Freight Agreements Deconstructed
Rick Ankrum, C.P.M., A.P.P.
Email @ dot com, LLC
Many organizations allow small package freight to go unmanaged or do not treat it as a strategic opportunity. Your suppliers probably have not taken this approach. Small package freight can impact customers as well as your suppliers. This can be a profit center or impact profits. Customer expectations can be influenced when there is a strategy in place and measure for results. Sales and marketing may be able to leverage the small package freight for to retain customers and build the customers base.
Selecting the best strategy will impact the capital investments your organization makes. Too many or too few distribution points raises shipping costs. Learning the suppliers’ coverage footprint could shed light on unrecognized sales opportunities. In one example a shipper used three distribution centers in a Midwest state that could have been reduced to one distribution point without losing next day ground delivery service level to any customers in the state. What worked in the past may not be necessary today.
Beginning the journey means taking the first step. This book will walk you through the steps to a small package freight strategy and the results from implementing the strategy. If you do not manage this cost and your competition does - the marketplace will be the judge. Your higher costs, lower services and confused execution, will become evident over time.