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Don’t Ship Your Profits Away. October 18, 2011. Today’s Agenda. The Basics—Small Package vs. Freight and Freight Classification Vendor Relationships Settling Claims Service vs. Price Invoicing and Identifying Fees What Do You Need in a Freight Program?. Small package vs. Freight/LTL. - PowerPoint PPT Presentation
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Don’t Ship Your Profits AwayOctober 18, 2011
Today’s Agenda
The Basics—Small Package vs. Freight and Freight Classification
Vendor RelationshipsSettling ClaimsService vs. PriceInvoicing and Identifying FeesWhat Do You Need in a Freight
Program?
Small package vs. Freight/LTL
Small Package Typically refers to shipments < 200 lbsTypically loose boxesCarriers like UPS Ground, FedEx Ground, or USPS$100/box in the event of a claim
Freight/LTLTypically refers to shipments > 200 lbsTypically palletized and shrink wrappedCarriers like Con-way Freight, UPS Freight or YRC$25/lb liability
Freight Classification
LTL shipping involves the classification of all items, density based and non density based.Examples: Textbooks: Hard bound books are always class 65 whereas paperback books are class 60.Clothing: The class can range from 70 all the way up to 400 depending upon the weight and dimensions of the pallet.
The lower the class the cheaper the shipping charges!
Bill of Lading
Vendor Relationships
Take control of how your product is shipped!
If the vendor currently pre-pays the shipping charges and adds them to your merchandise invoice, you can verify whether or not a discounted rate is passed along.
Request that the vendor ship under collect or third party prepaid billing terms.
Routing Management – Price vs. Service
Have the best of both worlds: 1.Gather a list of your vendor
companies2.Sort it by shipping ZIP Code3.Analyze the shipping rates per lane
on a generic 800 pound shipment
This method easily identifies trends over a few reliable carriers.
www.PartnerShip.com
Delivery Receipts and Claims
The key to successfully settled claims is to note the shortage or damage at the time of delivery in writing on the delivery receipt.
If a claim is filed after delivery, it is considered a concealed loss/damage and you can still possibly recoup a third of the amount.
Proof of delivery (POD) is instrumental in getting credit from the vendor.
Invoicing
Consolidated billing saves time and money by allowing you the convenience of cutting one check at the end of the month.
Brokers enable you to work with one point of contact that will quickly resolve your issue with any carrier without the hassle of an automated phone system!
Identifying Accessorial Fees
Lift Gate – When the shipping or receiving address doesn’t have a loading dock, a lift gate is necessary. Additional fees apply and vary per carrier.
Inside Delivery – Waived through NACS (if within reason).
Delivery NotificationCOD – A cash payment given to a driver
on delivery. When possible, it is always best to call the terminal and request that your account be billed instead.
Audit Your Invoices!
Invoices should be consistent with terms!
Checklist for “Best Value”Check freight invoices and service levels
often.Does your invoice clearly state a discount
amount?Can you randomly audit your invoices to
make sure you’re getting the discount that was originally offered?
Are your shipments arriving using national freight lines?
What is the carrier’s liability coverage per pound?
What Do You Need in a Freight Program?
Service?A 3PL partner with a proven track recordReputable carriersLongevityEase of useTechnologyReliable customer service
Price?Competitive rates and discountsEasy invoicingLiability coveragePayment/credit termsBilling accuracyDiscount in writing
You shouldn’t have to choose!