Executive Briefings

The Accent Should Be on Carrier Program Management, Not Just on Slashing Transportation Spending

What comes to mind when you hear "transportation costs"? For many, the immediate thought will be "carrier rates". It's a valid response, but, unfortunately, it is also one that can reveal a limited point of view about the best way to manage those costs.

For many shippers, the go-to strategy to reduce or control transportation costs is to continually pursue carrier rate reductions while ignoring other, equally important, aspects of the equation.

While carrier rates are often at the top of our mind when considering transportation cost issues, higher rates can be a response to other issues and not the root cause. Shippers need comprehensive and effective carrier program management, or CPM, to measure, identify, discuss and solve all of the issues that can impact carrier rates.

A successful CPM strategy will develop strong relationships with the best carriers, effectively address carrier performance issues quickly when they do arise, and ensure a productive and continuing dialogue to identify all of the areas that are impacting a carrier's ability to provide the best possible service at a competitive rate.

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Keywords: transportation management, managing transportation carriers, carrier audits, transportation spend, logistics management, logistics & supply chain

For many shippers, the go-to strategy to reduce or control transportation costs is to continually pursue carrier rate reductions while ignoring other, equally important, aspects of the equation.

While carrier rates are often at the top of our mind when considering transportation cost issues, higher rates can be a response to other issues and not the root cause. Shippers need comprehensive and effective carrier program management, or CPM, to measure, identify, discuss and solve all of the issues that can impact carrier rates.

A successful CPM strategy will develop strong relationships with the best carriers, effectively address carrier performance issues quickly when they do arise, and ensure a productive and continuing dialogue to identify all of the areas that are impacting a carrier's ability to provide the best possible service at a competitive rate.

Read Full Article


Keywords: transportation management, managing transportation carriers, carrier audits, transportation spend, logistics management, logistics & supply chain