The purchase of transportation services is a vital component of any effective transportation strategy. Finding the highest level of service at the lowest price can be a challenge. It requires carefully assessing your needs and matching them with the needs and capabilities of the transportation service provider. Forming a good match, up front, can pave the way for a long-term win-win partnership.
Flow Logistics’ three-part strategy can streamline and optimize your transportation service purchases. First, we work with you to develop a Transportation Services Agreement Request (TSAR), which accurately reflects and can communicate your requirements to prospective carriers. Second, we employ multi-round auctions, which allow carriers to bid on "bundled lanes" of your shipping network. By allowing carriers to bundle lanes, the shipper helps the carrier improve its asset utilization by allowing them to find continuous-move and equipment balancing opportunities. This, in turn, allows the carrier to give you better service and pricing. Third, we evaluate carrier responses on the basis of cost, service and other criteria, such as whether they will:
- Provide service for both carrier-preferred and non-preferred shipping lanes, and give rate breaks for bundling them;
- Couple committed capacity in high-demand seasons with price breaks in low-demand seasons;
- Offer the option of alternate equipment for better rates;
- Consider alternate transportation modes for lower costs.
Finally, Flow Logistics’ advanced freight management system will help you tailor your carrier communications and monitor your commitments. The end result is just what you set out to achieve – the best service for the lowest price.