| Outsourced Freight- Many of the Large | | | | themselves more proficient in these rules and |
| Transportation Companies, who vow that your | | | | regulations by going to the NMFC website. Shippers |
| product never leaves their Fleet of Trucks, are not | | | | you need to realize that Carriers have dedicated |
| being totally honest. The idea of building partner | | | | employees whose sole purpose is to monitor weights |
| relationships in the movement of Freight is a | | | | and re-bills. Anything that can be reclassified, will be. |
| well-established, commonly used technique by ALL | | | | Carrier Loyalty- While I believe in value, and not just |
| trucking companies. After working for almost 15 | | | | shopping based on price, I have to say that I have |
| years at one of the Mega shipping giants, FedEx, I | | | | run into many customers who have been |
| learned that even they use outsourcing to their | | | | bamboozled by their "dedicated" carrier. It's great to |
| advantage. To the carriers, this is known as | | | | form a strong relationship with your freight company, |
| "maximizing resources" to get the job done. | | | | don't get me wrong. But folks, wake up and smell |
| Why send their trucks out to places like Lake City, | | | | the coffee. If you have been working with 1 main |
| Colorado, when they have an agent network that | | | | carrier for several years, and all your sales rep has |
| would charge them practically nothing, compared to | | | | done is kept you filled with Pizza I have news for |
| what it would cost for their own trucks to make the | | | | you. You may be getting shafted somewhere, and I |
| delivery. Shippers hate the idea that their freight will | | | | would bet a nickel it's in your pocket book. Many |
| be changing hands, and delivered by a different | | | | shippers fall prey to what I call, "The Freight Halo |
| company then they contracted with, but this is the | | | | Effect" which means that the carrier starts feeling a |
| age we live in my friends. Shippers see this process | | | | false sense of security, upon building rapport with his |
| as an opportunity for loss, damage, delayed transit | | | | customer. |
| times and theft. As a shipper all you can ask for is | | | | The freight company stops reviewing their |
| honesty and integrity from your carrier, and to be | | | | customer's spend and following up on shipments. I |
| informed as to who the contractor is. As I always | | | | have run across customers who have used their |
| preach to my shippers, stay educated, proactive and | | | | respective carriers for many years, and have never |
| alert. Don't be afraid to ask those questions. | | | | performed a freight analysis. As I tell my clients, |
| More Bang For Their Buck- "Don't Double Stack My | | | | "Make sure you take the slow time of your business, |
| Freight," is something that many shippers have | | | | to get a handle of your freight spend, in direct |
| labeled on their packages, bill of ladings, and anything | | | | correlation with your last years spend." Take the time |
| else that they can use to exclaim that point, but the | | | | to look into your TOTAL Supply Chain efficiency and |
| truth of the matter is, if your freight is dense and | | | | costs, because much of the time it's not just one |
| flat enough, it's getting double-stacked. Terminal | | | | aspect of the supply chain that's causing high costs, it |
| Managers across the industry are taught to maximize | | | | may be other aspects, that are not as obvious to |
| their trucks to the point wherein an "ant won't be | | | | the eye. |
| able to breath." If that means double, and sometimes | | | | Low Cost Providers- Many carriers will bring in cheap |
| triple stacking freight guess what, your freight is | | | | rates, pizzas, pens and calendars. "What can I do to |
| getting stacked. To remedy this, customers have | | | | earn your business?" They are fired up and ready to |
| started affixing small plastic cones on top of their | | | | go. The day comes when you give them that first |
| packages, anything that would show them that the | | | | shipment, something goes wrong and all of a sudden |
| carrier has stacked or removed the cone from the | | | | you can't find them. This is a common practice with |
| package to load other packages on top. If you have | | | | Freight Sales Representatives throughout the |
| a product that is sensitive to stacking, but it is also | | | | Industry. When things go bad, they disappear |
| important for you to get a good rate, you can ask | | | | because they over-promised, or perhaps didn't |
| the carrier to use a "stacking deck." This will allow for | | | | completely understand their customers business |
| the carrier to stack the freight, protect your freight, | | | | model. |
| and provide you with a great rate. | | | | Make sure your Sales Representative, not only gives |
| Cash Cow- The Freight Industry is a $240 Billion dollar | | | | you solid rates, but also asks those ever important |
| industry, and carriers know exactly how to maximize | | | | questions. Does he know what would happen to your |
| their profits and margins. It is true that at one point | | | | business if your product, that had to be on the |
| carriers were more lenient with "not reweighing" | | | | showroom floor in Gainsville, Florida by Friday, missed |
| shipments, but there has been an increasing trend in | | | | the trailer and still is sitting in the warehouse. Does he |
| the Freight Industry, "If in doubt, reweigh it." Carriers | | | | know the true price that would costs your company? |
| are reweighing everything that comes through their | | | | In dollars? Customer loyalty? Has he properly |
| warehouse. So shippers, you have to understand this | | | | positioned your product to guarantee no |
| and not try to get that one shipment by them, | | | | reclassification or reweighs? Does he think like a |
| because you're not. Carriers have identified this | | | | Business Owner or a sales rep desperate for |
| aspect of a shippers business as a CASH COW. | | | | business? Make sure they truly understand your |
| Millions of dollars a year are from customer's | | | | business, and not only furnishes you with aggressive |
| shipments being reweighed by the carrier. | | | | rates, but understands what your supply chain needs |
| But Shippers, you can't be mad, you have to be | | | | are. |
| smart. You have to understand this process and stop | | | | Transit Times- This has become a real issue for |
| trying to "pull a fast one." Enter the correct weight | | | | Shippers over the years. Your sales representative |
| of your shipment without guessing. If you don't have | | | | provides you with his marketing literature, and you |
| a scale go buy one. Scales range from $600.00 to | | | | clearly read that from 'Los Angeles to Dallas' is a 3-4 |
| $1500.00 depending on your needs. Many shippers | | | | day transit. You (Shipper) promise your customer it |
| frown upon giving up this type of money for a mere | | | | will be there in 4 days, at the worst case scenario. |
| scale, when they think they know how much their | | | | Your customer(Consignee) calls you in a rage 6 days |
| product weighs. But remember that the | | | | later and guess what? No product. He's furious, you |
| manufacturers are humans, and make mistakes. You | | | | become upset at your representative, of course, the |
| can't always count on your product weighing to | | | | rep goes into hiding. Shippers need to know a couple |
| specs. Spend the money on the scale, become more | | | | of things here: First of all, the Standard Transit time |
| efficient in your supply chain and stop being cheap! If | | | | that you see in marketing brochures is an |
| you have a scale that you suspect to be | | | | approximation. |
| uncalibrated, do what you need to do to get it | | | | As of 10-15 years ago, freight companies didn't offer |
| calibrated. | | | | a guaranteed service, but companies such as |
| Re-bills- If you are shipping freight of any kind you | | | | Conway Freight and Yellow quickly understood the |
| need to research and understand what your freight | | | | value, and money making opportunity this would be in |
| class is for your product(s). Along the same lines as | | | | the industry, and they capitalized on it. So as a |
| the reweigh, is the re-bill. I won't go into much detail | | | | shipper here's a few questions as to what you need |
| regarding this, but just like Carriers are making money | | | | to accomplish on the meetings with your freight rep. |
| off of customer's reweighs, they are doing the same | | | | Find out how their Freight Distribution process works; |
| with re-bills. Carriers are aware that most shippers | | | | where are they strong; do they hold freight to build |
| have no clue as to what the NMFC codes really | | | | a load, or are they pushing freight out as soon as |
| mean, and they probably don't care. That is until, their | | | | they get it (the ladder is rare in today's shipping |
| shipments go from a Class 70 to a Class 150 and | | | | industry). Is there on line tracking up to date and |
| they have to pay an extra $100.00 for a shipment | | | | accurate? Many Freight companies send freight out |
| that's left their warehouse. | | | | on certain days of the week. If you, as a shipper, |
| Initially the customer was counting on making a small | | | | have specific states that you are sending freight to, |
| profit, and after being re-billed they end up losing | | | | make sure to ask the sales representative what are |
| money. Lack of efficiency, poor planning, and not | | | | the days of the week that they release freight to |
| being proactive in their own education of these rules | | | | these areas. Shippers, you need to challenge your |
| is a major pitfall for shippers. With the Internet | | | | Representative, not in a combative manner, but with |
| accessible to ALL, there's no excuse as to why a | | | | a professional, educated demeanor. |
| Warehouse Manager, or Ops Manager can't make | | | | |