It doesn’t matter which news outlet or website you read in the transportation industry. The headlines are the same. Trucking capacity is tight, in fact, very tight. As a result, shippers are paying higher rates and competing for limited space on carrier equipment. There has been no prediction as to when the pendulum may shift, but most analysts expect these conditions to last throughout 2018.
This market dynamic is changing how carriers make decisions to allocate the capacity they do have. Price is no longer the only factor.
At this time relationships matter, and behaviors drive partnerships. For example, if carriers routinely experience long delays in making pickups or deliveries to your locations, there is a good chance they will be working with other shippers to avoid costly detention issues. Staying on schedule is just one of the ways that you can become a “shipper of choice.”
What does that mean? It means that you are more likely to get the capacity you need from your preferred carriers if you are collaborative, communicate effectively, and understand the factors that impact not only your performance, but your carrier’s.
Read this blog to learn about the top 5 ways you can position yourself as a “shipper of choice” by using an advanced TMS.
1) Ensure your supply chain is on schedule
2) Proactively communicate potential changes or delays
3) Pay fast and accurately
4) Make contract sourcing easier, faster, and more aligned with the market
5) Use actionable business decisions to drive decisions
And the good news is that as you become a “shipper of choice,” these strategies will also drive improvements in your supply chain – a true win-win.
This blog was first published in an issue of Talking Logistics, an online publication produced by Adelante SCM.