A Rude Awakening- A Rant-Pet Peeves

[Hyperdrive]

When we started to look at expediting, over 3 years ago,I mistakenly thought if we did the following things we would be come valuable to our contracted carrier.
Remain in service over 80+% .
Keeping a clean and well maintained truck.
Being on time or early for pickups and deliveries.
Being professional in both appearance and manner with customers.
Delivering our cargo damage free.
Maintain a good driving and safety record.

The rude awakening came when I found out this was not true and made no difference to most carriers. What mattered most was how low of a rate we would run for.

Of course most carriers, in their orientations, give lip service to the above mentioned attributes but in day to day operations it sadly comes down to the money.

My background in business had taught me that a great associate
was the most valuable asset my company could have. A person like that would make me a lot of money and make my life so much easier.

I have seen expediters who go to customers in baggy shorts, tank tops with filthy trucks and boxes and guess what... they get paid just as much as I do. They also work for the same carriers that I have.

If a new contractor shows up to orientation dressed non professionally that would be a pretty good indication of the type of impression they would give the customers. Yet most carriers are more interested in having an contractor who probably will accept every load and never question the rate.

Are these carriers truly interested in impressing their customers with their service or proving to their customers they will take the load cheaper than the other carrier.

We would love to find a carrier who sells their/our services based on quality not on price. We realize that all carriers have some good paying, quality minded, customers but apparently do not want their contractors to know who they are or what they pay. Again it comes down to the money.

Please feel free to post your rants and pet peeves in this thread.

 

[paullud]

Sounds like you are interested in running things like a business, wow imagine that. It appears as though some have left your carrier with the same feeling of they don't care about anything but their profit. I can understand being concerned with how much they are making but when the carrier is doing it to the detriment of those they rely on to work face to face with the customer it will get ugly in the long run. The company will start to lower the quality of drivers and contractors they work with as they try to substitute quantity for the quality and quantity they lost and are not willing to pay to get.

Posted with my Droid EO Forum App

 

[ATeam]

Conversations about carriers, quality and price should also cover the shippers. They have something to say about price and quality too.

 

[OntarioVanMan]

Well most auto part shippers don't care...they just want their shipment moved...end of story....after years of seeinf what goes where....it is all about the money...

A shipper last week tells me this story...a Russian type accent guy not a word of English almost....the doors would not close on the CV because of the length...he puts 3 straps across the back and bungee cords the doors together....

and the shipper stood and laughed about it but still let him go on his way....

 

[Hyperdrive]

As an owner of a restaurant for 15 years I set my prices, not my customers or competition. My prices were set by my costs and expected profits. Not everyone would like my menu or prices but you can't be everything to everyone or I would be out of business. Let me explain.

I had competition from the Pizza places; the burger places and anyone who was in the restaurant business in my area. We all wanted all of the business. But I noticed the successful restaurants had a specialty and that was what they were known for. The restaurants that struggled were trying to be everything to everyone and as a result did nothing well.

My specialty was rotisserie chicken and my menu had only four dinners and a couple of specials. I knew people would not eat chicken every night but when they did want chicken they came to me because mine was the best and priced fairly.

A business should set its prices by costs and not let the customers tell them what they will pay. Of course they want the best deal they can get but if they can't afford your prices, and they are fair, they are not the customer you want. They need to find someone who will sell them what they want at the price they want.

If a carrier gets a call from a shipper that wants some product picked up quickly and delivered straight thru should they pay the same as that product picked up tomorrow afternoon and delivered whenever?

An old saying of mine:
QUALITY-SERVICE-PRICE PICK ANY TWO

 

[OntarioVanMan]

But the problem is ...in the auto sector who's the boss...when companies like GM and Ford demand suppliers use NLM....then NLM becomes the customer....IF a load is sold to another carrier...the customer now is the original carrier that we are doing it for on their behalf....suppliers have little say over who the carrier will be....

 

[scottm4211]

I love NLM.

 

[Hyperdrive]

But the problem is ...in the auto sector who's the boss...when companies like GM and Ford demand suppliers use NLM....then NLM becomes the customer....IF a load is sold to another carrier...the customer now is the original carrier that we are doing it for on their behalf....suppliers have little say over who the carrier will be....

Then, if I understand, the customer is NLM and the carriers need to go to them for their business not the auto companies.

 

[ATeam]

I'm glad you started this thread. I think an informative conversation can develop out of it.

Regarding restaurant pricing and fright pricing, I would not draw parallels too close. So too with the value of your associate. It takes a deeper skill set to operate a restaurant day-to-day than it does to drive a truck and move freight from point A to point B. Technology going into trucks today is making it possible for carriers to lower their hiring standards and still get the freight transported to their customer's satisfaction most of the time.

Freight is becoming more standardized. The internet makes it possible for just about any truck to make itself available and just about any shipper to post its freight. Technology makes it possible to track a shipment in ways better today than what expediters on pay phones provided before. What was once a premium service can now be commonly offered by many LTL carriers and mom & pop expedite carriers (one, two or a few trucks).

What drives the price of good tasting chicken in a community is different than what drives the price per mile to ship 2 pieces of freight each weighing 2,000 lbs., with each piece on a standard skid.

Freight and drivers are becoming more commoditized. Premium prices can still be charged but only to shippers willing to pay for premium services that are not commonly available elsewhee in the marketplace.

 

[ATeam]

I love NLM.

Why do you love NLM? (And perhaps you can explain what NLM is to readers who may not be familiar?)

 

[davekc]

Why do you love NLM? (And perhaps you can explain what NLM is to readers who may not be familiar?)

Some of their freight can be really decent. And some isn't. Most of that depends on the relationship the carrier has with them.

Here is their link.
https://www.nlmi.com/homepage/home/tabid/190/Default.aspx

 

[scottm4211]

Why do you love NLM? (And perhaps you can explain what NLM is to readers who may not be familiar?)

It's mainly what I carry since I only do cross border loads. The freight is always there when it should be (knock on wood), it pays me well, and it tends to be FAST approved so easy border clearance.
What is it? I believe a third party logistic company owned by Landstar.

 

[davekc]

Are these carriers truly interested in impressing their customers with their service or proving to their customers they will take the load cheaper than the other carrier.

We would love to find a carrier who sells their/our services based on quality not on price. We realize that all carriers have some good paying, quality minded, customers but apparently do not want their contractors to know who they are or what they pay. Again it comes down to the money.

Please feel free to post your rants and pet peeves in this thread.

I think every carrier wants their best face being shown to the customer. Many carriers have raised rates to the customer, but with many, that doesn't translate to the operator making more.
As you mentioned earlier, quantity is what many are focusing on.
Quality is a byproduct if they can get it.

 

[Hyperdrive]

You make a good point as to technology changing the marketplace. Chicken and freight are worlds apart but the business philosophy shouldn't be.

The associates I refer to were wait staff which is an entry level position much like todays truck driver. A safe courteous driver who is aware of his freight should still be sought after by carriers.

 

[ATeam]

...Chicken and freight are worlds apart but the business philosophy shouldn't be.

A safe courteous driver who is aware of his freight should still be sought after by carriers.

Notice your use of the word "should." You may belive things should or should not be a certain way but it does not follow that the carriers believe it too. Your "should" is not their obligation.

Diane and I provide professional, safe and courteous service with every pick up and delivery. We believe our customers should recognize that and pay for the quality we provide.

But just because we believe they should do something, it does not follow that they believe it too. Nor does it follow that they should believe it. Indeed, most shippers we deal with belive that we should charge less.

When writing a business plan or informally developing a business strategy in one's head, the word "should" should never appear. Focus on what you can control, not on what you can't. Base your future not on what others should be doing but on what you are going to do.

 

[Monty]

While NLM is owned by Landstar, it operates completly independent, and always will.

I spoke with Landstar about why we can't get a head start on some of this bidding.

They responded, and correctly too, if that is done, then the other carriers that use NLM will simpky go away, therby diminishing the entire busniess model of NLM.

And, btw, they do more than expediting ...

 

[Turtle]

Ironically, many restaurants have, in addition to the wait staff, people known as "expediters" who do pretty much nothing other than take the prepared food from the kitchen to the customer's table.

Translated to a freight carrier, the wait staff would be the customer service people - those who book the loads - and the expediters would be, well, us.

As expedite drivers we are product delivery, and people want their products to be delivered as cheaply as possible. We don't prepare the food or plate the food, we simply deliver the food. With rare exceptions, we can pick up and deliver in clean trucks and clean, crisp uniforms, or in dirty trucks and food-stained t-shirt which barely cover our massive belly, and as long as the freight is on time and undamaged, the customer couldn't care less.

 

[xiggi]

With the majority of carriers one should never assume that cheap rates to the truck has anything to do with what the carrier is being paid.

As far as personal appearance or clean trucks go that is a matter more of personal satisfaction than it is about what is most important to the customer. Some of those sloppy looking drivers will deliver freight just as timely and safely as the best dressed ones.

 

[ATeam]

With the majority of carriers one should never assume that cheap rates to the truck has anything to do with what the carrier is being paid.

The August, 2011 edition of Syleconomics includes information that shows rates are on the rise. If your carrier is paying you less, it might be wise to take a fresh look at the industry, current carrier practices and your role in the game.

 

[Camper]

When we started to look at expediting, over 3 years ago,I mistakenly thought if we did the following things we would be come valuable to our contracted carrier.
Remain in service over 80+% .
Keeping a clean and well maintained truck.
Being on time or early for pickups and deliveries.
Being professional in both appearance and manner with customers.
Delivering our cargo damage free.
Maintain a good driving and safety record.

The rude awakening came when I found out this was not true and made no difference to most carriers. What mattered most was how low of a rate we would run for.

Of course most carriers, in their orientations, give lip service to the above mentioned attributes but in day to day operations it sadly comes down to the money.

My background in business had taught me that a great associate
was the most valuable asset my company could have. A person like that would make me a lot of money and make my life so much easier.

I have seen expediters who go to customers in baggy shorts, tank tops with filthy trucks and boxes and guess what... they get paid just as much as I do. They also work for the same carriers that I have.

If a new contractor shows up to orientation dressed non professionally that would be a pretty good indication of the type of impression they would give the customers. Yet most carriers are more interested in having an contractor who probably will accept every load and never question the rate.

Are these carriers truly interested in impressing their customers with their service or proving to their customers they will take the load cheaper than the other carrier.

We would love to find a carrier who sells their/our services based on quality not on price. We realize that all carriers have some good paying, quality minded, customers but apparently do not want their contractors to know who they are or what they pay. Again it comes down to the money.

Please feel free to post your rants and pet peeves in this thread.

Well, welcome to the new economic reality in which the scales of supply and demand are very much tilted in favor of the carrier.

The lack of low skilled jobs have brought a wave of newbies into the iundustry, looking to put that van or truck that's been sitting in the front yard for ions to use.