SELECTING A FREIGHT CARRIER THAT FITS
Since deregulation in 1980, the choice of quality carriers is diminishing. The larger carriers are gobbling up the smaller ones, while running the risk of being gobbled themselves, as we have seen recently with Fed-X acquiring Viking Freight Lines. Now there is even talk about UPS acquiring a carrier of its own -- "Non-Union of course!" Everyone wants to provide a "One-Stop-Shop." However, I hope we've all learned from the recent strike, that placing all of your eggs in one basket may not be the best thing to do. With so many changes taking place in the transportation industry, how do we select a quality carrier that fits our needs?" "Very carefully!" Carriers are not as lenient as they used to be, a notification or single shipment charge is no longer a thing of the past. Freight classification is now something that is being scrutinized by the carriers, which causes shippers to wonder why they are being re-billed for their freight? -- Because the product is not being classified correctly. Nowadays when selecting a carrier you have to do your homework. There are six key things to look for in a freight company: 1. Service Area - Make sure they provide direct service to the areas you are shipping to. A lot of carriers interline, pass the freight to a partner, but will not tell you. This increase the chance for damaged and lost product. And unless negotiated ahead of time, carriers will not guarantee discounts on interline shipments. 2. Claims - How fast do they process claims? Do they follow through without being pressured? Quite a few claims get denied because of "Insufficient Packaging." 3. Service - Are they proactive or reactive? You need to be informed of problems by your carrier, not by your customer. This needs to be communicated during the negotiation process. 4. Technology - What do they have to offer? With the price of technology dropping, you can get more information on your shipment than you probably dreamed possible. With EDI, Electronic Invoicing, Host Access, and daily faxed manifest, the number of phone calls made can be significantly reduced. 5. Financial Stability - You do not want your shipment left in the cold because your carrier went belly up. Nowadays who's buying whom? 6. Price - It needs to be competitive! The cheapest is not always the best. "You get what you pay for." It's better to create a contract so your expectations are known up front, and ensure your price will remain constant for a predetermined period of time. How does your shipping manager select your carriers? Do they use the cheapest guy in town who brings the donuts and the tickets? Your carrier is a reflection of your company. When a shipment is lost, damaged, or late, your customer doesn't call and say "Your freight carrier messed up again." They say, "We always have a problem with your shipments." It's not the price of the freight or even the product you stand to lose. You risk losing a valuable customer that's generating repeat business for your company. So remember, when you are looking for a quality freight line to handle your product, do your homework. You have too much to lose if you don't. For assistance with selecting your next carrier, training, facility relocation, or warehouse management implementation, contact TLS. "We Have The Solutions Your Business Is Looking For!"" TLS is a non-asset-based logistics company which focuses on warehousing, transportation management, facility relocation, and warehouse training management system implementation/ upgrades. We are consulting with a twist, "Our job is to get rid of your job!" By training your people we believe our services should no longer be needed upon the completion of the project.

For more information, contact Rene Jones, Total Logistics Solutions, P.O. Box 11146, Burbank CA 91510-1146, 818-353-2962, FAX 818-353-6053.