on AP automation.)
These aren’t dramatic one-off errors. They’re quiet, repeated leaks — $100 at a time, across hundreds of shipments.
🧱 2. Silos Are a Major Risk Multiplier
Many logistics operations are still very siloed and individualistic.
For me, I see operations needing to be more collaborative — especially with procurement. Operators often pick their trucker or carrier — thinking they’re doing the right thing — but without visibility into the bigger picture.
Desk-level roles should be about the details (because the devil is in the details), but they need a step-back, Grand-Central-Station-style view.
Why? To:
- Maximize dims and weights
- Consolidate shipments (even unrelated ones)
- Negotiate better with carriers
If you break down the silos and encourage collaboration between those who do and those who negotiate, the whole system benefits.
This requires training and relationship building. Procurement is your negotiation superstar — but only if they’re embedded in operations. That means:
- Training ops on cost logic
- Making procurement data easy and accessible
- Creating a culture of cross-functional alignment
Without this, operators lose sight of logistics strategy — and procurement loses the leverage of consolidated volumes.
📝 3. SOPs Must Reflect the Crossover
SOPs shouldn’t just explain tasks — they should highlight the crossover between operations and procurement.
- When does an operator involve procurement?
- How are consolidation opportunities evaluated?
- Where does operational data feed into rate and contract analysis?
Good SOPs reveal the handoffs — and help everyone stay on the same page.
⚙️ 4. Systems Must Carry the Weight Too
You can’t rely on memory or hustle to spot every opportunity.
We need to lean on our systems — to automate logic-based decisions, flag consolidation options, and enable smarter cost modeling.
Here are a few real systems that can help (especially for teams using CargoWise):
- CargoWise One Native tools like routing logic, rate cards, and consol planning (if properly configured).
- Logixboard, Gravity, or Vizion Great for visualization, shipment grouping, and actionable data overlays. Many integrate with CargoWise via API.
- Expedock or RAFT AI tools that clean and extract shipment data to fuel better decisions.
- CargoSphere or Catapult Powerful rate management and modeling platforms that can feed rates into CargoWise.
- Custom Workflow + Rules in CargoWise Automate alerts, escalations, and approvals tied to cost logic and consolidation rules.
The tools are there. The challenge is aligning them with real operations and ensuring your team knows how to use them.
✅ 5. Fix It with Structure — Not Hope
The solution isn’t working harder. It’s building a smarter structure:
- Use system-based validations
- Align SOPs with real-world workflows
- Create shared dashboards for ops + procurement
- Invest in cross-training so everyone knows the full picture
Final Thought 💡
Financial risks in logistics don’t scream — they whisper. But they can compound quickly.
If you want to find the quiet gaps hurting your bottom line — or set up your team to stop those gaps before they start — let’s talk.
ALL2S CONSULTING LLC 