Authentic feedback , capacity security , service commitments , and honest partnerships top the wish lists of many shippers . That ’ s according to industry consultant Mike Fross , executive director of strategy and development at
TransImpact
Mike ’ s been involved with issues surrounding the supply chain for over 38 years , joining TransImpact five years ago . TransImpact offers market expertise and industry-leading technology to help shippers choose the most efficient and cost-effective ways to deliver their products , which includes helping them with carrier contract negotiations .
In a recent far-ranging interview with the Customized Logistics & Delivery Magazine , Fross shared his insights about the question , “ What do shippers want ?” He summarized the conversation this way : “ Shippers want streamlined operational service systems with the ability to flex across carriers . To meet those dynamic needs , shippers have evolved their approaches to the supply chain . They ’ ve learned diversifying their carrier networks can help them better manage their operating environment ,” he said . That ’ s good news for local carriers , but it comes with a list of demands from shippers .
Honest Feedback from the Carriers About What They Do Well
Fross ’ firm provides business intelligence so shippers can build their supply chains efficiently and at the lowest cost . They know data helps shippers decide which carriers can be the best partners . “ Shippers want intelligence , and they want it to help make decisions about which carriers to use ,” says Fross . “ Most shippers don ’ t have the time or staffing to make those decisions . They must rely on the data the carriers provide them with information about what they do best . They say to their carriers , ‘ You ’ re my carrier . You know what ’ s important to me . Come to me and tell me where I ’ m inefficient . Tell me how I can make better decisions .’”
For the future of those relationships , carriers may need to honestly tell their shippers about alternatives that don ’ t include them . “ No one wants to give up business , but for the sake of a long-term relationship with a shipper , a carrier just might have to tell them to stop sending them specific pieces of business ,” he says . “ Those who tell a shipper ‘ You probably could be more efficient if you gave this piece of your business to another part of the supply chain like the LTL network . It costs you more to handle it through us because it ’ s not what we do . So , the way we ’ re handling it isn ’ t the most efficient .’ If carriers did that more often , they would cultivate long-term relationships because of that honesty . Also , there would be fewer service failures and it would help ease the tension when it comes to price negotiations . If a carrier were that honest with me , I ’ d never leave them .”
Capacity Security
Shippers need capacity security . They need to know that once they ’ ve built a supply chain for a specific purpose that they can set it and forget it for reliable well-planned periods . “ Recently , shippers have been told by some of their biggest delivery providers they will no longer accept their business ,” he says . “ By shedding business the way they did , those providers left shippers in terrible situations . Shippers had to scramble to find another way to satisfy their client base . That ’ s not good for the relationships .”
What does that say to last mile-providers ? “ Quite simply , shippers want security in their capacity . They ’ ve gotten burned in the last few years . Carriers and shippers have to plan together so they can be secure in the knowledge that those carriers are going to do what they say they will ,” he says .
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