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LTL 101:Restricted Commodities

Posted 6 years ago

Did you know that certain types of commodities cannot be shipped via LTL carriers due to governmental regulations and that LTL carriers can refuse to accept certain items as a matter of company policy? In many cases, the root issue is liability — certain items are too valuable and/or high target items for theft to make them worth the risk to handle and transport.

Items of Extraordinary Value:
Carriers have different policies regarding these items and they may be willing to accept certain items if they have the appropriate insurance coverage and specialize in the transport of valuable merchandise.

Restricted or Prohibited Items:
Another group of items that LTL carriers may refuse to transport are those excluded by government regulations or due to being extremely hazardous in nature. In addition, carriers that lack the proper storage and stowage equipment to maintain the proper temperature will refuse certain items, such as refrigerated items. Finally, certain items (such as canoes) may be prohibited by certain carriers because of their size, shape, difficulty to stow and difficulty to handle.

Do your homework and research LTL carriers carefully!

Restricted Commodities are listed in the Rules Tariffs of each LTL carrier. To give you an example of how complex some of these Restricted Commodities sections are, please visit FedEx’s “Prohibited and Restricted Articles” section of their rules tariff by clicking the link: http://www.fedex.com/us/freight/rulestariff/prohibited_articles.html

Make sure to address specific questions to the carrier you are considering. Within the world of LTL carriers there is a great deal of specialization. For instance, some carriers specialize in the transport of perishable items or hazardous materials. If you have items to transport that fall into both of these categories, you may be forced to hire two separate LTL carriers.

Whatever company you choose to move your hard-to-handle item(s), make sure to do your homework. Make sure you select a freight company with a strong track record, solid liability coverage, and robust maintenance and quality control processes to ensure top performance.

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Training Tuesday– Tips for a Great End of the Year

Posted 6 years ago

As we move steadily towards the end of the year, it is important to continue to work hard to gain new customers and keep existing customers satisfied. Below are some of our top tips to make the end of the year just as strong and successful as the beginning.

1.Call every existing customer you have.

Remind them why they already rely on you. Let them know that you and your staff will continue to provide excellent service through the remainder of the year, and beyond. Also ask them if there are any new projects or additional shipments coming in the next few months that you should prepare your staff for.

2.Call every “hot prospect” you have.

You never know when a prospective shipper may have encountered a problem with their current 3PL or carrier. You may luck into calling them on a day when they are receptive to hearing how your agency can provide better service than what they are currently receiving.

3.Train your team.

Ensure that your team has the knowledge and tools they need to finish the year strong. If they need additional sales or operations training, make sure they get it.

4.Set an “end-of-year” goal.

People find a way to achieve great things when they have a well-defined goal. Review your prior year’s results and compare them to current year-to-date run count and revenue results. Then, set an aggressive, but attainable, goal for you and your staff.

5.Make 10 customer calls per week for the remainder of the year.

By simply making 10 new prospect calls per week, you’ll contact almost 200 new prospective customers by year’s end.

 

Selling is the key to our success; as individual agents, and as a company. Our sales success has a direct impact on our ability to grow, to become more profitable, and to take market share – today and in the future.

 

“It is not your customer’s job to remember you. It is your obligation and responsibility to make sure they don’t have the chance to forget you.” – Patricia Fripp

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Training Tuesday:Maximize Joint Sales Calls

Posted 6 years ago

If you have sales people in your organization, and you’re not making joint sales calls with them, you’re missing out on one of the best tools to grow your business. Joint sales calls are beneficial in many ways, primarily for the less-experienced salesperson on the call, but they also provide an opportunity for the experienced salesperson to build greater relationships with their team members and customers. If you’re going to take the time to go on a joint sales call, there are a few things to keep in mind to ensure that your joint sales calls are most successful. Ask yourself the questions below before planning a joint sales call to maximize the benefits of the call for yourself, your team, and your customers.

1.What do you want to accomplish on this call?

Determine what you’d like to gain from conducting a joint sales call. Are you trying to improve the skills of a new team member? Improve a relationship with an existing customer? Or, make a sale to a new customer? After you’ve answered these questions, be sure to set concrete goals before the call and create a sales strategy that works towards that goal.

2.What action do you want from the customer at the end of this call?

This should be decided before every call to give you and your sales person a direction when making the sales call. If you want the customer to make a purchase at the end of the call your approach will be different than if the purpose of the call is fact finding. There are many different types of sales calls that will benefit the customer and help you grow the account; fact finding, service calls, bid review, sales presentation, etc. Know exactly what kind of sales call you’re making and prepare accordingly.

3.How will this call reinforce the value of your company?

What value does this joint call offer? Does it allow you to emphasize a strength of the company? How can you best take advantage of the time on the call to create value for your customer and the company? Make sure not to waste the customer’s time. Be mindful to accomplish your goals on the call, but more importantly, ensure that the time spent with the customer has value to them and to their company.

4.What am I teaching my salespeople today to help them achieve their potential?

How does this joint sales call allow you to be the best leader and help your salespeople to become stronger? Is this call part of a larger effort to create an encouraging environment for your team or is it intended mainly for sales purposes? Know what the value of joint sales calls is to your sales people. Sales representatives are uniquely different – make sure that the sales person you ride with will get the maximum benefit of your time, expertise, and coaching.

5.How am I creating a motivational climate for my salespeople?

Is a joint sales call the first step to motivating your employees? What else can you do to create a team that is motivated and empowered to be successful? There are few traits more valuable to a sales person than a positive attitude. Be sure when making joint sales calls that you demonstrate the power of a positive attitude to your sales person and to your customer. A little motivation can go a long way. When joining a member of your sales team on sales calls, make sure you demonstrate a dynamic, positive and upbeat attitude and approach to your sales efforts. Your example and sales coaching could be the key to your employees enjoying a successful sales career.

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LTL 101:Billing Accuracy

Posted 6 years ago

Many shippers have expressed concern about accuracy of billing by LTL carriers. Having pushed the LTL carriers to be more vigilant with making corrections for weight and other aspects of shipments for proper revenue capture, SJ Consulting researched the validity of such perception by conducting an extensive survey with several large LTL shippers, 3PLs, and freight audit and pay firms, with particular thanks to Williams & Associates. The freight charges on LTL shipments by these companies exceed $8 billion over a 12­ month period, representing 22 percent of the total industry revenue. For decades, the LTL industry has relied on an honor system for shippers to provide true characteristics of their shipments, required to accurately bill the customers for their shipments.

The survey found range of billing accuracy was 94 to 99 percent depending on the carrier, with the average being 97 percent. The most interesting revelation of the survey was that what shippers perceive as a billing error actually is due to shippers providing an estimated weight or freight class for dimensional attributes of their shipment that are corrected on more shipments as more LTL carriers deploy scales and dimensional machines. Given that about 50% of bills of lading have errors in weight or description of the shipment, it’s no surprise that a correct invoice from a LTL carrier can get perceived as a billing error.

Despite shippers’ perception, the LTL industry has an impressive record in billing accuracy, and it is finally converting rapidly from an honor system.

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LTL 101:Delivery Expectations & PODs

Posted 6 years ago

Last Blog we discussed educating our shippers in order to ensure our BOL is set up correctly and to avoid a possible dispute with the carrier regarding our invoice. This week we want to discuss educating our consignees so they know what to expect at the time of delivery.

It is very important to educate your consignee BEFORE the freight is delivered about what the process will be like. Will they need a liftgate? Will the driver be helping unload the freight in any form or manner? By asking these questions in advance, and by making sure that the consignee and you are on the same page, you can minimize additional charges on your invoice.

On the delivery receipt/proof of delivery (POD), issues should be noted if you suspect that the value of the product has been compromised. Make sure to note any damage to the packaging, and/or missing product. Having these notes on the POD makes it easier to file a freight claim with the carrier. Claims can take quite a long time so anything that you can do upfront saves time down the road.

Another tactic you can take is to refuse the shipment upon delivery if damage is present. Refusing a shipment means that the consignee does not accept the freight in the condition presented – meaning you will eventually file a damage claim. This will alert the carrier that something is wrong with the shipment and that they should get in touch with the appropriate party. Make sure you use this tactic responsibly, because if a shipment is not damaged the carrier can actually tack on a redelivery fee. Yikes!

Five of the most common additional services on a POD include:

  1. Lift Gate – Hydraulic lift on the rear of a truck used to assist in the unloading of freight.
  2. Inside Delivery – The driver is only responsible for moving the freight off the truck. If the driver helps move the freight more than a few feet away from the truck, even if it’s not “inside,” then an Inside Delivery fee may apply. Be very careful with this one because the terminology can be misleading and it varies by carrier.
  3. Limited Access (Residential) – This is up to the carrier’s discretion, however, there are locations that will always be deemed limited access. If a business is run from a home, or is in a residential area, carriers may charge this fee.
  4. Sort/Segregate – Certain locations may require a carrier to sort and segregate a shipment. This is additional handling beyond the normal duties of a driver that will incur additional fee(s). This charge is especially prevalent in grocery stores or distribution centers.
  5. Detention – With most LTL carriers, the first 30 minutes from when the driver arrives are free. Any additional time is subject to an additional detention fee. Again, the length of this “free time,” and the charge it carries, varies by carrier.

So the next time you sign a POD when receiving your shipment, be sure to review it and see if any additional services listed are being used. If a service is pre-printed on the POD, then the need for this service was most likely known in advance. However, if the driver marks that an additional service was performed, then there will be an additional charge. In some cases, it may be good practice to have your consignee obtain a copy of the POD themselves.

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Training Tuesday:Preparation Before the Sales Call

Posted 6 years ago

How many times have you been confronted by a salesperson that knows nothing about you or your business? Did they launch into a barrage of “situation” questions and expect you to answer all of them? Or, worse yet, the salesperson didn’t ask any questions, but instead jumped right into their presentation about something that you have no interest in. Unfortunately, that kind of sales technique is the norm, not the exception. Preparation before the sales call is critical.

Knowledge is power. You should know as much as you can about your service, your industry, your competitors, and your competitors’ strengths and weaknesses. You should also learn as much as possible about your prospective client before you make contact with them.

Below are four basic elements of successful sales preparation:

  1. Know the industry. Technology and trends are rapidly changing and new services are being offered continuously. Read industry specific publications, websites, or periodicals. Extensive and up-to-date knowledge of the industry provides your customers with greater confidence in your recommendations and abilities.
  2. Know your company. Having a clear, thorough understanding of what we do, and how we do it, will allow you to field customer questions and objections more easily. Know what areas need improvement and what is unique and adds value to what we offer. Seek to learn as much as possible about the company history and path for the future. This will allow you to offer an honest and realistic picture of what you and your company bring to the table.
  3. Know your competition. Know the competition’s strengths and weaknesses, and ask your customers what they like and dislike about your competitors. Compare your services, features, equipment, billing process, service levels, dispatching methods, and then use that to determine differentiating factors you can feature in your sales presentation.
  4. Know your customer. Complete knowledge of your customer’s company will show interest, will always impress them, and will represent an important first step in earning a customer’s confidence and business. An understanding of the potential customer’s industry, requirements for service, and general information about the customer’s company and business speeds the vital relationship building process.

You must be mentally prepared before you make a sales call. The degree to which a salesperson can create rapport and build trust is in direct relationship to the amount of preparation that has taken place before the sales call is made. The result of every sales call reflects the amount of time the salesperson invested in getting ready for the meeting.

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LTL 101:BOL Basics

Posted 6 years ago

This week revisits educating our shippers in order to ensure our BOL is set up correctly and to avoid possible disputes with the carrier regarding our invoice.

Did you know LTL carriers employ “weight & inspection coordinators” whose sole responsibility is to catch the “bad guys” who list an inaccurate weight or class on their BOL?

  • They keep an eye out for any shipments whose description on the BOL doesn’t seem to match up with its appearance.
  • They will physically examine your freight, and if they deem it necessary to inspect the contents or check the weight, they’ll issue an inspection certificate.
  • You will foot the bill for the additional inspection.

It is for this reason we need to make sure our shippers understand the follow:

  • It is imperative to make sure the weight and class on the BOL are accurate.
  • Don’t just guess, and don’t try to be sneaky, either! You can’t classify furniture as lumber, even though it was once lumber… (Yes, believe it or not, people actually do this!)
  • Include the weight of your pallets in the total weight calculation of your shipment.
  • If you forget multiple pallets, they could add up to an additional 500 pounds or more; that’s not just a few pounds off.
  • Most LTL carriers have scales installed right on their forklifts that double-check the weight listed on the BOL automatically.
  • Make sure you are measuring the freight with extreme accuracy (to the nearest inch)
  • Some LTL carriers make it mandatory for drivers to carry a tape measure and measure the freight at the time of pick up.
  • A couple of inches can add up to hundreds of dollars when classifying freight.
  • Shippers who misrepresent freight need to understand carriers are not taking any more chances and the time to do the right thing is now!
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Training Tuesday:Building to the Sale

Posted 6 years ago

A good initial approach to a prospective customer is a crucial part of the sales presentation. All the selling skills in the world won’t matter if you don’t get your foot in the door.

A lot of salespeople tend to beat around the bush, differentiate yourself by stating your name, the company you represent, and the particular transportation services you’re there to sell, right away. Capitalize on this introduction by beginning concept selling. Tell the prospect “I’d like to share an idea with you. I’m in the transportation business. I’m assuming you’re always looking for ideas that will make your company’s shipping and receiving processes more efficient and profitable.”

This statement opens the door to your sell and informs the customer that you’re there to add value. It creates interest and you have to substantiate the statement in your presentation.

Early in your initial meeting be sure to mention the names of several satisfied customers, to establish credibility. It lets the prospect know that your shipping solutions have benefited other leading logistics decision makers, and that they can trust you and your ideas. It’s best to mention your other customers that are working in similar environments in their industry. When you can speak about familiar customers that have found solutions to similar shipping problems, you’ll get the prospect’s immediate attention. Using a prospect’s competition as an example piques their interest, because you can bet the prospect is interested in all solutions that are available to their competition.

Breaking the ice, gaining credibility and earning trust are essential to ensuring the prospective client will listen to the benefits of doing business with you. These are the cornerstones to building a long-term, profitable relationship with a new customer.

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Training Tuesday:Mentors and Joint Sales

Posted 6 years ago

Mentors are an important part of becoming a successful salesperson. A mentor or helper could be a co-worker, manager, or someone in a similar field. Find a mentor who can offer advice, tips, experience and suggestions for improving your sales skills.

Here’s a short list of our tips for getting the most from a relationship with a mentor:

Brainstorm. Sometimes you get so immersed in a sale that you can’t see the forest for the trees. Some of the best ideas and proven sales techniques come from a simple conversation. Open the conversation with a simple comment like, “Tell me about your best sales call,” or, “What do you say on a sales call that always seems to work?”

Have a game plan. Based on your personal styles, or the nature of a particular sale, determine in advance the roles that you and your partner will play in each sales call you make together, whether in person or not. You can have your mentor/helper make a follow-up phone call to your customer and ask how you did, if you asked the right questions, and if you provided a real solution. Team selling is one of the most effective ways to approach customers and a great way to close more sales.

Learn. When you go on a sales call with a proven sales professional, be sure to keep your eyes and ears open. Study their selling techniques. Pick out things they say that fit your style, and then use them on your next sales call.

Be selective. Use your sales mentor to your best advantage on difficult sales calls or for negotiations where you are at a stalemate. For some reason, you may not click with a particular customer, but your mentor may be the key you need.

Try making a joint sales call with your mentor today!

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LTL 101:Reconsignment

Posted 6 years ago

Reconsignment – Here’s a shipping term that you might be familiar with if you’ve ever had a change of plans with your freight. A reconsignment happens when freight that is already in transit is re-directed from one delivery location to another. The charges associated with this can vary based on how far apart the delivery locations are. For instance, if the new location is just down the street, the charge will probably be minimal. However, if freight was heading to California and is being reconsigned to Florida, you will be in for a hefty reconsignment fee.

We get a lot of groans when we have to quote people for the cost of a reconsignment so we wanted to highlight the process so you can educate your customers as well:

1.We have to send written authorization to make the change to the carrier. A Bill of Lading is a legal contract, so any changes made must be in writing. Authorization must always be made by the shipper or paying party.

2.The carrier will enter the information into their online system and image your authorization.

3.A rating analyst reviews the request, verifies that we have authorization to make the change, and completes the request.

4. Notification is sent to the terminal who currently has, or if it is in transit, will have the freight.

5.New labels have to be generated and put on the freight.

Typically, your charges end up being broken down into the cost from origin to reconsignment point, and reconsignment point to new destination, and fees for marking and tagging of the freight. If your freight has to backtrack, you will pay for every mile it has traveled.

GREAT EXAMPLE: If it was originally to go from NY to CA, but then once it reached Chicago you turned it back around to PA, you are paying NY to Chicago and Chicago to PA, not just NY to PA.

Important points to note as well:

  • If you are not the shipper or paying party, you cannot use your authorization to make changes to the BOL.
  • If your name doesn’t appear anywhere on the BOL, see #1 above.
  • If the driver arrives and you say that it needs to go to a different address across town, this constitutes both reconsignment AND redelivery. And it can’t be done without authorization, as above.

This process actually represents a significant amount of labor time and fuel. Even a local reconsignment (change in address within a local terminal service area) requires these steps.

All carriers want to make money on this deal. Nothing is done at cost. But time is money, and the cheapest option is to always do it right the first time.

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