Use these 4 strategies to streamline your next LTL request for proposal (RFP).
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Planning Your Request for Proposal

Your request for proposal could be completed with the intention to control transportation spending or expand provider options. A RFP will help you organize your entire shipping process. Here are a few strategies you should consider for your next RFP process: 

1. Common rate base
2. Fuel surcharges
3. Be open to new carriers
4. Hire an expert

1) Common Rate Base

A common problem for many shippers is being able to compare discounts from carriers since all carriers rate bases are different, which makes it very difficult to do proper modeling of each proposal. Start the RFP process with a common base rate for your potential LTL partners to consider when responding to the RFP (you may even be a large enough LTL shipper to demand the use of it). The purchasing of CzarLite is a great place to start. This CzarLite LTL Base Rate has become the industry standard with 276 billion zip-to-zip rate possibilities. While this will cost you some money upfront, the return can far outweigh the cost, plus you no longer be part of the blanket General Rate Increases (GRI) from the carriers each year. 

2) Fuel Surcharges

An often overlooked item in any RFP is the fuel surcharges imposed by the LTL carriers. This is also an area that can be standardized in your RFP, since all the carriers have different tables by which they calculate fuel surcharges. By standardizing you could save as much as 5% off your net transportation rate.   

3) Be Open to New Carriers

You may already have carriers you’re familiar with and trust. However, change can be beneficial to any business if it’s handled well. A new carrier may be able to offer you lower costs, more efficient packing, faster shipping times, or more. Being open to all proposals will increase your leverage with your incumbent carriers. Explore your options through a Google search, read reviews, and ask around to find the best carriers for your specific needs.

Pro Tip: As part of your research for new carriers, use our LTL rateshopper to determine how much money they can (or can’t) save you by switching.

4) Hire an Expert

One sure-fire way to ensure you get the best deal possible on an RFP is to hire a professional to help you navigate the complicated field of LTL pricing. Firms like ours have people that come directly from the carriers, so they know intimately the strategies to deploy on your behalf and all the negotiable items in your contract that will garner the most favorable results. An often overlooked area is the amount of time it takes your company to publish the RFP, manage the carrier responses, negotiate the most favorable terms through multiple rounds and finally all of the modeling and analytics needed to accurately forecast the impact of your carrier selection.   A professional shipping management team will help you analyze your options and find the best possible value. To best enhance your supply chain, speak with one of our shipment management experts today!

Planning for a Successful RFP

The best strategy for your next LTL RFP is to balance expert input with your own research on the best options for saving money. With careful attention paid to every option and a detailed analysis of your supply chain’s status, you can easily reduce your shipping expenses.

Connect with us for more information on optimizing your supply chain.

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Improve your company’s supply chain with these easily implemented tricks!
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Effective Management Procedures

For your supply chain to function properly, everything has to be integrated correctly to create a perfectly synchronized work environment. In order to keep operations streamlined, make sure you follow these essential shipping management procedures. 

1. Order fulfillment and processing management
2. Warehouse safety inspection
3. Vehicle inspection
4. ISO container inspection

1) Order Fulfillment and Processing Management Technology

A crucial component of customer service is that customers receive their packages on time and undamaged. A small company can handle this challenge much easier than a larger group. As your business grows, consider delegating some of the tasks to others and setting up checklists to ensure the proper standards are met. Provide a positive experience to exceed your customers’ expectations. Additionally, don’t forget about inventory management for your shipping center. A well-managed inventory system will prevent you from buying too much or not enough of supplies you need, ensuring you can always perfectly meet demand.

Pro Tip: Before you send out an LTL shipment, use our rateshopper to ensure you get the best deal possible. Saving money on shipments frees your budget to focus on other crucial expenses.

2) Warehouse Safety Inspection

Of course, this step is crucial for legal compliance and the safety of everyone at your facility. Periodically inspect your shipping warehouse for any potential hazards and take notes & corrective action if needed. Make sure your facility provides a safe and comfortable work environment. Hang safety signs in common areas to prevent incidents.

3) Vehicle Inspection

This is particularly important for your warehouse forklifts. Make sure the vehicles run properly, with no warning lights from the engine or tire damage that could make driving unsafe. Additionally, make sure your vehicles meet all required safety standards. Even if safety inspections aren’t required by law, it’s a good idea to perform checks anyway to prevent a deadly accident later.

4) ISO Container Inspection

Considering the sheer volume of purchased goods shipped in ISO containers, you’ll likely be handling shipping containers frequently. They require periodic inspection to make sure your customers’ items will arrive safely. Look for damage, potential defects, weak spots, and other concerns that could make the container unfit for use.

Improving Your Supply Chain

Improving your shipping service’s supply chain will help you satisfy customers and keep a leading role in the industry. Too many unorganized tasks can be overwhelming, but with specific plans, integrated technology, and work delegation, you can ensure that all standards are met and your customers enjoy a satisfactory experience with your services.

Connect with us for more information on planning your supply chain.

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LTL shipping is a great solution for any business trying to transport only a small amount of freight. But make sure you know how to prepare for anything that might go wrong.
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Potential Drawbacks

On the whole, LTL shipping is a dependable, cost-effective way to transport a small amount of cargo, most carriers maintain 97% or better on-time delivery rate. But business owners should be aware of both good and bad potential outcomes. Be prepared to deal with one of these issues when using LTL:

1. Losing the whole shipment
2. Higher risk of damage
3. Monetary drawbacks

1) Losing the Whole Shipment

One of the downfalls of shipping via an LTL carrier is that there is a possibility of the whole shipment not arriving at its destination on time or being lost in transit. As where, if shipped via a parcel CWT program you have a higher probability that most of your order will arrive in the published transit time.

However, an entire LTL shipment is contained in a single truck and rarely is a shipment broken down into a smaller quantity when capacity runs out for the entire order. Anything that delays or damages that single truck will also delay or damage your entire pallet of merchandise.

Pro Tip: Make sure to use a shipment manager or tracker to keep an eye on your LTL freight. This can reduce the risk of your goods being delayed in transit.

2) Higher Risk of Damage

In spite of the fact that there is less handling of the shipment, the risk of damage is actually higher with LTL providers. LTL carriers use forklifts to handle and load the freight, often double-stacking pallets in a trailer as well, making your shipment more susceptible to damage. Proper packaging and the appropriate use of dunnage, as well as blocking and bracing practices, are essential to guarantee a damage-free delivery.

3) Monetary Drawbacks

Lastly, LTL quantities don’t automatically contribute to parcel revenue-based incentives, only if you have negotiated this language into your parcel agreement. Unless your FedEx Freight or UPS Freight contract specifically states so, the revenue tendered to the LTL carrier will not contribute to the incentive received from the parcel carriers.

As well, there are so many more competitors in the industry that you may not even be transporting your LTL freight through the parcel carriers LTL business units. Though LTL shipping will generally save you money, don’t take it as a guarantee in every case. Use a rateshopper to double-check the price.

A Mostly Advantageous Strategy

Depending on your circumstances, the positives of LTL shipping may outweigh the negatives. But don’t make a decision either way without considering the advantages as well as the potential disadvantages. Make the best choice for your shipment and your needs.

Not sure if LTL is right for you? Connect with us for helpful ideas on when to use or pass on LTL shipping plans.

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Looking for a better way to send or receive small orders? LTL shipping may be the answer!
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Why Should You Choose LTL?

Less than truckload shipping can prove useful to any company that regularly ships or receives smaller orders. From keeping costs low to quicker transit times, LTL services can help improve your company’s business and success rates. More advantages of LTL include:

1. Reduced costs
2. Detailed tracking
3. Extra services available
4. Less environmental impact

1) Reduced Costs

Since you only need a portion of the truck space, LTL shipping rates are generally lower than paying for an entire vehicle. In many instances, LTL liability limits are much greater than FedEx and UPS CWT programs. Consider this a shipment weighing 350 pounds at freight class 50. One LTL carrier would limit liability to $700.00 ($2.00 per pound), whereas the parcel carriers would limit liability to $100.00 for the exact same shipment. Each LTL carrier has its own unique liability limits in regards to a loss or damage claim. Make sure to cross-examine your carrier’s rules tariff.

Additionally, remember that a company’s advertised prices may not be set in stone. Since the LTL marketplace offers a competitive landscape, with as many as 20-25 carriers for any given route, carriers are likely to be open to negotiating their costs. To find the best rates for your business, use an LTL rateshopper and save yourself some money.

2) Detailed Tracking

Even though your shipment shares space with other clients’ packages, LTL companies still make sure you can track your shipment and watch for a projected delivery date. Through the shipment reference number (pro#) and other information, you’ll be able to track your items at any time.

LTL shipping can also cut down on transit time, depending on the carrier. For instance, for a shipment from Houston, TX to Little Rock, AK, FedEx Ground has a published transit time of two days. Meanwhile, the LTL carrier Averitt Express offers a one-day transit. That extra day can make all the difference in a rush job!

Pro Tip: Business owners: Don’t overload your workload by handling all shipping functions in-house. A shipment manager can help you keep an eye on your orders!

3) Extra Services Available

LTL carriers pay close attention to your shipments and provide special services that shipping a full truckload wouldn’t allow. For instance, small orders can be delivered straight through your business’s front door as long as you’re present to receive them (inside delivery charge). There’s no way you could bring an entire truckload of goods inside! This just helps you get your supplies faster.

5) Less Environmental Impact

Taking advantage of an LTL shipping method lets the transport company use fewer trucks to transport their clients’ supplies, ultimately cutting down on the waste those trucks produce during a long drive. By shopping small and sharing the transport space, you can help contribute to a cleaner planet.

How Can LTL Carriers Help Your Business?

Of course, using LTL shipping doesn’t guarantee that all your business’s delivery woes will be resolved immediately. But if you need an effective method to keep your costs low and increase delivery speed, smaller shipments and specialized parcel carriers can certainly help.

Still want to learn more about LTL advantages? Join the conversation to see how this shipping method helps other business owners every day.

The post The Pros of LTL Programs appeared first on Freight Cowboy - Shipment Management.

Rising Shipping Costs

Your business has to ship. There’s no getting around it. Here are three cost-saving shipping tips for every small business:

1) Compare Rates

Shopping for the right rates can save you a significant amount of money. Rates can fluctuate for each carrier, especially when gas prices are on the rise. For businesses shipping freight, there are online transportation management systems that make shopping for transportation rates an efficient process, like the LTL Rate Shopper from Freight Cowboy. This service lists current rates and available service levels for a variety of carriers.

2) Know Your Product

All products for the shipment should be accurately designated on the OBOL, since declaring the wrong class or weight and dimensions to a carrier will result in additional charges plus a fee for having to perform the reclassification or reweigh. Getting your class, weight and measurements right from the start will help you avoid delays and surprise fees.

3) Shipment Consolidation

Shipping multiple packages or skids to the same address on the same? If parcel, place them into one box to avoid individual fuel surcharges or additional charges for shipping. If LTL, combining orders, if possible,  will lower your price per CWT thereby lower your total cost. As well, if the combined order totals six (6) or more pallets you may be better off getting a “spot” quote from LTL providers, most have a pricing department that handle these types of quotes.

Use a Freight Broker

Using the right freight broker gives you a resource to help you find the best deals on daily basis for inbound or outbound freight shipments. Getting the best rate depends on gathering the correct shipment characteristics, understanding the needs of your consumer from a transit perspective and matching those requirements to the right carrier, which are all things a freight broker can assist with.

Be Proactive

Shipping rates will continue to rise due to demand, fuel prices, and carriers seeking to boost their own bottom lines. Businesses must adopt proactive strategies to offset or eliminate rate hikes.

Contact Us to learn more about getting the best shipping rates for your small business.

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Benefits of Freight Cowboy’s LTL Small Business Center

Using a rate shopper service provides the most accurate rates for LTL shipments. Simply include the origin and the destination zip code, the weight and the freight class, and receive the best discounted rates available. Save time with tools like the class calculator, address book, and customizable templates for repeat shipments.

Compare

Using the LTL Small Business Center technology tool is incredibly simple and intuitive. Enter your shipment details and get the rates and transit times from all of our contracted carriers in one place. They are probably some of the same carriers you use today, but at discounted rates due to our volume of spend. Stop wasting time on the phone with a manual and complicated processes.

Complete

Simply click on the rate and carrier you want to create your Bill of Lading (BOL) and automatically schedule your pickup with the carrier with the click of a button. It is that easy. No back and forth or surprise fees. Streamline your next shipping process with the LTL Small Business Center and enjoy consistency and peace of mind.

Track

Take advantage of Freight Cowboy’s database and reporting capabilities within the LTL Small Business Center tool to track your shipments. Take the unknown out of shipping with powerful analytics that update you in real-time so you’re always aware of where your shipment is at in relation to the final delivery. You can even set-up your customer to receive e-tracking notifications directly from the LTL Small Business Center, just like they would receive when ordering a package online.

A Better Way to Ship

The benefits of the LTL Small Business Center make it a better way to ship. Save time, money and stress by using this valuable tool for your small business needs.

Contact Us to learn more about how to utilize the LTL Small Business Center’s Rate Shopper.

The post A Quick Guide to Using the LTL Small Business Center appeared first on Freight Cowboy - Shipment Management.

What is a Freight Broker?

A freight broker makes shipping easier by finding quality carriers that are proven to be reliable in hauling a load. Since most people don’t have the experience or time to determine if a carrier can perform the task. Freight brokers also help carriers potentially earn more by having available loads to haul.

Top Advantages

• Get The Best Carrier:  A broker builds their network with carriers they’ve vetted and can depend on, so you know your items are in good hands.
• Get The Best Rate:  If you don’t have time to shop carriers for the best rate, don’t worry! A freight broker will do that for you.
• Tracking: Your broker will stay in contact with the carrier throughout transit. Using GPS tracking technologies they can maintain the location of the shipment to delivery.
• Eliminate Guesswork: Your broker will get all the relevant information from you, then they will handle any classifications, forms, and documents necessary to ship successfully.
• Avoid Complications: Things happen in transit that can delay a shipment, no matter how much planning went into it. A broker will address any concerns or issues that arise.

An Expert on Your Side

Freight brokers are a tremendous resource since they’re experts in every aspect of the freight shipping industry.  When you’re concentrated on growing your business and don’t have time to monitor your shipping from pickup to delivery and that’s when a broker can help. An experienced team on your side can take the burden of shipping management off your shoulders.

Contact Us to speak with an experienced freight broker today.

The post What Is a Freight Broker & How Can Using One Streamline Your Shipping? appeared first on Freight Cowboy - Shipment Management.

Logistics Solutions

In today’s world, the demands on shipping and logistics companies are higher than ever. Carriers are under pressure, compliance is a complex matter, and customers expect service and updates instantly. To combat this, more shipment managers and carriers are opting for high tech solutions to do some of the work for them.

Automation

Automation plays a huge role in logistics efficiency. Robotics and artificial intelligence allow your shipping partners to save money and teach their machinery to make more accurate predictions when handling orders.

Tracking

An integrated GPS system allows your logistics partner to observe every shipment in real time. Vehicles can be tracked and monitored, preventing delay and loss.

Analytics

Shipping analytics provide quick, valuable insights into how well the process performed. Shipping solutions that offer comprehensive reporting capabilities and easy access to the reports you need make future decision making a breeze.

Transparency

Any shipping logistics broker worth their salt will operate on a system of transparency. Supply chain visibility promotes accountability for brokers and shipping carriers alike. When the process is closely monitored and reported, the potential for mistakes diminishes. When mistakes do occur they are easily spotted and avoided in the future.

A Well-Oiled Machine

Shipment management is a machine, with the warehouses, trucks, and vendors all acting as parts to power it. If they work together to deliver the product on time and undamaged, the customer sees an efficient, powerful machine. From the factory floor to the customer’s door, there is a smooth, timely transfer.

Contact Us to learn more about efficient shipping practices, or to find a rate on our LTL Rate Shopper.

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Shipping Freight For The First Time

If you’re shipping freight for the first time, start with the basics to get a handle on terminology. Then work your way to expert advice to get helpful pointers from freight professionals and learn how to navigate the process.

It’s never a bad idea to get familiar with freight shipping basics, so you better understand the process.
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Determine Freight Class

Freight classes are defined by the National Motor Freight Traffic Association (NMFTA) and fall between 60 (least expensive) and 400(most expensive). Freight class is based on weight, length, and height, ease of handling, density, value and liability, damage, fragility and spoilage.

Proper Packaging

Improper packaging can result in damage or loss, as well as unhappy customers. Using proper packaging techniques can save you time and money in the long run. Most freight shipments require palletizing, crate shipping or a combination of the 2.

Find a Carrier

There are many factors to consider when choosing a freight carrier. One of the first factors should be what type of freight you’ll be shipping. Different carriers specialize in different types of freight. Be sure to check reviews, and make sure the carrier you choose offers tracking, insurance, and competitive pricing.

Working With a Shipping Broker

Freight shipping has many moving parts that you need to be familiar with in order to ship without help. If you’re like most business owners, you don’t have a lot of time to spend researching shipping methods, carriers and options. If that’s the case, working with a shipping management service can take the burden off you, and provide guidance and expertise.

Finding the Right Option

Finding the best option for shipping should not only be an economic decision, but one that will give you the best results. A very inexpensive carrier might not be fast enough, or could be fast, but inconsistent. Weigh your options and make sure you find a balance between economics and efficiency.

Contact Us to find the perfect freight shipping solution for your list of needs!

The post Your Step-By-Step Guide to Shipping Freight appeared first on Freight Cowboy - Shipment Management.

Choosing the Right Shipping Method

If your freight is going a long way, or to another country, there’s a good chance it will require several different modes of transportation to get from A to B. If you’re in a hurry or unsure of your options, talking to a shipping professional can clear up a lot of confusion.

Choosing a shipping method depends on a variety of factors, most importantly weight, class, and destination.
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Air

A plane can usually ship anything that can be shipped LTL. Air shipping is a fast option but can be a fairly expensive way to ship freight to other countries. However, if you’re on a time crunch it’s probably a good option.

Train

While it’s often considered dated, train or rail shipping is still a viable and economical way to ship freight. It can haul LTL or truckload shipments from one destination to another, or in combination with other modes of transportation.

Truckload

If you need freight weighing more than 15,000 pounds shipped within the country, truckload shipping is the way to go. Truckload (TL) shipments usually deliver on the same trailer they were picked up on, limiting the potential for loss or damage,

LTL

If you don’t have quite enough freight for a full truckload, you may consider a less-than-truckload (LTL). An LTL load holds shipments for several shippers, organized into one shipment according to destination, class and delivery time.

Ocean

Large ocean vessels can move freight from country to country, usually in large, metal, corrugated containers. This is the preferred method of shipping large amounts of freight.

Shipping Broker Advantages

After the mode of transport is chosen, many shippers are overwhelmed at the prospect of pricing, tariffs, surcharges and paperwork.  Fortunately, shippers using a freight brokerage service don’t have to deal with these headaches!

Contact Us to learn more about your freight shipping options, or to find the right carrier at the best rate.

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