How to Assess Your Freight Carrier Network
For many, shipping can represent up to 30% of the product cost – but it shouldn't. When it comes to lowering shipping spend, your freight carriers are your best friends.
Working with the right carriers not only improves the cost-effectiveness of your network but it also helps prepare your business for the unexpected – pandemics, natural disasters – you name it. So how do you know you have the right carriers – or even enough carriers in your arsenal? There are quite a few factors to consider when curating your network – so let’s go over the top 6 you should consider.
6 Factors to Assess Your Freight Carrier Network
#1 Is your carrier network big enough?
How many carriers are you currently using? Having at least three carriers ensures that you always have a backup if things go sideways. Trust us, we know!
What could go wrong? It can be as unexpected as a pandemic, a natural disaster, or a carrier going out of business, or it can simply be that demand for shipping is now exceeding the supply of trucks and drivers.
Having an extensive network allows you to be selective when matching carriers to individual shipments, product types, routes, or SKUs, ensuring better prices and lower damage rates. Damage rates for carriers vary by product type, so we recommend tailoring your carrier selection to the products you ship.
When it comes to freight carriers, remember – the more, the merrier!
#2 Are your carriers reliable and fast?
How reliable are your carriers? Are they often behind on orders? Are they only reliable in some regions and less in others? The data is available to help assess carriers by region, by product type, by service level, etc. Use this data to identify underperforming carriers and alter your shipping decisions. Organizations who leverage the data available to tailor their carrier selection will see higher profits due to a reduction in claims handling costs and customer dissatisfaction.
#3 Does your network allow you to scale?
An increase in eCommerce activity is likely expanding your customer reach. Your carriers are your gateway to new markets. Make sure new customers receive the same great experience, regardless of location. Are there more areas you'd like to reach but are struggling to do so cost-effectively? If yes, introduce new carriers into your network who are known for operating at a high-level in those new areas – you'll reach who you want and give them the superb service they deserve.
#4 Do your carriers provide good customer service?
Delivery service is an extension of your brand, and for your eCommerce sales, it is often the only touchpoint your online customers have with excellent customer service.
When you're using LTL freight carriers to ship big and bulky products like furniture, it’s especially important to consider the customer experience. Put yourself in your customer's shoes – would you want your new couch left on the driveway, or would you like the option to have it brought into the living room? Using carriers that offer specialty services like White Glove can help elevate the overall brand experience.
TIP: Using a free tool like Freight Club allows you to quickly compare rates on specialty services, so you always get top-quality delivery at the lowest rates.
#5 Are you getting the best shipping rates?
In the shipping business, volume dictates discount. Large volume shippers are being provided with an easier path to high profits simply because they can obtain lower shipping costs than small volume shippers. The playing field is tilted against the smaller businesses. No matter what volume you’re shipping, it’s critical to ask yourself if you ship enough volume to obtain highly competitive rates nationwide on all product types? And more specifically, do you have enough volume to obtain these rates across multiple carriers to maintain the selection required to maximize your profits? Our members save up to 30% on nationwide shipping by leveraging our preferential rates across up to 50 carriers. This type of savings helps level the playing field for all retailers, so you can focus on the quality of your product – not how you ship it.
#6 Are your claims payouts high enough?
Claims is a significant area of potential loss for shippers. Partner with a carrier who takes accountability for claims cases and offers prompt and high percentage payout. It reduces your risk, saving time and money.
Ask yourself: Do my carriers cover concealed damages? What percentage of claims do they payout? How long do they take to adjudicate claims?
TIP: Leveraging Freight Club's shipping insurance has claims payouts of 97%, including concealed damages (25% is considered average for basic carrier insurance) and an average adjudication time as fast as 10-20 days (90 days is the average for basic carrier insurance).
How do I choose the right freight carriers?
Brilliant shipping decisions don't come from thin air – expert insights and years of carrier data power them. Freight Club is a smart tool that leverages years of data to ship products with the right carriers at the lowest rates possible. Quote, book, track shipments, and fully manage claims all on one platform that enables complete control of your shipping. The best part...Freight Club is free to use.