Shipper-of-Choice Strategy: Why Carrier Density Doesn’t Always Amount to Higher Acceptance Rates

Why Carrier Density Doesn't Always Amount To Higher Acceptance Rates

Of all the challenges that face carriers, brokers, and transportation service providers, one of the most time-consuming remains maintaining carrier density and capacity. There is a fine line to walk between maintaining high levels of capacity and various carrier density opportunities, while also ensuring acceptance rates remain at an appropriate level. Implementing and maintaining a shipper-of-choice strategy can help ensure good density and capacity levels without requiring higher acceptance rates. It remains a delicate balance that comes with experience and insight into the modern transportation management system and related tools.

Facing the Challenges of Volatile Markets and Shifting Consumer Demands

In the past year or two, and likely for the foreseeable future, shippers’ primary focus is attaining that meaningful preferred status as a shipper of choice. It becomes easier to get carriers to accept tendered loads with such a distinction, regardless of the overall carrier density or capacity. According to Inbound Logistics, finding capacity by getting shipper-of-choice status is a way to set shippers apart from each other and provide a competitive edge during busy and volatile markets. Shippers who can adapt to those changes and still provide quality service continue to see the most significant growth and success with carrier density. Market logistics requirements and consumer demands continually shift and must be responded to appropriately.

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Increased Systems Integration Promotes Efficiency to Increase Eligibility for Shipper of Choice Status

More carriers and brokers and an increased number of LSPs in a given area can boost productivity, making it dense and more prolific. But unless everything can quickly come together and align, tender rejections can and do happen. The best way to reduce the frequency of rejections and other disruptions is to embrace modern integration and automation for carrier density and capacity. The more modern and innovative enterprise shippers become, the greater their odds of securing the shipper-of-choice status.

Shipping Diversity and Technology Variation Boosts Revenue and Carrier Density Through Partnerships

A large part of the push toward carrier density and improved capacity procurement comes down to technology and partnership diversity. This remains a trend that has been seen for some time and can have far-reaching effects on carrier density and expansion as a preferred shipper. Top rewards of effective partnerships include:

Promoting faster throughput creates new opportunities for collaboration

Carrier density continues as an essential part of shipping and carrier relations but remains much more complex than simply accepting as many loads and offers as possible. Wise choices, careful planning, and strategic decisions allow companies to achieve shipper-of-choice status and optimize benefits. It is the inherent ability of technology, especially a TMS, to streamline operations and allow carriers, LSPs, and shippers to get past tactical, route transportation management and come together to collaborate around shared goals, keeping the flow of freight moving while all parties benefit.

Embrace and Implement a TMS With Embedded Freight Matching to Increase Carrier Density

One of the best ways to take steps toward better freight matching and increased carrier load density and capacity continues with a robust TMS platform. Using intelligent data and freight matching tools and platforms can make it easier to maximize density and secure profitable loads without maximizing capacity and taking on every available order.

A partnership with MercuryGate remains a great way to get started

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