Was it difficult to obtain such savings? Hardly, she says. “It made perfect sense to me. My first instinct was to go for the freight part because I knew we could obtain savings there. The second thing was basic purchasing savings.”
In exchange for such healthy savings, Mojica makes an effort to help out her carriers whenever possible. She likes to maintain personal contact on a regular basis in order to develop an understanding on what the carriers might need her to do to help them maintain their efficiency. She wants them to give her any ideas that will help keep both parties’ costs down.
Plus, she adds, a smile now and then doesn’t hurt.
“My advice to other shippers is, try not to be so harsh on your carriers,” Mojica suggests. “Try to maintain a friendly attitude. They’re in business, too.”
Easy Gardener at a Glance
Change Agent: Greg Lingle, Logistics Manager
The Problem: This Waco, Texas-based manufacturer of seasonal garden products was unattractive to carriers because it was making 60,000 shipments a year from an inefficient, 1930s-era freight dock in a remote location with limited on-site personnel.
What Happened: Lingle, a former trucking executive, began looking for ways his company could help make carriers’ operations go more smoothly. He began using pool distribution and other techniques to lower both sides’ costs.
Bottom Line: $1 million savings on a $9 million annual transport spend.
He Said It: “When you’re dealing with carriers, they want to save money as much as we want to make money.”
Metal Essence at a Glance
Change Agent: Theresa Mojica, Purchasing Manager
The Problem: This Sanford, Fla.-based metals manufacturer had no contractual discounts with either its parcel or less-than-truckload carriers.
What Happened: Mojica began billing for inbound freight to increase the company’s parcel volumes and qualify for discounts; also took advantage of National Association of Manufacturers’ member discount. She negotiated healthy discounts with LTL carriers and made suppliers more accountable for timely, damage-free deliveries.
Bottom Line: A 35 percent savings off its total transportation spend in the first full year of change. This year’s goal is at least $50,000 in savings, or about half of what the company would have spent without discounts.
She Said It: ““What I did with our suppliers was have them charge our account when they shipped UPS. Then I went to UPS and said, ‘I’m bringing you all this new inbound business, what can you do for me?’ ”