After a long stretch of rising truckload rates, shippers are finally seeing some relief on the horizon. Consider what has happened with rates in the spot market. Twelve months ago, rates in the spot market were averaging (depending on the lanes) $.70 -.$.90 higher than contract rates. Today, spot rates are (once again, depending on the lane) $.60 - $.80 lower than contract rates.
This inversion in rates has led to some interesting discussions for shippers who now are fielding more questions from their C-Level executives about why their company has not seen a more significant decrease in freight costs. What many of these executives fail to understand is that the procurement process for securing truckload and LTL freight is substantially different than the traditional procurement process to source commodities or other corporate services.
And that is why, working with our friends from CSCMP's Center of Excellence, we are thrilled to invite you to join this outstanding webinar: “What You Wish Your CEO Knew About Truckload and LTL Freight” on November 15, 2022 at 10:00AM CST/11:00am EST.
Let me cut right to the chase. As transportation professionals, while you know that freight transportation is not like procuring other commodities, your C-Level executives may not understand why at times it cannot be procured like other commodities. There are nuances and issues which will affect your costs, create variability in your freight budgets and potentially impact your ability to serve your customers.
When I heard my friend Dr. Chris Caplice, the Executive Director of the Massachusetts Institute of Technology’s Center for Transportation & Logistics, give this presentation at CSCMP’s recent annual conference, I immediately went up to him and said: “We have to spread this message!” Chris did a masterful job of explaining why truckload and LTL procurement is different, some common misunderstandings and how to clarify and explain these differences to senior management.
Kevin Smith, CVS’ senior VP of supply chain prior to his retirement, will be joining Chris and together they will help you, your key associates, and your C-Level executives understand some important issues that must be addressed when conducting successful transportation sourcing events with your TL and LTL carriers.
So plan on joining us as Dr. Caplice and Kevin Smith share their insights about what shippers wish their CEO knew about truckload and LTL rates and contracts, and what to communicate to prevent misunderstandings.
The webinar will be hosted in conjunction with the Council of Supply Chain Management Professionals (CSCMP) Center of Excellence and anyone who registers will receive the recording in case you’re not able to attend live.
We hope you’ll join the webinar and invite anyone else who could benefit.
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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