Carrier Selection Criteria

𝗟𝗲𝗳𝘁: You only check the financial health of new customers. 𝗥𝗶𝗴𝗵𝘁: Conducting thorough financial health checks on both customers and logistics partners. It's common practice to vet new customers for financial stability, but extending this diligence to your carriers and logistics partners? That's a strategy needing refinement and specificity. Let's dissect the approach using a detailed, step-by-step method to ensure our supply chain's resilience isn't just about immediate gains but long-term sustainability and trust. → 𝗧𝗵𝗲 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 Step 1: Evaluate your current vetting process. How deep does it go for new customers? Is it merely surface-level, or does it thoroughly assess long-term viability? Step 2: Extend the process. Consider the financial health, payment practices, and sustainability initiatives of your carriers and logistics partners. They're as crucial as the customers. Step 3: Develop specific criteria for this extended vetting. What makes a financially healthy partner? Is it just about solvency, or do we also consider growth potential and ethical practices? Step 4: Implement and refine. With your new criteria, revisit existing partnerships and apply the same rigor to new ones. Keep iterating based on outcomes and insights gained. → 𝗧𝗵𝗲 𝗥𝗲𝗮𝘀𝗼𝗻𝗶𝗻𝗴 Financial stability isn't a static attribute; it's dynamic, influenced by market trends, managerial decisions, and even geopolitical events. Regular checks keep surprises at bay. Synergy in financial health and ethical practices enhances brand value, attracting more partnerships and customer loyalty. It's an ecosystem, where every part matters. → 𝗧𝗵𝗲 𝗔𝗰𝘁𝗶𝗼𝗻 𝗣𝗹𝗮𝗻 Document your enhanced vetting process. Communicate the criteria and reasoning to your team, ensuring alignment. Schedule regular reviews for all partners, not just the new ones. Use technology and third-party services to aid in comprehensive financial analysis. Remember, a supply chain fortified with financially robust and ethically aligned partners isn't just about avoiding risk; it's about creating a network that's resilient, reliable, and respected. This is beyond basic due diligence—it's strategic excellence. Dive deeper into your partnerships, challenge the status quo, and let's steer our logistics networks towards unwavering stability and unparalleled trust. You can transcend traditional boundaries, paving the way for a logistics and supply chain ecosystem that thrives on mutual success and long-term sustainability.

When it comes to vetting a new parcel carrier, cost is important, but not the first thing to consider. Instead, understanding if the carrier meets a need and can provide a competitive advantage is key. Here are a few critical pieces of information I request when meeting with a potential new carrier: - Time in Transit table - Zone table - Service Levels - List of references - Restrictions - Surcharges - Minimum pickup requirements Once the carrier shares this information, I collect three months of detailed shipping data (PLD) and determine how many packages could realistically be shipped with this carrier based on zip code coverage. This quick analysis answers key questions, such as: - How many packages could realistically be shipped with this carrier? - Is there an overwhelming service advantage? - Does enough volume exist to meet minimum pickup requirements? - Will I pay more with my current carrier if I shift this amount of volume? If so, what is the impact? If the answers meet my criteria, I take the next steps, which include sharing eligible detailed shipping data with the carrier, requesting pricing for this level of volume, requesting an implementation plan and I.T. requirements, and requesting tracking and billing data and samples. What else do you consider when vetting a new parcel carrier? Share your thoughts in the comments below. #parcel #contractnegotiation #procurement #shipping

Sellers, Are You Prepared for Amazon’s Next Big Change? Amazon’s recent update, allowing third-party sellers to choose their preferred trucking carriers for LTL and truckload shipments, isn’t just about giving more options—it’s about empowering sellers to enhance inventory management, cut costs, and boost operational efficiency. 𝐕𝐢𝐭𝐚𝐥 𝐂𝐨𝐧𝐬𝐢𝐝𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐒𝐞𝐥𝐥𝐞𝐫𝐬: 𝟏. 𝐋𝐞𝐯𝐞𝐫𝐚𝐠𝐞 𝐃𝐚𝐭𝐚 𝐟𝐨𝐫 𝐒𝐦𝐚𝐫𝐭𝐞𝐫 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬: Amazon now offers a carrier performance list with weekly updates on key metrics like on-time delivery rates and no-show percentages. 𝑺𝒕𝒓𝒂𝒕𝒆𝒈𝒚 𝑻𝒊𝒑: Regularly review these metrics to choose the most reliable and cost-effective carriers. Consistently refining your choices can lead to more dependable deliveries and reduced costs over time. 𝟐. 𝐀𝐥𝐢𝐠𝐧 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐰𝐢𝐭𝐡 𝐑𝐞𝐠𝐢𝐨𝐧𝐚𝐥 𝐃𝐞𝐦𝐚𝐧𝐝: Choosing your carriers isn’t just a logistics decision; it’s a strategic move to better match inventory with customer demand. 𝑺𝒕𝒓𝒂𝒕𝒆𝒈𝒚 𝑻𝒊𝒑: Use carrier selection to optimize inventory replenishment based on regional sales data. This ensures you meet customer needs more precisely, reducing excess stock and speeding up delivery times. 𝟑. 𝐎𝐩𝐭𝐢𝐦𝐢𝐳𝐞 𝐂𝐨𝐬𝐭𝐬 𝐁𝐞𝐲𝐨𝐧𝐝 𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭𝐬: While Amazon-partnered carriers offer discounted rates, true savings come from a holistic approach to your supply chain. 𝑺𝒕𝒓𝒂𝒕𝒆𝒈𝒚 𝑻𝒊𝒑: Consider all factors—including potential delays and carrier reliability. Sometimes, paying slightly more upfront for a dependable carrier can save you from costly disruptions like stockouts or delays. 𝟒. 𝐒𝐭𝐚𝐲 𝐅𝐥𝐞𝐱𝐢𝐛𝐥𝐞 𝐢𝐧 𝐚 𝐕𝐨𝐥𝐚𝐭𝐢𝐥𝐞 𝐌𝐚𝐫𝐤𝐞𝐭: In today’s dynamic environment, flexibility is crucial. The ability to switch carriers based on real-time data allows you to adapt quickly to market changes. 𝑺𝒕𝒓𝒂𝒕𝒆𝒈𝒚 𝑻𝒊𝒑: Build flexibility into your logistics strategy by regularly assessing carrier performance. Be ready to shift partners when needed to maintain service levels, even during disruptions.    Share your thoughts! #logistics #supplychain #amazon