Got Trucks?

If you were able to secure super low carrier rates during the recession by making the most of your carrier's disadvantages, you may soon find yourself scrambling for a spot on your carrier's client list. High diesel fuel costs, new government regulations, and the expenses associated with repairing and replacing trucks in order to prepare for the busier, warmer months ahead, are likely to make overcapacity an issue once again. Shippers who played hardball during rate negotiations throughout the recession may find their carriers unable or unwilling to provide them with the same services—or same levels of service, that they have in the past.

Consolidation is Key

To come up with solutions to things like overcapacity and carrier resistance, one excellent question to ask is: Where/what/how can I consolidate? By increasing shipment consolidation, you may be able to lower the number of runs your carrier has to make, keep your transportation costs a little lower, and even lower your packaging spend. By consolidating carriers, you may be able to help make up for whatever pressures your carriers may feel you put on them when you had more leverage. Giving your preferred carriers more volume and more business may help mend fences and get you back in their good graces. Consolidating and/or reconfiguring your distribution centers and warehouses by moving certain shipments to warehouses closer to major shipping destinations, closing some warehouses and moving others, and even by opening new warehouses, may also help you to fight overcapacity and show your carriers you are making efforts to lower their costs as well as your own.

It's easy, of course, to talk about these solutions, but when you get down to the nitty gritty, i.e., actually determining which shipments to consolidate, which carriers to make your preferred carriers, and figuring out which warehouses and distribution centers are working for you and which aren't working so well, isn't easy. BridgeNet Solutions can help. Our expert data analysts can use your shipping data to uncover the solutions that will really work. If you're worried that overcapacity is going to be a significant problem for your company in the coming months, e-mail our sales team at sales@bridgenetsolutions.com or call 312-492-7500 and ask to speak with a sales representative. Our dedicated and experienced team members will be happy to listen and address your concerns.