How Freight Forwarders and 3PLS Benefit When They Look Beyond Expedited
More than ever, businesses in industries from automotive and energy to medical and retail need to get their goods as quickly as possible to help them meet service commitments, reduce inventory carrying costs, or to meet tight, JIT manufacturing deadlines. However, while expedited might mean “fast,” “expedite” is more than just fast.
This is the first in our exclusive six-part series exploring going beyond “expedite” and exploring premium transportation management services. What can a PTM provide to freight forwarders which directly benefits their customers? In this article, we'll take a look at quality of service, care of cargo, and right-sizing delivery vehicles for efficiency, cost reduction, and, most importantly, better outcomes for all.
Expedited Shipping – Beyond Fast
In freight delivery terms, expedited usually means making a promise of additional speed to ensure prioritization of delivery. Just because something promises to be somewhat faster does not mean it will necessarily arrive on time.
The impact of late (or early) deliveries range from annoying to life-threatening. If a shipment of car parts is late, it could mean a line down situation. Idle workers waiting on parts means production halts, causing significant additional expense and delayed output – which ultimately impacts the consumer. If an urgent shipment of medical equipment is delayed, someone's life could be jeopardized. Early arrivals can result in unnecessary detention time or misplaced freight if the right person is not there to receive. Clearly, sometimes "faster than usual" is not enough. This is where time-sensitive and time-definite delivery services come in, empowered by freight management teams who understand the needs of the shippers.
Time-Specific Vs. Fast
Fast is vague. Time-specific is, well, specific. It means agreeing on a time for delivery (or pick up) and planning meticulously to ensure that happens. That includes on-time pick up of goods, where trucks arrive at the right time, and the goods are immediately ready to be loaded. On-time pick-up prevents lost hours from drivers sitting and waiting, and when planned correctly, means fewer trucks in one place at one time, avoiding bottlenecks and delays. Careful scheduling and tracking keep trucks moving and allows forwarders and 3PLs to set realistic expectations around delivery timing.
Time-specific or time-definite doesn’t have to be to the minute, either. It can be a particular window or simply a date, depending upon the recipient’s requirements. Freight transportation managers can ensure that any security requirements for accessing the delivery location are taken care of and that the carrier knows exactly what they need to do when they arrive. This can be drilled down as far as making sure a specific person signs for certain goods. Forwarders or 3PLS that can provide excellent service forge better relationships with customers, leading to improved business reputation and, over time, increased opportunities and revenues.
Exclusive Use Vehicles (EUVs)
One distinguishing aspect of PremiumTransportation Management (PTM) is optimizing truck size for your shipments. When time is of the essence, loading a shipment via LTL onto a truck with dozens of other small shipments can mean unexpected delays and possible damage — and create a poor customer experience. EUVs or exclusive use vehicles typically used in expedite means your freight travels alone. This minimizes delays at pick up or delivery, limits the number of “touches,” and allows for smaller units not subject to DOT hours of service regulations, meaning faster transit and often lower cost. The cargo is loaded onto the vehicle and goes direct with the exception of needed fuel stops and brief breaks for food. Right-sizing trucks can dramatically improve service and cost.
Maintaining Visibility for Safer Freight Transportation
With expedited freight or EUVs, there is heightened visibility in transit. Not only are units tracked with technology such as GPS or Macropoint, but the provider is watching shipments at regular milestone intervals to ensure shipments are tracking on time. Of course, being able to track a shipment accurately doesn’t make it go faster! But it does help transportation management teams keep on top of potential delays and plan around issues that crop up. Being able to address shipment hiccups proactively helps mitigate potential negative outcomes — a win for everyone at every stage in the supply chain.
As stated previously, EUVs reduce the risk of damage to cargo. LTL deliveries are generally considered to carry a higher risk of damage, especially when multiple small loads are carried together. Smaller vehicles allow for more careful loading and securement of freight, and often have special features such as air-ride or strapping. Then when combined with monitoring of an expert tracking team, there is a higher probability of delivering undamaged goods on time.
Packaging Digest indicates that up to 11% of goods could be damaged in transit before they reach their intended recipients — a costly figure indeed. Mitigating that damage is a vital part of creating high-service delivery experiences that mean direct shippers will use particular freight forwarding agents over and over. That is why it is critical you select a provider with an excellent claims experience.
Despite rising fuel costs and supply chain issues, the Cowen/AFS Predictive Freight Index indicates that the freight industry is still growing, meaning customers need to look at how to differentiate themselves from the competition. Reach out to S-2 International for more information about partnering with a premium transportation management service that goes beyond "expedited" to deliver excellent service with heart. Bookmark our blog, so you don’t miss our next article when we take a deeper look at the real-life benefits of time-specific transportation management.
