I hope you people reading my blogs and supporting me in great way to share my knowledge with you, I also guess it is also helping you to deal with day to day operation issues’ related to shipping and logistics, Further I assume you used to face one more snag on daily basis i.e. deal with shipping lines, so in this blog I’ll try to give you some handy suggestion to overcome this problem. Trust me when I joined my first organization after completing my MBA in shipping & marine this was the first issue who gave me continuous headache and twinge. After lots of effort I formulated following points which solve most of the hurdles related to shipping rates also its help me to retain my customers (which are the greatest headache in present corporate scenario) as well as saving the cost for the organization. Whether you decide to transport your goods across the country or across the globe the process can leave you feeling stressed and harried. To ensure a smooth and hassle free move follow these steps:-
1. Negotiating with individual carriers: - Leave no room for guesstimating get at least three or four estimates from highly rated shipping company.
2. Using an RFP (requisition for proposals) process:- An increasing number of companies, however, are learning that the RFP process is often the best strategy for obtaining the most competitive pricing. Here are some of the key advantages of an RFP:-
It's an efficient way to learn what price the market will bear. One RFP can be sent to as many carriers as you choose.
The transportation business is extremely competitive. Your company's shipping clerks and traffic manager are constantly being contacted by persistent carriers who want their business. When those carriers receive RFP's, they know they finally have the chance they’ve wanted, and they will naturally propose aggressive pricing to take advantage of the opportunity. Carriers you have been doing business with will understand that they could lose your account if they don't make a competitive proposal. The positive effect on your company's bottom line is obvious.
The organized approach needed to prepare an RFP encourages your company to review its transportation requirements, so that pricing is obtained for the services that will truly meet your needs.
3. Identify requirements:- Meet with the appropriate staff , company-wide, to review and clarify transportation requirements, obtain feedback about current carrier performance, latest service offered by the organization etc.
4. Gather data: - obtain report from shipping company as well as your company about all the last shipment and make an analysis about changes which needed at this point of time.
5. Determine your preferred pricing and contract formats:- Carriers vary in the pricing and contract formats they prefer. Naturally, they tailor them to their advantage. In order to allow "apples to apples" comparisons of the proposals you'll receive, and in order to protect your company’s interests, require all carriers to use the pricing and contract formats you prefer. Tell carriers that any accessorial charges (e.g. trailer detention, etc.) must be indicated in the proposal and the contract, rather than included by reference to the carrier’s Rules Tariff. If your company doesn’t have its own standard transportation contract, a transportation consultant can draft one for you.
Finally I hope it will help you out in any problematic situation related to pricing in the mean time if you got some important suggestion then please let me know.
1. Negotiating with individual carriers: - Leave no room for guesstimating get at least three or four estimates from highly rated shipping company.
2. Using an RFP (requisition for proposals) process:- An increasing number of companies, however, are learning that the RFP process is often the best strategy for obtaining the most competitive pricing. Here are some of the key advantages of an RFP:-
It's an efficient way to learn what price the market will bear. One RFP can be sent to as many carriers as you choose.
The transportation business is extremely competitive. Your company's shipping clerks and traffic manager are constantly being contacted by persistent carriers who want their business. When those carriers receive RFP's, they know they finally have the chance they’ve wanted, and they will naturally propose aggressive pricing to take advantage of the opportunity. Carriers you have been doing business with will understand that they could lose your account if they don't make a competitive proposal. The positive effect on your company's bottom line is obvious.
The organized approach needed to prepare an RFP encourages your company to review its transportation requirements, so that pricing is obtained for the services that will truly meet your needs.
3. Identify requirements:- Meet with the appropriate staff , company-wide, to review and clarify transportation requirements, obtain feedback about current carrier performance, latest service offered by the organization etc.
4. Gather data: - obtain report from shipping company as well as your company about all the last shipment and make an analysis about changes which needed at this point of time.
5. Determine your preferred pricing and contract formats:- Carriers vary in the pricing and contract formats they prefer. Naturally, they tailor them to their advantage. In order to allow "apples to apples" comparisons of the proposals you'll receive, and in order to protect your company’s interests, require all carriers to use the pricing and contract formats you prefer. Tell carriers that any accessorial charges (e.g. trailer detention, etc.) must be indicated in the proposal and the contract, rather than included by reference to the carrier’s Rules Tariff. If your company doesn’t have its own standard transportation contract, a transportation consultant can draft one for you.
Finally I hope it will help you out in any problematic situation related to pricing in the mean time if you got some important suggestion then please let me know.
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