Tuesday, December 9, 2008

10 things to look for in a transportation consultant - Part 1

By Thomas Moore

Transpiration consultants can play a key role in helping you save time and money. We have found there are 10 major issues you should consider when hiring a transportation consultant. In part 1 of our two part series we will look at the first five. In part two we will review the remainder.

Time is money. There are many advantages to hiring transportation consultants who take the long-term view, puts the client first and if the relationship works sticking with that consultant. How do you find such a consultant? Find one who has long term experiences with large or reputable companies. That typically means the company has found a trusted advisor, involved the transportation consultant in the process of implementation and listened to practical advice. You don't find that with transportation consultants who have a spotty record of one-night-stands with clients. Also by staying with a trusted transportation consultant there is no need to educate them about your company as new assignments arise. They already know you. It saves time and money and the benefit to you is that you can bounce ideas off of them often for free). In addition, they can provide you with new and spontaneous ideas when they hear about them that can save you money.

1. The difference between price and value is something a good transportation consultant knows. The lowest cost is not always the best value. It is not unlike any other service. Every manager who has been seeking trucks at month end knows it is getting harder and harder to find up-front rate reductions. They know price is not the full story.

2. An understanding of how carriers incur costs and how carriers can offset those costs is a key factor for transportation consultants. This knowledge can create a win-win situation and save money for the carrier. It is safe to assume that most large companies have achieved cost savings by working with transportation consultants to optimize these strategies that consultants know in the past few years. Also a good transportation consultant who knows the cost structures may suggest launching a private fleet, which is just one example of opening a broader range of options to maximize cost savings.

3. A good transportation consultant knows the long-term viability of the carriers and the way to get last second concessions. They understand the competitive landscape and are respected by carriers. Because they have important knowledge in this area, they can quickly determine the companies that would be interested in your business and the structures that would most advantageous.

4. Good transportation consultants switch their clients between modes, because it can save money. A good transportation consultant must have a solid understanding of each of the modes. Here is an example. Many boxcars become available at reasonable rates when automotive manufactures are slow. The boxcars become available at very reasonable rates. Also when we see high levels of imports, shipping companies need to get those containers back to port, so we see fantastic rates on shipping containers going to port areas.

5. Transportation contracts are very important, but too often an afterthought. Transportation consultants can create the contract that benefits the client. Often a client can miss the key points that can cost the client a ton of money. Transportation contracts are accustomed to the legal aspects of valid contracts and can catch the legal mumbo-jumbo. Also you want to get the contract ready in the beginning. Waiting can cost you additional dollars.

In Part 2, we will finish our two part series and cover the remaining 5 points considered essential when hiring a transportation consultant.

Fortune 50 companies such as Proctor and Gamble have worked with transportation consultant Thomas Moore and his associates for the past several years. P&G and other top companies know Transportation Warehouse Optimization take the long-term view and find practical solutions that result in saving the client millions of dollars. Ask for a free consultation. Visit their website at www.transportationoptimization.com. Be sure and TEST YOUR SKILLS and see if you can manage your companies cost savings by efficiently load a truck. - 15246

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