The logic behind a streamlined logistical supply chain
November 14, 2011

Building strong relationships between shippers and carriers results in mutual success

If your relationship with your carrier doesn’t go past the initial request for service and invoice payments, you are both missing out on an opportunity to grow your businesses.

When you delve deeper and build a partnership based on trust and transparency, not just transactions, both sides benefit. As in any relationship, when the needs of both sides are being met, the partnership grows and more importantly, continues. Long-term business relationships provide carriers financial stability while offering shippers a business partnership they can trust and count on.

In order to comfortably share vital information, shippers and carriers should sign a mutual NDA—non-disclosure agreement, protecting both parties and allowing for open and honest communication.

  • Carriers willing to enter into these agreements are serious about developing a long-term relationship with prospective customers and will share valuable costing models.
  • Shippers who do the same are making a commitment to keep their business with the carrier instead of using lesser rates (always obtainable) as leverage and wasting valuable time.

Each party should divulge certain information in order for the relationship to grow and prosper.

  • Shippers must be open to exchanging their sales forecasts, seasonal fluctuations, customer order sizes, etc. They can include their most trusted carriers in operational strategic planning meetings that affect their supply chain.
  • By doing so, the carrier can point out possible cost saving opportunities, alternatives to existing modes and services. Carriers can provide their expertise in relation to the movements discussed, including lane by lane data/diagnosis, equipment, manpower, alternative modes, etc., and elaborate with specific data if appropriate.
  • Under a NDA, both company’s information is protected.

This exchange of information creates trust that leads to mutual benefits—shippers can commit to freight volume and carriers to rates. While this level of relationship is not always possible, beginning on a basis of transparency and building trust from there, makes extremely good business sense. GX follows this model and strives to create a lasting, long-term, successful relationship with every customer.

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