Wary of rising delivery penalties and transportation costs?
Mar 13, 2019
Last week, the Food Shippers of America put on an outstanding Annual Conference!
During the conference I moderated a panel discussion with some shippers and a 3PL provider. Talk about getting your eyes opened! I asked some questions about penalties from retailers and one large shipper noted that four years ago they paid $3 million in penalties; in 2018 the number grew to $24 million in penalties and fines. On top of that, along with seeing retailers tightening their schedules and delivery windows, shippers are facing increased transportation costs through higher rates, accessorial charges (especially greater detention and demurrage fees), and other factors.
But don't lose hope! You can still reduce your costs by improving efficiencies—and trust me, as the CEO of a large TL carrier noted, 95% of the companies in America have opportunities to lower costs by addressing waste within their supply chain. That’s why we recently hosted a webinar with a panel of shippers and carriers who shared practical advice from their experience, and if you didn’t get a chance to attend, you can listen to the recording here.
The webinar is filled with great insights and tips, such as executives from Penske and Pitt Ohio talking about ways to manage your freight docks to reduce your freight costs by three to five percent. There’s also an update on service in the northeast since NEMF’s going out of business announcement.
Another great resource for managing your overall costs is our Transportation Spend Management Plan eBook, which we are sharing exclusively with shippers to help them address root causes driving freight costs.
We provide all of this because we’re on your team here to help, and passionate about seeing you succeed. If you have any questions, please give us a call at 630-833-0890 or send us an email.