Shippers learned the hard way not to trust carriers and not to depend solely on one delivery partner , no matter how big they are . “ Shippers have been burned ,” says Fross . “ Now they say , ‘ I ’ m not going to give 100 % of my business to one carrier .’”
He pointed to the critical role regional carriers play in giving shippers the capacity security they want . “ Regionals and couriers offer great alternatives in their geographic areas . These regional providers can approach shippers this way , ‘ Give me X amount of what you are sending to the national carriers right now . I ’ ll offer you guaranteed pickup in your peak periods without impacting your discounts with the Big Guys . That amount and no more is what I can commit to . These are the type of financial impact decisions that shippers are looking for today .”
He also pointed out that one of shippers ’ pet peeves is rate variations . “ I ’ ve heard more than once about the challenges they face when trying to do average projections on tender packages with regional firms ,” he says . “ They plan for those amounts and then they are hit with rate variations , sometimes on a day-to-day basis . I get it , you ’ re a regional carrier and you ’ re short on staff or there are density issues . These can require you to change the routes and that impacts your costs . It happens . But these shippers are looking for predictability on a daily basis . The more notice you can give them of these changes , the better . “
Shippers want to know that when they
Guaranteed Service Commitments
Time in transit has always been hypersensitive for shippers . Since Amazon Prime entered the space five years ago , it ’ s become even more critical . “ Shippers ’ customers have been getting used to two-day commitments on almost everything and it ’ s raised the bar for everyone ,” he says .
Shippers need those guaranteed service commitments from carriers . “ About two years ago , carriers pulled out of most guaranteed service commitments ,” he said . “ And it looks like they have no intention of bringing them back . If carriers are saying they can handle today ’ s volume , then they need to bring back those service guarantees . Shippers want to know that when they make commitments to their customers that they will be met . They know things happen , but if a carrier is going to brag about their abilities to deliver , they must stand behind that commitment . They must guarantee those deliveries . With FedEx and UPS , if the service does not meet its commitment , shippers can file for refund and get the full transportation costs back for express services . Regionals don ’ t have these guarantees and that makes shippers nervous .”
It All Come Down to Honest Partnerships
“ Shippers rely on those who do their deliveries for accurate , honest and timely information ,” says Fross in conclusion . “ And if that information changes due to driver problems or density issues , carriers need to let shippers know sooner rather than later . It all goes back to creating honest partnerships between carriers and the shippers they serve . That , more than anything else , is what shippers want from their carriers – honest partnerships .” CLDA
make commitments to their customers that they will be met .
14 customized logistics & delivery Magazine I winter 2023