Part 1-10 Items to consider in hiring a transportation consultant
Transportation consultants can play a key role in helping you save time and money. We have found there are 10 major issues you should consider when hiring a transportation consultant. In part 1 of our two part series we will look at the first five. In part two we will review the remainder.
Time is money. There are many advantages to hiring transportation consultants who take the long-term view, puts the client first and if the relationship works sticking with that consultant. How do you find such a consultant? Find one who has long term experiences with large or reputable companies. That typically means the company has found a trusted advisor, involved the transportation consultant in the process of implementation and listened to practical advice. You don’t find that with transportation consultants who have a spotty record of one-night-stands with clients. Also by staying with a trusted transportation consultant there is no need to educate them about your company as new assignments arise. They already know you. It saves time and money and the benefit to you is that you can bounce ideas off of them often for free). In addition, they can provide you with new and spontaneous ideas when they hear about them that can save you money.
1. Transportation is not unlike any other service. The lowest cost is not always the best value. That is something a good transportation consultant knows. Upfront rate reductions, which are harder and harder to come by these days, are not the full story these days. Just ask any manager who has been seeking trucks at month-end. They know this.
2. More than likely, many large companies have received much of their savings in the past few years by reducing their carrier costs by working with good transportation consultants. Informed transportation consultants understand how carriers’ incur costs and how to mitigate those costs. There are many, many things that can be done to save carriers money. When companies know these things, it is possible to create a win-win situation. Also a good transportation consultant can suggest a broader range of options such as launching a private fleet if they, they know carrier cost structures. In the right situation, that can save you even more money.
3. Knowing the competitive landscape and being respected by the carriers is essential for the transportation consultant. A worthy guide can quickly determine which carrier or company would be interested in your business as well as the kind of structure that would be most advantageous. Long-term viability of the carriers and the way to get good last-second concessions is the hallmark of a good transportation consultant.
4.Using a strong understanding of the modes, good transportation consultants switch their clients among modes. Switching between modes has often been a great way to reduce costs. For example, when the automotive manufacturers are slow, many boxcars become available at very reasonable prices or when there is a high volume of imports, the shipping companies provide fantastic rates to get the containers back to the port.
5. Transportation contracts are very important, but too often an afterthought. Transportation consultants can create the contract that benefits the client. Often a client can miss the key points that can cost the client a ton of money. Transportation contracts are accustomed to the legal aspects of valid contracts and can catch the legal mumbo-jumbo. Also you want to get the contract ready in the beginning. Waiting can cost you additional dollars.
In Part 2, we will finish our two part series and cover the remaining 5 points considered essential when hiring a transportation consultant.
Fortune 50 companies such as Proctor and Gamble have worked with transportation consultant Thomas Moore and his associates for the past several years. P&G and other top companies know Transportation Warehouse Optimization take the long-term view and find practical solutions that result in saving the client millions of dollars. Ask for a free consultation. Visit their website at www.transportationoptimization.com. Be sure and TEST YOUR SKILLS and see if you can manage your companies cost savings by efficiently load a truck.
Filed under: Management