We have seen the best and worst of it when it comes to brokered shipping relationships.
In recent years, lots of companies out there have stopped trying to be their own shippers and have turned over the entire process to a Third Party Logistics provider.
All fine and dandy when it works well.
Recently, when I realized the extent of a certain new business reality, it was quite the eye-opener.
While interviewing a highly qualified candidate for our newly created sales-director position at Zip Xpress Inc., in Holland, Michigan, we were deep into discussion about revenue and customers and more.
Being a Part of Your Life and Commerce of the Nation
We’re “all-business, 24/7” here at Zip Xpress, and the following is a very important item of business that we need to pass along:
We are thankful and grateful for you.
Every day.
Current Logistics Model is the Opposite of Sustainable
The unprecedented growth of third party logistics and broker entities began in 2001, shortly after the terrorist attacks in New York and Washington, D.C. Coincidentally, that fateful autumn was precisely when Zip Xpress opened its doors for business.
Bad timing, maybe, but who can predict these tragedies; it had seemed like a good time to launch, with the economy in fairly decent shape, but we all took a hit when the Twin Towers fell. Soon, our economy started to slow and eventually fell into a full blown recession. As the downturn widened, manufacturers were saddled with lower prices in order to remain competitive, and the entire supply chain soon felt the sea change.
Carriers and all the associated support system of service business suffered in the chain reaction of recession. Jobs were cut everywhere in transportation; others were combined and folded into related duties for cost savings. Everyone was trying to make up for rising competition costs and for falling prices on virtually all goods.
Starting off with some really good news … I’m here to tell you there are real and practical solutions out there to our nationwide driver shortage.
Got your attention? Good.
An explanation is in order, however, to get you ready for the beauty of the solution we’ve developed at Zip Xpress. If you’re at all hopeful about and committed to the transportation industry, I believe you’ll be excited by what you’re going to read.
Unlike the Biggies and Mystery Carriers Off the Internet, Zip Actually Cares About Its Now-And-Then Customers
Needing a partial load or a jam-packed trailer full from your business may only happen now and then. Maybe only monthly or twice a month. Maybe only quarterly.
Lots of businesses fall into that category. Good businesses. Small to medium size.
The Infrequent Shipper, the Low Volume Shipper. Whatever it’s variously called in the transportation industry, it often means the business it’s referring to is at the mercy of trucking firms that barely want to serve them.
Too much hassle, many companies say.
Not enough regular cash flow … so let’s not bother with them, they say.
But you know what Zip Xpress says to that?
Bring it on!
A Florida-based Raving Fan Paid a Visit to Praise Zip Xpress for their Service.
So … is Michael from Common Sense Office Furniture a Raving Fan, or what?
He was willing to fly all the way from Orlando for us.
Honestly.
All of us who work at Zip Xpress know pretty well that we can do a good job for our customers. But it certainly is gratifying to hear from them in the form of praise and thanks for a job well-done.
On This Veterans Day, Make No Mistake: Our Service Men and Women Truly Matter
Veterans. What an interesting, mixed bag of people we are.
That’s “we” because I’m one, too. I was in the Marines. Once a Marine, always a Marine, right?
On this Veterans Day, in this message to all my fellow men and women in uniform and formerly in uniform, let me just say this: I salute you.
More Efficiency, Ethical Behavior Needed in the Supply Chain
On the subject of shipping with an eye toward efficiency and long-term costs, here’s a business world “case study” that’s a real eye-opener.
A while back now, the asset-based carrier Zip Xpress Inc. – that’s us – had just opened all of Florida as a new service point. We were more than eager for lots of freight to fill our new schedules to the Sunshine State.
The case in point: A Florida-bound truckload weighing in at 4,000 pounds was posted on the DAT – the Internet “load board” where brokers can make posts for carriers to bid on business. Great. Zip’s quick bid on the job was the lowest, so we secured this “Truck Load” for our new service point. We were looking forward to rolling south with a snugly packed trailer of product.
Or not.
Lots of Third-Party Brokering is Inadequate, so Zip Xpress is Positively Partnering
All 3PLs are not created equal; that’s for sure.
Some serve their client companies quite well and work effectively with the carriers they hire to move product. Others? Not so much.
Less than professional practices from the middle ground of brokering can suck the best intentions right out of a shipper/3PL/carrier connection, and recent research on the subject backs that up: Read This
Only two to three years! That is the pitifully short life span of a shipper/logistics provider relationship. Of course, if those two parties are jumping ship that often, it’s bound to have a long-term, negative impact on building business relationships of trust, longevity, and shared visions of customer service.