How to avoid communication breakdowns [page 3]

-- Logistics Management, 4/1/2006

Page 3 of 3 -- "We want advance alerts about potential space problems on airplanes and vessels so we can take corrective planning action," explains Lanier's Alling. "This also pertains to anticipated port congestion, so that if we are utilizing ten terminals in various ports, we can reroute the cargo."

Even if there are no problems, it doesn't hurt to keep in touch. "With the first few shipments, we call when something is delivered and follow up with a POD (proof of delivery) e-mail," notes Entzminger. "It's better to make three phone calls at the beginning just to say that everything has gone well to establish the shipper's comfort level that you're watching his cargo."

Technology can make communication of important information more efficient and complete. It's been especially helpful for App's company, which is handling imports from China of building materials for New Orleans. "We have an agent over there on the ground taking twenty-five to thirty photos daily of what is being loaded," he says. "These are e-mailed to us at the end of the day, and we forward them with our reports to the shippers to keep them informed."

Often a combination of electronic and personal contact works best. OIA Global Logistics, for example, uses customer relationship management (CRM) software that produces a monthly newsletter with industry updates. The software also sends e-mails about matters of concern to the specific customers who would be affected. Rather than rely entirely on technology, though, the forwarder follows up with direct contact in cases involving important developments.

No matter how useful and efficient the newer communications tools may be, they should not replace direct, personal contact between shippers and forwarders. Indeed, the personal touch remains the mark of the professional, says App. "You still need to talk to people," he cautions. "Discipline yourself to make a personal call from time to time so your e-mails don't become too cold and impersonal. Better yet, drop by every once in a while and have a talk while you visit."

Author Information

John Paul Quinn reports on a broad range of business topics for journals in the United States and Europe.

The High Cost of Poor Communication

Every shipper and freight forwarder can tell stories about the costly consequences of a communication breakdown. Here are two, one from each side of the aisle:

SHIPPER: "The $30,000 LCL (less-than-containerload) shipment from Europe to Atlanta didn't arrive on schedule, and when we finally reached the forwarder, he said that our cargo was being held in New York. It had been co-loaded in a container with another shipper's freight that Customs had targeted, and they hold the entire container if any part of the contents is questionable. Our cargo was finally trucked to Atlanta in bond and tied up again there until the forwarder paid charges that were due. It took close to 60 days to get the cargo, double the time it was supposed to take, and we had to pressure the forwarder for status reports throughout."

FORWARDER: "A mine here in the Southwest called late on a Friday and said they needed a replacement motor from a manufacturer near Pittsburgh by Monday morning. The traffic manager gave a home phone number in case of problems. Saturday morning we called Pennsylvania, but the motor supplier didn't know what we were talking about. There was no answer, no message at the traffic manager's number. We went back to the manufacturer, who finally tracked the order. The motor was ready, but at their Winston-Salem (N.C.) plant. We rescheduled our flight and the motor was waiting at the mine Monday morning. The traffic manager had gone away for the weekend! If we hadn't engaged in over-communication this job wouldn't have happened at all—or it would have cost the shipper an additional $40,000 for a deadhead leg from Pittsburgh to Winston-Salem."

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