SPONSORED BY CANDOR EXPEDITE, INC.
EXPEDITED THROUGH A WIDER LENS
1. Negotiate strategic pricing. Expedited shipping tends to operate within a “buddy-buddy” network: “Jim did a good job for us before. I know, he’s expensive, but we’ll just use him again.” Would you operate any other part of your business that way? Not likely. You would cultivate a relationship, nurture it, feed it, and negotiate long-term, strategic pricing. 2. Communicate and collaborate. Be up front in planning and forecasting schedule, so your expedited carrier can advise you on best options to meet your needs. 3. Keep accurate data. Correct inventory and product demand data enables critical discussions with your expedite partner about supplies and customers’ needs. 4. Work with an experienced provider. A shipping company that focuses exclusively on expedited freight, has multiple escalation contacts, and a solid industry reputation assures you that your urgent shipments are delivered on time. 5. Find a provider that can handle your needs. Know your capacity and let your provider access and evaluate the best options for your freight. 6. Remember that price is not everything. Evaluate the many criteria other than cost that affect your decisions, and be open-minded about all possible solutions to your specific expedited transport challenges. arrive? Why waste time with a company that does not have a reliable expedited shipping department or does not focus on expedited transport? Companies get the best “bang for the buck ” with a respected expedited carrier that performs this type of transportation all the time. 6 TIPS FOR FLAWLESS EXPEDITED SHIPPING
While “expedited” is often equated with “expensive,” that basic connection misses the bigger picture. As the saying goes, money isn’t everything. In many cases, the speed, care, efficiency, and trust that expedited offers are more important than the initial cost — and the mode frequently turns out to be more cost-effective in the long run when it is integrated What other costs can companies avoid by using expedited? Viewing expedited shipping as a key piece of a larger transportation strategy makes far more sense than simply calculating the costs and comparing them to regular truckload or LTL shipping quotes. Taking a holistic view and examining the less obvious or “undercover” benefits of this mode makes that clear. The best way to do it? Explore the hidden costs of not using expedited. What is the cost of delayed or canceled shipments? The financial costs of tracking down and reallocating delayed or lost products can be enormous. But it’s not just financial costs: think of the costs to patients and their families when medical equipment or prescription drug supplies fail to reach their destination; or the damaged reputation costs when a brand’s perishables, in fact, perish; or the cost to customer retention and future sales when companies fail to deliver on promises. What is the cost of haphazard “emergency” shipments? If a company always reacts to a crisis, its costs will be greater than if it plans ahead for shipments that are best suited for expedited services. What is the cost of overstocked inventories? Maintaining bloated inventory levels to ensure that product is available in case of transportation snafus is not a cost-effective strategy. When companies track and ship products quickly, efficiently, and transparently, they lower inventory on hand and reduce costs. What is the cost of using unreliable or inexperienced shipping companies? Why chase shipment information and waste time in call center limbo or send emails with no responses? Why be forced to sort through a shipper’s waterfall tender routes to find out when a delivery will
90 Inbound Logistics • January 2023
Powered by FlippingBook