There is not a company in
business that isn’t concerned about cutting costs especially when it comes to
logistics. All companies want to save money on less-than-truckload shipping
however at what point is saving money on shipping costing you money on service
and disruptions to other elements in the supply chain. Money is only saved when the job is continued
without flaw and the shipping is procured at a reduced rate.
If other obstacles are cause by
saving money on the actual LTL shipping than you may really be costing the
company more money that you are saving it in customer complaints and
disruptions to the labor force. The
element that a great supply chain management system will look at is lower
shipping costs to the point at which they do not interrupt any other aspect of
the company’s goals. When everything is
working in balance and harmony is achieved your business will then be
successful.
To start doing this within your
company’s organization it is important that the company set clear objectives and
supply chain requirements. Assistance is needed to clearly define LTL shippers
bid objectives. These goals may be to
reduce costs, reduce the number of carriers involved in the logistics process,
quicker movement of shipments or geographic needs that have to be
addressed. In order to work with a LTL
carrier your company’s needs need to be matched with those of the LTLcarrier.
When aligning yourself with a
shipper be sure that they have thoroughly addressed and collected valuable data
from the carriers that they will be using to meet your LTL needs. A shipper should have up to date, clear
information on all carriers such as past financial performance, ratings in
customer service, IT capabilities, equipment standards, fleet size and CSA
scores. A shipper needs to align
themselves with carriers that are interested in carrying out the goals that you
have in common for your shipments.
As a company it is important that
you review data on your shipper as well as their carriers. All data should be supplied to you in a
formal review of the past twelve months of activities.
Don’t align your company with a
shipper that has evolved using too many different carriers to achieve
results. The best option when it comes
to logistics is to create a plan around a shipper that uses a level carrier mix
with proven results and limited issues.
The more carriers involved in the shipment of goods, the more issues
that can arise; including leveraging the demand and volume.
Using due diligence and creating
a relationship with your shipper will also help your company grow. Much of logistics revolves around the
relationship that you have with the shipper and in turn the shipper has with
his suppliers. Good communication,
written documentation and an outline of expectations and company goals are
crucial when developing this partnership.
You and your shipper should work to alert each other to issues arising
with carriers to avoid customer service nightmares that can be had from late
deliveries, incomplete and insufficient carrier services. If a bump in the road with a carrier is not
immediately corrected it will affect your company and the logistics plan that
you have worked so hard to develop with the shipper.
Jefferson Diversified
Group, LLC is a Global Logistics expert offering LTL shipping and more. Check
out available rates today at http://www.detroitltl.com.
