[ INSIGHT ] TRANSPORTMGMT
by Jessica Windham CEO, Solving Work jess@solvingwork.com | 567-228-2062
6 Steps to Diversify Your Carrier Portfolio
2023 was one of the most disruptive years in supply chain history... except that it really wasn’t. Even with the UPS/Teamsters negotiations, Convoy unexpectedly going out of business, and Yellow declaring bankruptcy—to name just a few—this level of supply chain disruption is starting to feel like Life.
4. Evaluate and decide. After you’ve received proposals from all interested parties, it’s time to make a choice. Analyzing carrier contracts is hard work, and small changes can have a massive impact. Be prepared to go through them line by line, many times, including the accessorials. Close the loop with the carriers who didn’t make the cut. Even if it didn’t work out this time, that doesn’t mean they won’t be the best option next time around, so keep the relationship intact. 5. Implement. Successful implementations are all about having a plan. That plan will change along the way, and that’s ne. But starting with a map makes it easier to see where you need to go. Establish a go-live date with check- ins along the way. Give your carriers reasonable volume projections, so they’re prepared. Finally, make sure you receive the bills, the bills are correct, and you pay the bills. 6. Bask in the glory of your accomplishment. Once you’ve implemented your new carriers, all that’s left to do is to work on maintaining these new relationships going forward, and then enjoy the fruits of your labor. At this point, you’ve put your company in the best possible position to not only handle future disruptions, but future growth opportunities as well. n
Here are some helpful considerations: • Who are you, as a company? • What do you ship? Are there unique handling instructions the carriers will need to consider? (A picture can be worth 1,000 words). • Where is your freight coming from and where is it going to? • When do you need it picked up, and when would you like it delivered? • How will you measure a successful carrier relationship? What KPIs do you plan to track? Remember to include all the data you’ve got. The more assumptions the carriers make, the more your costs will go up. Provide at least 3 months of scrubbed shipping data; 6 months for seasonal companies or acquisitions. 3. Let it y. Google, AI programs, and LinkedIn are tremendous resources for putting together a list of carriers. You can also ask your current TMS provider for a list of their carrier partners. When looking for a good partner, be a good partner. Pick up the phone and talk to a human, like a human.
But there’s good news. (Spoiler alert: there’s always good news). The solution to building a resilient supply chain capable of surviving today’s disruptions is the same solution to building a modern supply chain capable of thriving in today’s market. You need to diversify your carrier portfolio. Here’s how: 1. Assess your situation. Diversifying starts with understanding your current situation. What’s your company’s strategic vision and what kind of service do you need from a carrier to achieve it? Over what timeline? Next, do you know all your current carriers, across every mode? If so, what do they do well, and where are they failing? Are the businesses themselves in good shape (RIP YRC)? Who carries your goods when you’re not paying for it? Is there a piece of your current supply chain that you don’t manage? Would you want to? 2. Prepare an RFP. The more effort you put into this stage, the better your results. It’s as simple as that.
54 Inbound Logistics • June 2024
Powered by FlippingBook