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Intermodal 101:Relationship with 3PL

Posted 7 years ago

In general, the relationship between a shipper and the 3PL should be based on a “Win/Win” setup.  Achieving this setup will enable each party to capitalize on the offering of the other party.

The 3PL will work with capacity providers to establish consistent equipment availability when and where needed.  They will negotiate the optimum rate that meets the shippers’ requirements.  The 3PL operates at many different levels of service as indicated by the desires and needs of the shippers.

The shipper will provide the needed information to allow the 3PL to put together the most beneficial program. The shipper will provide information concerning both the ship from location and the ship to location, such as contacts, loading/unloading hours, first come first server or by appointments. This information enables the 3PL to more closely coordinate the pickup and delivery as transit will allow. The shipper will provide any shipment scheduling information they can to further enhance the 3PL’s ability to make the scheduled pickup and delivery.

The shipper will also provide the 3PL direction on what they value most: cheap transportation rates, fast transit, schedule delivery guarantee, transit time required per lane, etc.  Knowing more about each of these items will help the 3PL put together the best plan to meet the customers’ needs.

Next time, we will talk about intermodal freight characteristics that you should be looking for to see what makes good intermodal freight.  Hint…everything!

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Training Tuesday:Accelerating Sales – Part 1

Posted 7 years ago

Almost all companies, from the smallest to those in the Fortune 100, frequently – if not continually – face the challenge of getting sales fast: next month, next week, even “tomorrow.”

Sometimes you should rely on the tried and true methods, but sometimes you should shake things up. Often the well-established selling principles may need to be shelved.

Here are some of our key tips for improving your and your company’s sales results:

1.Set clear sales objective. Determine what sales you are being asked to make in this situation and then set a strategy for getting them. Make a plan and put it in writing, even just a couple sentences will do. Refer to your plan every day and don’t hesitate to make revisions when necessary.

2.Be certain you have pre-call credibility. Proper pre-call credibility will telegraph what benefits the buyer can expect from your sales call and get him to look forward to meeting you, or to at least listen and learn about what you have to offer.

3.Make use of sales support. Use every ounce of sales and marketing ammunition available to you: telemarketing appointments, email, pre-call letters, literature, testimonials, referrals, leads, ads, etc. Test them, then use what works and discard what doesn’t.

4.Skim the “cream” of your customers, prospects, and suspects. Make a list of prospects most ready to buy. Sort them into groups and then target them in priority order.

5.Rehearse. Even if you’ve sold the same product or service for years, one or two mistakes can kill a sale. Practice, record your presentation and review, role-play with your team; practice and perfection will pay.

Check back next week for more of our top tips to quickly improve your sales success rate.

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LTL 101:Density and Prices

Posted 7 years ago

Density is very important in selecting freight class. Some carriers will rate based on density if the commodities’ National Motor Freight Classification (NMFC) is a density based item.

With these NMFC density based rating carriers the general rule is anything under 48 inches high will be calculated as 48 inches and anything over 48 inches but under 96 inches will be calculated as 96 inches for density purposes.

Please see the actual wording from one of the carrier’s rules tariff below:

Density – Method of Determining

  1. Where rates are applicable according to the density of articles as tendered for shipment, the word ‘density’ means ‘pounds per cubic foot’ (PCF). The cubage of loose articles or pieces or packaged articles shall be determined by multiplying the greatest straight line dimensions (not circumferential) of length, width and height in inches, including all projections, and dividing by 1728 cubic inches (one cubic foot) to determine the number of cubic feet of the article. The density shall be determined by dividing the weight of each article, piece or package by the cube of such article, piece or package.
  2. A vertical dimension (or height) of not less than 48 inches (given the article does not exceed 48 inches in height), or 96 inches if the article exceeds 48 inches, shall be used in determining the cube of any unity on top of which other freight cannot be loaded because of:
    1. The nature of the article; or,
    2. Packaging or lack of packaging, used; or,
    3. Palletization in ‘pyramided,’ ‘rounded off’ or ‘topped off’ manner; or,
    4. Specific instructions by the shipper on the bill of lading, or by labels on the freight (Do Not Stack label or cone), or by the consignee, to the effect that no other freight is to be loaded on top of the article, including, but not limited to, the following: Do not stack, top load only, do not top load, top freight, etc.
    5. If the load bearing surface occupies less than 50% of the surface area (greatest length and greatest width of the article).
  3. The weight per cubic foot relates to the density of each shipping package or piece and not to the shipment as a whole.

 

Say you were shipping 1 pallet of sheet steel, or NMFC 175120, which is a density based item.So how could this affect your shipment?

  • The dimensions are 144” L x 45” W x 18” H
  • The total weight is 550lbs.
  • This equates to 8.1 PCF & Class 100
  • In turn, sub 6 would be selected for this NMFC (175120-6)

However, if you change the dimensions based on the carrier’s rules tariff above, you now have the following:

  • The dimensions are 144” L x 45” W x 48” H
  • The total weight is 550lbs.
  • This equates to 3.1 PCF & Class 250
  • In turn, sub 3 would be selected for this NMFC (175120-3)

 

DUE TO THE HIGHER CLASS OF FREIGHT
THE PRICE WILL GO UP SUBSTANTIALLY!

 

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Training Tuesday:Sales Traits Part 2

Posted 7 years ago

Last week we discussed several sales traits and the signals to improve them that you may be getting from your prospects and customers. This week we’re covering five more of these sales traits and signals.

Handling Resistance. If you’re running into a lot of resistance, the best thing you can do is work on analyzing needs and talking about benefits. When customers ask the same question over and over – even though you feel you’ve addressed it – you may be focusing on a benefit that doesn’t matter to them, and failing to find out their true concerns.

Selling Pressure. You’re coming on too strong if, when you attempt to close, customers become defensive or raise objections that seem irrelevant. When a customer starts defending a competitor they were unsatisfied with, that customer is telling you to back off. And if it seems the longer you’ve known a customer, the harder it is to get an appointment with them, the message is “stop pushing.”

Compatibility. Customers tell you you’re compatible by greeting you warmly, calling you when they think you can help them, and showing an interest in you that goes beyond “strictly business.” If new prospects quickly become unwilling to see you, customers are rude to you and keep you waiting, or customers keep calls short and straight to the point and refuse your invitations to lunch or recreational activities, be concerned about compatibility.

Trust. If customers don’t trust you, they may show it by withholding information you need, especially sensitive information such as budget constraints or involvement with competitors. They may ask you to put everything in writing or require proof, in the form of technical documentation and third-party references, of everything you say. If they’re calling the home office to check up on you, you haven’t gained their trust.

Account service. Simply put, this means getting in touch with your customers often enough to know about any changes that might impact future orders, and being available to handle little glitches before they become big ones. If you’re weak in this area, you may be getting these signals: Business from new customers drops off after the second or third order, or you lose sales to a competitor, even though you believe your product is better.

These are all important sales traits to work on and listening to the signals from your customers will help you determine your strengths and weaknesses. Improving these skills will improve your overall sales success.

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Intermodal 101:Role of a 3PL

Posted 7 years ago

As a refresher, a 3PL is a Third-Party Logistics provider. This means that a 3PL essentially acts as an intermediary between the shipper and the carrier to ensure that freight is transported correctly, efficiently, and cost-effectively. The 3PL will work with the shipper to create the optimum shipping plan using several different means.

The 3PL will coordinate with the shipper and determine if there is a need/opportunity to lock in intermodal pricing where it makes sense to do so.  This could be lanes that have the following characteristics:

  • Require equipment commitments from the rail providers
  • Need to move at predictable pricing, so they can budget the transportation costs.
  • Have static transit requirements that must be met

At the same time, the 3PL will look for lanes may have a higher level of flexibility available to them.  The shipper may be more willing to ride the pricing up and down as it changes throughout the year.  To take advantage of this, the freight should:

  • Have more flexibility to the expected delivery date
  • Be a commodity that may be able to tolerate longer transit times
  • Lane should have consistent equipment availability within 48 hours of request

In the next update, we will discuss the advantage of bringing in a 3PL to assist with shipping.

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Training Tuesday:Sales Traits Part 1

Posted 7 years ago

Do you provide customers with the kind of sales and service they expect? It not, they’ll let you know about it – not directly perhaps, but through indirect messages related to each of the sales traits below.

1.Professionalism: If customers keep you waiting in the outer lobby or look at their watches while you’re talking to them, they’re commenting on your professionalism. If they seem hesitant to discuss their needs with you, or don’t return your calls, you probably have not made a businesslike impression. You have two opportunities to establish your professionalism – in the initial contact and in the way you continue to keep in touch.

2.Analyzing needs: If customers seem bored and restless during presentations because what they hear isn’t relevant to them; customers interrupt you with questions that sound impatient or brusque because they see that you don’t know enough about them to propose appropriate solutions; you lose sales to competitors, even when you’re sure your product performs better, because our competition does a better job of finding out what the customer needed.

3.Talking in benefits: If customers are truly interested in what you’re discussing, they will be attentive, and the conversation will continue after the formal meeting is over. If, on the other hand, they’re nice and polite, and ask good questions, but leave with a simple “Good presentation,” watch out! This is a sign that you probably didn’t do that well.

4.Technical Competence: If you avoid talking about the technical aspects or avoid the customer’s technical people because you’re afraid you’ll be tripped up by their questions, or if you had an easy time getting in the door but a difficult time scheduling further appointments, this is usually a sign that you are lacking in technical competence.

5.Asking for the order. If you don’t move customers towards a buying decision, or ask for their business, the dialogue and interest will fade away. Making a lot of calls, but not many sales, the prospect’s interest fading away, or leaving a sales call without feeling accomplished, are all signs that you may not be asking for the order at the right time.

Next week we’ll discuss some additional sales traits that you should already possess, and the signs you may get that signal a need to improve them.

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LTL 101:Damaged Freight

Posted 7 years ago

LTL 101: Damaged Freight

Damaged freight is an unavoidable part of transporting freight, and while frustrating and challenging, there are things you can do to help mitigate the loss. Check out our tips on dealing with damaged freight below.

1: What do I do when I receive damaged freight?

Sign the delivery receipt as damaged… I repeat, SIGN THE DELIVERY RECEIPT AS DAMAGED!  If the receipt is signed as “clear”, it is almost guaranteed that your freight claim amount will be reduced to a settlement, or worse, denied altogether.

Below are a couple things to remember when signing for damages:

settlement, or worse, denied altogether.

Below are a couple things to remember when signing for damages:

  • Notate all damages – If only one item is notated damaged, more than likely the carrier will only refund that one item
  • Subject to Inspection” is NOT a valid notation – This notation is not enough to hold the carrier liable. When in doubt, notate “Damaged.”
  • If you must, refuse the freight – In cases where the driver will not let you sign or check for damages, refuse the freight.

2: Does the carrier need to be notified?

In short, yes, the carrier needs to be notified. Proper notations on the delivery receipt constitute as notifying the carrier.  If damages are noticed after the delivery, the carrier should be notified ASAP, and MUST be within 15 days of the delivery.  In most cases, any damaged shipment where the carrier was notified later than 15 days after delivery will be immediately denied by the carrier.

3: What do I need to file a damage freight claim?

When filing a freight claim, the more documentation, the better.  However, there are a few key documents that you should include with every freight claim.

  • Completed freight claim form
  • Product invoice/sales invoice
  • Proof of delivery/delivery receipt
  • Original Bill of Lading
  • Carrier freight bill (for freight charges)
  • Repair cost invoice (if applicable)

4: What should I do with the damaged freight?

Through every freight claims process, the freight needs to be available for the carrier, usually for inspection or salvage pickup.  This means the freight needs to be held onto until the freight claim is resolved.  DO NOT throw away the freight, including the packaging as this could result in the carrier denying the freight claim.

Your options are as follows:

  • The consignee can accept the freight and sign the POD as damaged/short and hold the freight until the freight claim is resolved.
  • The consignee can refuse the freight and have it shipped back to the shipper (usually Free Astray) where the shipper will hold the freight until the freight claim is resolved.
  • In some rare cases, carriers will dispose of the freight themselves if given the okay by the customer due to a complete loss of the product.
  • The carrier WILL NOT hold onto the damaged freight during the freight claims process and storage charges will accrue if disposition is not given to the carrier in a timely manner.

 

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Training Tuesday:Fixing Sales Talk Mistakes

Posted 7 years ago

“Open mouth, insert foot.” It’s a saying used to describe what we feel happens when we say something that we should not have said because it could potentially be interpreted as inappropriate, hurtful, embarrassing for either party, or just awkward. In sales, you can occasionally say something and immediately want to take it back.

There are a few reasons this typically happens:

* We’re so excited and nervous to be talking to the customer that we get on a roll and can’t seem to stop ourselves

* We get defensive when we hear an objection – about our company, office, or service, and we rush to give an explanation

* We become uncomfortable or impatient with the silence after we ask a question, and we start speaking without waiting for an answer

* We say something we know didn’t sound right, but instead of stopping to regroup, we stumble on to the next potentially bad comment

The problem with this is that we can never fully take back those words. More importantly, we can’t predict a customer’s reaction to them.

What can you do when you’ve said something you wish you hadn’t?

  1. Offer a sincere apology. Give a genuine “I’m sorry” or “I apologize” followed by specifics of what you said or did.
  2. Use humor. With the right person and context, self-deprecating humor is helpful and almost always works.

Admitting that you did or said something wrong can be powerful in building a new customer relationship. We’re all human and we all make mistakes. Your customer knows that. Sometimes demonstrating the ability to admit your mistakes, and trying to remedy them, makes a customer want to work with you even more. It lets them know that you’ll be honest with them going forward.

We all make mistakes. Very few are fatal. Apologize when you make them. Learn from them and make it your goal to make fewer mistakes and more sales.

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Intermodal 101:Why a 3PL?

Posted 7 years ago

With both ramp to ramp and door to door options available, there are many approaches that a shipper should take to maximize his freight spend whilst still meeting his customer needs.  But understanding that there are multiple approaches to employ is not the same as executing against that plan.  Shippers work hard to master their core competency; they want to brew the best beer, sell the most fashionable clothing, manufacture the fastest equipment, etc., they don’t have time or capacity to spend on transportation.

What they need is a great relationship with a Third-Party Logistics provider (3PL) to help them navigate the options available to them.  Working with the 3PL and forming a relationship based on trust and understanding will enable the shipper to meet his two goals, satisfying his customer and doing so at a reasonable cost.

The 3PL will work with the shipper to get a full understanding of the items that are most important to the shipper.  For some, the fastest possible transit time is the most crucial factor to consider when shipping, for others it is shipping as cheaply as possible while still other may want consistent transit times at reasonable pricing.  The 3PL will help determine which the shipper is looking for and will work to put a plan in place to meet those needs.

What steps will the 3PL take to meet the shipper’s needs?  We will discuss that in our next update.

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Training Tuesday:Sales Listening

Posted 7 years ago

Sales listening is patient listening. Don’t anxiously wait for an opportunity to jump in and solve all the customer’s problems right away. After I ask a question I shut up and allow my prospect to speak. Sometimes I wait for several minutes. Most salespeople can’t stand a pause in the conversation. Take a deep breath, relax, and listen. Some prospects want to be listened to more than they want their problems solved. People love to talk about themselves, their jobs, and their companies; encourage them to do so.

Transportation salespeople who have been in our industry for a long time should re-visit how they qualify and maintain accounts. It’s easy to start believing that you have all the answers, but you never know what changes may have happened since your last call.

Never waste the prospect’s time. There will come a point when the customer is ready to move past the small talk, and it’s usually quicker than you might think. Everyone is short on time these days and most traffic managers, purchasing managers, and other decision-makers will appreciate you getting to the point. You can do this tactfully without jeopardizing the emerging relationship.

First, give the prospect a reason he or she should answer your questions and ask for permission to proceed. The prospect always expects to answer questions and will give this permission. When you move on to the questions, make sure you are actively listening and not just mentally preparing for the next thing you are going to say.

Take notes! Taking notes can be one of your most powerful sales tools as it will reinforce the reason you made the appointment in the first place: to learn more about the prospect and their company’s needs.

Taking notes also helps you listen. There’s something about holding an empty notepad in front of you that makes you pay better attention to what is being said and makes it more difficult to miss important points.

Taking notes puts you in a position of authority. It encourages the prospect to open up and generally sends strong positive signals to them. It says, “I’m listening to you and I won’t forget.”

Be sure to pay attention to the fine line between asking questions and making the prospect feel that they are being cross-examined. Be natural and at ease to create a comfortable two-way conversation.

Listen, Learn, and Earn.

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