THE KEY TO SUCCESS FOR THE SHIPPER/CARRIER RELATIONSHIP
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fter nearly two decades in a logistics management role at a prominent retailer, where building relationships was a major key to my success, I have changed roles. I always knew how important a great relationship with my carriers was, but in my short time in my new role, it has become even more evident. I can say with the utmost certainty that now, more than ever, having a great relationship with your carriers is critical to the success of your organization. Ideally, the shipper/carrier relationship should be a partnership built on trust and credibility, or, as my first boss loved to say, “This is a partnership, and we like to put the ‘partner’ before the ‘ship.’” It all starts with the carrier rep. In more meetings than I would like to admit, I’ve heard comments like the following from clients regarding their rep: “I have a hard time getting him to call me back.” “My rep doesn’t seem engaged.” “I haven’t talked to him/her in a few months.” “I have a great relationship with Carrier A rep but not the rep for Carrier B.”
24 PARCELindustry.com JULY-AUGUST 2021
BY PAUL YAUSSY When I hear comments like these, I think to myself, “I wonder what the shipper has done to foster the relationship with the reps?” Believe me, it can be difficult to build a relationship with a rep you simply do not like, or a rep for a carrier you do not use. But it is critical to your success and should be top of mind. A Real-Life Example Several years ago, the organization I was with did an RFP and ultimately changed carriers, going from the incumbent, Carrier A, to Carrier B. Over the course of the following three years, my Carrier A rep and I made a point of staying in contact, even scheduling quarterly business reviews when there was no business to review. Often, we would give each other updates on our respective businesses, talk about sports, share a family story or two, and perhaps get some lunch. Neither one of us really had the time for that. I had a department to run; he had a book of actual business to attend to. Sometimes, I would go into the meeting thinking, “This is such a waste of time.” However, the continued fostering of the relationship eventually paid off, when after about three years of
not doing business together, we both had a mutual need. Carrier A wanted more volume to help fill the network prior to peak. I wanted to produce a per-package savings going into the upcoming peak season, which was forecasted to be our biggest ever. I had an imminent need to reduce our shipping costs to hit budget plans as our forecast was going through the roof. Simply by keeping an open line of communication, which took effort on both sides, we were able to have conversations that led to a partnership that benefited both of us. We engaged in a very quick negotiation — less than a week — that produced a very healthy savings for my company and delivered the volume that Carrier A wanted to help fill the network. As a result, we moved the entirety of the parcel business over to Carrier A. We were able to transition from one carrier to another in less than a month — right before peak season — in part due to the relationship that both sides made a concentrated effort to maintain. Your carrier representative is your internal advocate within these enormous organizations. While they typically are not authorized to make high-dollar pricing decisions or out-of-the-norm operational
