How to Fix the Freight Industry

Posted By marketing on May 25 2010
Filed In: Business

1)        The problems have already been outlined, and if you have any experience shipping LTL or truckload, you know exactly about what I am speaking.  Let’s go:The impossibility of accurate delivery/pickup times. As an order fulfillment company, this is devastatingly frustrating and counterproductive.  We can’t guarantee to our customers when their materials will arrive without paying [lots] extra for “guaranteed delivery” or some hogwash like that.  Solutions:

  • Put real-time GPS trackers in every vehicle.  Have a dispatcher sitting in an office running routing software organize and guide all of the trucks on an up-to-the-minute basis.  When a driver arrives at or leaves a location, the software will know – this way, you can have accurate data on the amount of time it takes at each stop and when customers can expect their merchandise to be delivered or picked-up.
  • Have drivers unload/load all freight.  Rationally, you would this is SOP (you know, like UPS and FedEx, the successful freight companies), but it isn’t.  Most companies with whom I have dealt ask the warehouse personnel to load/unload their shipments.  This is why there is such a time discrepancy for drop-offs and pick-ups – there is no consistency (not to mention a relative lack of customer service).

2)      The “I don’t know” default. This is easy:

  1. Train your customer service reps.  You know, to actually _know_ the answers to customer questions.
  2. Utilize simple software systems to track and monitor vehicles, deliveries, and pick-ups.  We are in the process of developing simple order and inventory management software that will deliver information in real-time about the status of customer’s merchandise and placed orders.  Every single e-commerce solution worth its salt does this.  Why can’t this be scaled for the freight industry?

3)      The black art of pricing. Many industries have this (or their sales reps would like you to think so).  Trucking is extremely cutthroat – high costs and lots of competition lead to game playing.  If a company were to fix this, they could greatly differentiate themselves”

  • Try being honest.  Customers aren’t stupid (well, most of them).  We know when you are gouging us.  You know how?  Because Trucking Company A gives you a rate of $600 for a move and Trucking Company B gives you a rate of $200 for the same move.  There is no way that B is 300% more efficient than A.
  • Computerize all pricing.  Let your systems determine the availability of drivers, estimated time in transit, fuel costs, etc.  This will make your reps more efficient and give your customers better visibility.

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