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Tag: LOGISTICS

LTL 101:Reconsignment

Posted 7 years ago

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. The charges associated with this 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 always be made by the shipper or paying party.

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, 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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LTL 101:Drop Trailers

Posted 7 years ago

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 manufacturers 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– Silence and Sales Listening

Posted 7 years ago

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…why they might buy from us. Silence is often uncomfortable and we feel the need to fill the space, but silence is often one of the most important pieces of the sales puzzle.

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. 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. If we want to involve someone – the first step in convincing that someone – every comment should end with a question that solicits more information. After you ask a question, let the prospect answer, don’t be too anxious to fill the silence.

Don’t Rush in with Answers

Break yourself of the habit of jumping in too quickly after the prospect finishes. Instead, train yourself 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 a habit of paraphrasing what the prospect has said. This reduces the likelihood of misunderstanding what was said, and it boosts the prospect’s ego.

Learn to Listen

You need to learn to listen with your eyes, ears, and entire body. Use body language that shows you are paying close attention and your listening habits will automatically improve.

And finally, listen for buying signals. You’ll never remember a buying signal from the customer when you’re doing all the talking.

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LTL 101:Shipping Hazardous Materials

Posted 7 years ago

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:Questions for the Sales Call

Posted 7 years ago

Knowing the questions you’re going to ask before you arrive at the customer’s desk or get them on the phone is essential to a productive sales call. The information you can collect from the customer through asking targeted questions with increase your chances of putting together a winning proposal after you’ve made your consultative sales call. You won’t have the opportunity to ask all of the questions outlined below, but over time the information you secure will allow you to earn more and more of your customer’s business.

Some of our best questions are below:

What does your company specialize in? Manufacturing? Distribution?

What do you ship? In what quantities? Expedited? Truckload? LTL? Intermodal?

In what lanes do you ship, and how often?

What is the average value of each shipment? Would you be interested in our ability to purchase affordable shipper’s insurance?

What service level is required? To where?

How is your product packaged? Palletized? Shrink wrapped? What is the average weight of each shipment?

What is the normal pick up time? Do you have any unusual pickup requirements?

What is the frequency of your shipments?

What is your average monthly cost for freight transportation?

How do you feel about your current freight transportation service? Pricing? Efficiency?

Would you benefit from adding shipping services that are not available with your current broker, carrier, or 3PL?

What services would you most like to add? What is the benefit?

What is most important to you: service, stability, technology, or something else? Why?

What would cause you to begin using a different carrier or broker?

 

After asking some of the above questions, be sure to wrap up the appointment by asking for the next appointment and initiating a trial close. The trial close, something like “I’d like to prepare a customized program for your company. Would you be able to commit to giving us a shot to prove that we can offer the kind of service you need?” lets the prospect know that your next call will include more of a sales push. It prepares them to say “yes” when you come back later and ask them to buy.

Good questions lead to profitable answers!

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Training Tuesday– Tips for Phone Calls & Voicemail

Posted 7 years ago

You can use the same tools when leaving a message as you do when speaking with a live gatekeeper: be aggressive, assume control, sound important, and be confident.

Here are some tips that will help you be an effective communicator on the phone or through voicemail:

  • Be clear and clever. Make sure you sound enthusiastic and authoritative on your business and theirs.
  • Being an effective communicator on the phone or in a voicemail is a skill that takes practice. Be sure to speak slowly and distinctly enough to be clearly understood.
  • Make your message short. Time is valuable. Give the prospect the headlines instead of the entire story, until you’ve grabbed their attention.
  • Smile with your voice. A friendly voice will hold your prospect’s interest. Prospects like to buy from people they’re comfortable with so be sure to project your friendliness over the phone.
  • Be an energetic speaker. This expresses your enthusiasm for your job and your product.
  • Make it clear that you’re not calling to make an immediate sale, rather to make a scheduled time for the call because you understand that their time is valuable. This also implies that you are busy helping other clients, which in turn translates to a perception that you’re successful.
  • Listen attentively. No one appreciates being interrupted. Sometimes the prospect will give you useful information that you can use during a face-to-face appointment, or a follow up phone call. Be sure to take notes.

Connecting with a prospect over the phone or through their voicemail can be frustrating, but it is also a very effective way to start the sales process. With the tips above, you’ll be on your way to being a better phone communicator.

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Training Tuesday:Closing Techniques – Part 2

Posted 7 years ago

Last week we mentioned 5 of our top 9 closing techniques you should try on your next sales calls. This week we’re addressing 4 more methods for confirming sales.

6.The “Testimonial” Close

To build credibility and reassure the prospect that they’re making a wise decision, tell them about success others have had in working with you.

7.The “All That” Close

To use the “all that” close, simply reiterate the client’s needs and wants, and how your service satisfies them: “From what you’ve told me, you want this and you need this, we can do all that.”

8.The “Ben Franklin” Close

Since we can’t offer perfect service all the time, it’s often difficult to overcome every one of the buyer’s objections. When an unanswered objection stands between you and a sale, make a list of benefits versus objections (just be sure that the benefits far outweigh the objections), and present them to your buyer and say, “As you can see, the reasons for buying far outnumber the reasons against.”

9.The “Reverse” Close

The reverse close turns the prospects’ reasons why they shouldn’t buy into reasons why they should buy. When your prospect voices an objection, think of a benefit to that objection: “that’s the reason why you should use us.”

 

The more closes you know, the better prepared you’ll be to face that moment of truth at the end of your presentation. With so many effective ways to confirm a sale, odds are, you’ll be able to confirm a sell on your very next call.

It’s no secret why you’re making the call in the first place. And it’s no secret why your prospect is listening.  They know you’re there for the purpose of selling them your services.

Be a closer (or confirmer). Your main objective is to get new business. At the end of the presentation, a real sales professional will confirm with their prospect that they’ve done a good job, and that confirmation will come in the form of a sale.

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LTL 101:Cubic Capacity

Posted 7 years ago

Do you know how cubic capacity can affect your shipments?

Almost every LTL carrier has a cubic capacity rule in their rules tariff that may affect any of your shipments. LTL carriers impose minimum cubic capacity rules to effectively counter very light, fluffy shipments that take up more than their fair share of a trailer. In most cases, LTL carriers state that if a shipment consumes 750 cubic ft. of space or more, AND the shipment has a density of less than 6 pounds per cubic foot (pcf), it’s not paying its fair share. While the rule varies dramatically amongst carriers, most artificially adjust the weight to a minimum of 6 pcf, AND apply a class of 125 or 150 to the commodities being shipped with their associated tariff rates. Most carriers use the 750 cubic feet as the threshold, but not all.

This week we wanted to clarify what to watch for with Cubic Capacity by providing an example from XPO:

XPO is now enforcing their standard cubic capacity rules on all tariffs. What this means is that shipments requiring 350 cubic ft. or more of the trailer with an average density of less than 3 pcf will have the weight calculated differently then what the actual weight is. Yes that is correct, the actual weight will not matter!

350 cubic ft. of the trailer equates to approximately 5.46 linear ft. of the trailer so you can see that we are severely limited on the amount of skids of LTL we can ship when the density is below 3 pcf.

As an example, for two pallets of LTL, cubic capacity would be calculated as follows. Please note that the carrier uses the actual height (96”) of the trailer when they look at the cubic capacity of the shipment, not the actual height that the shipment might be:

One skid = (40” x 43” x 96”) / 1726 cubic inches per cubic ft. = 95.67 cubic ft. x two skids = 193.34 cubic ft.

You can see that this falls way under the 350 cubic ft. rule so we are safe to ship this with XPO.

However, if you want to ship 4 skids, the cube of the shipment is now double at 386.68 cubic ft. which is outside of the cubic capacity limit. The only way you could ship this as an LTL shipment is if the density of the shipment was greater than 3 pcf.

Four skids with a total weight of 500 lbs., the density would be the 500 lbs. / 386.68 cubic ft. = 1.3 pcf.

If we shipped this LTL, we would be hit with the cubic capacity rule and our cost would skyrocket.

Four skids would have to have a total weight of 1161 lbs. or greater for us to be able to ship them as a standard LTL shipment with no problems. 1161 lbs./386.68 = 3.0 pcf.

Below is the actual excerpt from the XPO rules tariff:

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Training Tuesday:Closing Techniques – Part 1

Posted 7 years ago

There are as many different closes as there are sales people, but there are some recurring techniques that may come in handy. While you may find that certain closes work better than others, that shouldn’t deter you from using a variety of closes or confirming techniques, depending on different situations. We’ve outlined the first 5 of our top 9 closing or confirming techniques. Learning the closes listed here will increase your chances of getting more sales, more often, from more accounts.

1.“It Costs Too Much” Close

Emphasize the benefits you know the prospect finds irresistible. Uncover the prospect’s hot buttons and emphasize how your solution will actually save them money in the long run.

2.The “What You Really Want” Close

Help the prospect see themselves using your service. Speak to them as though they already use it, and tie in a hot button benefit to its use. “When you use us, then this will happen, and that’s what you really want, isn’t it?

3.The “Minor-Major” Close

The minor-major builds a chain of affirmative answers to questions you ask to help lead a prospect into saying yes to the sale. To put the prospect in the habit of saying “yes,” ask questions you’re sure will get an affirmative answer.

4.The “If I Can” Close

This close uses the prospect’s questions and comments to help you get them to buy if you can provide what they want. Instead of immediately assuring the prospect that you can meet all of their needs and wants, ask them if they’ll buy from you if you can…

5.The “Give Us A Try” Close

If the prospect is waiting for an invitation to buy, give them one. Make a persuasive argument for choosing your product or company, including reasons why the prospect should buy, then invite them to do it. “Why don’t you give us a try?” or “Would you like to get started right away?”

Next week we’ll address 4 more top closing methods and how adding them to your repertoire of sale confirming techniques can help you up your sales success.

 

 

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Training Tuesday:10 Tips for Helping Dissatisfied Customers

Posted 7 years ago

Even the best company, with the best service, will occasionally make mistakes. What matters most is how you handle the situation when issues arise. We’ve included our top 10 tips to best help a dissatisfied customer.

1.Inform the customer as soon as you can – they’re going to find out one way or another – and no news travels as swiftly as bad news. Contacting them first allows you the opportunity to set the tone and break the bad news in the most productive way possible.

2.Get to the point quickly. Don’t draw out the inevitable.

3.If your customer approaches you with a complaint, don’t interrupt. Don’t become defensive or make judgement until you’ve heard all the facts as the customer sees them.

4.Take complaints seriously, even if they seem trivial to you. Remember that problems exist when a customer perceives they exist.

5.Apologize sincerely.

6.Avoid playing the “blame game,” instead focus on fixing the problem. The customer has already decided to blame you and your company, so take responsibility for the problem and solve it.

7.Let your customer suggest solutions or alternatives. Find out their expectations for a solution and follow that if it is reasonable.

8.Do something extra. Recognize the inconvenience caused by the problem and acknowledge that.

9.Listen to your customer, trust their sincerity, and empathize with them.

10.Follow up. After you’ve done everything you can to remedy the situation, follow up with the customer and make sure they are truly satisfied.

 

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