come in. Large third-party logistics providers (3PLs) are able to provide expertise and aggregate many carrier relationships into a single, seamless experience—without risking the quality service temperature controlled shipments require. Successful shippers will differentiate their business How can shippers best position themselves for the coming market? Prepare for these supply and demand changes by deploying new strategies that effectively manage carrier relationships. These six tips can help differentiate supply chains in any market: 1. Keep rates current. An aged routing guide with outdated rates for the current market can cause unplanned swings in tender acceptance rates, higher increases during normal review times, or paying above market. All of these can negatively affect the total cost of goods sold. 2. Provide predictable volumes . Service providers appreciate predictability whenever possible. Awarding freight on a year over year basis—and sticking to promised volumes—can mean lower increases in rates. 3. Plan for origin and destination markets. In temperature controlled shipping, regional demand can quickly shift, which influences both price and capacity. Stay up to date about regional growing periods, weather, and other demand influencers. 4. Cut dwell time for drivers. Loading and unloading times
matter. Drivers lose profitable drive time if they’re stuck loading/unloading too long. Cut lengthy load times to reduce high tender rejections. 5. Add lead time. Carriers plan/optimize operations weekly. Short lead times mean trucks may already be committed elsewhere. Research from MIT indicates that orders with lead time greater than two days have higher acceptance rates. 6. Build strategic relationships. Rather than working with a large portfolio of only asset-based transportation providers, shippers should build relationships with a strategic mix of asset-based and 3PL providers for best capacity coverage. Changes in supply and demand will continue to drive marketplace dynamics. Keep up to date on these influencers and their potential impact with the Western Growers Transportation Program. This unique program provides Western Growers members with market insights along with best in class strategic supply chain support from C.H. Robinson. We’re here to help If you have any questions or would like additional information regarding the Western Growers Transportation Program, please contact Lauren Singh (831) 392-7061 (lauren.signh@chrobinson.com).
Attract the Best Employees in Agriculture
Western Growers 2019 Professional Compensation and HR Practices Survey REGISTRATION IS NOW OPEN Sign up today! All participants will receive a free copy of the 2019 survey results.
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Call Fran Mueseler, CEO of PEOPLEMatters Compensation Resources 818.324.0035 Karen Timmins, Senior Vice President Human Resources 949.885.2295
22 Western Grower & Shipper | www.wga.com MARCH | APRIL 2019
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