First and foremost, core carriers should have the capabilities to manage shippers’ needs. “Shippers want to ensure their core carriers are reliable and consistently meet delivery schedules and service levels,” says Brian Cupp, director of operations for IntelliTrans, which provides managed transportation services for shippers in the oil/gas, agriculture, mining, forestry, and other industries. “Shippers also want to consider whether the carrier will cover the geographic regions they ship to and whether the carrier can handle their shipping volume,” he adds. “If the shipper moves special freight such as breakbulk, liquids, or hazardous materials, the core carriers must also have experience and expertise in these areas.” COUNTING ON CAPACITY Reliability and capacity are especially important for shippers with frequent shipments. “Carriers must demonstrate the ability to handle regular pickups and deliveries without delays,” Cupp explains, adding that they must also have a strong network in their customers’ desired regions to guarantee timely deliveries. “For shippers with global operations, selecting carriers with solid international networks, customs expertise, and capabilities in handling cross-border logistics is essential.” Service levels are also crucial. “Carriers must reliably provide the right trucking service if the shipper needs LTL or full truckload shipments,” he adds. Shippers should also ensure that carriers have flexibility around volume. “Nothing in transportation volumes is ever consistent,” notes Martin Burnham, president of Hercules Freight, an asset- based motor carrier with 26 locations in Canada and the United States. In today’s supply chain, speed and predictability are pivotal. “Carriers that allow for direct shipments without stopping at multiple breakbulk terminals on the way to a destination result in faster,
Reliability and capacity are two of the most important elements shippers look for in a core carrier. Being able to handle regular pickups and deliveries without delay is crucial.
more consistent transit times, while minimizing opportunities for delays and product damage,” Burnham says. If shippers don’t understand the capabilities that they need, problems can arise. Shippers should be clear and accurate about their requirements, including frequency, geographic coverage, and service needs. “Some shippers don’t give this the attention it deserves and they’re wildly wrong with the requirements they communicate to carriers,” says Andy Dyer, CEO of AFS Logistics, a third-party logistics provider based in Shreveport, Louisiana. “Some shippers inflate their volumes to get a better deal, but their actual freight volume is much lower. “Shippers need to be honest, whether it’s about total volumes or seasonality,” Dyer adds. “Everyone will see the truth when the freight actually hits.” Shippers should also prioritize the value that carriers provide, including on-time deliveries and the care that carriers take with goods. For that reason, shippers should seek carriers with a low claims ratio and a strong record for limiting delays. “What good is getting the cheapest rate if you make a sale to a customer, ship the order, and the product arrives
late with 10% of it damaged beyond use and it never makes it to the showroom floor?” asks Kent Williams, executive vice president of sales and marketing for Averitt, a freight transportation and supply chain service provider. Shippers also shouldn’t overlook the intricacies of a carrier’s technological capabilities. “Real-time tracking empowers shippers to proactively address shipment issues, which helps reduce costs, improve customer satisfaction, and gain a competitive edge,” Cupp says. “By leveraging analytics, shippers can identify carriers with exceptional performance and cost efficiency. “Furthermore, a carrier’s ability to integrate with systems and adhere to security standards is crucial for seamless operations and risk mitigation,” he adds. “Ultimately, a carrier’s technological capabilities directly impact its ability to deliver exceptional customer experiences and optimize supply chain operations.” THE ROLE OF COSTS Experts agree that costs should not be the primary consideration ahead of factors such as service level, reliability, and reputation. However, its role remains critical—and total costs are not always straightforward.
34 Inbound Logistics • September 2024
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