3 Tips for Conducting a LTL or Truckload Sourcing Event
May 4, 2017
What’s throwing things off?
In the LTL sector, the carriers--especially the major carriers--are being aggressive in seeking rate increases. They’re starting to calculate the dimensional impact of each and every piece of freight that goes on their truck, and then pass those costs onto shippers. They can tell you the density, the length of haul, and all the other characteristics associated with the freight, and they're giving shippers that data when they come in to justify the increases they're requesting.
Unlike other years we have seen LTL carriers stick to their guns in asking and getting the kind of increases they want, even when shippers push back.
What about the truckload sector?
In the truckload sector we're seeing something completely different. There’s an unexpected softness that continues on into the second quarter. We're also seeing a level of variability in rates based on geography.
How do I use this information in a sourcing event?
We have 3 tips for you:
- First, make sure you've got great data and understand the environment carriers are operating within. When they bring up their reports and considerations, you’ll want to be prepared to respond.
- Second, build an understanding of when and where the carriers want freight. It will allow you to match it up with your own needs.
- And the third thing is to make sure you ask for help when you need it--whether it’s from your internal resources or an outside provider.
At TranzAct we've conducted billions of dollars of sourcing events, so if you have questions, please give us a call at 630-833-0890 or send us an email. A great way to get started is for us to benchmark your rates.
We’re on your team, we're here to help, and we're passionate about seeing you be successful.