The industry outlook for the foreseeable future revolves around the continued imbalance in supply and demand in the market. Businesses continue to grow, increasing transportation needs, while historic shippers focus on capturing savings. Their main goal is to keep transportation rates flat and secure capacity. Below are three questions you can ask yourself when working to improve the way freight is managed.
- Are your lanes segmented by complexity and service level?
Focus on protecting the capacity among your preferred carriers for high complexity and service levels. Attain to be an attractive shipper by guaranteeing more volume to secure capacity as opposed to rates. For low capacity shipping needs, you can achieve a higher level of savings by cultivating relationships with smaller and regional carriers.
- Where are carriers operating?
Take a look at the carrier’s business model and capabilities and identify the geographic areas that are dense with volume. Make your selection after cross referencing your business needs with the carrier’s needs to create value for both parties.
- Are you carrier friendly?
By instituting continuous improvements you can become a shipper of choice. This is increasingly important in today’s market where even the largest shippers are having loads turned away in favor of shippers who are easier to work with and create value for the carrier. Below are several actions you can take to become more carrier friendly.
- Plan for smart routes: single and nonstop routes are not possible for all shippers, some shippers have fluctuating volumes of freight throughout the year. To make the most out of this, consolidate shipments and book routes that keep drivers away from their home base for as little as possible.
- Take another glance at your forecast and pickup schedules, allowing carriers to get in and out as quickly as possible.
- Set up additional processes at your dock to increase the speed of loading and unloading to help carriers save time.
- Include automated dispatching to streamline communications and automated billing and freight payment for convenience and ease.
- Reduce payment terms as much as possible to foster an open and trustworthy relationship.
Contact Bricz at email@example.com to drive home your current truck load carrier relationships!
Contributor: Brahmini Reddy Supply Chain Leader at Bricz