Criteria for selecting a freight carrier for your shipping operations
Carriers are an indispensable part of the freight industry. At such, partnering with the correct carrier capable of meeting your shipping needs is extremely important. Transportation, the largest cost of total logistics, is a key component of supply chain management. Below are important things to evaluate before deciding on a carrier.
Before selecting a carrier on your own, consider gaining professional insights on the market and carrier capabilities from a consultant. Also, consider having a freight payment firm audit your bills. This will ensure proper rating and data collected for future analysis. The services of a consultant, and a Freight Payment Service will assist your business in making this decision freeing you to concentrate on your normal business operations. Transportation consultants’ experiences with helping other shippers with similar business dynamics will be utilized in selecting the right carrier for your circumstances.
Criteria for selecting a Consultant: When hiring a consultant, select one who is completely independent and who is solely paid from project fees. Some consultants are paid referral fees by the selected carrier, and this raises questions of integrity and impartiality, and the question of direct conflict of interest arises. Also, enter agreements that compensate the consultant on a single project cost. They are more cost effective as fees are calculated based on returns on investment, ROI.
Criteria for selecting a freight payment service: You need to engage the services of a reputable Freight Payment Services (FPS) to help reduce your freight cost and improve your shipping efficiency. A good FPS help your business implement lean management practices. Their services will help your business analyze and manage your shipping. They can assist with freight bill payments, freight bill inquires, data capture and merging, help prevent double billing, and a range of other functions associated with complexities of shipping.
Criteria for selecting freight Carriers
- Dependability: Determine how reliable the carrier is in delivering goods. A cheap carrier who rarely delivers your good on time will harm your reputation, and in the long run cost you money. A dependable carrier will meet your customers’ needs which will be a great business reputation. As such, a reliable carrier will help in the growth of your business while an unreliable one will do the opposite.
- Soundness: Select a carrier that is economically sound and stable in the industry. It is essential for the continued success and growth of your company. A sound carrier is better prepared for the ups and downs in the industry. 2018’s great economic growth saw a lot of carriers struggle to acquire the additional assets needed for the increased demand.
- Costs: Transportation is the largest cost of total logistics, and therefore, is a key component of supply chain management. However, you need to truly understand your business needs before making this critical decision. Selecting the cheapest carrier may not fulfil your business needs.
- Safety: Select a carrier that consistently maintains a high safety rating. A carrier that is in the habit of breaking transportation laws will eventually be caught. The penalties will end up affecting their ability to provide the service to your customers and it will inconvenience and/or your business.
- Technology: Does the carrier possess a good transportation management system? A carrier with a great management system will be in better position to assist as your company grows and needs more resources to better service your customers.
CPC Consultants can help you navigate the tumultuous waters of a carrier’s marketplace. With our help, capacity will be locked in and rates will be stable. We understand the intricacies of the shipping industry. Using our proprietary services and logistics experts, we will help your company handle the unpredictability in shipping. Contact us today for your free assessment and take control of your shipping needs.