What separates successful freight shippers from the rest? Is it something in their DNA? Do they have the most leadership support? Maybe they make significant investments in technology?
Our research found that it is something else entirely: their mindset. Some companies view shipping as a strategic advantage, while others see it simply as a cost center. We know this, and more, from an Amazon Freight Shipper Forum Study that queried shippers on their operations, challenges, and future plans.
Participants revealed their strategies and insights through multiple-choice and open-ended questions. Their openness gave us a lot of information to share, and we’re turning it into a three-part blog series. Knowing how smart shippers operate allows businesses of all sizes to replicate best practices while controlling costs.
So, how do successful shippers think and what do they prioritize? That’s what we’ll dig into here in part one.
“Differentiators” and “Essentials”
In the study, two clear and distinct groups emerged. The first, which we call “Differentiators,” sees shipping as a critical business function and optimizes shipping to gain a strategic advantage. One respondent told us that shipping is “just as important as any other leg of our company, whether that be marketing, IT, or finance.”
The other group that emerged treats shipping as a box to be checked, sticking to the status quo. They view shipping as an expense rather than an enabler for growth. We refer to this group as the “Essentials.”
Those companies that see shipping as a basic necessity made up the bulk of respondents—72%. Differentiators are less common, making up just 28% of respondents.
Why an operations mindset matters
Moving freight isn’t flashy. It is a necessary function, and many companies view it as a commodity and don’t think of its role beyond moving goods from point A to point B. But the COVID-19 pandemic proved that optimizing supply chain operations can be a competitive superpower.
In many organizations, logistics has garnered greater attention from the C-suite. For some, the pathway to CEO is now through critical operations functions. Apple CEO Tim Cook is one of the most prominent examples of a corporate leader rising through the company’s operations, highlighting the important role the supply chain plays.
Shipping holds a central role
As part of the study, we asked respondents how their company treats shipping operations to ensure they serve as a competitive differentiator. They said:
- “We treat it as a critical part of our business.”
- “With the utmost respect and dignity.”
- “Shipping is considered part of our service-at-almost-any-cost model, and all of those involved understand the mission.”
But not all differentiators started that way. For some, the value they place on shipping has shifted over time. Adam Bartell, operations manager at Intelligent Blends, wasn’t part of the study but says his company saw shipping as an afterthought, but changed its approach.
“Five years ago, we had fewer employees and resources devoted to shipping. It wasn’t a top priority, but we looked at how we could improve the customer experience and saw that shipping played a major role in it,” he says.
How companies think about shipping changes how they use it and what they can achieve with it. Differentiators give shipping a voice, integrate it into their strategy, and use it to improve the customer experience. It becomes part of their brand promise.
In our next two blog posts, we’ll share what this means and what Differentiators told us about the value of relationships and their organizational strategies.
Become a Differentiator
Amazon Freight blends advanced technology with a network of 70,000+ Amazon trailers along with an extensive coverage area to move your freight safely, reliably, and efficiently. If you’re ready to start getting more from your supply chain, create an account and begin quoting loads immediately.
