By Chris McAvoy, Director of Operations
Supply Chain Digest recently wrote an article titled “Transportation Tsunami Coming Again?” (to see the full article, click here). The basic premise of the article was that we could be headed down an even rougher road towards tightened carrier capacity and ever-increasing carrier rates. All of this is due in large part to increased carrier regulations (in the form of CSA 2010), more potential revisions to hours of service, limited investment in transportation infrastructure, and increasing energy costs.
In lieu of this potential for a “Transportation Tsunami,” I’ve decided to revisit the topic of carrier capacity and what shippers can do to capture more of it (to see older posts on this topic, see our three-part series called “Where’s the Carrier Capacity?”).
So, you’ve already conducted a bid for your shipping lanes, selected your core carrier base…maybe you even have a TMS in place to manage the tender process. That a great start, but now what? Just because you have the rates and carriers in place, that doesn’t necessarily mean they’ll continue to ship your freight when demand for their services climbs. After all, what’s to stop them from going down the street and hauling freight for another shipper – perhaps even one of your direct competitors? To help prevent this from happening, you need to look beyond the bid. There are several steps you can take to ensure you get the most out of your core carrier base. Focus on things you can do before the truck arrives at your facility, while the truck is at your facility, and what can be done after the carrier has left the dock. Here are some ideas…
Before the Truck Arrives
Before the truck has arrived to pick up the shipment, ensure the product is properly stacked on the pallet. Make sure there isn’t any overhang, it’s properly shrink wrapped, and that no boxes appear to be damaged or are leaking. The more that drivers have to worry about claim issues that were a result of poor packaging or palletization at the shipper, the less likely they’ll be to haul your freight in the future.
Additionally, ensure that your freight is properly staged and ready for pickup before the truck arrives. The more a driver has to wait for you to manufacture, package, or palletize your product, the more likely he/she will be to leave your facility for another shipper’s load, or choose another shipper’s load over yours the next time another shipment comes available.
While the Truck Is There
After drivers arrive at your facility, is it easy for them to check-in? Do you require 5 different reference numbers to determine what load he/she is picking up, or just one single confirmation number? If you’re backed up and can’t load the driver at his/her scheduled appointment time, are you relaying that on to the driver and giving them an estimated time of when they actually will be loaded? Better yet, did you let them know before they even showed up? If a driver is waiting in your yard to be loaded, are you frequently giving him/her updates as to your progress towards getting them fit into a door? Communication is important to carriers – the more you do it, the more thankful they’ll be.
Once the driver has been worked into a door, are they allowed on the dock to observe loading and to count the product? Are you loading it in such a way that minimizes the potential for shifting while in transit? Does your warehouse staff make an effort at developing a positive rapport with the driver? How long does the driver have to wait for you to prepare and sign any necessary paperwork? All of these factors play into how comfortable a driver will feel when hauling your freight. The higher his comfort level, the more likely he’ll want to continue shipping product for your company.
After the Truck Has Departed
Once the carriers leave your facility, keeping them happy doesn’t stop there. Perhaps the most overlooked and under-practiced strategy for building strong carrier relationships is the performance review. This not only refers to how well the carrier lived up to your expectations, but also how well you lived up to their expectations. It is important to hold these reviews every month or quarter. In addition to sharing performance levels during these meetings, look at how much freight you promised them for the month. Was it more or less? If it was less, let the carriers know why. Is your peak season coming up, requiring more capacity than usual? Share that with your carriers. Find out how much extra capacity they can provide in the upcoming months. The more notice you give your providers, the better able they’ll be to plan for those approaching spikes in business.
Finally, and perhaps most importantly, don’t be afraid to show your top performing carriers appreciation for a job well done. All too often carriers only hear about when they showed up late, when they showed up with damaged product, why their rates are too high, etc. The more appreciation you show for the things they did well, the more likely it is that they’ll be there for you when the “Transportation Tsunami” makes landfall.
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