3 Keys to Profitable Relationships with your Carriers
This article is based on our discussion in the Shipper of Choice: Myth or Reality webinar. Watch the full video or listen to the audio here.
Protecting your capacity can come down to one simple factor: the relationship with your carrier.
Having a good relationship with your carriers can prevent constant turnover and protect your capacity, impacting your costs and customers’ delivery experience.
On a recent webinar we featured a panel of final mile carriers to discuss the concept of becoming a Shipper of Choice. One of the panelists was late. Why? His “best customer” needed a delivery and was under a deadline, and he, the owner of the large regional carrier company, made it happen by delivering it himself. That shipper has worked to build a relationship with that carrier that was so important, an order going undelivered was simply not an option.
How can your company achieve that kind of loyalty from your carrier network?
Understanding your Carriers
The operations of regional and final mile carriers are nuanced.
While they typically offer the flexibility to build a service around your needs as a shipper, these carriers are experts at what they do. Leaning into that understanding and providing them the authority to maintain operational control over their deliveries will only enhance your delivery service and relationship.
“We’re taking on most of the risk and liability,” said Lorena Camargo, Founder and CEO of PearlTrans Logistics on the Shipper of Choice webinar. As a carrier in California, her company is subject to unique circumstances under AB5. If a shipper initiates a relationship without understanding the legal requirements placed on a carrier, like those placed on California carrier companies, there is undue strain from the start.
As Lorena discussed on the webinar, shippers should take the carrier’s position -- geographically and legally -- under consideration. Allow your carriers to be subject matter experts and consult with them on the best way for your company to create a thriving final mile within that footprint.
Alignment of Values
Finding carriers who align with your company priorities is key to establishing long term relationships.
Start the discussion of the values your company strives for and how they factor into your delivery needs early. This can help select carriers that will work with you on meeting those values.
It starts with onboarding. “You always want to ask some open-ended questions when you’re on those ‘first dates’,” said Harold Boyett, President of Blue Streak Couriers, on a recent webinar, “Those open ended questions allow you to learn much more, at a much deeper level about what their needs are.”
Design your carrier onboarding process to establish those open-ended questions to cover company values and ensure that the carrier relationship is a match. “They may be a great shipper and someone likes working with them, but it may not be a great fit for us.” Commented Lorena Camargo. Not all carriers are going to be a fit — weeding many of those carriers out during the onboarding process will lead to a better experience and lower costs.
Communication and Technology
Keep lines of communication open -- through technology.
Using technology that provides clear, low-touch, no-maintenance communication enhances the relationship for all involved. On our recent Shipper of Choice webinar panelist Harold Boyett remarked on the “possibility for errors anytime you involve a human.”
He discussed how easy it was for two human operators to miscommunicate on something as simple as a pickup address vs. a delivery address -- a mistake that burns fuel, costs time, and money. As Harold put it, “When you have that human error involved, everyone looks bad.”
Visibility technology is going to protect carrier relationships into the future, enhancing final mile customer service and saving your company money.
Relationships are important
Relationships with carriers are at the heart of a successful final mile operation. Using an understanding, aligned values, and technology relationships are set up for the long term.
At eTrac, we offer the technology to ensure a thriving relationship with your final mile carriers, saving money and enhancing customer experience. The eTrac Carrier Network provides an easy way to find and onboard new carriers that provide expertise in your industry as well as fit your company’s values.