Transportation Procurement - Selecting Transportation Carriers and Logistics Providers

Posted by Digital_Zone on July 29th, 2022

Whether you are a small local shipper or perhaps a large global corporation, selecting transportation carriers and logistics providers is approximately forging beneficial relationships. Back the late 1970's, Burlington Northern Air Freight used the slogan "People Not Planes Deliver" ;.Not much has changed as transportation and logistics services industries continue to be a "people deliverable" business. It doesn't take much savvy to outbid your competitor with lower rates, but it does requires a strong relationship with service providers to deliver goods consistently on-time.

Below are a few tips to consider when forging relationships with Transportation Carriers and Logistics Providers:

Due Diligence. Know what you are talking about. Gather facts and figures before discussing rates and service options. Don't make an effort to bluff with misleading and inaccurate information.

Blend Company Philosophies. Don't base your organization decisions on a single personal experience or industry hearsay. Conduct business with Transportation Carriers and Logistics Providers because you prefer their company philosophy and their people. Encourage service providers to create their support staff to your meetings so you get to survey their overall commitment to excellence. Also, request a tour of these offices, warehouses and facilities.

Negotiate Over Multiple Rounds. Each time you meet with Transportation Carriers and Logistics Providers you find out more about their commitment and how flexible they are. Most critical, you learn about their tenacity and desire for helping you be successful. A great sustainable relationship is definitely a win-win.

Communicate your Internal KPI's. Educate Transportation Carriers and international logistics Providers about your internal KPI's (Key Performance Indicators) and benchmarks. Be sure you relate your company goals in ways that service providers know the way they contribute into the bigger picture. Ask Transportation Carrier and Logistics Providers about their KPI's and what you are able to do to greatly help support their efforts.

Price vs Service. There's a lurking danger in the price only approach. Low rated cargo is sometimes the past to board. Balance price negotiations with service level guarantees in your high volume lanes.

Discuss Multi-Year Agreements. Let Transportation Carriers and Logistics Providers know that you wish to work toward a long-term relationship. This will allow you to achieve better pricing, better service guarantees and quick assistance whenever you really need help in a hurry.

Utilize Several Carriers.Don't put your organization in the hands of only one service provider. Protect your risk. Foster relationships with several Carriers. Every service provider has their strong trade lanes and markets. Ask Transportation Carriers and Logistics Providers to be candid about their downfalls and poor performing lane segments.

Universe Logistics make every shipment cost-effective. Air freight forwarding is an occasion saving option for shipping business goods within and not in the country.

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