Based on the response we received after last week’s Two Minute Warning, where we shared advice for sourcing LTL freight, it’s apparent that several shippers are looking at conducting LTL sourcing events in the foreseeable future.
That said, there were a few things we left out for time's sake, so we were not surprised when we heard from folks asking if there were any additional tips we could offer. So in this week’s Two Minute Warning, here are a couple more must-know tips that can help you conduct a world-class sourcing event.
Know Your Carrier Network
In case we haven't emphasized it enough, the LTL carrier networks are constantly changing. Whether it’s carrier closings, or strategic decisions about where they want to run their trucks, the customer mix for the LTL carriers is in constant flux as they respond to their customers' shipping patterns and demands. That is why it is important to properly identify which carriers will be invited to bid. All too often, in an effort to save time, companies favor their incumbent carrier base without analyzing other potential carrier that may be a better fit for their business.
Understand Where the Market is Heading
Before you conduct your negotiations, make sure you understand the LTL marketplace so you are not caught off guard by any upcoming changes in the market. Fortunately there are resources that can get you up to speed. For example, we regularly offer exclusive in-depth content, like our webinar with Dean Croke, Principal Industry Analyst at DAT coming up tomorrow at 11am CDT. This webinar just got better since we were able to add Jerry Hempstead in light of interest in the parcel sector.
Learn How You Fit Into Your Carriers' Network
A while back, we held an interview with our now-retired colleague Vic Stajduhar who has decades of logistics experience in negotiating with LTL carriers. In this interview, Vic shared insights about how shippers can work more effectively with their carriers.
Interestingly, we received very positive feedback about this interview from both the shippers and carriers. In fact, one carrier represented told us: “This ought to be required viewing for people who are going to be working with us in the future.”
One of Vic’s most important tips was to see your business through the eyes of the carriers. And one way we’ve helped shippers do just that is by creating a carrier yield test. We recommend giving this test to your carriers and ask them for input about how your shipments match with their network. Upon completion, you’ll have a much better idea about how the carriers view your business.
Don’t be afraid to ask for help!
We’re in the market every day and we know where the carriers are telling us they have lanes that they want to have filled. That’s incredibly valuable information to have for conducting sourcing events! If you could use a partner to help you source freight, we encourage you to get in touch.