All posts
Keeping Up With the Trends: The Customer and Carrier Perspective
Posted by:
Owner
Friday, August 06, 2010
It is critical that we remain up to speed on industry trends, including carrier strategies and challenges, and customer expectations and demands. Inbound Logistics recently completed extensive research relative to both points. We have included several important points that may help you position yourself to be considered as a more consultative resource and the service solution for their supply chain and transportation service requirements for the future.THE CARRIER’S PERSPECTIVE. 1. Pricing pressures from the customers’ and competition are the carriers’ most critical challenges for both truckload and LTL; however we have seen some change in the truckload mode in the past several months which leads us to believe there is shrinkage in capacity.2. Rising fuel and equipment costs are closely behind pricing as a primary challenge.3. Government regulations are a concern which may be alluding to carrier concern about the newly initiated CSA 2010 (Comprehensive Safety Act 2010) to become effective in November, 2010. Many industry analysts are pointing toward a potential shortage in drivers based on the changes presented in the Act.4. Over the past 3 years the average fleet size of the companies surveyed has dropped from 2,946 trucks per carrier in 2007 to 2,574 trucks per carrier this year. The larger carriers generally have greater opportunities to idle equipment than the carriers with less fleet size.THE CUSTOMER’S PERSPECTIVE1. From a customer perspective, price, customer service, reliability and coverage are the criteria utilized (in that order) when selecting their partners.2. Customers are more willing to switch carriers following last year’s trend. This switch is due in largest part by failure to meet expectations, including late pick-up and delivery, and no communication. A "better carrier fit for the service requirements was needed", was voiced multiple times.3. Shippers are more willing to re-evaluate rates in certain lanes. Even shipping customers that have relied on a smaller group of core carrier’s are open to take advantage of opportunities with companies that can provide solutions to improve service and reduce their cost.4. When capacity is tight, many shippers rely on brokers and 3PLs to align capacity with demand. Many more companies are relying on the spot market to gain better pricing, service and capacity.5. 50% of the shipper’s surveyed stated their direct relationship with the carriers was most important to them; however this is a drop from 53% from the year before. 17% of the customers stated their relationship with their 3rd party provider was most critical to them and 33% valued the relationship as equally important between 3rd party provider and carrier.Based on this research by Inbound Logistics, trends continue to show that customers are favorably reacting to companies such as GlobalTranz to be a valuable resource in developing their logistics strategies. Logistics decisions and strategies are being driven by the top line executives who are demanding change in the way they do business. Service remains a strong criterion for doing business and the value of a stable and consistent representative still remains important in the market place. CarrierRate.com places the customer in position of having the opportunity to make decisions based on lane and customer requirements while having the ability to utilize a strong core of carrier partners. GlobalTranz continues to outplace the growth of other 3PLs in what is considered a down or stagnate economic market. This opportunity certainly places us in strong position to present our solutions to the marketplace.
Category:
