Issue link: https://www.e-digitaleditions.com/i/825042
28 FEDA News & Views How This Affects You Unfortunately, there isn't much FEDA members can do to solve the shortage of drivers, infrastructure deficiencies and capacity constraints. However, as carriers work through capac- ity shortages and drive network efficiency, they are taking a meticulous look at operating ratios and the ease of doing business with each shipper they service. This is where FEDA members need to protect themselves. Handling requirements, packaging, damage claims and a number of other factors will be playing a larger role in the evaluation of a carrier's piece of business. The reduction of truckload capacity will provide LTL carriers with the ability to forensically review the accounts they service, resulting in pricing reviews or a decision to simply cease the handling of an account due to the influx of business earned from truckload capacity erosion. Because of this, it is important to begin to make your cargo as attractive as possible to carriers. There are a multitude of ways to achieve this, including, but not limited to: Reviewing and improving packag- ing– Carriers are increasingly citing NMFC packaging guidelines with regard to han- dling requirements and damage claims, so it's important to address obvious and potential packaging concerns this year. In years past, insufficient packaging was a conversation but it didn't always deter a carrier from handling business. Now, due to the aforementioned capacity constraints, LTL carriers may choose to remove poorly packaged cargo from their network by purg- ing shippers from their system (LTL carriers will pick up lost capacity from small fleets and owner/operators). We've already seen this trend develop. Carriers are request- ing onsite meetings to review freight before committing to pricing for a new opportunity, while others are seeking rate adjustments for poorly operating freight or complete removal from routing. Packaging your freight in the best way possible will help secure capacity as it tightens and becomes more selective. Altering pickup and/or delivery schedules– Collaboration with the origin terminal can make a significant contribution in improving your operating ratio and overall relationship with you partner carrier(s). The terminal man- ager of each service center is always seeking ways to make his or her operation run more efficiently, as operational efficiencies directly contribute to the bottom line of each operating terminal. Talk to your local carrier representative to see if there is anything you can do to alter pickup and/or delivery schedules. Any changes made will certainly require alterations to your operation, but if a mutually agreed upon improvement can be worked out, it will contribute to the overall success of the relationship and improve your operat- ing ratio score. Industry Insights continued Consider directional loading– This time-saving tech- nique, where shipments are staged and loaded in groups based on the destination (Northeast, Southwest, etc.), allows carriers to work your freight more efficiently as it comes back to the origin terminal and is injected into the system. Directional loading is mostly applicable for larger shippers that might have drop-trailers or large daily amounts of freight (filling a half of a trailer or more). If you are one of those shippers, consider this technique to contribute to the carrier's overall effective- ness. There are hidden benefits for your organization as well, as directional loading often reduces overall handling and the likeliness of damage and/or freight being lost or delayed at the origin terminal. Digitize your bill of lading– Over-the-road modes of transportation have lagged behind other industries in the integration of technology but over the last three years, pro- viders have begun to re-capitalize their operation and invest in technological advances. Carriers are now capable of pro- viding universal electronic blocks of PRO#s (not specific to the origin terminal; can be used for inbound, outbound or drop shipments) accompanied with the corresponding barcode and the for- mula to produce both by using a check-digit algorithm. Most carriers are requiring that freight be labeled with a barcode so it can be scanned when they pick up your freight or when they get it back to the terminal. It is then re- scanned at every stop it makes en route to the destination. In the absence of a digitized bill of lading, either you or the carrier has to apply manual PRO# stickers, which can be cumbersome and even detrimental if you believe the PRO# is one set of numbers, only to have that changed once the carrier applies additional barcode stickers. Having the technology to print a barcode on your bill of lading, benefits you as well as the carrier. Digitizing the bill of lading provides you with accurate tracking information, which you will likely supply to your customer. It also cuts down on the possibility of having freight re-labeled and ultimately lost or misguided. Lastly, digitalization reduces the number of man- ual hours each party has to invest in every shipment, which is in everyone's best interest. Create and maintain an accurate product library– This progression, where the weight and NMFC Classification of each SKU you ship or receive is maintained, is an arduous process. We've published the FEDA Freight Guide a few times to illustrate how many different classifications there can be for just one commodity. In the end, the benefits far outweigh the temporary pain. An accurate product library will reduce inspections from carriers, which diminishes the amount of time they spend working your freight. It helps you avoid under-billing your customer for freight, and you can also take advantage of an API, XML or EDI solution, which can automate freight rating within your ERP or ecommerce shopping cart. Having the technology to print a barcode on your bill of lading, benefits you as well as the carrier.