The Carriers’ View of Carrier-Friendly

Shippers entering into rate negotiations can maximize the benefits of cost effective rates by focusing on the 3P Procurement Model.

These shippers understand that the carriers’ rates (or the Price) are impacted by the shipper’s Practices and Processes.

When a shipper issues their Request For Proposal (RFP), they often state their intent to be “Carrier-Friendly.” They use this term to imply that their shipping practices and their processes make it easier for a carrier to do business with them, and to underscore their desire to partner with their carriers. However, using the word Carrier-Friendly does not necessarily mean that their company is, in reality, Carrier-Friendly.

Carrier-Friendly has almost been over-used in today’s transportation marketplace. Various Industry Analysts, Logistics Service Providers, and Software Vendors have employed the term over the past 10 years to describe the best practices that make it easier for carriers to serve their shippers and consequently lower their operating costs -but what do the carriers think of this?

Have we really identified all of the best practices, or the right best practices, that will lower their operating costs and reduce their operating ratios? Also, are Carrier-Friendly best practices the same for LTL carriers as they are for Truckload carriers?

We believe that the past writings on Carrier-Friendly have been incomplete. First, previously-published works have primarily focused on best practices for Truckload moves.

While there is commonality between Truckload and LTL best practices (particularly getting carriers into, and out of, shippers’ facilities as quickly and expeditiously as possible), there are also differences. LTL-unique best practices should not be ignored.