Lower Your Rates by Using "Certainty" to Conduct Win-Win Transportation Sourcing Events
Aug 7, 2019
When companies conduct a transportation sourcing event—especially if it is a procurement driven sourcing event—there’s one thing that’s often overlooked: How much carriers value certainty.
Why is this so important? Because as carriers build their networks, they are making decisions–decisions that will affect their hiring, capital investment plans, and how they deploy their assets.
I was reminded of the importance of certainty recently when I was talking with the CEO of a major LTL carrier. He made an interesting observation about how his company is planning for the future:
“In essence, we are making bets about where freight is going to be running in our network. That is why if we have a shipper that has solid, reliable freight that we can plan for and that provides us with a sense of consistency, we’re going to offer rates that make it extraordinarily attractive for them to do business with us.”
A lot of transportation professionals would love to be that shipper for that carrier!
But how do you know if you’re their match? That’s where the right kind of sourcing event—not a status quo procurement driven event—can make a significant difference in generating additional savings that drives more money directly to your bottom line.
If you’re interested in conducting a world class sourcing event, here is why partnering with an outside expert can ensure that you address some important considerations:
- Understand how current and anticipated market conditions are affecting carrier rates and pricing decisions. Even if you’ve already conducted many of these events on your own, getting updated on market conditions is imperative.
- Gain extensive knowledge of carrier networks and address how your freight aligns with these networks.
- Get matched with the best carriers for your company. Given the volatility in the carrier market (e.g. the closings of New England Motor Freight and Lakeville Motor Express), now more than ever it pays to work with someone that knows what opportunities exist in the current landscape.
Give us a call and let us help you put these advantages to work to achieve better results in terms of service levels and savings. Let us know if we can help.