Traffic Department

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Definition

Traffic Department

The Traffic Department or Traffic Group, when it comes to the world of logistics, is the department responsible for the movement of a firm’s products.

It focuses on selecting the best method of transportation of these goods, both internally and externally, with regards to time and cost, and tracks movements from start to finish, ensuring that there are no issues/delays along the route.

Three major responsibilities of a traffic group are:

  1. Carrier selection & charges
  2. Documentation & regulations
  3. Tracking, tracing & claims
Traffic Department Expertise and Skills

The focus of a traffic department is to ensure the movement of goods in the most economically efficient methods possible (taking in account the needs of both the customer and their own firm). The traffic department staff have intimate knowledge of the freight rating structures, fees, and consolidation criteria that each carrier offers. For examples: 

  • Carrier Selection: The group may know that based on the destination, and the goods that are to be delivered, a certain carrier may have a better track record in that area when compared to other available options, and despite a slightly higher cost for delivery, that specific carrier should be selected.
  • Freight Savings Techniques: The team may also use shipment consolidation procedures for their carrier options. In some situations, they can work with other teams within their organization to reach out to a customer to drastically reduce shipping costs by combining multiple individual shipments into fewer, or even one large, shipment(s).
  • Hazardous Materials Shipping Compliance: When processing certain products, the group also handles reviewing filings and documentation to confirm that they are in accordance with government rules and regulations for products that are hazardous or hazmat, oversized, are for export, etc.
  • International Shipping Requirements: International shipments may require certain documents (ex. commercial invoices). Hazardous shipments necessitate very specific documentation including labeling, and can have packing requirements to ensure that incompatible items are not packaged together.
  • Specialty Shipping: Lastly, oversized items may require a special pickup or be tendered to a specific carrier that can accommodate the special handling or delivery requirements at the destination. (ex. Liftgate Required, Two Man Truck, No Delivery Dock, etc.)

Once the goods have left the warehouse or distribution center, the traffic group will track and trace shipments to verify that they made it to their destination, were delivered as requested, and there were no issues along the way.

For example, if the service selected for a shipment was Next Day delivery service and it took the carrier two days to make the delivery, or if the package was lost in transit, or damaged along the way, the traffic group would file a freight claim with the carrier and/or work with them to locate and deliver the package to the customer.

In short, the purpose of traffic is to work with multiple groups, both inside and outside the company, to ensure that goods are moved both efficiently and cost-effectively, while ultimately confirming that they arrive at the customers.

Learn More

Many traffic department tasks can be automated, according to your business needs, with Creative Logistics Solutions’ multi-carrier shipping software solution.

Please contact us for a quick chat if you would like to implement outbound consolidation in your shipping operations.

For other shipping tips and cost-saving ideas, please see:

Case Study: ALOM Triples Shipping Volume with CLS Multi-Carrier Shipping System
Blog: Five Ways to Reduce Unexpected Carrier Back Charges
Blog: Are You Shipping Hazardous Materials and Don’t Know it?

 

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