Welcome To The Best Practices For Effective Less Than

Transcription

Welcome!
Welcome to the Best Practices for
Effective Less Than Truckload (LTL)
Freight Shipping Webinar
Presented By
READ MORE ABOUT FREIGHT BEST PRACTICES AT THE CERASIS BLOG AT
http://cerasis.com/blog
Introduction
Attendee Screenshot
To Listen by phone vs.
listening through your
computer simply dial:
• Phone: +1 (646) 3071720
• Access Code: 724090-804
• Audio Pin: Provided
once you join
meeting on panel.
Best Practices for Less Than Truckload Freight Shipping Webinar
Introduction
Presenter: Adam
Robinson, Marketing
Manager
Adam Robinson oversees the creation
and execution of the marketing
strategy for Cerasis.
Company: Cerasis
Cerasis is a non-asset based third party
logistics service provider who specializes in
freight technology solutions and integrated
freight management services.
Webinar Agenda
•This 45 to 60 minute webinar will cover the following material around inbound freight
management:
•What is LTL Shipping (Less-Than-Truckload) and how did it Come About?
•The Benefits of Shipping via Less Than Truckload Freight
•The Factors Which Determine LTL Freight Rates
•What is and How To Determine LTL Freight Class
•Areas to Look at in Order to Save on LTL Freight Shipping
•The Benefits of a Transportation Management System for Better LTL Freight
Management
•Less Than Truckload Freight Shipping Tips for Improved Carrier Relations
•Logistics Service Providers and How a Niche Focus on LTL Creates Better Logistics
Outcomes
•Conclusion and wrap up
•Q&A Session
Why is Cerasis Putting on
an LTL Webinar?
•95% of Cerasis Business is managing and
empowering shippers to ship freight via Less
than Truckload
•The Cerasis Transportation Management
System, the Cerasis Rater, processed over
300,000 LTL freight shipments in 2013.
•Cerasis audited EVERY LTL Freight Invoice
for our customers.
•Cerasis handled all LTL freight claims on
behalf of our customers.
•No matter how many LTL shipments any of
Cerasis freight shippers had in a week,
shippers only had to get ONE freight invoice
each week.
Why is Cerasis Putting on
an LTL Webinar?
•Cerasis negotiates all the LTL freight rates
with preferred and optimal LTL freight
carriers on behalf of customers, maintaining
those rates each year, and if possible, down
to the specific lanes for best pricing.
•Cerasis has worked with shippers and
carriers in this way for nearly TWO decades,
starting off as a niche LTL Freight
Management 3PL since 1997.
•In short, although most find LTL too volatile
and complex, Cerasis LOVES simplifying the
process of LTL freight shipping for those who
ship freight via LTL freight (and Full
Truckload or Small Package for that matter!)
What is LTL Shipping?
LTL = Less Than Truckload
Less than Truckload is a shipment
that does not require a full 48- or
53-foot trailer, which is referred to
as a FULL truckload.
Many LTL freight carriers
specialize in different services,
based on your specific needs.
There are many options to ship
freight: air, rail, water, truck.
In the United States, shipping by
truck is the dominant mode,
offering a lot of options, flexibility,
and lower costs.
Although intermodal, or rail, has been picking up
as of late, truck transportation still can move
items faster with more flexibility.
FTL vs. LTL
LTL = Less than Truckload
FTL = Full Truckload
•
•
•
•
• Full Container,
• One Product,
• One Customer
Can be full or not,
Many Products,
Many Customers
More Cost Effective
What are the Characteristics of a LTL Shipping Carrier?
• Generally utilize van trailers which
are covered or enclosed trailers
• Few refrigerated LTL carriers who
utilize temperature controlled
trailers
• Roll up doors on the rear are a
trend these days
• Some carriers will use pup trailers
that they can haul two trailers in
tandem
• LTL carriers will not accept
shipments that cannot fit onto one
pup trailer
How did LTL Shipping Come About in North America?
Trucking Industry regulated first in 1935 by the Interstate
Commerce Commission (ICC)
• The Motor Carrier Act of 1935 required new
truckers to seek a “certificate of public
convenience and necessity”
• Act required motor carriers to file their tariffs
with the ICC 30 days before they became
effective & then available to view
• Tariffs could then be subject to a challenge by
another carrier or railroad
How did LTL Shipping Come About in North America?
Deregulation
• Truman vetoes the act in 1948, but Congress
allowed carriers to both fix price and be exempt
from antitrust legislation.
• The ICC denied applications from new carriers for
the next 30 years
• In the 70s, Nixon, Ford, and Carter put acts in place
to reduce price fixing & collective vendor pricing.
• The Motor Carrier Act of 1980 resulted in intense
price competition & lower profit margins
• The number of carriers doubled
• Between 1977 and 1982, the average LTL rate fell
between 1980 and 1990, with
by up to 20%.
over 40,000 carriers in the US.
Benefits of Shipping
Freight Via LTL
4 Benefits of Shipping Freight via Less than Truckload
1. Often more cost effective
with more options
2. More control to get creative
and drive down costs
3. More Flexible
4. Now able to seamlessly
connect for e-commerce
carts
Freight Via LTL
Often Less than Truckload Shipping is More Cost Effective and
with More Available Options
• LTL shipments are a fraction of
the cost of hiring an entire
truck
• LTL carriers normally offer
better rates than parcel carriers
for competitive reasons and
economies of scale.
• Accessory services available
from LTL carriers not offered by
FTL
• Shifting towards dimensional or
cube weight measurements
Freight Via LTL
More Control, Less Financial and Planning Risk via Less than
Truckload
Truckloads often more
transactional and easy to
procure, but ONLY if capacity
is available; some try
multiple truckloads, but it’s a
financial risk
Freight Via LTL
Pool Distribution and Pool Consolidation
Pool distribution is picking up one or more Pool Consolidation picks up multiple
truckloads of LTL shipments at an
LTL shipments from multiple locations,
origination, breaking down the shipments to and then loads on a truck for line haul
MULTIPLE trucks
Pool Program Benefits
•
•
•
•
No weekly shipment puzzle
Adaptable
NO charging to ship AIR
Save time and money over multiple
stop truckloads
Freight Via LTL
Flexibility in Less Than Truckload Shipping Offers Cost Savings and
Creative Shipping
• LTL freight shipping may take more time,
but gives you flexibility
• Drive down costs with LTL shipments going
to the same or similar place
• LTL freight shipping can be automated via a
transportation management system
Freight Via LTL
Less Than Truckload Shipping is an Attractive Way to Ship to Scale
E-Commerce Options
• To keep up with an increase in consumers
expectations, manufacturers and distributors now
offering ecommerce options to both retail
consumers and Business buyers
• The New York Times stated that the rise of ecommerce and the growing of freight expenditures
often forces small business owners to reconsider
their shipping strategies and also suggested using
a reliable transportation partner could help small
businesses scale their operations successfully
Factors Which Determine
LTL Freight Rates
LTL Shipments & Rates
• Typically weigh between 151 and 20,000 lbs
• Carriers provide “weight break” discounts
• You can ship more than 5 pallets of freight, but these moves are normally
considered volume moves
• LTL freight rates can be very confusing
• A mode used for smaller freight shipments, but too big to be sent via small
package and too small to fill and entire Truck
• Several different shippers’ shipments are consolidated by LTL carriers onto trailers
for line-haul or staging areas for pool programs
Factors Which Determine
LTL Freight Rates
10 Factors of the Freight Rate
1.
2.
3.
4.
5.
Weight
Density
Classification of Freight
Distance
Base Rates
6. Freight All Kinds (FAK)
7. Minimums
8. Negotiated rate tariffs
with LTL carriers
9. Negotiated discounts
10. Accessorials/Surcharges
LTL Freight
Classification
What is and How To Determine LTL
Freight Class
• Allows for common standardized freight
pricing
• Freight Classes are defined by the National
Motor Freight Traffic Association (NMFTA)
• Published in the NMFC
• In the US, each commodity is assigned a
NMFC and class for LTL shipments
• 18 classes, from 50 to 500
• Class is a major factor in LTL freight pricing
LTL Freight
Classification
Freight Class Factors
1.(Weight, Length,
Height) Density
and Value
2.Stow-ability
3.Handling
4.Liability
LTL Freight
Classification
(Weight, Length, Height) Density and Value
Density is the space the item occupies in relation to it’s weight
Cubic Feet
=
Length x Width x
Height (inches)
DENSITY
=
Weight of Freight
(lbs.)
1728 Cubic
Inches
Volume in
Cubic Feet
LTL Freight
Classification
Stow-ability
Represents the difficulty in loading and carrying freight.
LTL Freight
Classification
Handling
Freight that requires extra
attention due to shape,
fragility or hazardous
properties.
LTL Freight
Classification
Liability
Probability of freight theft or
damage, or damage to
adjacent freight.
Areas to Look at to Save
on LTL Freight Shipping
1. Education
2. Multiple Modes of Shipping
3. Outbound LTL Freight
Accounting
4. Inbound LTL Freight
Accounting Options
5. Think “Long Term”
6. Use tools, such as a TMS
7. Use a 3PL
Outbound LTL Freight Accounting
Prepaid vs. Prepaid and Add in Outbound
Prepaid and Add
Prepaid: No markup
• You select the carrier, you dispatch the
carrier, and you pay the carrier
• You Invoice the customer for the
product and freight charges, typically
marking up the cost for your hard work
Benefits: Offer more
competitive rates
• Benefits: Turn LTL freight
shipping into a profit center
Inbound LTL Freight Accounting
Prepaid and Add vs. Collect
Collect:
•
•
•
•
Eliminates handling charges
You designate carrier and arrange shipping
charges on your rates
Option, in which you are invoiced by the
carrier
Reduces having several different carriers
from different suppliers on your dock every
day, maximizing staff efforts
Think “Long Term” LTL Freight Shipping
costs to TRULY Save
Ask Yourself:
•
•
•
Is the carrier offering the right amount of
insurance for this freight shipment?
Is the LTL carrier reliable in getting your
freight to your customer in time?
Do you have a system or program that
helps you grade your LTL freight carriers
performance over time?
Use a Transportation Management System
Benefits of a TMS
• Eliminate manual process
• Have multiple carriers to choose from at
your fingertips
• Ability to analyze data and shipment
activity to arm you with more knowledge
• Track and manage employees and activity
• Decrease time in training new hires
• Easily deploy through web-based
applications
Use a Third Party Logistics Provider
• As a small shipper saving on LTL freight is
vital to your business
• But….without volume, you are stuck in a
Catch 22
• A 3PL can level the volume field and help
get attractive rates by working with
carriers
• A 3PL can also provide a TMS, freight
accounting, claims services, carrier
relationship and more
Tips For Working with
LTL Carriers
Tips in Making Freight and Your Carrier
Relations More Attractive
1.
2.
3.
4.
5.
Report Accurate Weights
Accurate Bill of Lading
Avoid Accessorial Charges
Proper Packaging
Units Requiring Less
Handling
Working with a Focused
Logistics Provider
Niche and Focus Drives Value
Whatever your needs are, write
them down and when seeking out
a logistics provider, make sure
they are focused on YOUR needs
by offering solutions.
Cerasis: Your LTL Freight
Management Partner
•
•
•
•
Who is Cerasis?
Founded in 1997
Third Party Logistics Provider Specializing in Freight Management
State-of-the-Art Cloud Based TMS and Mobile TMS Application (Android, Apple)
Comprehensive Freight Management Services Including, but not limited to:
• Analysis and Audit of Existing Shipping Practices and Carrier Rates
• Carrier Rate/Rules Negotiations and Bidding Services
• Contract Management
• Inbound Routing and Compliance Program
• Volume/Spot Quotes, Truckload Routing (dedicated lanes & brokering)
• Invoice Auditing and Consolidated Weekly Billing
• Claims Processing and Maintenance
• Shipper Compliance Auditing
• Solutions Custom Tailored to Meet Your Needs
Management Partner
Modes Supported





LTL North America
FTL
Intermodal
Specialized Dedicated Transportation
Services
FedEx Small Package
Management Partner
Cerasis TMS = The Cerasis Rater
Customer
Satisfaction
Tools
Multi-Enterprise
Application
Eliminate
Manual Processes
Freight Accounting Tools
and Freight Payment
Options
Optimization
Capabilities
Management Tools
and Reporting
Functionality
Vendor/Shipper
Compliance Solutions
Management Partner
Cerasis Process Approach
 Customize a solution designed to meet your specific transportation needs
 Execute a partnership agreement
 Negotiate rates with carriers on your behalf
 Conduct a commodity review
 Collaborate with your management team to implement our custom solution
 Follow up to ensure your staff is fully trained and compliant
 Provide you with outstanding service and support on an ongoing basis
 Conduct quarterly account review meetings
Management Partner
Cerasis Team
An Exceptional Group of Experienced Freight
Professionals Striving to Exceed your Expectations
•
•
•
•
•
Dedicated Customer Service Representative
Freight Desk
Claims Specialist
Carrier Relations Group
Implementation Team
Management Partner
Cerasis Technology




In-House IT Department
Integration
XML Web Services
Custom Reports
Conclusion
•
•
•
•
•
•
Education is Key!
Know what makes up a rate
Provide accurate information
Get Creative!
Use Technology
Write down a checklist of your LTL freight needs and shop a
3PL
• If you’d like to schedule a consultation with one of our sales
reps, pleas visit our website at http://cerasis.com to reach out
to us!
Q&A
You may
type your
questions
in the chat
area and
we will
answer as
many as
possible.
THANK YOU!
http://cerasis.com
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Welcome To The Best Practices For Effective Less Than

Transcription

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