One of the fastest ways to gain an edge in business is to learn from others instead of starting from scratch. That’s why we asked shippers to tell us more about their operations. In the process, we discovered the qualities that set successful shippers apart from the rest.
In part one of this series, which we suggest you read first, we explored the differences between Differentiators—those who see shipping as a critical, strategic business function—and Essentials—those who see shipping as a box to be checked.
Now, in part two, we’re going to tell you more about how Differentiators get ahead.
The end customer is always the priority
Differentiators think about the people behind every order, and customer satisfaction is a core focus of their operations. They understand freight shipping indirectly shapes the end customer’s experience, and they value the role it plays. Most Differentiators—89%—said customer satisfaction is extremely important to measuring successful shipping, compared to 54% of Essentials.
Differentiators were also more likely to say that on-time delivery is extremely important when measuring successful shipping, which was cited by 83% of Differentiators compared to 72% of Essentials. Differentiators understand the disruption that late or missed deliveries cause and recognize that on-time service helps their customers operate more efficiently and competitively.
One respondent said, “Getting our customers what they want, when they want it, and how they want it is a quality that sets us apart from our local competition.” Differentiators also use shipping to increase customer service and, ultimately, loyalty. “We are using our supply chain optimization offering as services that we can provide out of our shipping operations to enhance the client final mile,” one respondent reported.
Strong relationships matter
A successful shipping strategy starts with people. Our research showed that Differentiators tend to place a high value on interactions with their providers and foster strong relationships to ensure resilience and flexibility.
Differentiators communicate more frequently and effectively with supply chain partners compared to Essentials. Among Differentiators, 34% said touching base with transportation service providers and brokers is the most or second most time-consuming task, compared to 16% of Essentials.
Because communication is a top priority for Differentiators, they are likely to prioritize working with providers that offer 24/7 human support to resolve issues quickly and keep shipments moving. For them, responsiveness is a necessity.
Cost efficiencies are criticalDifferentiators strive for excellence across the board, including in how they manage costs. They are focused on maximizing value without necessarily increasing spend, and cost efficiency is ranked as “extremely important” for successful shipping by two-thirds of Differentiators, compared to 35% of Essentials.
Relationships come into play here as well. Half of Differentiators said they are extremely likely to negotiate better rates with transportation service providers to improve their company’s shipping performance, compared to 20% of Essentials. Engaging in negotiations can also help shippers and their transportation providers collaborate to optimize their networks, minimize delays, and maximize trailer space, uncovering additional efficiencies.
It’s always about the big picture
Optimization is a constant pursuit in supply chain management, and smart shippers use transportation services to drive a wide range of improvements. Their approach is reflected in how they define success, with 33% of Differentiators reporting that they measure shipping success by how well processes are optimized, compared to just 24% of Essentials.
One area where this strategic mindset is especially evident is inventory management. Shipping directly affects inventory levels, holding costs, and the ability to meet demand. Half of Differentiators rated inventory management as an extremely important measure of successful shipping, compared to just a fifth of Essentials. Their goal is to strike the right balance, which avoids costly overstocks and reduces the risk of out-of-stocks.
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 start quoting loads immediately.
