1. Take a partnership approach. Most shippers are looking for carriers that provide the required capacity at the right times, on the right lanes, at the lowest cost, with the highest on-time delivery. “Much of this service comes when shippers cultivate carriers as partners, as opposed to being transactional,” says Balaji Guntur, CEO of Hoptek, a Kearney company. 2. Consider a dedicated fleet. In a dedicated eet arrangement, a third-party carrier commits to providing the capacity and drivers to handle a shipper’s transportation needs within an agreed-upon region or series of transportation lanes, for a set time.
If the carrier will need to meet speci c delivery requirements, such as completing deliveries before a retail store opens, ask about their record in this area, recommends Larry Lawrence, chief marketing of cer with Pace Runners, which specializes in nal- mile logistics. Once a shipper is working with a carrier, it should be possible to obtain this information from the carrier’s proof- of-delivery reports. Relevant experience is also important in reducing the likelihood of damaged shipments. For example, a atbed carrier that mainly supports the steel industry may have little experience securing an appliance in a van trailer. 4. Consider the carrier’s network. Examine the carrier’s network with the goal of ensuring solid overlap between your lanes and theirs. Another option is to work with a logistics provider that offers “destination commonality,” says Sean Maharaj, chief commercial of cer with Hoptek. 5. Evaluate reporting options. The reports a carrier offers should meet your information needs. For instance, if you need to see proof of delivery on some orders in real time, can the carrier provide that? Does the carrier offer a
portal through which you can check the status of your deliveries? 6. Check the carrier’s risk management coverage. If a carrier lacks appropriate insurance coverage and an accident leads to lost freight, the shipper probably would need to seek reimbursement from the carrier, rather than from an insurer. However, not all carriers would be able to cover the loss, Lawrence says. Litigation could be an option, but it would consume time and money, and might not provide relief. 7. Evaluate the technology platform. Ask the carrier about its technology roadmap. A carrier’s ability to provide timely shipment information has become as critical as its ability to move freight shipments. Among other bene ts, technology can help with dock, line haul, and pickup and delivery planning, which reduces shipping costs and handling. “That is a win-win for both parties,” says John Luciani, chief operating of cer of LTL solutions with A. Duie Pyle, a transportation and logistics provider. Also check the carrier’s route optimization software. A solid platform should identify the most cost-effective and ef cient ways to move shipments.
Arranging a dedicated eet agreement requires less of an
investment than building a private eet. It also tends to offer higher service levels than more transactional shipper-carrier relationships can, says Nathan Lease, senior director, logistics research and advisory with Gartner. 3. Assess the carrier’s capabilities and experience. Shippers should understand the service capabilities of the carriers they plan to partner with. They also need to check how well these services match the freight they’re shipping, as not all carriers can handle all their customers’ shipments, says Anthony Hoereth, senior vice president of sales with XPO, a less-than-truckload (LTL) freight provider. For instance, it’s typically easier to nd more carrier options for standard, rather than temperature-controlled or atbed LTL shipments. As a result, many shippers need either a diverse base of transportation partners, or to partner with a larger LTL provider that can handle a range of freight. Shippers that are nearshoring also should consider the cross-border capabilities of their carrier partners. This includes their experience, certi cations, and the robustness of their networks.
Carriers such as A. Duie Pyle have the ability to provide timely shipment information, which has become as critical as their ability to move freight shipments.
September 2023 • Inbound Logistics 37
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