Knowing how to become a shipper of choice is critical today since the logistics environment has shifted from a shipper’s market to a carrier’s market, which means freight transportation demand is considerably higher than supply, forcing shippers to compete amongst themselves for a carrier’s services. This article explains what a shipper of choice is, why they are important, and how to become one.
What exactly is a Shipper of Choice?
The term “shipper of choice” refers to a company whose freight and business procedures are in line with what carriers like. Because of the value, their relationship brings, carriers today want to engage with a shipper of choice. In other words, shippers of choice are those who take active steps to create confidence with carriers, make their freight more desirable, and invest in facilities to make the shipping process more efficient.
The section that follows delves more into the significance of being a preferred shipper.
The Importance of Becoming a Preferred Shipper
As previously stated, the demand-supply relationship for freight transportation has shifted. Today, demand for freight transportation exceeds supply, which is worsened by driver shortages, new rules, and growing equipment prices. As a result, carriers now have the option of being picky about the shippers they work with.
This is why shippers learn how to become preferred shippers. Furthermore, in congested markets, they have superior access to transportation capacity and freight prices, giving them an advantage over other competitive shippers.
Now that the role of the shipper of choice has been established, the following section presents six valuable ideas for shippers who want to learn how to become a shipper of choice.
6 Ways to Become a Favorite Shipper
Schedules that are adaptable
Shippers who offer flexible appointment hours increase the number of available drivers, making their freight more valuable. Providing 24/7 dock access or weekend/off-peak hours can greatly boost a shipper’s access to capacity.
Appointment timings are often determined in one of three ways:
- At a specified moment on a particular day,
- On – a scheduled meeting with a specific day, or
- By – before a specific time on a specific day, allowing for early delivery.
Shippers who expand their flexibility to meet “on” or “by” appointments boost the likelihood of their freight being approved and becoming a shipper of choice.
Provide Enough Lead Time
Shippers who provide carriers with adequate lead time and communicate promptly are another step toward being a shipper of choice and acquiring capacity more quickly. In addition to obtaining capacity, certain shippers may be given preference in capacity allocation over other shippers. Allowing carriers plenty of lead time allows them to plan their operations more efficiently. As a result, shippers have a better chance of becoming preferred shippers.
Simple Access to the Location
Another strategy to become a preferred shipper is for shippers to make it simple for drivers to access or negotiate a complex system of gates and docks. This is due to the fact that ease of access is a crucial aspect that carriers consider when assessing shippers. Here are two ideas for shippers to assist drivers to navigate easily:
- Make sure that there is enough space for trucks to navigate and
- that there is adequate signage to help instruct drivers when they arrive.
Dwell Time Should Be Reduced
Shippers who frequently detain drivers will have a difficult time finding a carrier to convey their cargo. Because of the HOS rule and ELD mandate, drivers want to get in and out of facilities as quickly and effectively as feasible.
Every driver’s time is strictly controlled by ELDs (Electronic Logging Devices). This implies that every minute they spend waiting on the dock detracts from the time they could be earning on the road. According to a DAT poll, most carriers believe detention to be a serious concern, and the majority of them rate it among the top five challenges confronting their business.
Shippers who establish a reputation for quick loading/unloading times keep their carriers satisfied and increase their chances of being a shipper of choice.
Driver Benefits
Carriers value shippers who treat drivers well and provide them with the required comforts. This is due to the fact that drivers spend a significant amount of time on the road, and providing them with restroom/lounge facilities goes a long way. Most carriers evaluate shippers based on how well they treat their drivers, and shippers have a better chance of becoming a shipper of choice if they provide a pleasant and inviting atmosphere for drivers.
Furthermore, having overnight parking facilities saves vehicles time and fuel by avoiding the trouble of leaving the lot to find parking. This has a beneficial impact on a carrier’s opinion of a shipper.
Payments made on time
The third suggestion for shippers learning how to become a preferred shipper concerns payments. Shippers should make certain that payments are done within the time frame agreed upon with carriers, especially as on-time payments are the number one requirement to become a shipper of choice. The average sweet spot for payments is 30 days, and shippers must also include fuel fees and accessorial charges.
Shippers help carriers avoid costly factoring companies by making timely and full payments, increasing their chances of becoming a shipper of choice.
Conclusion
In conclusion, understanding how to become a preferred shipper will assist shippers to acquire better access to transportation capacity at reduced rates. This, in turn, improves their shipping efficiency and lowers their costs. Shippers can boost their chances of becoming a shipper of choice and reap the rewards that come with it by following the advice in this article.
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