Enhancing Shippers and Carriers Collaboration in Modern Supply Chains
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In today’s supply chain landscape, the relationships between shippers and carriers are more crucial than ever, especially in challenging economic and geopolitical times. According to a recent survey by Breakthrough, cost is a top priority for over 75% of shippers when selecting carrier partnerships. Even with relatively stable linehaul rates, more than 60% of shippers and carriers anticipate higher rates due to increased labor and equipment costs in the next year.
Despite the pressure to cut costs, most shippers prefer to strengthen existing carrier partnerships rather than explore new options. The key to success in this endeavor is data-driven insights. Technology and data providers play a vital role in improving shipper-carrier relationships through transparent communication and data-backed negotiations.
Choosing the Right Transportation Management Partner
When seeking the ideal transportation management partner, prioritize those with these capabilities:
1.) Benchmarks Based on Actual Rates
Partners with access to actual transacted rates, not estimates, at the lane level. This enables more informed negotiations.
2.) Lane-Level Insights
Insights at the lane level uncover cost-saving opportunities and enhance performance, strengthening partnerships.
3.) Predictive Analytics
Utilizing predictive analytics helps shippers forecast demand accurately and select carriers to align with their needs.
Building Resilient Partnerships Based on Trust and Transparency
While cost is a top concern, many shippers negotiate with incomplete information. Nearly 50% of shippers struggle to find available carriers, and 43% lack information about average negotiated linehaul rates. Technology providers bridge these gaps by providing comprehensive insights to evaluate carriers based on industry benchmarks, not just rates. This transparency helps shippers maintain clear expectations and nurture relationships with aligned carriers.
Fortifying Carrier Partnerships with Data as the Foundation
In today’s unpredictable economic climate, data-driven collaboration with trusted carrier partners is the key to success. By embracing data-driven insights and nurturing strong relationships, shippers can navigate the challenges of the modern supply chain environment and thrive.