Here's How You Can Lower Your Transportation Rates by 8 to 12%

Apr 12, 2018

Lately we've been putting a lot of emphasis on being a strategic versus tactical shipper. As we have repeatedly pointed out and the CEOs of large transportation companies have confirmed, strategic shippers can get rates that are much lower than tactical shippers—in fact they can be as much as 8 to 12% lower than what tactical shippers get.

Well, I'm delighted that the message is apparently getting through because recently I received an email from the CEO of a company here in Chicago and he asked me, "Mike, is my company a strategic shipper? If not, do you have any advice for me?"

My advice was to consider the things that strategic shippers do—and there are several examples of this in our latest webinar that included Walmart and Ardent Mills—then ask, "Is my company doing these types of things?"

One specific tip came from our webinar resource, Tracy Rosser, Senior VP of Transportation and Supply Chain at Walmart. He encouraged companies to to ask the plain and simple question, "How long are my docks open?" He then encouraged shippers to remember that a truck driver only has 660 minutes a day on the road and closing your dock early or not offering weekend hours could impact their schedule—and your ability to get capacity.

Looking at your docks is just one area to consider. Trust me, as we’ve highlighted in our webinar, there are several other areas to examine if you are serious about your logistics spend. And we address many of these areas in our Rapid Assessment process. It’s a dynamite process that can help you make the transition from being a tactical to strategic shipper. I encourage you send me an email or give me a call and learn more about our Rapid Assessment process. This consultative initiative goes beyond looking at your rates and addresses how improving your practices and processes can lower your company’s transportation costs.


If you have any questions about this or anything else, we encourage you to give us a call at 630-833-0890 or send us an email. We're on your team, we're here to help, and we're passionate about seeing you be successful.