NOTE TO CEOs: Freight Issues Can No Longer Be an Afterthought!
May 17, 2018
Last week, I received a call from a CEO that was concerned about why his freight costs are going through the roof. He asked, “Mike, what’s happening, and what can we do about it?”
I asked him, "How honest do you want me to be?" We're good friends so he said "Let me have it."
So I told him what I've shared with several other CEOs, "You may be part of the problem! The reason your freight budget is looking awful is because up until this "Freight Frankenstorm" hit, freight issues have never been on the radar screen for you and your other C-Level executives. Since it's never been important to you, you're willing to accept and live with the fact that your company has no written plan that addresses a comprehensive transportation spend management program.”
That got his attention, which is why shortly after hanging up, I received a call from one of his logistics team members. He told me, "I have no idea what you said to our CEO, but he asked me to call you to discuss how we can do a better job of managing our freight costs.”
The first thing I did was to direct him to our Perfect Storm Transportation Center to check out some fantastic resources. For example, our Perfect Storm Infographic is something that can be used to have a conversation with his C-Level executives about actions their company can take to get their arms around their freight costs. I then offered to have him check out our Rapid Assessment process. As part of this process, we can get freight issues on the radar screens of his C-Level executives and develop a Transportation Spend Management Program that will help them control their freight costs.
It’s looking like it will be a bumpy ride ahead for some time, so if you’re looking for any additional resources or advice, we encourage you to get in touch with us 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.