When describing what makes a shipper of choice, this saying applies: “Everything I’ve ever needed to know I learned in kindergarten.” The term “shipper of choice” refers to those who follow through on commitments and work collaboratively, respectfully, and professionally with their carriers and other logistics partners. Additionally, driver friendliness, flexibility, accommodations, efficiency, and low detention times are common characteristics of shippers that providers want to work with.
Creating such a reputation is crucial because it signifies a company that providers actively prefer to work with due to their reliable practices, efficient operations, and positive treatment of drivers – which translates to better access to capacity, potentially lower shipping costs, and smoother logistics operations, especially in lanes or situations with limited carrier availability or high demand.
Food Shippers of America (FSA) continuously features food companies that apply best practices that make their relationships, operations and expectations most appealing to their providers. In addition, many industry media outlets and organizations such as Supply Chain Brain, Logistics Management and Freightwaves actually highlight such best practices through awards programs. These recognition programs highlight some of the most critical characteristics that place a food company into the category of “shipper of choice.” One way shippers of choice demonstrate respect is by paying their carriers promptly. This is especially critical for small carriers, who tend to operate with tighter margins. Approximately 96% of motor carriers operate fewer than 10 trucks, according to the American Trucking Associations.
Shippers of choice plan ahead and try to provide their provider partners with the lead time they need to secure capacity at reasonable rates. At the same time, they remain flexible, understanding disruptions can impact even well-organized supply and chain logistics operations.
They partner with providers to resolve any issues and keep open lines of communication. Especially when challenges arise, this helps both parties develop workable strategies for addressing them.
Shippers of choice also run their own operations as efficiently as they can. Many leverage technology to streamline processes and minimize delays. Along with benefiting the shippers themselves, this helps the providers with which they partner, as it smooths their interactions.
Companies that earn the reputation as a shipper of choice benefit in several ways. Because doing business with them tends to be straightforward, logistics partners are more likely to go the extra mile to find capacity, even when the market tightens. Shippers of choice also tend to attract a wider universe of logistics partners, so they’re better able to find those that best fit their needs. Many shippers of choice provide consistent work to their partners, so providers are better able to capture favorable rates, which they can pass back through to the shippers.
To this end, BASF treats truck drivers with respect, he adds. Among other actions, BASF provides timely payments, access to on-site break rooms and it offers security fast passes and trailer drop yards to eliminate driver loading and unloading wait times.
“We have regular dialogues with carriers to exchange feedback and work toward continuous improvement and smooth logistics flow,” Vogt adds.
To make their trucking partners’ hard work a little easier and their days more tolerable, Costa Farms has established numerous best practices. These include creating an on-site driver’s lounge, complete with private rooms, showers, kitchen, relaxation area, and office space with access to Wi-Fi. This lounge is available to the drivers throughout Costa Farms’ loading hours.
Costa Farms also has two truck/ trailer parking areas with capacity for more than 150 tractor trailers. This parking area is available for drivers who wish to either drop trailers for a load to be picked up at a later date, or to park if they arrive prior to their loading time, Hancock says. In addition, Hancock says Costa Farms has implemented a batch loading schedule to guarantee that drivers who arrive at their scheduled time get loaded in a timely manner.
Agri-Mark Inc., a dairy cooperative and certified B-Corp that is owned by hundreds of farm families throughout New England and upstate New York, approaches its logistics partnerships with a spirit of collaboration.
Other food companies that recently have been recognized as shippers of choice in industry-wide recognition programs such as Freightwaves’ Shipper of Choice awards program include Albertsons, Aldi, Certainteed, Dawn Food Products, General Mills, Niagara Bottling, PepsiCo, Schreiber Foods, Target, Coca-Cola, Kroger, Tyson Foods and Univar Solutions.
In today’s competitive market, it’s critical that food shippers strive to be a “shipper of choice.” This means to go the extra mile to make it easier for providers to do their jobs. Here’s how to strengthen your provider relationships and achieve this coveted status.
Focus on Partnerships. Collaborate with your providers to identify and solve problems that impact both parties.
Communicate Clearly. Providers often are frustrated when shippers provide incomplete instructions. Keep them informed about shipment changes and be readily available to answer questions. Make it easy for carriers to obtain scheduling and policy procedures on your website. Host regular provider conferences and solicit feedback on how you can improve as a shipper.
Be a Predictable Partner. Providers like to do business with predictable shippers. Strive to be reliable with your shipping volume and avoid last-minute changes. The more predictable you are, the easier it is for providers to integrate your shipments into their planning.
Pay Promptly. Ensure payments are made within the agreed-upon time, especially since on-time payment is the top request for becoming a preferred shipper.
Provide Sufficient Lead Time. This helps providers to schedule their operations more efficiently. Giving your provider weeks of notice—rather than days—greatly improves your ability to be accommodated, while firmly positioning you in the “easy to work with” category.
Be Flexible with Schedules. Offer flexible schedules, large delivery windows, and fast yard check-in and check-out. Providing flexible appointment times and accepting trucks during “off” hours, such as evenings and weekends, helps providers better utilize their assets and gives them the ability to pick up shipments at less busy times.
Provide Drop-and-Hook Capability. This allows drivers to drop off a load and hook up to a pre-loaded or empty container at the same facility. Truckers are more likely to accept such freight because it enables them to spend more time on the road, maximizing their earning potential.
Provide Driver Amenities. Drivers spend excessive amounts of time behind the wheel of their rigs. Providing restrooms, break areas, and available parking can go a long way in making your location more desirable.
Minimize Loading/Unloading Wait Times. Each minute a driver is stuck at your facility is time off the road—time that can’t be utilized for hauling new shipments. Provide convenient access for drivers with a yard that is easy to navigate when coming and going. Have your equipment and manpower ready to go when a driver arrives. Shippers associated with excessive wait times will have difficulty attracting providers.
Leverage TMS Solutions. Transportation management system (TMS) technology solutions help providers increase the predictability of shipments, providing them with greater visibility further upstream. This will also help them to improve route planning and driver scheduling functions.
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