Following the MODEX 2020 conference last week in Atlanta, we have found more shippers arming themselves with the tools to stay competitive in the current COVID-19 climate.
Last week we were fortunate enough to 1) successfully exhibit at MODEX 2020, which thankfully missed getting cut off due to COVID-19, and 2) connect with A LOT of shippers over the four days. These shippers were wowed by the latest technological developments to improve shipping parcel and freight being showcased at MODEX, but they also expressed grave concern with the current climate of shipping.
Shipping is being slammed hard on prices across modes. Rate hikes are being compounded even further right now with oil transportation issues out of the middle east. Shipping costs are soaring, and businesses are trying to stay afloat and keep up with customers.
We identify three specific tools shippers need now to fight for their businesses and stay aggressively competitive now and in the immediate wake when the pandemic and oil situations subside. Shippers require solutions that let them rate shop multiple carriers quickly, maintain state-of-the-art visibility into their supply chains, and enable fast recourse on incorrect invoicing.
Business that ship need to look for Expedia-like shopping platforms. Right now is a seller's market. You cannot afford to mess around in shopping for rates the traditional way, logging in and out of multiple carrier sites and then comparing the handful you have found. You want AS MANY CARRIER RATES IN FRONT OF YOU AS POSSIBLE - and fast!
This type of interface will save you a lot of money as you can retrieve rates from carriers that you normally do not even have time to consider. Rate shopping is also particularly useful with obtaining spot quotes and securing bids for reduced space on trucks and planes that other shippers are fighting over.
Shippers need to arm themselves with a modern, easy rate shopping platform.
No doubt if your business ships, you currently have a backlog. The thing is, customers have often wildly unrealistic shipping expectations, however they are not largely unreasonable. The key to staying on top of backlog - and adhering to general best practices going forward - is to maintain clear and consistent communication with your customers. And there is plenty of shipping software that help you do just that with automation. You can "hand hold" customers from order, ship, to delivery without taxing your labor budget.
In our Guide Digital Connectivity for Freight and Shippers, we look at the types of management tools and automation that is possible on the market that enable shippers to keep customers in the loop on all the stages of shipping. Clear communication not only helps keep customers happy when situations are dire, but is a reliable way to build brand loyalty going forward.
Lastly, shippers need a simple tool to go after the money they are constantly being overcharged by carriers. Market leaders indicate that, on average, businesses who ship are overcharged (or mischarged) up to 15% of their overall spend, with minimal resources to investigate and go after that money. Whether it is due to a misclassification on freight or a rate miscalculation, businesses have every right to go after that breach in contract.
Right now is tough. Tough on businesses and the individuals we rely on to keep our businesses running. And unfortunately, disruption appears to be a more common occurrence - Please see our post Disruption As the New Norm: Coronavirus Impacts on Supply Chains.
But right now is an opportunity as well. There have been incredible strides in what automation and system integrations can do for businesses that ship. It is time to clean your shipping processes and start employing the shipping technology that services small to midsize businesses.
We encourage you to demo our TMS solution as soon as possible to give you the tools to rate shop carriers, stay on top of customers, and go after invoicing errors. It is not too late to position your business strategically in the current climate.