business , compliances

Transportation and Shipping Services

June 10, 2011

OPTIONS

1.      Same day

2.      Temperature controlled

3.      Overnight

4.      Oversized freight

5.      International

6.      Electronic media

7.      Sensitive, fragile

8.      Air charter

WHY BUY?
When urgency and guaranteed delivery are priorities, specialized shipping and trans­port providers can get mission-critical equipment or supplies where you need them and when. Often providing better care and attention than common carriers these com­panies are aware of business disruption concerns, can accommodate unusual ship­ments, and stake reputation on service performance.

WHAT TO LOOK FOR

1.      Excellent track record of on-time, safe deliveries

2.      Wide geographic coverage area that includes all of your company and vendor locations

3.      24-hour service

4.      Service guarantee with specific terms

5.      Transporters who can accommodate your particular goods with appropriate resources

6.      Ability to adequately insure your shipments

7.      Efficient tracking system that provides updates at any time

8.      Ability to reroute shipments in transport

9.      Provider with regularly tested disaster recovery plan

10.  Familiarity with your industry, business practices

COST CONSIDERATIONS

A detailed cost analysis will often reveal hidden expenses. Then adding up costs, consider the following:

1)      Assessorial charges vary from provider to provider and may include additional charges such as for lift gates, special communications provisions, extra staffing to load or unload cargo, and pads and straps for sensitive, fragile shipments. Ask for the total cost, including an itemized list of assessorial charges.

2)      Surcharge for delivery outside of normal service hours or on weekends or holidays?

3)      Additional charge for exclusive vs. commingled transport?

BE PREPARED

In order to bid for your business, vendors will want to know:

1)      Correct address and phone number of recipient and name of point person

2)      Your need for speed: How quickly must the delivery be made?

3)      Your special requirements: Can the items be flown? Must they be in a temperature-controlled environment?

4)      Your communications requirements. Do you require delay updates while the package is enroute?

5)      Consequences to your business in the event of late or damaged shipments

6)      Your budget—at least a rough idea of what you can afford, to pursue the best ser­vice option within a given price range

KEY QUESTIONS TO ASK POTENTIAL VENDORS

1.      What distinguishes you from your competitors?

2.     What percentage of deliveries are on time? Of those that are late, how late are they?

3.      Will you inform enroute if a delivery is running late?

4.      What type of tracking system do you use? How is it backed up?

5.      What is your pick-up promise, and how do you measure service? Quantify’ terms.

6.      Do you have the infrastructure to support service claims? How many trucks? How many terminals?

7.      What is your fleet composition? How do you communicate with your fleet?

8.      Is the fleet company-owned and maintained regularly?

9.      In case of a vehicle breakdown, will you provide a back-up vehicle or arrange for air transport at your expense?

10.  References available?

KEY QUESTIONS TO ASK VENDOR REFERENCES

1.      How similar to my own are your company’s transportation/shipping needs?

2.      Do you think this carrier can fulfill my needs?

3.      How long have you contracted with this provider?

4.     Why was this vendor chosen? Others considered?

5.      What did the selection process entail?

6.      Carrier strengths, weaknesses?

7.      Is service consistent?

8.      Have you used this provider in a business recovery situation?

9.      Has a delivery ever been late? If so, how late, for what reason, and how was the situation handled?

10.  Do promised services generally meet punctuality and cost approximations?

BUYER BEWARE

1)      Carriers who faded you in the past

2)      Those not specializing in priority transport; vague or non-committal regarding delivery terms and guarantee

3)      Providers who claim they can do more than their resources actually allow

4)      Service promises that are not door-to-door. Air charter typically breaks down on the ground. If your guarantee is not door-to-door, your shipment may be late.

5)      Last-transaction progress reporting only affords tracking information up to the ship­ment’s last stop Enroute information is not available.

WHAT NEXT?

1)      Visit the provider’s headquarters. Inspect the facility for security concerns and general efficiency of operation.

2)      Conduct unannounced dry runs with all potential carriers.

3)      Do your homework now—not at time of urgent need.