You Don't Know What You Don't Know

Now there's a thought to ponder. But think about it...bashful, ask the same question of ALL of the carriers
How true is this statement? For years now thethe company does business with:
landscape in the world of transportation and logistics· Are your base rates the same as your
has changed drastically. This is especially true withcompetition?
small and medium sized businesses. The reason is the· If not, how do they compare to your top
responsibility for management of transportation andthree competitors?
logistics costs usually rests with the financial group.· Who are your top three competitors?
Who better to control costs! While we could not· What is the margin of profit your company
agree more with this statement, we are intrigued byreceives from our account? (NOTE: They may
the lack of knowledge in some companies when itstutter on this one!)
comes to understanding freight carrier costs. If the· How does your company determine the
party responsible for controlling these costs is notdiscount you have offered us?
familiar with how the carriers' determine these rates· What can we do as a business partner to
how can they be successful in their mission to controlhelp you reduce costs so that we can share in that
these costs.savings?
You would be surprised at how many companies just· As our business partner for the past ___
do not have a clue. On the other hand, you would beyears, what advice would you give us to help us
amazed at how successful some companies are inreduce costs?
this area even though they are not transportationThe real challenge is to let the carrier know that you
experts. What separates the have's from the havecare. That you have a corporate fiduciary
not's? Very often it's the basic skill of askingresponsibility to make sure your company receives
questions so the executive can educate themselvesthe most competitive rates for the services being
on the freight carriers costing structures. Once theprovided. Remember we said "MOST COMPETITIVE",
corporate executive shows his knowledge to thenot the cheapest rate. There is a huge difference.
carrier sales representatives, you would be surprisedThe cheapest rate may wind up being the most
at how far they can drive costs down. It's a simplecostly rate if the shipment is lost pr damaged or if
point of "Knowledge is Power".you lose a customer because of poor service. By the
Here are a list of questions every corporateway, do you know what your customer's wants and
executive in charge of controlling transportation costsneeds are? You don't know what you don't know. It
should ask their carrier sales reps. And don't bemay be time to find out.