There Are No More
Traditional LTLs
How to Conduct
a Successful Carrier Bid
The operations of less-than-truckload carriers
have changed so dramatically in the last two
decades that they bear little resemblance to
the traditional LTL model that was prevalent
for decades, says Brad Morris, vice president
of marketing at AAA Cooper, a regional LTL
carrier operating in the Southeast.
Morris says that technology, flexibility,
diversification and
rapid adaptation to
specific customer
requirements are a
few characteristics
that make today’s LTL
carriers a different
breed.
“Twenty years ago
transit time was 90
percent of a carrier’s
service performance, Morris says. While still of “the utmost
importance,” other equally important factors are part of today’s
performance measures. “The technology you can offer customers, speed of communications and visibility to shipments
are also critical,” he says. Additionally, Morris says that it is
untenable in today’s environment to offer only one service or
one solution to customers. This has driven many LTL carriers,
including AAA Cooper to open other service divisions. “In our
case, we have opened up a port services division to help our
customers distribute from the ports, in many cases with direct
services that bypass a distribution center,” he says. AAA Cooper
also has opened a dedicated services division, Morris says,
adding that several customers combine services from all three of
its divisions to fit their specific supply chain needs. “What it
comes down to today is that you have to analyze and serve each
customer individually,” he says.
One thing that hasn’t changed, however, is the importance of
maintaining strong customer relationships, Morris says. “
Relationships are still the heart of this business, even in markets that
are very price- and service-driven. That is a part of our tradition
that we believe will never change—and we wouldn’t have it any
other way.”
To view this video interview in its entirety,
visit www.SupplyChainBrain.com.
Soliciting, analyzing and awarding transportation contracts through a bid process is complex.
Transportation buyers need to conduct a thorough opportunity assessment and make sure
they have the infrastructure and framework in
place to effectively manage the bidding process,
says Art Nourot, senior director of carrier procurement at Unyson Logistics.
Nourot’s first bid-preparation tip is to
evaluate the existing
transportation network with an eye
toward how well it is
meeting, or failing to
meet, customer
expectations. This
step also should
include an examination of how the company’s network has
changed since the last carrier bid. If new locations, vendors or
customers have been added or deleted, this should be reflected
in the bid proposal.
Another part of bid preparation is an overall opportunity
assessment. This should include examining existing cost and service levels to see if they are in line with industry standards and
benchmarks. “Keep in mind with a bid process that you can
expand or shrink your carrier group,” says Nourot. When bringing
in new carriers, however, it is important to assess the time and cost
of integrating them into your network as well as how that process
will impact your operations and customer service.
Once the bid is packaged and distributed to carriers, be pre-
pared to quickly and clearly respond to inquiries, Nourot says.
“And make sure you have a concise template for carriers to use to
respond to the bid that leaves little room for modification.”
After the bid is awarded, the final step of implementation is
one that is often overlooked, says Nourot. “If there are new car-
riers, you need a process for introducing them to your organiza-
tion with site visits and visits with the management team. This
step also needs to be managed effectively so new carriers are
on-boarded successfully.”
To view this video interview in its entirety,
visit www.SupplyChainBrain.com.
