LTL 101:Reconsignment and Fees

Reconsignment – Here’s a shipping term that you might be familiar with if you’ve ever had a change of plans with your freight. A reconsignment happens when freight that is already in transit is re-directed from one delivery location to another. This charge can vary based on how far apart the delivery locations are. For instance, if the new location is just down the street, the charge will probably be minimal. However, if freight was heading to California and is being reconsigned to Florida, you will be in for a hefty reconsignment fee.

We get a lot of groans when we have to quote people for the cost of a reconsignment so we wanted to highlight the process so you can educate your customers as well:

  1. We have to send written authorization to make the change to the carrier. A Bill of Lading is a legal contract, so any changes made must be in writing. Authorization must be made by the shipper or paying party always.
  2. The carrier will enter the information into their online system and image your authorization.
  3. A rating analyst reviews the request, verifies that we have authorization to make the change, and completes the request.
  4. Notification is sent to the terminal who currently has, or if it is in transit, who will have the freight.
  5. New labels have to be generated and put on the freight.

Typically, your charges end up being broken down into the cost from origin to reconsignment point, and reconsignment point to new destination, and fees for marking and tagging of the freight. If your freight has to backtrack, you will pay for every mile it has traveled.

GREAT EXAMPLE: If it was originally to go from NY to CA, but then once it reached Chicago you turned it back around to PA, you are paying NY to Chicago and Chicago to PA, not just NY to PA.

Important points to note as well:

  • If you are not the shipper or paying party, you cannot use your authorization to make changes to the BOL.
  • If your name doesn’t appear anywhere on the BOL, see #1 above.
  • If the driver arrives and you say that it needs to go to a different address across town, this constitutes both reconsignment AND redelivery. And it can’t be done without authorization, as above.

This process actually represents a significant amount of labor time and fuel. Even a local reconsignment (change in address within a local terminal service area) requires these steps.

All carriers want to make money on this deal. Nothing is done at cost.

But time is money, and the cheapest option is to always do it right the first time.

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Training Tuesday:Structuring the Sales Call

Without structure to the sales call, a salesperson is just a tourist. In order to have a successful sales call, you must stay organized and on-track. That means planning and structuring your visit to a prospect so that you can get the most out of each call. Below are our top things to keep in mind when planning a sales call:

  • The pre-call objective/setting an objective for every call. You should set an objective or goal for every call. This gives you direction for the actual sales tactics that will be most effective.
  • Make your goal specific. It is important to remember to set specific and reasonable goals so that you can accomplish them without being overwhelmed.
  • Be focused AND flexible. Yes, this really is possible! It’s important to not allow your focus to cloud your ability to flex and adjust the sales presentation to the reactions and needs of the prospect.
  • Ask the customer for feedback. You can ask specific questions here, like “Did I cover everything sufficiently?” or “Would you like more details on anything we’ve discussed?”
  • Ask for the business. You will reach a point in the sales call where it is not only reasonable, but expected, to ask the prospect for their business. You cannot avoid this step and consider it a successful call. You must ask for the business you want.

Remember it is just as important to set goals and plan your sales visit to a previously visited a prospect as it is to plan for a first impression. Every visit to a prospect or customer makes a lasting impression about you and the company you are representing. Plan, set goals, and succeed!

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LTL 101:Drop Trailers Overview

From time to time you may run into a drop trailer with one of your LTL shipments.

A drop trailer is a trailer that is left at a location for an indeterminate amount of time. It’s “dropped,” and picked up later. Most of the time, a drop trailer is used at locations that ship or receive often enough to fill up or unload a full trailer in a week or even a day, depending on production. The location doesn’t matter as much as the amount of freight that is moving in or out of the specified location and the agreement in place with each LTL carrier.

Think about it like this: Let’s say you have a shipment going to a warehouse that multiple manufactures ship to as well. This warehouse has pre-established relationships with a handful of LTL carriers. In order to save time and money they will consolidate and reduce traffic flow to their receiving docks by collaborating with LTL carriers and advise them to only “drop” a trailer at their location when the LTL carrier has a full trailer. This could potentially delay your expected delivery date.

There are numerous ways in which the LTL carriers can handle a drop trailer situation, but the main thing to keep in mind is that your shipment may not deliver on time due to it being a drop trailer which may also change the way in which the PODs are received from the consignee. Due to the nature of drop trailers, PODs are usually handled differently and will almost always take longer to receive considering the consignee is unloading a full trailer of shipments from multiple shippers.

Though the use of drop trailers isn’t exactly common, it’s not something to be afraid of when it comes to your LTL shipments. A little understanding goes a long way. Here are some things to keep in mind when dealing with drop trailers:

Drop trailers can sometimes lead to delays. Before you panic about delays, remember that the manufacturer is often very aware a drop trailer is being used, and so should the buyer. Don’t be afraid to ask if the shipper or consignee have any drop trailer processes in place so you can educate your customer as well. Most drop trailer situations do not revolve around freight that is time-sensitive. If your freight is on a tight schedule, make sure to use a different carrier.

Not all carriers do drop trailers. Just because one carrier uses a drop trailer at a certain location doesn’t mean that EVERY carrier uses a drop trailer there. Trailers belong to carriers, so if you can’t afford to have a drop trailer on a shipment, simply look at using a different carrier. It may not be the cheapest of the bunch, but there will always be options available.

Stay away from perishables. For obvious reasons, if you’re shipping perishable items, make sure you’re not dealing with drop trailers.

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Training Tuesday:Sales Pitching and Silence

Often the most important part of your sales pitch is when you are completely silent. We often rush through all the great benefits of why a customer would buy, without really listening to them tell us what they need and why they might buy from us.

Most people hate mimes. Why do they exist? Are they evil? If a tree falls on a mime does he make a sound? But, silence is the one important sales attribute that mimes demonstrate in abundance. So, on your next sales call, be a mime, at least for part of the call. Silence just may turn out to be the most important piece of the sales puzzle.

Why is it that so many salespeople think they must tell everything they know before allowing the prospect to talk? Why is it that some think the sales process involves a lot of talking when, in reality, the most successful salespeople do more listening than talking? It’s a fact that the more we listen, the more we can learn about our prospects and the easier we can find their “hot buttons.”  It’s not what we say that makes the sale, it’s what we can get the prospect to say.

Begin With Questions

Think about how many times you launch right into your presentation thinking you know what the prospect wants. Sometime later, often too much later, you find you’re on the wrong track. The prospect has an entirely different need – one you might have uncovered by asking open-ended questions that required more than a yes or no response. Then you could have focused on what the customer wanted instead of what you had to sell. Stop thinking so much about what you are going to say and concentrate on what the prospect is telling you.

It’s a paradox: the more we try to tell the prospect up front, the more barriers we create to the purchase. However, the more we listen to why he or she wants to buy, the more we can tailor our delivery to providing very specific information concerning how our product or service fits his or her needs.

Ask More Questions

The opening question is merely the first in a series of questions that guide the dialogue. It’s an approach as old as the art of miming. If we want to involve someone – the first step in convincing that person – every comment we make should end with a question that solicits more information. The person asking questions is the person controlling the direction of the dialogue. The one who is talking is providing information that helps the other adjust the direction.

After you ask a question, however, don’t be too anxious to fill the silence. Let the silence work in your favor. Too often we answer the question for the prospect by jumping in and providing him with an objection:

“Perhaps you don’t like the price,” or, “Maybe you don’t like the resources it would involve.”

Beware of the very real temptation to fill in the silence with a product weakness – the one we are most worried about.

Don’t Rush In With Answers

Salespeople have a terrible tendency to try to get their point in as soon as the customer stops talking. Think about how often you find yourself stepping on your prospect’s last words, rushing in right after the prospect has finished making a point.

Salespeople can break themselves of this self-defeating habit by training themselves to wait several seconds after the customer has stopped talking before they begin. That gives you ample time to think about your response and answer in a way that reflects the customer’s concerns.

Get in the habit of paraphrasing what the prospect has said. This will accomplish two things. One, it reduces the likelihood of misunderstanding what was said, and two, it boosts the prospect’s ego. People like to hear their thoughts repeated – it makes them feel like what they said was important.

Learn to Listen

Don’t listen with just with your ears. Listen with your eyes and your entire body. Use body language that shows you are paying more attention, and your listening habits will automatically improve. Lean forward intently, look the prospect in the eye, and focus on the valuable information you are hearing.

And finally, listen for buying signals. You’ll never notice a buying signal from the customer when you’re doing the talking. Sure, we want to talk so the prospect will learn how smart we are. But the prospect only really knows how smart we are when we’ve “listened” to the information he or she wants to share.

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Training Tuesday:Dress Rehearsals

Practice is essential to increasing success on sales calls, and one excellent way to practice is to have a “dress rehearsal” with a coworker or trusted peer. There are certain things you can do to make the role-playing situation the most helpful preparation for the sales call.

  • Set a clear objective. Setting a defined objective for what you want to get out of the practice call, what skills you’d like to improve, and what you’ll have as a goal in a similar real call.
  • If you’re role-playing with a mentor, have them model the skills you’d like to work on in that session. You can also try to model the individual skills you’d like to work on, and then practice putting them all together in a full simulated situation.
  • Remove the fear of failure. Role-playing helps remove the fear of failure in the real-life situation by creating a space to practice various techniques. If a method doesn’t work, you can then use the role-play situation to workshop what went wrong and how to change it. This allows you to fail and learn from it without jeopardizing a sale or relationship with a customer.
  • Role playing can also be helpful in the role of observer or customer, because you are able to see how various techniques play out and what it’s like to be on the other side of the sale. It can help you to identify what you’d like change about your current sales presentation – either by offering new techniques to incorporate or showing you what doesn’t work and should be removed.
  • You can also provide and receive open, objective, and constructive feedback from your partner in the role-play exercise. This feedback is an essential part of the process, and a huge benefit of role-playing and “dress rehearsals”
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LTL 101:DOT Hazmat Rules

The U. S. Department of Transportation (DOT) has specific rules for shipping hazardous materials. SunteckTTS can help you determine the DOT hazardous class for your shipment and find contract freight carriers that meet DOT safety and transportation requirements.

Hazardous materials are defined by the U. S. Department of Transportation in accordance with the Federal Hazardous Material Law regulations. A DOT hazardous material classification is applied if a material, in a particular amount and form, poses an unreasonable risk to health, safety or property.

Below is the list of DOT hazard classes:

DOT Hazard Class 1: Explosives.

Division 1.1: Explosives with a mass explosion hazard
Division 1.2: Explosives with a projection hazard
Division 1.3: Explosives with predominantly a fire hazard
Division 1.4: Explosives with no significant blast hazard
Division 1.5: Very insensitive explosives
Division 1.6: Extremely insensitive explosive articles

 

DOT Hazard Class 2: Gases.

Division 2.1: Flammable gases
Division 2.2: Non-flammable gases
Division 2.3: Poison gases
Division 2.4: Corrosive gases

 

DOT Hazard Class 3: Flammable liquids.

Division 3.1: Flashpoint below -18°C(0°F)
Division 3.2: Flashpoint below -18°C and above, but less than 23°C(73°F)
Division 3.3: Flashpoint 23°C and up to 61°C(141°F)

 

DOT Hazard Class 4: Flammable solids, spontaneously combustible materials, and materials that are dangerous when wet.

Division 4.1: Flammable solids
Division 4.2: Spontaneously combustible materials
Division 4.3: Materials that are dangerous when wet

 

DOT Hazard Class 5: Oxidizers and organic peroxides.

Division 5.1: Oxidizers
Division 5.2: Organic peroxides

 

DOT Hazard Class 6: Poisons and etiologic materials.

Division 6.1: Poisonous materials
Division 6.2: Etiologic (infectious) materials

 

DOT Hazard Class 7: Radioactive material.

Any material, or combination of materials, that spontaneously gives off ionizing radiation. It has a specific activity greater than 0.002 microcopies per gram.

 

DOT Hazard Class 8: Corrosives.

A material, liquid or solid, that causes visible destruction or irreversible alteration to human skin or a liquid that has a severe corrosion rate on steel or aluminum.

 

DOT Hazard Class 9: Miscellaneous dangerous substances and articles.

A material that presents a hazard during transport, but which is not included in another hazardous freight classification.

 

ORM-D: Other regulated material.

A material that, although otherwise subjected to regulations, presents a limited hazard during transportation due to its form, quantity and packaging.

 

In order to avoid any issues while booking HAZMAT loads please contact your local SunteckTTS agent so that they can insure your BOL is set up correctly and you have classified your hazardous materials properly with the correct UN Number, Shipping Name, Description, Group, Class and Placard Type.

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Training Tuesday:More Tips for Managing Stress

Last week we addressed ten of our top tips for reducing stress and the negative effects that long lasting stress can have on success. Reducing stress is an important life skill involving techniques that take only minutes to learn, but a lifetime to master. This year, make it a point to work on managing your stress in healthy ways.

Below are ten more tips on reducing stress and improving general happiness and success:

11.Figure out the source of your stress. Focus on whether or not it’s your fault and if so, whether there is anything you can do about it.

12.Talk to people who work in similar jobs – it doesn’t necessarily have to be transportation sales, but preferably someone in outside sales.

13.Talk to someone who will help you develop an objective perspective of your situation. It can be someone at work you trust, a friend, or a professional.

14.Find something that makes you laugh. Hold onto it and pull it out when you need a good laugh.

15.Spend more time with people who make you laugh. Get together with co-workers regularly to share funny stories about daily disasters with an eye towards constructive solutions.

16.Smile more. Smiling is a great way to reduce stress and improve confidence and feelings of happiness.

17.Eat healthy. When we’re under stress, our bodies use up nutrients faster and less efficiently than they ordinarily do. Give yourself a boost by opting for healthier foods, increasing intake of vitamins and proteins, and reducing fats, caffeine, and sugar.

18.Stick to a regular sleep schedule.

19.Write down what you expect to accomplish and then get it done.

20.Start your day prepared. If any one factor will relieve more stress than another, it’s preparation.

Embracing even just a few of the ideas that we’ve mentioned is a great way to work towards reduced stress, greater happiness, and improved success.

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Training Tuesday:Managing Stress

Training Tuesday: Stress Management to Improve Success

Selling offers more highs and lows than most other professions. Most salespeople suffer through periods of stress that are direct results of their sales jobs, but salespeople who succeed in the long run never let disappointments get the best of them. They know rejection goes with the territory and learn not to take it personally and instead, they view mistakes and failures as lessons that will help them improve. On the other hand, some very promising sales careers have died premature deaths due to stress. Stress sometimes causes sales people to lose confidence and then fill their day with nonessential activities and hide from their customers or prospects. We’re also faced with lots of rejection on our daily search for success. If you dwell on the negatives, they’ll bury you. You have to lighten up and look for ways to lessen the stress caused by your job. The start of the new year is a perfect time to star working on habits that will help you manage stress and increase your success in the coming year.

Below are 10 of our top tips to reduce stress:

1. Focus. Focus on what’s truly stressful to you about a situation and why – the idea being that understanding the stress lessens it and gives you some control over it.

2. Put stressful situations in perspective.

3. Postpone thinking about problems until an appropriate time. Successful people learn how to compartmentalize their thinking.

4. Take a deep breath. Size up stressful situations and decide which are worth worrying about.

5. Take vacations and occasional time off. 

6. Don’t be afraid to laugh at yourself.

7. Talk to others about job pressures.

8. Expect the unexpected. Allow time and reserve energy to deal with the inevitable stressful events that occur daily.

9. Do something for yourself.

10. Volunteer or do something in the community that is rewarding to you.

 

We’ll be addressing some additional tips to manage stress next week!

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LTL 101:Delivery Appointments vs Notifications

This blog we will discuss the difference between an appointment and a notify before delivery.

Delivery Appointments:

  • Appointments cannot be set until the freight arrives at the destination terminal.
  • Contact must be made with the consignee to deliver.
    • LTL Carriers will always make appointments, we cannot make the appointments for them. However, if they cannot get a hold of the consignee we may assist them.
    • We can’t stress enough how important it is to contact the consignee even if they are not your customer in order to understand their appointment process.
    • It is best practice to then get with the carrier to insure they are not having trouble setting up an appointment and causing further delays.
      • It is not the carrier’s responsibility to understand every consignee’s appointment process.

A great example of the above is Grocery Warehouses: If the carrier needs to book an appointment online or reference PO#s in order to get the freight delivered then we need to put this info as clear and concise as possible on the BOL. This info must be entered on the “special instructions” section under the carrier tab in BTMS.

  • Appointments can sometimes delay transit by 1-2 days with the freight sitting on the dock.
    • Don’t forget that LTL drivers depart from their terminals early in the morning and if an appointment cannot be set prior to their trailers being loaded, your freight will be left behind.
    • Regardless if “THE FREIGHT MUST DELIVER TODAY” the drivers will not go back to the terminal once they have dispatched for the day.
  • A few things to keep in mind with appointments:
    • Specific delivery windows can cause a driver to take an inefficient route which has a domino effect on all shipments for that day.
    • Some consignees may have Drop Trailer schedules set up with certain carriers.
    • Some consignees may have standing appointments set up with certain carriers.

 

Notify Before Delivery:

  • Your shipment does not have to deliver at a specified time and may arrive any time between the standard LTL hours of 8am and 5pm local time.
  • This is typically used when shipping to residences, storage facilities, or even businesses with limited dock space.
  • Drivers do not call ahead to the shipping location. This is done by a dispatcher or clerk at the destination terminal and sometimes even at the corporate offices of the LTL carrier.
  • This can cause a delay in transit while the freight sits on the dock until the consignee can be notified.
    • Due to the high amount of volume in LTL and depending on the size of the terminal, there could be multiple, even hundreds of shipments that need to be notified for the day.
    • If the consignee cannot be reached on the due date of delivery after multiple attempts, it is highly possible that the freight will be held at the terminal until contact can be made.

 

Remember: If you’re looking to set up a Delivery Appointment you’ll need to select that particular service. But if you’re just looking for a “head’s up,” then Notify Consignee is the accessorial you’re looking for.

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Training Tuesday:First Impressions

There are too many freight sales reps in the U.S. today to even come up with an accurate number. It is important for your prospect to know about your qualifications. Tell the prospect about yourself. No grandstanding or patting yourself on the back, just an informative look at your career and the customers you’ve helped. It lets the prospect know that they’re dealing with a professional.

If I know beforehand that the prospect knows little about my company, and nothing about me, I sometimes send over a short bio-sketch and a few magazine or newspaper articles that discuss the company or were written by me. I provide something tangible to the prospect that adds a new dimension to the relationship. Rather than simply sending them a brochure, I personalize it, and at the same time the articles express something about me and my philosophy on transportation.

In the transportation business there are two kinds of sales people: those who add value to the client’s traffic department, and those who seem to mishandle every shipment or transaction their company is involved in. Let the customer know early on that you fall into the first category.

Of course, when the moment of truth arrives, you’ll have to find the best way to make a good first impression. Take into consideration the particular dynamics of your prospect’s age, position, and gender in comparison with your own. Accommodate and welcome the differences.

Every prospect will react differently to what you have to say. Some prospects will give you all the time in the world, while others believe making time for a meeting threatens a crisis. Some are skeptical, while others are freethinkers who pride themselves on being open to new ideas. The point is you can’t win everyone over with a single script designed to handle the first few minutes.

Making a first impression requires a bit of work, but it is an essential part of the sales process and worth the effort.

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