There is a lot that goes on behind the scenes to gather, collect, and present a quote for shipping freight. The shipper must look through the sea of options and narrow it down to just a couple. Then, after all the negotiation and a price is settled on the transportation provider goes into action (hopefully successfully).
All of the work put in is absolutely worth it. The shipper needs to make sure they are working with a company that can handle their freight. Each step is there to further build rapport and trust.
Here’s a breakdown in the 5 steps involved:
#1 – Identify The Need
Hopefully, when the shipper needs to ship freight, they already have a partner that can provide a quote. In most cases, the rates are already discussed and lanes are already set up. This is when contracted rates are used. However, sometimes the unexpected happens and the shipper is caught off guard. In these situations, the shipper has to find a transportation provider that can give a spot quote.
Read more on the differences between spot quotes and contracted quotes.
#2 – The Shipper Shops Around
It is beneficial to shop around a little bit when the shipper needs a freight shipping quote. It doesn’t cost them anything, so it’s worth getting a couple of quotes and then comparing. This is especially the case when setting up a contracted lane.
There are many factors to consider when looking at different companies to handle freight. First, the shipper has to decide what kind of company they want to work with. It could be a 3PL broker, asset broker, or they could reach out to the carriers directly. Then, past that, there’s the location, size of the company, number of contracted carriers, years in business, and a whole lot more.
These are all important to consider before moving on. After all, this shipper is going to be handing off their freight to be entrusted to these people. Make sure it’s not the first company that called you.
#3 – Negotiate a Quote
Once the options have been narrowed down, the shipper has to reach out and get a quote for shipping freight. However, in many cases, the transportation coordinator will already have a relationship with these companies. Either from working with them in the past or from the transportation provider reaching out to them.
This means all that’s left is the negotiation process. Both sides have to go over things like load requirements, current market conditions, lead time, and cost level. After a price is settled on, the shipper no longer has to worry, it’s now on the transportation provider to do its thing.
#4 – Transportation is Provided
It is now on the broker to ensure proper delivery and handling now that a rate has been agreed upon. They go into action to find the best carrier for the needs of the shipper and get everything set up. Additionally, most companies are able to offer some kind of tracking and tracing. This allows the shipper to stay in the loop and be informed.
#5 – Review the Process
Now that everything is done the shipper can start building a positive relationship with the transportation provider. Obviously, this path should only be taken if everything went okay. Take a look and make sure everything went according to plan and all KPI’s were met.
Here at Becker Logistics, we try to make this process as simple as it can be for the shipper. No matter what step of the process you are in, feel free to reach out to us to see if we can help improve your shipping. You can either reach out to an associate to learn more or go ahead or request a quote!
