LTL Negotiation Education for Shippers

Last week, we talked about the three "E's":

1. Education
2. Equipment
3. Execution

This week, we are looking at education--focusing on the LTL carrier market, which has changed a great deal over the last few years. In today's market, carriers are using activity-based costing models that quantify their cost to do business with each and every shipper.

No longer are carriers flexible in the name of getting as much freight as possible into their network. If you are operating under that outdated assumption, you are leaving money on the table. So, before you go to RFP, you must be educated about these three things:

1. Know exactly how much space your freight takes up on a trailer. Even if you only have one pallet, if your packaging causes it to take two pallet positions, you will pay more.

2. Understand how much time your carrier needs to service your account. Believe me, they know how much of their time you consume, and will charge you accordingly.

3. Address the "fit factor". You need to match up your freight with the lanes each carrier desires. Don't give freight to every carrier or spread it out by quantity. Fit the freight to each carrier's network.

Here are a couple of tools that can help you get educated as you prepare to talk to your LTL carriers, available over at www.tranzact.com:
Our Carrier Yield Test worksheet will help you understand how your carriers view your business, and will allow you to adjust accordingly. Additionally, our LTL White Paper is a great resources to learn the basics before beginning negotiations.

And if you need more help, just give us a call at 630.833.0890 or send us an email at solutions@tranzact.com.

Видео LTL Negotiation Education for Shippers канала TranzAct Technologies