The relationship between carriers and shippers should focus on mutually beneficial transportation agreements to work effectively in uncertain economies and volatile markets. The benefits of maintaining better shipper and carrier interactions and relationships have a significant and far-reaching impact on the modern supply chain network.
1. Real-Time Communications and Data
Shippers and carriers need a clear view of their performance and how they stack up against the competition regarding collaboration, flexibility, and scalability. According to Food Logistics, "an improvement plan should be designed and continually measured and analyzed. By monitoring performance, carriers and shippers can build and maintain a win-win." Without reliable communication, the carrier-shipper relationship falls short.
2. Shipper-of-Choice and Carrier-of-Choice Status
Shipping companies need to stay focused on building trust with carriers by keeping to their promises and honouring the shipper-carrier contracts and agreements. Breaking established terms within existing contracts can lead to contract renegotiation, which only strains the already fragile relationship. Securing shipper of choice and carrier of choice status can help secure contracts and bolster relationships for management teams of all sizes and within a wide range of industries and niche markets.
3. Better Understanding of Needs During Contract Negotiations
Mutual trust and understanding have always been essential to a successful shipper-carrier partnership. Collaboration becomes more accessible when both parties can trust each other, and contract negotiations flow easily into a mutually beneficial agreement. It becomes easier for dock and yard team members to support each other, push through lows, and prepare for demand and market status peaks.
4. Co-Occurring Enhanced Use of Dock Management Technology
Customers expect and demand real-time data updates and notifications on their shipments and packages. Shippers rely on timely updates and information from their carriers, and carriers need to have easy access to the tools and platforms required to communicate effectively. Various options with dock management logistics technology are available to help improve the shipper-carrier relationship and better scheduling control throughout the entire transportation process.
5. Collaboration to Manage by Exception
Management by exception refers to the innovative business management approach that focuses on identifying and handling cases based on how much they deviate from the norm. It proves to be highly effective for shipper and carrier management as it streamlines disruption intervention. Dock management by exception allows team members to handle minor issues and only get involved with critical disruptions.
6. Access to More Capacity
One of the best ways to avoid issues with shipper-carrier relationships is to ensure that every partnership is founded on a solid agreement that both parties agree on. Substantial dock and yard management solutions offer excellent benefits to both parties as it keeps everyone focused on the same goals and maintains clear expectations and disruption management guidelines. Capacity stays accessible and easily managed with a transparent and collaborative plan.
7. Less Volatility in Rates
Shipper and carrier relationships primarily rely on real-time response and negotiations regarding market trends and transportation rates. Shippers can prepare for some degree of volatility by considering taking on new lanes, routes, and capacity in response to market changes. Likewise, carriers can respond to changes in trends and consumer habits to lessen fee volatility and shipping services and availability changes.
8. Improved Processes Throughout
Shippers and carriers alike should use the data gathering and look at short- and long-term trends and market histories. Doing so makes it easier to track trends and keep proper records of transactions and profits. This, in turn, can allow for smooth and efficient access and referencing when the time comes to plan for changing trends or predicted shifts in the market.
Realize the Potential Benefits of Better Shipper and Carrier Relations With the Right Dock Strategy
Developing a positive relationship represents a primary focus for dock management regarding shipper and carrier relationships throughout the current transportation and shipping industry. Good relationships between shipper and carrier team members provide valuable benefits that directly impact both parties' ability to take full advantage of modern dock scheduling tools and processes. Any strain on the shipper-carrier relationship could result in delays and disruptions that further strain and disrupt customer relations and impact bottom line profits.
Contact C3 Solutions today to request a demo and see how improving carrier-shipper relationships starts with enhanced dock management protocols.