jeudi 18 décembre 2008

10 things to look for in a transportation consultant - Part 1

03:48 Posted by: Marokko Suche 0 comments

By Thomas Moore

When you consider hiring a transportation consultant there are many things to take into consideration. We have narrowed the numerous items you should factor into your decision a top 10 list. In part 1 we will review 5 of them. In part 2, we will review the remaining 5.

Time is money. There are many advantages to hiring transportation consultants who take the long-term view, puts the client first and if the relationship works sticking with that consultant. How do you find such a consultant? Find one who has long term experiences with large or reputable companies. That typically means the company has found a trusted advisor, involved the transportation consultant in the process of implementation and listened to practical advice. You don't find that with transportation consultants who have a spotty record of one-night-stands with clients. Also by staying with a trusted transportation consultant there is no need to educate them about your company as new assignments arise. They already know you. It saves time and money and the benefit to you is that you can bounce ideas off of them often for free). In addition, they can provide you with new and spontaneous ideas when they hear about them that can save you money.

1. The difference between price and value is something a good transportation consultant knows. The lowest cost is not always the best value. It is not unlike any other service. Every manager who has been seeking trucks at month end knows it is getting harder and harder to find up-front rate reductions. They know price is not the full story.

2.Transportation consultants need to understand how carriers incur costs and how to mitigate those costs there are so many things that can be done to save carrier money. By knowing these things, it is quite possible to generate the true win-win. I'd venture to say that most big companies have received much of their savings in the last few years by reducing their carriers' costs. Also, if your consultant knows the cost structures, they can also open up a broader range of options. For example, launching a private fleet.

3. A worthy guide knows the competitive landscape and is respected by the carriers By knowing the carriers, it is quickly possible to determine not only which companies would be interested in your business, but also the kind of structure that would be most advantageous. A good consultant knows the long-term viability of the carriers and the way to get last-second concessions.

4.Using a strong understanding of the modes, good transportation consultants switch their clients among modes. Switching between modes has often been a great way to reduce costs. For example, when the automotive manufacturers are slow, many boxcars become available at very reasonable prices or when there is a high volume of imports, the shipping companies provide fantastic rates to get the containers back to the port.

5. Legal contracts can cost you an arm and a leg if you don't know what you are doing. Many clients don't. Good Transportation consultants do. And typically they will create the valid contract in the clients favor. Key points can be missed, assessorial changes will nickel and dime you to death, and if you don't have the contract ready at the beginning, last minute negotiations will drive you crazy and cost you a lot of money. In addition to the business side of the contract, good Transportation consultants know the legal aspects of good-binding contracts and how to negotiate in your favor. And they save legal time too.

In part 2 of our series on 10 Steps to hiring a good transportation consultant, we will review the final 5.

Test your skills and see if you can effectively load a truck efficiently and manage cost savings by visiting www.transportationoptimization.com. While there schedule a free consultation with Thomas Moore and his associates. See why companies such as Proctor and Gamble and other top 50 fortune 500 companies continue to rely on the practical solutions provided that save them millions of dollars in transportation and warehouse savings.

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