When hunting for transportation savings, take only what you need
By John A. Gentle, DLP -- Logistics Management, 11/1/2007
It’s that time of year again. Hunters, like Ted Glaser, Owens Corning’s new international transportation leader, have already been checking out their deer stands and figuring out how not to get lost in the dark. And while Ted is out hunting in the woods, many of you are inside thinking about a different kind of hunt: The hunt for transportation savings in 2008.
The physical hunt, like Ted’s, begins with the primal instinct of the hunter to deprive the hunted from the right to its existence—sometimes this is done for sport, sometimes for a living, other times it’s done for the basic subsistence of the hunter’s family. Our forefathers hunted for the needs of their community, but seldom in excess. Then, in the 19th and 20th centuries, Americans took what they wanted when they wanted it without regard for balance or need. Often, animal life was taken for the pelts alone, leaving the meat element to rot on the side of the road, producing incredible waste.
Some transportation savings hunters still believe that savings can only be achieved through deep rate cuts—hunting for pelts. They enter the fray with marginal plans, change the rules mid-stream, and take as much as they can. If some carriers are destroyed during the hunt, well that’s just part of the game.
Other shippers enter the game with a topical plan, but when their execution falters and results are not attained, their carriers are forced to wait pondering their fate. Then, of course, are the poachers, who disregard all the rules, entering the market at all times of the year wreaking havoc and destroying balance.
Whether we are talking about wildlife or carrier contracts, shippers need to approach the hunt with respect for the well-being of the species, an appreciation for the value procured with the price paid, and the need to ensure that the pursued can continue to prosper and grow. In other words, take only what you need. Mandating capacity commitments from carriers and not using them is a selfish act that creates significant cost penalties for carriers when equipment and drivers are left without work.
Carriers continue to complain about the continuous bidding turmoil they’re subjected to throughout the year and the length of time it takes shippers to bid, analyze, re-bid, negotiate, and make decisions. Winning doesn’t necessarily mean that the carrier has won; it may only mean that they’ve earned the right to enter round two, three, or four. If we want carriers to be fully focused on effectively managing their business and providing value added services, they need a more stabilized business flow. How can carriers develop loyalty and productivity for you if their flows are disrupted by bid results week after week?
As hunters, we are taught to leave things better off than we found them and to only use what we need. It’s time to put that thought and responsibility into our savings processes. Specifically: What are we trying to accomplish? What is the real need? Can it only be achieved by rates? What are the tools, resources, and strategies needed to achieve the result in a timely basis—especially for the small to mid-sized carriers? When and how should the work be performed? How long should the rates be in effect and will there be provisions for market place shifts?
Hunting for savings should be a well-planned event without surprises, executed with real actionable decisions within two weeks of the event, and capable of being implemented within five. The growth of strong service-based carrier capacity is our responsibility: A successful bid should result in carriers and their employees surviving and growing during the year to become willing participants for your next year’s savings event.
During your hunt for savings, remember: Take only what you need, be respectful, and act honorably.
| Author Information |
| John A. Gentle is president of John A. Gentle & Associates, LLC, a logistics consulting firm specializing in contract/relationship management and regulatory compliance for shippers, carriers, brokers and distribution centers. A recipient of several industry awards, he has more than 35 years of experience in transportation and logistics management. He can be reached at jag@RelaTranShips.com. |
Talkback
Related Content
Related Content
- Logistics and Supply Chain Management Update
- Trucking news: NMFTA rolls out new classification procedures and organizational structure
- Labor interests increasing transport muscle ahead of pending “sea change” in Washington
- Pennsylvania DOT, Turnpike Commission get on the road with I-80 tolling plan
- Changes in truck size and weights gaining “buoyancy” on Capitol Hill




















View All Blogs
