10 things to look for in a transportation consultant – Part 1
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.
Transportation Consultants should take the long-term view that puts you, the client, first. Select a transportation consultant who has worked for leading companies for a long time and avoid consultants who have had a number of one-night stands. Long-term relationships bring value in many forms. If the transportation consultant has had long term relationships, chances are the advice he/she provides is both practical and implemented. Keeping the same transportation consultant (Not just the company but the people) means there is no need to educate them with each new assignment saving time, and time is money in consulting, It allows you to bounce ideas off them between engagements (normally for free) and it enables them to bring you new ideas when they discover them.
1. A good transportation consultant knows the difference between price and value. Transportation is not unlike any other service, the lowest cost is not always the best value. Up-front rate reductions, which are harder and harder to come by these days, are not the full story, as every manager who has been seeking trucks at month-end knows.
2. An understanding of how carriers incur costs and how carriers can offset those costs is a key factor for transportation consultants. This knowledge can create a win-win situation and save money for the carrier. It is safe to assume that most large companies have achieved cost savings by working with transportation consultants to optimize these strategies that consultants know in the past few years. Also a good transportation consultant who knows the cost structures may suggest launching a private fleet, which is just one example of opening a broader range of options to maximize cost savings.
3. A worthy guide knows the competitive landscape and is respected by the carriers By knowing the carriers, it is quickly possible to determine not only which companies would be interested in your business, but also the kind of structure that would be most advantageous. A good consultant knows the long-term viability of the carriers and the way to get last-second concessions.
4. Transportation consultants understand flexibility can save money by utilizing different transportation modes. It is imperative that good transportation consultants have knowledge about this. As an example of the cost savings that can be realized, during peak import period, shipping companies offer fantastic rates on shipping containers because they need to get the containers back to port. Also when automakers report a slowdown, boxcars become available at very reasonable rates. This can save money.
5.Transportation consultants should be able to create contracts that generate advantage Too often contracts are an afterthought. Missing the legal niceties of ensuring that the contract is indeed a valid contract can be very expensive. Additionally, assessorial charges can nickel and dime you to death. Try to get the contract ready up front.
The remixing 5 steps to hiring a good transportation consultant will be covered next in part of our series.
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