Last week I had the opportunity to take part in a panel discussion at the Journal of Commerce’s TPM22 conference. One of the top concerns for shippers charged with managing supply chains is: How do I find capacity to get my freight moved? So if you’re a shipper that’s concerned with capacity, you’ve got lots of company.
With that thought in mind, we’ve talked to several carriers and asked what advice they would offer shippers about how they can secure more capacity. Interestingly, some of them noted that using TranzAct’s Carrier Yield Test would be a great way to start getting a carrier's perspective about how easy or difficult it is to work with your company.
After you begin that dialogue, here are five things that the carriers agreed would help shippers secure more capacity for their company:
Know and track all the physical details of the freight going on carriers' trucks. Carriers have dimensionalizers and know exact sizes and weights, and can calculate the density of each and every shipment. Since they won’t hesitate to reclassify freight and adjust rates if warranted, shippers can avoid surprises by knowing the characteristics of the freight being moved.
Know how your freight aligns with their network. With carrier networks (a.k.a. their traffic lanes) constantly changing, the truckload and LTL carriers are continuously “refining” their networks to maximize the value of their assets. Freight that is “in network” will be priced more attractively than freight that is “out of network”. Savvy shippers will look to see how their freight lines up with their carriers networks.
Know how the freight moves through your docks and other facilities. How long does it take a truck to get into or out of your facility? How long does it take them to get into or out of your customers' facilities or your suppliers' facilities? These are things that carriers are tracking and shippers should too since carriers want to work with shippers who are “good stewards” of their assets (a.k.a. they turn their trucks as quickly as possible).
Know how the driver handling your freight is being treated. Many, if not all of your carriers “score" your facilities and how their drivers are treated is extremely important. Having facilities that are “driver friendly” is very important. Conversely, the carriers also know if their drivers are not treated well. For example, if you have a sign up denying drivers access to public bathrooms at your facilities, don’t be too surprised if you show up on a carrier’s “naughty list.”
Know how your freight transportation bills are being paid. It's important to get freight bills paid in a timely manner to reduce friction with your carriers. As we learned from one carrier executive, any extension in your payment terms will result in higher rates.
If you’re looking for more information about how to improve your LTL or truckload sourcing events or want to learn more about how the Carrier Yield Test can help you get more capacity, get in touch.
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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