On November 18th, 2016 UPS implemented their latest general rate increase. On January 2nd, 2017 FedEx issued their latest installment of their rate hikes. Since both of these companies basically control the market share of this $100,000,000,000 U.S. parcel space, these cost jumps are effecting just about every company who ships anything in this country.
The above Transportation Services Index measures the movement of freight in the U.S. This data is collected by the U.S. Department of Transportation (DOT) and put out by the Bureau of Transportation of Statistics to give insight and visibility to the public about the transportation climate.
Congrats! You've made it to the final step of reckoning! If you've followed my instructions over the past four parts, I guarantee you've put money back into your company's cash register (where it belongs)!
Are you having fund yet? Have you asked the boss man or woman for a raise yet? If not, hold off. Let's put more money in their pockets so they'll throw in a big bonus too!
In the third step of our five step process of taking control of inbound logistics we are going to learn how to convert supplier prepay and add shipments to collect. Why? To stop allowing vendors to make big profits on freight and take better control of your own costs, but of course!
In the second step of our five step process of taking control of inbound logistics we are going to learn out to create inbound routing instructions. Why? To take all the guessing work away from your vendors about your intentions of controlling inbound logistics, but of course!
Without a doubt the hottest topic I've discussed with shippers over my past 18 years in the transportation space is the lack of control people feel they have within their inbound logistics operation. Many people seem to think they are getting scammed by costly prepaid and add programs or played a fool by vendor's "free freight" program. And they have good reason to feel that way because it's been my experience that many times they are.
Shippers are ill-prepared for all of the advancements that the small parcel and less-than-truckload carriers are making in the US.
I know that is a big statement but the disparity between freight carrier sophistication and the way most companies ship their product is not even close. Allow me to elaborate. Right now there are massive innovations in the way freight carriers are handling and pricing shipments. There are several items that are vitally important for the shipping public to know.
Knowing what to do when a shipment gets lost in transit can be a frustrating and tricky thing. People usually panic because they want to make sure the customer is happy. However, that's when a lot of mistakes can happen. What can be an easily solved mistake can turn into a comedy of errors.
There are way too many conflicting reports on how exactly to handle a shipment when there is freight damage. Because at KDL we do the whole freight thang for a living, we got the whole process down so pay attention...especially if you want to get paid in full on your claim.