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Sourcing Bulk Freight Capacity:
7 steps shippers can take to keep their supply lines moving
SOURCING BULK FREIGHT CAPACITY
• Increased demand for tanker trucks and diminished capacity is creating a
dangerous imbalance that threatens the supply lines of chemical companies and
other bulk shippers.
• Scarce tanker truck capacity has created a new industry dynamic: the hunters
(carriers pursuing freight) are now the hunted (carriers being pursued for scarce
capacity).
• Shippers now must seek to become "shippers of choice" to make their freight more
attractive to carriers.
• This presentation outlines 7 ways to do so.
1	 ASSESS THE DOWNSIDE RISK
What are some of the risks if lack of capacity leads to supply chain
disruptions? Below are just a few.
• Production delays - material delays are devastating in process industries
where line-down situations can cost tens of thousands of dollars.
• Lost market share - a supply chain disruption is the only excuse a customer
may need to leave for another supplier.
• Lost profits - poor capacity planning likely means you’ll need to scramble to
cover loads and, inevitably, pay more.
• Talent flight - corporate transportation managers are stressed out and
will leave when the stress gets too much - taking years of valuable
experience and industry contacts with them.
2	ESTABLISH SOPs FOR TANKER TRUCK
LOADING AND UNLOADING
Most process industry manufacturers have clearly documented processes
for everything – except for loading and unloading tanker trucks.
To start, think about documenting the following:			
• Who are the driver’s main contacts on campus and how can he contact
them upon arrival?
• Where do drivers need to go?
• What are the equipment needs?
• What are the steps in the process and who is responsible?
• What is the back-up plan?
3	 BE FASTER
New hours of service (HOS) limits for drivers magnify the importance of faster
turn times at your plant.
• Some shippers’ policies are out of step with the reality of the current bulk
freight market.
• More and more carriers, and the freight brokers who may use them, are
choosing to avoid locations with “first come, first served” unloading.
• Another annoyance for drivers is not being able to check in quickly.
• Start monitoring truck detention time at your plants - your transportation
partners can help.
4	 BE MORE FLEXIBLE
Flexibility will score you major points with carriers and freight brokers,
particularly with liquid bulk loads where a host of factors outside of the
carrier’s control can impact arrival times.
In contrast, inflexible shippers can create enemies and land on the “shippers to
avoid list” (yes, these lists really do exist).
Here are some ideas to introduce more flexibility into your freight loading
and receiving operations:
• Extend delivery windows to allow carriers more flexibility in scheduling – even
night pickups and deliveries.
• Provide a secure parking lot, allowing a driver to drop his tank and take his
break during loading.
• Ship on off-peak days when demand is lower.
• Confer with transportation partners on shipping schedules that could work for
both of you.
5	 CREATE DRIVER FRIENDLY FACILITIES
Do an honest assessment of your own operation from a driver’s point of view:
Is your location driver-friendly?
Here’s a partial checklist to assess your driver-friendliness:			
• Check-in windows manned at all times
• Clear signage or instructions on where to load/unload
• Safe environment for driving, clear of barrels and debris, with load/unload
locations that are easy to reach
• Clean bathroom facilities and break rooms
• Weigh scales on site or at a convenient off-site location
• Attitude of respect and helpfulness toward visiting drivers
6	FORM CLOSER, STRATEGIC RELATIONSHIPS
WITH TRANSPORTATION PROVIDERS
Given a choice, transportation providers will choose to service shippers where
a relationship of trust and mutual respect has been established. Sure, it takes
time to build these relationships, but there is a financial payback.
Here are some outcomes of a long-term partnership that can generate cost
savings for you.			
• Network efficiency. Longer-term contracts give providers time to mine for other
customers in the area. This efficiency translates into better rates.
• Better service. When you work with the same carriers and drivers, relationships
develop at pick-up and delivery points and result in smoother visits.
• Better rates. Familiarity with the business helps as brokers and carriers will
factor less risk into the rate.
• Ready capacity. Your loyalty to freight brokers and carriers in good times may
earn you preferred shipper status when capacity tightens.
• Greater productivity. There is no substitute for peace of mind and knowing that
you are working with an experienced provider who will get the job done right.
7	PARTNER WITH A FREIGHT BROKER THAT
SPECIALIZES IN BULK FREIGHT
The most profitable carriers appreciate (and are loyal to) shippers and brokers
that can help identify re-load opportunities. That’s hard for smaller bulk
shippers to do, but it's what freight brokers specialize in.
Here are some of the advantages of outsourcing freight management:			
• Ongoing and surge capacity. Brokers have relationships with hundreds of tanker
truck carriers.
• Expert, objective advice. Brokers have access to carrier capacity with the added
benefit of objectivity.
• Freedom to focus on your business. Your company’s job is to make and market
a quality product, not to create a large freight network. Leave that to a broker.
• Competitive rates. Brokers can leverage their volumes across many shippers to
negotiate better rates with carriers than you could get on your own.
• One-stop shopping for multi-location operations. The right broker can handle
your needs across North America.
• Rapid scale. While individual carriers might not have the ready capacity to help in
an emergency, freight brokers can ramp up quickly and save the day.
YOUR CHALLENGE: TRANSFORM OPERATIONS
TO KEEP SUPPLY LINES MOVING
The current market for bulk freight, where demand
exceeds supply, is fraught with risk for bulk shippers.
Your company’s survival depends on your continued
ability to source scarce freight capacity at an affordable
price.
The winners will be the process industry manufacturers
that completely transform corporate warehouse, freight
and purchasing operations that, let’s face it, have
historically taken truck capacity for granted. Those
companies – the true shippers of choice – will earn the
loyalty of the carrier community, and the gratitude of their
organizations.
About Bulk
Connection
Founded in 1987, Bulk
Connection is a licensed, bonded
and insured freight broker that
gives shippers safe, reliable
capacity for bulk freight and
other shipments. We are bulk
freight specialists, so you deal
with experts, not order takers,
who can advise you on the best
shipping methods.
Moveit@BulkConnection.com | 800-543-2855 or 860-572-9111 | BulkConnection.com
Download
Bulk Connection
Brochure
Contact Us
© Bulk Connection, Inc.

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Sourcing bulk-freight-capacity-e book-slideshare

  • 1. Sourcing Bulk Freight Capacity: 7 steps shippers can take to keep their supply lines moving
  • 2. SOURCING BULK FREIGHT CAPACITY • Increased demand for tanker trucks and diminished capacity is creating a dangerous imbalance that threatens the supply lines of chemical companies and other bulk shippers. • Scarce tanker truck capacity has created a new industry dynamic: the hunters (carriers pursuing freight) are now the hunted (carriers being pursued for scarce capacity). • Shippers now must seek to become "shippers of choice" to make their freight more attractive to carriers. • This presentation outlines 7 ways to do so.
  • 3. 1 ASSESS THE DOWNSIDE RISK What are some of the risks if lack of capacity leads to supply chain disruptions? Below are just a few. • Production delays - material delays are devastating in process industries where line-down situations can cost tens of thousands of dollars. • Lost market share - a supply chain disruption is the only excuse a customer may need to leave for another supplier. • Lost profits - poor capacity planning likely means you’ll need to scramble to cover loads and, inevitably, pay more. • Talent flight - corporate transportation managers are stressed out and will leave when the stress gets too much - taking years of valuable experience and industry contacts with them.
  • 4. 2 ESTABLISH SOPs FOR TANKER TRUCK LOADING AND UNLOADING Most process industry manufacturers have clearly documented processes for everything – except for loading and unloading tanker trucks. To start, think about documenting the following: • Who are the driver’s main contacts on campus and how can he contact them upon arrival? • Where do drivers need to go? • What are the equipment needs? • What are the steps in the process and who is responsible? • What is the back-up plan?
  • 5. 3 BE FASTER New hours of service (HOS) limits for drivers magnify the importance of faster turn times at your plant. • Some shippers’ policies are out of step with the reality of the current bulk freight market. • More and more carriers, and the freight brokers who may use them, are choosing to avoid locations with “first come, first served” unloading. • Another annoyance for drivers is not being able to check in quickly. • Start monitoring truck detention time at your plants - your transportation partners can help.
  • 6. 4 BE MORE FLEXIBLE Flexibility will score you major points with carriers and freight brokers, particularly with liquid bulk loads where a host of factors outside of the carrier’s control can impact arrival times. In contrast, inflexible shippers can create enemies and land on the “shippers to avoid list” (yes, these lists really do exist). Here are some ideas to introduce more flexibility into your freight loading and receiving operations: • Extend delivery windows to allow carriers more flexibility in scheduling – even night pickups and deliveries. • Provide a secure parking lot, allowing a driver to drop his tank and take his break during loading. • Ship on off-peak days when demand is lower. • Confer with transportation partners on shipping schedules that could work for both of you.
  • 7. 5 CREATE DRIVER FRIENDLY FACILITIES Do an honest assessment of your own operation from a driver’s point of view: Is your location driver-friendly? Here’s a partial checklist to assess your driver-friendliness: • Check-in windows manned at all times • Clear signage or instructions on where to load/unload • Safe environment for driving, clear of barrels and debris, with load/unload locations that are easy to reach • Clean bathroom facilities and break rooms • Weigh scales on site or at a convenient off-site location • Attitude of respect and helpfulness toward visiting drivers
  • 8. 6 FORM CLOSER, STRATEGIC RELATIONSHIPS WITH TRANSPORTATION PROVIDERS Given a choice, transportation providers will choose to service shippers where a relationship of trust and mutual respect has been established. Sure, it takes time to build these relationships, but there is a financial payback. Here are some outcomes of a long-term partnership that can generate cost savings for you. • Network efficiency. Longer-term contracts give providers time to mine for other customers in the area. This efficiency translates into better rates. • Better service. When you work with the same carriers and drivers, relationships develop at pick-up and delivery points and result in smoother visits. • Better rates. Familiarity with the business helps as brokers and carriers will factor less risk into the rate. • Ready capacity. Your loyalty to freight brokers and carriers in good times may earn you preferred shipper status when capacity tightens. • Greater productivity. There is no substitute for peace of mind and knowing that you are working with an experienced provider who will get the job done right.
  • 9. 7 PARTNER WITH A FREIGHT BROKER THAT SPECIALIZES IN BULK FREIGHT The most profitable carriers appreciate (and are loyal to) shippers and brokers that can help identify re-load opportunities. That’s hard for smaller bulk shippers to do, but it's what freight brokers specialize in. Here are some of the advantages of outsourcing freight management: • Ongoing and surge capacity. Brokers have relationships with hundreds of tanker truck carriers. • Expert, objective advice. Brokers have access to carrier capacity with the added benefit of objectivity. • Freedom to focus on your business. Your company’s job is to make and market a quality product, not to create a large freight network. Leave that to a broker. • Competitive rates. Brokers can leverage their volumes across many shippers to negotiate better rates with carriers than you could get on your own. • One-stop shopping for multi-location operations. The right broker can handle your needs across North America. • Rapid scale. While individual carriers might not have the ready capacity to help in an emergency, freight brokers can ramp up quickly and save the day.
  • 10. YOUR CHALLENGE: TRANSFORM OPERATIONS TO KEEP SUPPLY LINES MOVING The current market for bulk freight, where demand exceeds supply, is fraught with risk for bulk shippers. Your company’s survival depends on your continued ability to source scarce freight capacity at an affordable price. The winners will be the process industry manufacturers that completely transform corporate warehouse, freight and purchasing operations that, let’s face it, have historically taken truck capacity for granted. Those companies – the true shippers of choice – will earn the loyalty of the carrier community, and the gratitude of their organizations. About Bulk Connection Founded in 1987, Bulk Connection is a licensed, bonded and insured freight broker that gives shippers safe, reliable capacity for bulk freight and other shipments. We are bulk freight specialists, so you deal with experts, not order takers, who can advise you on the best shipping methods. Moveit@BulkConnection.com | 800-543-2855 or 860-572-9111 | BulkConnection.com Download Bulk Connection Brochure Contact Us © Bulk Connection, Inc.