Diversified Transportation Services has been successful in keeping our client’s logistical costs as low as possible, while meeting service standards. One of the largest expenses that most people overlook is the administrative time it takes to get a rate, pick the "Right" carrier, then get it scheduled for pick up. I still see it with new clients that come to us on a daily basis, where there process is "get 3 quotes or more and go with the cheapest option". That is almost never the best way to meet your clients level of expectation as to what they want regarding the delivery of the goods you sold them.
Would you compare McDonald's hamburgers to Five Guys hamburgers? Of course not. I like McDonald's burgers, but I like Five Guys even more. Clearly you pay more for Five Guys burgers, the service you get is typically more upscale, and the product is also a different type of product.
With that being said, is the price truly the ONLY DRIVING FACTOR when making a decision? Well, it should not be.
When shippers have a SOP in place of getting 3 quotes, or more and going with the lowest cost option, most shippers never take into account the cost that it takes to get those quotes. If the quoting person is doing the rate on line, it may only be 10-15 minutes for 3 quotes which would equate to fully allocated cost to the shipper of $8.00 or so. Now, lets multiply that by 5 shipments a day, and now you have $40.00 (on the low side), of just admin costs. If you are doing TL rates and have to make calls, now you may as well double the time, and the costs. Reducing these costs is mission critical to putting more monies on the bottom line and to increase your consignees satisfaction receiving the goods in a timely manner.
What is the best option then working on LTL for example? The better option would be to work with a 3PL or Carrier that is truly in line with your needs. Surely the price has to be in line, but the 3PL partner must also fully understand what is important to you, the client, beyond just the price. Insurance, client follow up, and most of all, excellent communication between the two companies.
Technology implementation options that can be put directly into your WMS or order entry system is also one of the best ways to simplify the process and take out the admin costs. Streamlining via the use of technology is a great way to cut down on admin costs and reduce the sales cycle to your client buying your goods as well. At Diversified Transportation Services we have been doing this for our clients for 28 years. LTL - Truckload - Expedited - Tradeshow - Projects----when it comes to your supply chain and meeting your needs, we are here for you.
Regards - Michael Doyle Vice President of Sales - Diversified Transportation Services
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