Tag: Third party logistics - page 3

When looking into global logistics it should be noted that less than truckload shipping is growing in popularity.  Shipping smaller orders around the world is less expensive and quicker than using other modes of shipping freight.  When thinking about less than truckload shipping it is best to look at it as a way to transport like items in small quantities from a variety of different locations at a cost savings to business owners.  Bringing together small shipments of like kinds of goods saves time and money.

When calculating the rates in less than truckload shipping consider the total miles that will be covered as well as a fuel charge.  LTL shipping rates use a rate/mile basis and fuel charge to determine the rate in which shipments are sent.  Understanding this along with some of the other factors that can influence LTL shipping rates is useful in helping to save money on logistics here and abroad.

Base rates are taken into consideration when it comes to LTL shipping.  This rate is most often determined based on every one hundred pound shipped.  This rate will vary from one LTL provider to another. The CWT, or Centum Weight is calculated by looking at considerations such as the type of freight, the distance traveled and the total weight that is being shipped.  Carriers will modify and shift base rates annually.

The National Motor Freight Classification, commonly referred to as the NMFC classifies freight based on type and weight.  The NMFC has based at least eighteen classes of freight based on liability, product density and the type of special handling needed to ship the specified freight.

The type of freight being shipped also helps to create the cost associated with shipping LTL.  The carrier and customer will enter into an agreement based upon the type of freight to be shipped.  The agreement is made to help clients that send multiple consignments or items which in the end reduces the expense by a considerable extent.  The more a customer ships with a certain carrier the more reasonable the rate will be overall.

The distance shipments have to travel are also factors in less than truckload shipping.  The more miles that need to be covered the more expenses carriers acquire and therefore affecting the cost to ship.

When it comes to shipping and global logistics take into consideration the different factors that come into play in the rates that are charged for goods to be shipped.  Knowing and understand these key factors will help you to negotiate the best rates possible in LTL for your company.

Jefferson Diversified Group, LLC is a Global Logistics expert offering LTL shipping and more. Check out available rates today at http://www.detroitltl.com.

When it is time for your business, no matter how large or small, to find an efficient way to ship less than truckload freight there are a number of factors to consider.  Listed below are just a few considerations to take into account when looking to save your company money while still providing excellent customer services and LTL shipping services

First consider transit time.  When it comes to shipping your goods from your place of business to your customers, or the time it takes to receive goods from a vendor consider the amount of time you that is works most efficiently for your business. If you need goods shipped quickly you will need regional and multi-regional shippers over long haul shippers which offer longer transit times.  Take into consideration that shorter routes don’t cover the distance longer routes do so if the goods need to be sent a fair distance from where they are this may not be an option for you.

Consider the geographic coverage that is available with the LTL shippers you are looking into for your less than truckload shipping needs.  Most LTL freight carriers ship regionally with direct pick-up and delivery services. When you understand the area in which your LTL shipper ships to and from you are better able to find a carrier that suits your company’s exact shipping needs.

When deciding upon an LTL carrier look at their service performance record.  On time pick up and on time delivery are two very different things when it comes to customer satisfaction.  Both equally important however measured differently.  Note that most services can be guaranteed by carriers by paying an additional expense. Check with carriers that you are considering for your businesses shipping needs to locate a shipper that has at least a ninety percent on time delivery and pick up history with in the areas that your business services.

Before you sign on the dotted line with any LTL shipping freight carriers check out the amount of liability insurance coverage that they provide.  Reputable carriers will offer coverage equivalent to ten dollars per pound being shipped.  This is a base rate.  Insurance coverage can be increased with different premiums.  Many things will come into play when looking at insurance coverage options available for your LTL shipments including whether you are shipping new or used goods, different freight classifications as well as the care needed throughout the shipping process.  Items that are incredibly fragile, easily perishable or extra-large will require special handling.

The last consideration after all of this is factors involving pricing.  Many companies find this to be the most important factor of all however in my opinion this is the least important factors as all.  When it comes to pricing the true price of shipping comes after the consideration of the above as well as discounts, base rates and net price.  A discount of sixty eight percent at one carrier could be less of a net price than a discount of eighty percent through another LTL service carrier.

Jefferson Diversified Group, LLC is a Global Logistics expert offering LTL shipping and more. Check out available rates today at http://www.detroitltl.com/.

What is Less Than Truckload Shipping Anyways?

Less than Truckload, otherwise known as LTL shipping is one method of shipping goods that don’t require an entire truck to be shipped. The shipment that is being sent can fit in a truck with other shipments and does not require an entire forty-eight to fifty three foot trailer to haul it.  Truckload and LTL services are similar in that they both offer different services depending on what the client needs shipped.  Trucking services include residential pick up and deliveries as well as lift gate services, guaranteed services, freeze protection, bottom line cost and transit to name a few.

With any shipping service, including LTL, products will move from one point to another using a variety of methods that include truck, air, railway and water.  When shipping within the United States, shipping via truck lends to infinite possibilities consider time and place.  There is no waiting on a railway and their defined schedule.  LTL shipping offers both flexibility and decreased costs when it comes to shipping.  Freight carriers in the U.S. operate in a manner that allows for truck load services or less than truck load services.  This allows small companies the ability to compete in the ever bustling and changing business world.

There are defined characteristics of LTL shipping carriers.  Many less than truckload carriers use van trailers and enclosed trailers to move goods for their clients.  Some but not many also offer refrigeration services.  This is less common in LTL shipping than in FTL.  It is common to see rear roll up doors in many vehicles specializing in LTL shipments.  The entrance area with these carriers is often times smaller than trucks that offer swing doors.  Some LTL carriers use pup trailers in hauling.  When using a pup trailer most LTL carriers will not accept anything from a shipper that is bigger than one pup trailer.  They can easily maneuver and pick up ad deliver shipments when using pup trailers.  Often times when full a carrier will pull tandem pup trailers to their destination making the most of their time on the interstate roadways.

Pup trailers allow goods to be sorted and stored then easily dropped.  The packages are sorted by destination and can easily be maneuvered throughout carrier terminals to their final destinations.  Many carriers use central hubs to collect deliveries from LTL shippers.  This allows the goods to be delivered using smaller carrier trucks.  Carrier trucks are designed to deliver packages while also picking up shipments that will need to be sent through the distribution channel out for delivery in another part of the country or world.

When you consider logistics and the world we live in it is simply amazing.  Business owners using LTL shipping methods to allow customers to receive their goods within a day or two of ordering it.  Instant gratification is something that is facilitated using the services of well laid out LTL shippers and carriers.  Think about how amazing the system is the next time you order something that has to be shipped from overseas or from a state thousands of miles from yours.  It is amazing how fast it can actually get from the sellers location to your door step.

There is not a company in business that isn’t concerned about cutting costs especially when it comes to logistics. All companies want to save money on less-than-truckload shipping however at what point is saving money on shipping costing you money on service and disruptions to other elements in the supply chain.  Money is only saved when the job is continued without flaw and the shipping is procured at a reduced rate.

If other obstacles are cause by saving money on the actual LTL shipping than you may really be costing the company more money that you are saving it in customer complaints and disruptions to the labor force.  The element that a great supply chain management system will look at is lower shipping costs to the point at which they do not interrupt any other aspect of the company’s goals.  When everything is working in balance and harmony is achieved your business will then be successful.

To start doing this within your company’s organization it is important that the company set clear objectives and supply chain requirements. Assistance is needed to clearly define LTL shippers bid objectives.  These goals may be to reduce costs, reduce the number of carriers involved in the logistics process, quicker movement of shipments or geographic needs that have to be addressed.  In order to work with a LTL carrier your company’s needs need to be matched with those of the LTL carrier.

When aligning yourself with a shipper be sure that they have thoroughly addressed and collected valuable data from the carriers that they will be using to meet your LTL needs.  A shipper should have up to date, clear information on all carriers such as past financial performance, ratings in customer service, IT capabilities, equipment standards, fleet size and CSA scores.  A shipper needs to align themselves with carriers that are interested in carrying out the goals that you have in common for your shipments.

As a company it is important that you review data on your shipper as well as their carriers.  All data should be supplied to you in a formal review of the past twelve months of activities.

Don’t align your company with a shipper that has evolved using too many different carriers to achieve results.  The best option when it comes to logistics is to create a plan around a shipper that uses a level carrier mix with proven results and limited issues.  The more carriers involved in the shipment of goods, the more issues that can arise; including leveraging the demand and volume.

Using due diligence and creating a relationship with your shipper will also help your company grow.  Much of logistics revolves around the relationship that you have with the shipper and in turn the shipper has with his suppliers.  Good communication, written documentation and an outline of expectations and company goals are crucial when developing this partnership.  You and your shipper should work to alert each other to issues arising with carriers to avoid customer service nightmares that can be had from late deliveries, incomplete and insufficient carrier services.  If a bump in the road with a carrier is not immediately corrected it will affect your company and the logistics plan that you have worked so hard to develop with the shipper.

Jefferson Diversified Group, LLC is a Global Logistics expert offering LTL shipping and more. Check out available rates today at http://www.detroitltl.com/.