Shippers have to be laser-focused on service and quality in order to maintain positive relationships with their customers. This is even more true for companies sending their products into big box retailers.
Too often, however, the transportation options available to shippers make it difficult to meet the stringent must arrive by dates (MABD) and required arrival dates (RAD) laid out by these large retailers. This can result in fines, damaged relationships and even lost end cap display space, leading to fewer product sales.
“When I think of the cost of shipping into big box retail, the most important piece is service and quality,” Frank Hurst, EVP of LTL at Echo Global Logistics, who oversees Roadtex, said. “They have fines and chargebacks when shippers fail to meet on time, in full (OTIF) requirements.”
Roadtex – an Echo company – is able to leverage its strong relationships with big box retailers, volume of suppliers and top-notch logistics expertise to help shippers clear the hurdles standing between them and successful relationships with these important customers.
As the temperature-controlled warehousing and consolidation arm of Echo, Roadtex is not only a leading LTL provider, it is the only carrier handling temp-controlled shipments nationwide without sailing schedules. This eliminates delays and makes Roadtex a reliable option for the most delicate temperature-sensitive shipments, including pharmaceuticals and grocery products.
Roadtex moves partial truckload shipments via consolidated full truckloads directly from its 32 nationwide warehouse centers to the retailer, resulting in less handling and better OTIF rates. Additionally, delivery costs are mitigated for shippers due to this direct approach.
Many of Roadtex’s consolidation shippers are also warehouse customers, further streamlining the delivery process. Because these shippers already store their goods in a Roadtex warehouse, they are able to eliminate the first step of the process and avoid incurring pick-up costs.
The company’s streamlined shipping strategy – coupled with its live unload policy – has helped it maintain a standout 98.5% daily on time percentage. Many shippers, however, do not realize that this option is available to them.
Shipping into big box retailers can prove daunting. Often, shippers become so focused on their products and driving market share that they start to see preventable transportation costs like fines and chargebacks as simply the price of doing business.
While this approach can be harmful to the shipper, retailer and end consumer, it is also common, and moving beyond the status quo can feel like a challenge.
“I tend to think the status quo can be our largest competitor,” Hurst said.
If shippers can start thinking of their transportation options in a more holistic way, they will see that the fees, chargebacks and damaged relationships often accompanied by relying on traditional LTL options make the traditional route much more costly than Roadtex’s consolidated direct offering.
“Partnering with an expert who has a solution where you can improve efficiencies, reduce costs and improve your service just makes sense,” Hurst said.
Click here to learn more about Roadtex.
