The Lowest Transportation Cost, May Actually Cost You More in The Long Run

The Lowest Transportation Cost, May Actually Cost You More in The Long Run

Why do some shippers ask their logistics team to route shipments the cheapest way? The perception that many shippers have is that all carriers are the same.

This could not be further from the truth. Just like there are many different Cheeseburger options, the .99 cent option, the $1,99 option, and the $7.99 option, you get what you pay for. Each option will solve your hunger needs, but each burger is very different from the next. Knowing the differences and how to choose the best option that fits your needs at this particular time, on this particular shipment, is what our DTS Team does for its clients.

Shippers should always base their logistics needs on what their clients level of expectation is regarding the transit time. We know the end client or consignee always wants it there yesterday and that is not an option. The shipper wants to do the most cost effectively option, yet meet the consignee's overall level of expectation. There is always a middle ground to meet at when it comes to picking the best blended solution and that should be the shipper's ultimate goal. Cost effective and a reasonable transit time.

While cost is always a factor, many shippers sometimes fail to ask their consignees what their transit time expectations are. Keep in mind you can have it FAST, GOOD or CHEAP. You can always get 2 out of the 3 options but you can never have all three.

5 Quick Tips To Properly Evaluate Which Transit Time To Utilize When It Comes To Carrier Selection

  • If your product is a custom made item, ask your consignee what their deadline is for delivery. (saving a few dollars here when your consignee needs the item ASAP is never a good plan)
  • Ask your consignee if they need the item for any special projects or services. They may need it delivered for an installation with a team on site. Surely you would get a guaranteed rate, expedited rate, or even fly the item. (You want your client to be happy and reorder, don't you?)
  • If the item is a stock item for a consignee’s inventory, then a slower transit time may be a good fit. (Keep in mind that you get what you pay for - When you pay a little more you can expect a little more).
  • The lower priced options are not always the best fit. Many times when you pay more it actually costs you less in the long run with phone calls and emails that the consignee may have asking the shipper, "Why is my shipment not delivered yet?". Choose wisely and always consult your DTS Team Member as we are here to make YOUR client just as happy as YOU are.
  • Using Diversified Transportation Services Proprietary TMS - (Transportation Management System), can help make your logistics decisions easier. Advanced Technology for your logistics team!

When it comes to logistics, Diversified Transportation Services is an industry leader. Regardless of the type of move you have --, Air Freight, Volume, Project Oriented Logistics, International Small Parcel -- DTS has a range of solutions that will meet or exceed your needs. For over 24 years we have been helping our clients achieve their corporate goals. Isn't it time you made the call and see what we can do for you?

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