Of all the challenges that face carriers, brokers, and transportation service providers, one of the most time-consuming remains maintaining carrier capacity and density.
There is a fine line 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 carrier 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 Carrier Capacity Challenges of Volatile Markets & 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, achieving 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 adapt to those changes and still provide quality service continue to see the most significant growth and success with carrier capacity and density. 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 capacity and carrier density. The more modern and innovative that enterprise shippers become, the greater their odds of securing the shipper-of-choice status.
Shipping Diversity and Technology Variation Boosts Revenue and Carrier Density
A large part of the push toward carrier density and improved carrier 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:
- Increased dock efficiency and a more streamlined approach to fleet scheduling.
- Decreased tender rejections and fewer delays and disruptions along the way.
- Faster acceptance, larger order sizes, and increased pickup of orders and loads.
- Increased customer service levels and overall better customer satisfaction.
- Data-driven management that adds insights to improve end-to-end processes.
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 transportation management and come together to collaborate around shared goals, keeping the flow of freight moving while all parties benefit.
Embrace TMS With Embedded Freight Matching, Increase Carrier Density and Carrier Capacity
One of the best ways to take steps toward better freight matching and increased carrier load density and carrier capacity continues with a robust TMS platform.
Using intelligent data and digital freight matching tools can make it easier to maximize density and secure profitable loads without exceeding capacity.
