Take Control of Freight Costs

I always like to control freight costs. Whether an express shipment company, an LTL or TL carrier, or 3PL, I think it is important to control the cost of freight and indicate freight collect terms with suppliers. In addition to negotiation with carriers (an underutilized negotiation) it helps in freight claims, not matter the FOB point. Always consider the leverage.

Your sourcing relationship is with the carrier and they want to keep your business. Shipping terms of ‘best way’, allowing the supplier to select the carrier and pass on the cost, is a savings and control opportunity lost.

But as with any new sourcing opportunity we want to learn as much about the commodity as we can. Every industry in the world has a trade association and trucking is no different. The American Trucking Associations (ATA) is a trade group representing truckers and their site is a great source of information on the industry. When you read what your transportation suppliers are reading, you get insight into their business. And when you’re sourcing, that insight is a good thing.

Rich Weissman

http://www.supplierevaluations.com - make the right choice

Comments: 1; Published: November 17, 2009; Permalink