As sourcing experts we've witnessed how pricing cycles in the transportation sector influence the buying behaviors of shippers. When capacity is tight and carrier rates are rising, shippers talk about wanting to be a "shipper of choice," focus on protecting what they have, and will at times seek to extend their existing pricing agreements.
Conversely, when capacity loosens and carriers are looking for more freight, shippers will often decide that maybe it is time to conduct a sourcing event with their freight carriers and try to get lower rates. We've seen this cycle play out numerous times so it is no surprise that when publications like FreightWaves and others pundits are predicting a freight recession, we're hearing logistics professionals ask: "Is now the time to conduct a sourcing event?"
If the answer to that question for you is "yes" or even "maybe" then please, please, please take advantage of our great (and free) resources that will offer some tips and advice on how to get the best results from your sourcing event in today's transportation market.
Resources for LTL and Truckload Sourcing
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WHITE PAPER This white paper establishes a clear definition of what really matters to your carriers and translates into tangible benefits for you, the shipper. |
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INTERVIEW Hear insights from Chris Caplice, Executive Director, MIT Center for Transportation & Logistics |
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WORKSHEET Evaluate how well you're working with your carriers with this worksheet and learn if there's anywhere you need improvement. |
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INTERVIEW Learn how Ardent Mills was able to accomplish this in an interview with Dave Venberg, the Senior Director of Transportation and Logistics. |
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WEBINAR In this webinar, you will hear advice from seasoned transportation professionals on how you can adjust to the new environment and constant changes. |
Why are these resources so important?
In our Navigating Your Supply Chain in Survival Mode webinar, we listened to J.B. Hunt's Chief Commercial Officer, Shelley Simpson and Pitt Ohio's EVP, Geoff Muessig, address the fact that in light of significant changes in the carrier sector, shippers are using outdated and ineffective sourcing strategies.
Their comments also mirror what sourcing expert Chris Caplice from MIT explained when we interviewed him last year about strategic sourcing issues. There are some significant changes that have occurred since the pandemic began and shippers should know how these changes are affecting sourcing events.
For example, over the past two years the carriers have experienced sizeable increases in their cost structures. Whether it's the sharp rise in driver wages, or the increases in the costs of insurance and equipment, the carriers now have these increases embedded in their cost structures.
Another major change is the fact that the carriers have invested in technology and tools that give them the data they need to evaluate how your freight will affect their networks to maximize the value of their assets. That is why we strongly recommend that before you decide to launch that sourcing event, take advantage of some of these great resources.
For example, in the Carriers’ View of Carrier-Friendly white paper, we've heard from several transportation professionals that even though this white paper was authored years ago, the information is even more relevant today than ever. It's not too surprising to hear that since there were great insights from our relationships with carriers and other senior logistics executives that went into this white paper.
We know you're busy, so if you'd simply like to get help with your sourcing event, we encourage you to get in touch.
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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