Building relationships in business is the number one way a freight agent can succeed.

Relationships are the key to success as a freight agent. You may think this concept is nothing new, but now COVID has changed the way we meet people and build those relationships. Gone are the days when you could walk into many companies and catch someone in the hallway or bring them lunch; many offices and buildings aren’t even open to visitors, and the person that you need to speak with works remotely. So, how do you genuinely build relationships to meet your customer’s goals and grow your business and network?

TIPS FOR BUILDING RELATIONSHIPS IN BUSINESS

Genuine Care

This can’t be faked. If you don’t genuinely care about helping someone meet their own needs or goals, there isn’t any other tip that will work. This also means that not every customer may be the right fit for your business, and you are not the right fit for them. That’s okay – because if you don’t genuinely care about the well-being and success of the other person, it just won’t work!

Learn About Your Business Relationship

I love asking new salespeople what it takes to build a relationship in business. I hear things like knowing birthdays, knowing what sports they like, or if they have kids. This is all great information to know, but when a customer is entertaining another broker, knowing their birthday won’t help very much! It’s all surface information.

Learning means knowing how you can help them. Find out other information, like what’s important to their business or what threats there are to their business. What are their company goals and values? What measures do they use to check performance? And most importantly, learn how their business works, from procurement to end user sales. This kind of information will prepare you to be the person they’re looking for when their business needs help.

Offer Help Before They Ask

Don’t you love it when someone goes out of the way to buy you lunch in advance, ultimately solving your unknown problem of figuring out what to have and making it? This same idea works for your customers and goes hand in hand with learning more about your customer. Spend time taking that knowledge to figure out how you can help your customer’s business succeed. By being proactive instead of reactive with your services, you can further strengthen your business relationship and show your commitment to your customer’s success. Solve those problems that they aren’t even thinking about solving yet.

Have Excellent Customer Service

Customer service is a top priority in building relationships in business. Perfecting your interactions with your customers so that they leave floored by your service will not only improve your relationship with that customer but open the door to new ones.

Be An Educational Resource

Learning about your customer’s business is key, but they also rely on you to be the subject matter expert on all things supply chain! You want to be a helpful and educational resource for your customers to rely on.

Keep Up With Your Contacts

You may not have the bandwidth to keep up with all your contacts, but routinely checking in or engaging with them is important. Of course, you don’t always have to call or email. There are many other ways to engage with them, such as commenting on something they shared on LinkedIn or sending them a congratulatory card for a career milestone – every small interaction shows them that you’re keeping them top of mind and making them feel valued.

Go Beyond One Load/One Truck

Learning about a company’s business gives you the opportunity to help their supply chain process. Find out their real needs instead of just serving the load in front of you. How can you partner with them to solve the needs and goals of their business? Is saving on freight costs the most important thing?

Work with them to provide dedicated shipments that can be serviced more efficiently and effectively. If on-time delivery is most important to your customer, then work with motor carriers to make sure that they understand the importance of delivery and become familiar with their freight so that the customer gets exactly what they’re looking for.

Ask for Feedback

Instead of assuming your business relationships are happy, ask for feedback. Having open and transparent communication is the basic factor in building relationships in business. When you take the time to ask your relationships how they feel, you promote a conversation to uncover areas of improvement and further prove your commitment to them.

Don’t Forget Motor Carriers

Having a strong relationship with the motor carriers that you work with is as important as the customer! Motor carriers are the heartbeat of the industry, and can teach us so much about what is happening day in and day out. By building great relationships here, you also gain great insight into their business and they into yours. This makes communication during the load process so much better for everyone.

WE’RE HERE TO HELP YOU WITH BUILDING RELATIONSHIPS IN BUSINESS

Our tagline is People-Centric Freight Solutions® for a good reason. Our culture and services focus on people and building relationships in business. And we’re here to help you succeed. It’s important to us at Trinity to help our freight agents find ways to keep their businesses successful and growing.

Here at Trinity, we understand running your business is hard work, so we have an entire Team to help you. With over 30 years of experience aiding in the success of our freight agents, many of them see a 50 percent increase in their business over a two-year period from joining.

Let us help you do what you do best, building strong relationships with your shipper customers and carriers while receiving world-class support that puts you ahead of the competition.

Spend less time on those back-end tasks and more time learning about the people behind the sale and winning their business.

JOIN TRINITY’S FREIGHT AGENT NETWORK

The following is an opinion article on AI in supply chains, written by Russ Felker, Chief of Technology (CTO) of Trinity Logistics.

Artificial intelligence (AI) continues to grow its presence in our everyday lives, businesses, and now, supply chains. In a recent MHI Annual Industry Report, 17 percent of respondents said they use AI, with another 45 percent stating they will begin using it in the next five years. And of more than 1,000 supply chain professionals surveyed, 25 percent stated they plan to invest in AI within the next three years. While AI in supply chains has its benefits, it continues to be overhyped as a replacement for human cognitive abilities.

AI in Supply Chains: We Need to Change Our Focus

The technologies leveraged by today’s AI offerings fall flat when applied to the complex day-to-day of supply chain interactions. We need to stop chasing the inflated promises of artificial intelligence and start focusing on the very powerful pattern recognition and pattern-application technologies marketed today as AI to support our teams more effectively. Instead of focusing on AI, we need to reorient on CAI (computer-aided intelligence).

Now, this might seem like a semantic argument, and to a certain extent it is, but the difference between artificial intelligence (AI) and computer-aided intelligence (CAI) is distinct. You might ask, “What does it matter if the technologies are being put in place and create efficiencies?”  “So what if it’s called AI?”  I would say it makes all the difference in the world.

What AI in Supply Chains Currently Does Well

First off, let’s talk about the technologies backing the products that include AI.  As with many technology implementations, they are, by and large, applying rulesets to data. Being able to quickly process a defined pattern against a large data set is both no mean feat and hugely beneficial in a supply-chain setting. In the end, however, these implementations are no different than a rules engine – albeit one with a high degree of complication. For example, take an area of the supply chain that has had this form of technology applied to it, quite successfully, for many years – route optimization.  

Optimizing a single route is relatively simple but optimizing the routes of multiple vehicles in conjunction with related schedules of item delivery commitments and layering in things like round-trip requirements and least amount of non-productive miles (miles driven without a load) and the level of complexity moves well beyond what an individual could do in a reasonable period of time.  What can take on this type of task is a processing engine designed to apply complex patterns within a given boundary set – and that’s what current implementations of AI can do. And they do it well.

Why AI Can’t Replace Humans

The first problem comes in when we examine the stated goal of AI – the ability for a machine to work intelligently. The difference between hype and reality is in how we interpret a keyword – intelligence. Even the most recent and hyped AI systems continue to fail at the same core intelligence functions such as understanding nuanced context and broader application of existing patterns.  

Take Gato from DeepMind, a division of Alphabet, as an example. While it can examine an image and draw basic conclusions, the context and understanding are both entirely missing from its analysis. Tesla provides another example where a driver had to intervene as autopilot couldn’t recognize a worker holding a stop sign as something it should avoid. These limitations minimize the tasks for which AI technologies can, and should, be leveraged.  

The second problem is related to the first. The acceptance of “AI” from teams has been wrought with, at a minimum, intense change management and, in the worst case, rebellion. If you are bringing in AI to a team, why wouldn’t they draw the conclusion that your goal is to replace them? To start down the path of both realistic expectations from senior management and more widespread adoption of technology, we must change the approach we take with stakeholders impacted by implementations of AI. We need to talk about CAI.

It’s Time to Set the Stage for CAI

Just the acronym alone talks to a much more practical and achievable marriage between a person and a computer. It’s not the computer that’s intelligent; it’s the person using the computer. What a computer can be taught to do, is to effectively deliver relevant information to a person at the time they need it based on their job function and recognized point in the process. So instead of using a technology such as a recommendation engine to pick a product you might like or a movie you’re likely to want to watch, let’s turn our focus to delivering salient business information to our people. We can effectively use analytics and machine learning to create data recommendations and deliver those recommendations directly to users in their primary applications at the right time in their process, so they don’t have to go find data in multiple reports or sites. Once a pattern is recognized, by people, and the data is organized correctly, again, by people, we can use things like machine learning and analytics to deliver that result set effectively and consistently.  

What this approach achieves is reduced interaction by a person and the machine reclaiming time for people to connect with customers outside of transactional conversations. By providing relevant data in-process, you make your team more efficient in their use of the system and create more opportunities for person-to-person interactions and relationships. The goal of any system implementation should be to reduce the time needed for a person to interact with it to achieve the desired result. This is different from having the perspective of the machine doing what a person does – which can be a misguided goal of AI. Instead, the system needs to be built to strategically leverage AI in areas that support the reduction of repetitive, rote work, enabling teams to focus on higher-value work.

A 3PL Focused on People

As a 3PL, a large part of our work tends to gravitate toward the identification and management of exceptions, but many times that is reactionary. We can leverage the technologies present today to enhance exception identification and management. Via AI-enabled supply-chain systems, information can be more present for teams to apply their intelligence, experience, and skill to solving issues optimally. The ability to recognize early in the life of a load the potential of a delayed delivery enables teams to make proactive adjustments with the receiving facility and the recipient. We can gather documents automatically and provide the information in a consumable fashion reducing the amount of manual effort to extract relevance from the documents.

As a 3PL we rely on two primary skills – intelligent use of data and building and maintaining relationships. Neither a computer nor an algorithm can do either of those alone, but a person backed by a Computer-Aided Intelligence system can. Creating systems that focus on CAI is what allows Trinity’s true source of intelligence, our team, to shine and deliver consistently phenomenal results for our customer partners. Now, you might be the exception and prefer to converse with a chatbot, but I’m guessing if you read this far, you’d rather talk to a person – which is what you get when you call Trinity – a person, backed by computer-aided intelligence systems, who is ready to do the work to create a relationship with you and deliver phenomenal results.

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It can be challenging for you to decide the best way to transport your products. Fewer decisions are bigger than deciding whether to operate a private fleet or outsource. On the surface, private fleets appear to be the better option, but you must recognize and understand all that goes into running your own transportation. Some companies believe operating a private fleet gives them more control over the business and operating costs. In contrast, others find that outsourcing their transportation gives them better insight into the market while reducing costs and creating efficiencies. So, which is better? Private fleets or outsourced logistics?

PRIVATE FLEETS OR OUTSOURCED LOGISTICS?

Well-known household names like PepsiCo, Sysco Walmart, and Tyson Foods all run successful private fleets. According to FleetSeek.com, a database of trucking operations, 344,657 private fleets are operating in the U.S. compared to 169,498 for-hire carriers and 203,068 independent owner-operators. So what drives companies to choose a private fleet or outsourcing?  

The idea of having your own private fleet to deliver your goods is alluring. On the one hand, you can retain complete control over your supply chain by operating a private fleet. But this can come with staggering costs and resources spent. The time and costs of managing a fleet may not be worthwhile for some companies. On the other hand, it can be difficult for those running and operating their own fleets, especially if it’s not their core focus. While the pandemic has had a small hand in encouraging companies to move away from managing their own private fleets, many of the real motivating factors are the plain challenges that come with operating your own logistics and transportation.

private fleets or outsourced logistics

PRIVATE FLEET CHALLENGES

Running your own fleet is a very asset-heavy business on its own. It requires a lot of capital investment in tractors and trailers along with other costs of technology, maintenance, insurance, driver pay, and more. Drivers are in short supply already, so finding a backup for sick drivers or losing drivers puts private fleets at the risk of losing capacity. Motor carrier insurance costs have been on the rise as well. Where a large trucking company could spread increased costs across a range of equipment and business segments, a small private fleet does not have that flexibility.

DRIVER RECRUITMENT AND RETENTION

Driver recruitment is one operation of running a private fleet that you have to consider. Finding talent behind the wheel is an even more significant challenge lately with the driver shortage and driver-related issues are a current top concern of private fleets. According to the American Trucking Associations, the driver shortage hit 60,800 at the end of 2018. Current trends point to the shortage growing to over 160,000 drivers by 2028. In addition, a recent ATRI analysis of census data on employment sectors shows that the trucking industry has the lowest percentage of young entrants and the highest percentage of aging workforce entrants.

In a recent survey by the National Private Truck Council (NPTC), more than a third of all challenges private fleets face are driver-related, like aging drivers and their retirement, recruiting, turnover, hiring, and retention. With the ever-surging freight demand and a growing labor shortage, private fleets must work even harder to recruit and retain drivers. In addition, private fleets must fight with for-hire carriers over drivers as they are working even harder to attract drivers from fleets with more money, better equipment, and better routes for more home time.

COSTS

Many companies want to operate private fleets to manage their transportation costs; however, many more costs go into a private fleet. First, there are the upfront capital expenses, which can be expensive when starting out. You also have to consider fuel, insurance, driver pay and benefits, licenses, certifications, permits, technology like ELDs or software applications, training, and drug testing. There are also unanticipated costs to plan for, like liability costs for any accidents or claims. According to a study by the FMCSA in 2006, the cost to a company for a non-fatal injury crash averaged $195,258, while the average cost of a fatal crash was $3,604,518. In addition, costs for private fleets are rising with the increasing costs of fuel, insurance, and equipment maintenance as new and used trucks deal with material shortages.

CAPACITY

Many companies want a private fleet to have easy access to the capacity to haul their freight. However, having just the right amount of available equipment and drivers is tough to decide. Often you’ll find that you either have too much equipment sitting when you’re slow or too little to cover orders when demand is high, leaving you to use the spot market to cover shipments that need to go out. There are always ebbs and flows to business. Even when planned there will be times when equipment is underutilized or there won’t be enough.

TIME SPENT ON TRANSPORTATION

One drawback to operating your own fleet is the time you must put into it. You have to arrange the shipments, make sure you have drivers, cover backhauls or find coverage when you don’t have enough capacity of your own, maintain regulations, insurance, and more. The constant monitoring and configuring of your own transportation demand a lot of time – time that could instead be used for revenue-generating tasks.

PRIVATE FLEET BENEFITS

There are many benefits to running your own private fleet, such as;

KEEPING CONTROL

If keeping control over your transportation is something you need then operating a private fleet is for you. By choosing not to outsource your transportation, you’ll have complete control over your supply chain. You’ll know that you always have capacity available, even when the market is challenging. You won’t have to spend time searching for available carriers or negotiating rates, and you’ll keep control over service levels since you’ll have company drivers and equipment readily available.

CUSTOMER SERVICE

In the previously mentioned NPTC survey, more than 92 percent of respondents said that customer service was the main reason they had a private fleet. Other factors included flexibility, reliability, dependability, and a desire to put their employees in front of customers. With these factors in consideration, some companies view their fleet as a core competency.

SAFETY

Safety performance is another benefit to private fleet operators. According to the Department of Transportation’s (DOT) crash data, drivers in private fleets have shown to be three times safer than the overall trucking industry.

FLEXIBILITY

Additionally, you’ll have scheduling flexibility. Rather than depending on a for-hire carrier to pick up and schedule shipments, private fleet operators set the schedule themselves, giving you more control over on-time deliveries.

BRAND AWARENESS

Lastly, there’s the marketing aspect to consider. Private fleet trailers essentially act as “rolling billboards” for your company.

OUTSOURCING BENEFITS

In the 2019 Third Party Logistics survey by Korn Ferry, 63 percent of shippers said that overall, shippers are increasing their use of outsourced logistics. Taking into account the pros and cons of a private fleet, it seems some companies find that outsourcing their transportation suits their needs better. There are many benefits to outsourcing your logistics, such as;

FEWER COSTS

In comparison to private fleet costs, there are very few costs to consider when outsourcing. You don’t have to worry about the cost for the labor of drivers, their insurance, their certifications, driver recruiting, vehicle maintenance, fuel costs, and more. The only actual cost you have to worry about is the cost of having your freight transported.

MORE TIME

Since you won’t have to worry about the many time-consuming tasks of your own fleet, you’ll have more time to focus on your business versus your transportation. In addition, your employees will focus on revenue-generating tasks instead of all that comes with managing transportation.

CAPACITY

Even though private fleets come with some on-demand capacity, when outsourcing your logistics to a third-party logistics provider (3PL), you can be assured that you’ll have access to capacity that you wouldn’t have otherwise. 3PLs take care of all the relationship-building, growing a larger network than you could manage, and take care of covering your shipments for you. There’s no worry about finding available carriers or making sure you have available drivers and equipment. It is all taken care of for you.

OUTSOURCING CHALLENGES

Even though there are many benefits to choosing to outsource your transportation needs, there can be some challenges that come with it.

LOSS OF CONTROL

Some people aren’t fans of losing control. When choosing to outsource, you will lose some control of your provider selection, customer service, and rates paid on shipments. Sounds scary, right? That’s why if you’re choosing to outsource, make sure you find a reputable provider that you can communicate your wants and needs. Find one that will keep an open line of communication with you as your relationship grows so that you fully trust them and be okay with letting go.

LOSS OF VISIBILITY

This solely depends on the provider that you choose to work with and what they offer. Find a good provider with technology applications or processes in place to keep you informed. You may even find a provider that has options to give you more visibility than you would have otherwise.

MANAGING THE RELATIONSHIP

Time and effort must be invested when developing good working relationships. Your chosen providers must share an understanding of your strategy and provide you with innovative solutions to give you a competitive advantage. It may take time to be in alignment.

TECHNOLOGY INTEGRATION

If choosing to outsource and make use of a provider’s technology, your IT teams must integrate applications and systems. Make sure your IT teams are capable of doing so and that your provider will provide assistance in the integration.

PRIVATE FLEET OR OUTSOURCING OPTIONS

Companies that don’t want to manage their own fleet have a couple of options when it comes to outsourcing. For one, there are dedicated services. This is an option if you already have a private fleet of your own. Essentially, you convert your private fleet to a transportation company so that they now belong to the transportation company but remain dedicated to serving you first and foremost. Some transportation companies may even let you keep your branding on the truck. This is a nice way to have more control but less responsibility. 

Another option is outsourcing to a 3PL completely. They will take complete control and responsibility for your logistics management. You’ll still have access to capacity, reduced costs, and excellent customer service; however, you’ll lose the benefit of your brand on trucks. This option allows you to COMPLETELY focus on your core business.

Looking to have the best of both worlds? There is certainly nothing holding you back from having a mix of a private fleet and outsourcing. Some companies, like Giant Eagle Supermarket, prioritize their private fleet but also use outside carriers for less critical shipments. As a result, they’ve found an advantage to mixing both services.

FIND WHAT WORKS FOR YOU

Regardless of the choice you make, getting your product to customers has never been more challenging. The driver challenge continues to be a problem, capacity remains tight, and freight rates remain high. Though we may be partial to outsourcing, you should look to find a solution that works best for your company.

Be sure to ask yourself these questions when deciding whether private fleets or outsourced logistics is best for your company:

If outsourcing some or all of your transportation seems like a good solution, consider Trinity Logistics as your provider. With over 40 years in business and Burris Logistics as our parent company, we consider ourselves experts in logistics, especially in more complex or specialty shipments.

We can help you with capacity through our extensive network of carrier relationships available. We have best-in-class technology available to meet your needs and help you with your business’s growth. We work with several modes and through our People-Centric approach, offer you guidance on when and what solutions you should use. You’ll find that when choosing Trinity Logistics as your provider, when given the chance to prove our commitment to great service and communication, we set the bar high.

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Author: Christine Morris

All businesses want to grow, but growing a business isn’t an easy task. It is one of the toughest challenges that a company can face. And there are many ways to go about assisting and capturing on that growth. One option that I’d like to talk about today is on improving your logistics.

You may be the best at being the business idea maker, the manufacturer, the seller, but logistics and the supply chain can be confusing and complex. Trust us, we know. Choosing to work with a third-party logistics company (3PL) can help in removing those confusing and complex tasks, as well as aid in your company’s growth.

What is a 3PL?

Depending on the capabilities of your logistics provider, a 3PL is a service company that can handle several or every aspect related to logistics in your supply chain. This can include fulfillment, transportation, supply chain management, transportation tracking and tracing, inventory management, and more. 3PLs can either be asset based or non-asset based.

Not quite sure what that means? Click here to learn more.

3PL’s are a flexible service, meaning you can choose for help in one piece of your logistics puzzle, or have the 3PL assist with the whole enchilada that is your supply chain and logistics. This also makes 3PLs an affordable service because you can choose to get help on only what you need.

You can quickly see how working with a 3PL can help you with any logistics challenges you may be facing. But how can a 3PL improve your logistics overall? And how does that help with your company’s growth?

Lower Costs

This one is easy. Since all 3PLs handle logistics, they have the experience and relationships built within their networks to better run that aspect of your business. They are able to negotiate lower shipping rates and discounts on the services they use. Not to mention, 3PLs offer access to technology that you would otherwise have to pay for yourself. Without a 3PL, it can take you years to find the best shipping providers and services you need to run your logistics smoothly. Working with a 3PL expedites that process while reducing your costs.

Warehousing & Distribution

Need warehousing space? Rather than setting aside money every month on rent for warehousing that you may not always need, take advantage of a 3PLs connections and get warehousing when and where you need it. This means you could have stock warehoused in several locations, expediting your deliveries. Faster distribution means you’ll have happier customers.

Flexibility

3PLs offer flexibility in your logistics by being able to service you on-demand. You can cut costs by removing or reducing transportation and warehousing assets and outsource when demand increases. Companies that have products with a peak season, or increased demands during the holidays can call upon a 3PL as needed during the rollercoaster that is consumer demand.

Additionally, working with a 3PL gives you the flexibility to try different services to see what works best for your company. You can ship your products via truckload, try out intermodal shipping, or have the 3PL help manage your whole logistics operations with a TMS (transportation management system). You get to choose what works best for you company.

Experience

Speaking of what works best for your company, a 3PL will have that experience and insight. They know how to run and manage logistics operations efficiently and help you with that. Looking to expand into a new geographic region or try e-commerce? A 3PL can help by making recommendations on how to best move forward. Regardless of your challenge, a 3PL provider will have the necessary expertise to guide you on the most beneficial path.

Free Up Resources

When growing your business, you need to invest your time and money into where it would make the biggest impact. Logistics can take a lot of capital when doing it all yourself, so outsourcing to a third party can free up your resources. By focusing on what your team and company is best at and outsourcing the logistics, you’ll be able to provide your customers better products and service with your more efficient operations.

3PL Statistics

If you’re still not convinced about outsourcing to a third-party for your logistics, here are some statistics from the 2019 23rd Annual Third-Party Logistics Study. These go to show that improving your logistics can help your business in many ways.

improving your logistics

These are some of the ways a 3PL can help with improving your logistics and growing your business. Every company is unique and faces its own challenges. The first step in finding out exactly what can your company can improve upon is by having that initial conversation with a 3PL.

Why not take that first step today, and connect with Trinity Logistics?

Yes, I want to improve my logistics to grow my business

With 40 years of experience, a relationship-driven team, and the added benefit of being part of the Burris Logistics family, Trinity Logistics is the 3PL to help your business thrive.

The chemical industry adheres to strict regulations with their products. With those regulations can come recalls and audits. To stay ahead of those headaches, traceability is needed in the supply chain for chemical manufacturers. Gaining traceability can help prevent possible recalls and offer preparedness for audits, while bringing many other benefits.

Shared Data

To get the greatest benefit from supply chain traceability, data needs to be easily shared across supply chain partners. The use of technology for end-to-end supply chain traceability is vital for recording and exchanging data with all. Having transparency amongst all supply chain partners brings accountability and trust.

Replace Manual Processes

Even today, a lot of traceability processes are still manual. It often takes contacting many individuals through phone or email to get the information you need. Using technology for traceability in the supply chain helps eliminate those manual processes. With current technology, you can find the information you need in minutes with one application.

Improve Customer Service

With all supply chain partners having transparency, there is great potential for customer service to be improved. Distributors can better manage their delivery times, improving communication and customer satisfaction. Retailers can provide consumers with access to product information, building loyalty and relationships. Shippers can see shipment activity and schedule heavy or light volumes, creating happier transportation partners. From end to end of the chain, it improves consumer satisfaction.

Quick Problem Solving

Traceability allows you to be more proactive should you need to cancel an order, stop a production cycle, have products re-inspected, etc. It gives you the opportunity to quickly detect problems and deliver greater service by providing solutions and visible communication right away.

Better Stock Management

Easily meet customer demand by knowing what is going on within your supply chain. Tracking and tracing shipments and orders leads to more efficient stock management. With better management brings the potential for costs savings.

Traceability With TMS

Transportation Management Systems (TMS) are one of the technologies available to gain traceability in your supply chain. They allow function and resources for all supply chain stakeholders. To reduce cost, working with a third-party logistics (3PL), such as Trinity Logistics, can give you access to their TMS technology, as well as their experience in supply chain solutions.

Looking to learn more about TMS? Click here to read our Guide on TMS.

Creating a connected supply chain adds value and strengthens those relationships with all stakeholders. It makes a company more desirable to work with and to buy from. The smallest of details can make a difference in the success of a company. Traceability is one of those finer details in your chemical supply chain that you can’t be without.

If you’re ready to make a move towards having traceability in your supply chain, connect with us and find your solution.

Find your solution

This is a question that many customers ponder on a daily and weekly basis. If you are a shipper or manufacturer utilizing intermodal (rail shipments) as a means of moving your freight, no doubt you already have a list of items that you consider when selecting the best intermodal logistics provider. Humor me and please keep reading anyway, I may possibly add one or two items that you haven’t considered in the past.

What’s an IMC?
First, let’s discuss what an “IMC” (Intermodal Marketing Company) is today versus what they were in years past. Many years ago when intermodal movements were just beginning on the railroads, the rail carriers quickly realized that it was very difficult for them to “retail” their service directly to potential customers. The railroads were accustomed to dealing with a shipping public with locations on their property with rail tracks running direct into their facilities! These were customers that moved grain, paper, lumber, steel, and automobiles as a few examples of the commodities that worked well for the rails.  There was untapped opportunity for new shippers and manufacturers to move their freight by train, but they didn’t have to be located close to the railroad. In fact, many rail customers are several miles from the nearest railroad tracks.

IMCs (Intermodal Marketing Companies) started popping up around the country, providing marketing and sales for the railroads. Railroads readily accepted the IMCs’ help for marketing and selling their intermodal service! Originally the functions and responsibilities of an Intermodal Marketing Company were very limited. Over time those responsibilities have changed greatly to the point they not only provide sales, pricing, and marketing, but are also responsible in many cases for securing the container to move the load as well as the draymen to pick up the load at origin and destination. The Intermodal Marketing Company also provides one other key function today they didn’t provide in years past, and that is customer service.

The #1 Differentiator
Customer service is one function that truly differentiates one Intermodal Marketing Company from another.  Some intermodal marketing companies have nearly eliminated the customer service function, relying heavily on cheap pricing to secure freight for shipping intermodal. I strongly recommend you consider customer service as a required function whether you’re renewing intermodal contracts, doing spot quotes, or just starting to move your freight by train. Let me paint a picture for you. There are only a few “Class I” railroads left in the United States and Canada, in fact only two Class 1 railroads in the West, only two in the East, and one in the Midwest. This means all of your intermodal freight will move on one of these five railroads and you’ll likely experience either good service the rail carriers provide, or you’ll suffer from issues the railroads are having. These include wash outs, derailments, hurricanes, mudslides, etc.

The element that separates the best Intermodal Marketing Company from the “less than best” Intermodal Marketing Company is how well they communicate the issues with you, the customer, and how that may affect your movement on a train. Many IMCs simply provide an online tracing tool, leaving it up to the customer to find out if any delays are going impact their shipment. Other IMCs will have automated faxes or emails broadcast to the shippers with very generic information about the issues. The “best” IMCs will create the type of communication you value. They will offer the online tracking combined with a personal touch and contact when you prefer it, letting you know about the issues that might affect your pick-up or delivery, and also offering alternatives when solutions are needed. They keep your freight and your best interests at the forefront of every conversation and interaction.

Asset Based or Non-Asset Based
Another consideration when selecting an IMC is to weigh the importance of being an intermodal asset owner or a non-asset owner? While this is an item that certainly differentiates the IMC’s, this element should not be one of your main deciding factors on which IMC you select. There are several excellent IMCs that move a lot of volume on trains do not possess intermodal equipment. Being an asset based Intermodal Marketing Company will provide only a small amount of leverage on pricing. I have heard many asset based carriers make the sales pitch that their company is better than company “XYZ” because they own assets, thus they have the ability to guarantee equipment for all shipments. The downside is the asset based IMC is more concerned about “turn times” or “trips per month” on their assets than they are about providing good customer service to you. The IMC without assets in most cases has access to just as many intermodal containers (in some cases even more), but if solely focused on your needs and serving the best interest of your shipment rather than their equipment.  This is certainly an item that differentiates IMCs, but I feel it should be weighted very lightly when choosing the “best” intermodal marketing company for your needs.

All Aboard the Green Train
Issues are affecting our environment, the fact is not surprising anyone reading this blog. Chances are your company has even launched a “go green” initiative, whether it’s recycling office paper or joining the EPA’s Smartway Partnership. Moving your freight by train will result in a tremendous reduction in the carbon emissions into our atmosphere. When you are looking for the best intermodal provider, this is an item you should certainly consider. Are they a member of Smartway, do they have active programs in place to help the environment today and tomorrow?

Where Do You Rank?
Another element that certainly tells the story about an IMC is their current client base. Who do they currently do business with? Several IMCs tout that 80-85% of their volume and revenue comes from 10% of their customers. What this tells me is how much they like doing business with very large companies. Other IMCs prefer to do business with small to medium sized customers so their distribution of volume and revenues are spread over a much larger customer database. Typically the IMC catering to smaller clients has a natural knack for making the smallest customer feel just as important as their largest customer. Which type would you prefer to deal with? Who would you think values your business more?

Continuous Improvement
The final deciding factor on how to select your best intermodal marketing company involves the dreaded word “change”. There are many IMCs that are happy with the way things are now, while others are continually looking for ways to embrace change, either in processes or technologies. They’re doing this in order to improve how they are doing things for the betterment of the customers (for you)! I will certainly concede that change for the sake of change isn’t good, but change for improving service to the customer is something that differentiates a complacent intermodal provider from one striving to be the best.

It is my sincere hope that the list of items above will stimulate some thoughts for you the next time you need to move an intermodal shipment. No doubt you have noticed that I didn’t include much in my blog about price. Trust me, leave it on the bottom of your decision criteria and you will be able to select the best intermodal provider for your business needs without concentrating on price.

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