Maxims tend to lose their relevancy with time. What army commander today, for example, would shout, "Don't shoot until you see the whites of their eyes!" to troops that rely on laser gun scopes and night-vision goggles?

Outdated advice doesn't work, whether it's on the battlefield or in the distribution field. That's why it's time for shippers to re-examine one of most common maxims in logistics: Drastically reduce the number of carriers you use and you'll save big.

A decade ago, consultants told shippers that they could save serious money by giving all of their business to a small number of carriers. And there were other benefits to using core carriers. For one thing, it was easier for slimmed-down distribution departments to manage freight if it was concentrated with a few carriers. By monitoring that small group's performance closely, moreover, shippers could get better service. Most important of all, shippers gained leverage in rate negotiations because they could guarantee carriers a higher volume of shipments. It made good economic sense for many shippers to switch from using dozens of motor carriers to relying on just a handful to move their goods.

At the same time, carriers focused their efforts on increasing freight volumes. But as they began to use sophisticated software to measure the actual cost of handling shipments on individual lanes, they realized that bigger volumes don't necessarily mean bigger returns. In other words, they learned that some customers were not as profitable for them as others.

No wonder, then, that many carriers began offering special rates to desirable customers. For instance, shippers that don't make truck drivers waste valuable time waiting at warehouse docks are more profitable to the carrier, hence they may receive a lower rate.

In every mode today, fragmented pricing—whereby carriers offer special rates for certain customers—has taken hold. Many parcel, express, and trucking companies, moreover, have started imposing charges for costly extra services. For example, some express carriers charge extra fees for deliveries to far-flung rural areas or congested urban neighborhoods.

Now that so many carriers have initiated tailored rates, the time has come for shippers to reconsider their carrier-reduction programs. Simply put, it behooves a shipper these days to contract with separate carriers to move different commodities on different lanes.

Shopping around lets shippers get the best deal. If one carrier won't give you the price you want, then another just might.

To accomplish this, shippers may find themselves once again having to hire 100 carriers. That might have posed problems in the past. But today's sophisticated transportation management software makes it easier for a shipper to manage and monitor the performance of a bevy of carriers. Even with a lean-and-mean distribution staff, shippers can use software to track dozens of carriers across the globe.

Although haste may still make waste, and well done is still better than well said, times have changed. The core carrier concept has become a business mantra without meaning. It's outmoded in an age of individualized pricing, and it no longer offers a clear path for distribution-dollar savings.

James Aaron Cooke, Executive Editor