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Training Tuesday– Tips for Phone Calls & Voicemail

Posted 6 years ago

You can use the same tools when leaving a message as you do when speaking with a live gatekeeper: be aggressive, assume control, sound important, and be confident.

Here are some tips that will help you be an effective communicator on the phone or through voicemail:

  • Be clear and clever. Make sure you sound enthusiastic and authoritative on your business and theirs.
  • Being an effective communicator on the phone or in a voicemail is a skill that takes practice. Be sure to speak slowly and distinctly enough to be clearly understood.
  • Make your message short. Time is valuable. Give the prospect the headlines instead of the entire story, until you’ve grabbed their attention.
  • Smile with your voice. A friendly voice will hold your prospect’s interest. Prospects like to buy from people they’re comfortable with so be sure to project your friendliness over the phone.
  • Be an energetic speaker. This expresses your enthusiasm for your job and your product.
  • Make it clear that you’re not calling to make an immediate sale, rather to make a scheduled time for the call because you understand that their time is valuable. This also implies that you are busy helping other clients, which in turn translates to a perception that you’re successful.
  • Listen attentively. No one appreciates being interrupted. Sometimes the prospect will give you useful information that you can use during a face-to-face appointment, or a follow up phone call. Be sure to take notes.

Connecting with a prospect over the phone or through their voicemail can be frustrating, but it is also a very effective way to start the sales process. With the tips above, you’ll be on your way to being a better phone communicator.

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LTL 101:Cubic Capacity

Posted 6 years ago

Do you know how cubic capacity can affect your shipments?

Almost every LTL carrier has a cubic capacity rule in their rules tariff that may affect any of your shipments. LTL carriers impose minimum cubic capacity rules to effectively counter very light, fluffy shipments that take up more than their fair share of a trailer. In most cases, LTL carriers state that if a shipment consumes 750 cubic ft. of space or more, AND the shipment has a density of less than 6 pounds per cubic foot (pcf), it’s not paying its fair share. While the rule varies dramatically amongst carriers, most artificially adjust the weight to a minimum of 6 pcf, AND apply a class of 125 or 150 to the commodities being shipped with their associated tariff rates. Most carriers use the 750 cubic feet as the threshold, but not all.

This week we wanted to clarify what to watch for with Cubic Capacity by providing an example from XPO:

XPO is now enforcing their standard cubic capacity rules on all tariffs. What this means is that shipments requiring 350 cubic ft. or more of the trailer with an average density of less than 3 pcf will have the weight calculated differently then what the actual weight is. Yes that is correct, the actual weight will not matter!

350 cubic ft. of the trailer equates to approximately 5.46 linear ft. of the trailer so you can see that we are severely limited on the amount of skids of LTL we can ship when the density is below 3 pcf.

As an example, for two pallets of LTL, cubic capacity would be calculated as follows. Please note that the carrier uses the actual height (96”) of the trailer when they look at the cubic capacity of the shipment, not the actual height that the shipment might be:

One skid = (40” x 43” x 96”) / 1726 cubic inches per cubic ft. = 95.67 cubic ft. x two skids = 193.34 cubic ft.

You can see that this falls way under the 350 cubic ft. rule so we are safe to ship this with XPO.

However, if you want to ship 4 skids, the cube of the shipment is now double at 386.68 cubic ft. which is outside of the cubic capacity limit. The only way you could ship this as an LTL shipment is if the density of the shipment was greater than 3 pcf.

Four skids with a total weight of 500 lbs., the density would be the 500 lbs. / 386.68 cubic ft. = 1.3 pcf.

If we shipped this LTL, we would be hit with the cubic capacity rule and our cost would skyrocket.

Four skids would have to have a total weight of 1161 lbs. or greater for us to be able to ship them as a standard LTL shipment with no problems. 1161 lbs./386.68 = 3.0 pcf.

Below is the actual excerpt from the XPO rules tariff:

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LTL 101:Volume Rates

Posted 6 years ago

Last Blog highlighted some Pick-Up and Delivery Tips. This week discusses the difference between Volume and Standard LTL moves.

LTL carriers will impose limits within their tariffs (that vary with every carrier) to limit moving shipments that are too large for their network. Some carriers structure their operations to carry volume LTL shipments while others do not. Volume quotes, also known as Spot quotes, should be obtained based on the below in order for you to get the most economical rate.

Single shipments with standard size pallets (48x40x48) that are stackable:

  • 1 – 8 pallets: pursue a standard LTL quotes (unless the weight exceeds 8,000 lbs., then pursue a volume LTL quote)
  • 9 – 10 pallets: pursue a volume LTL quote or a partial Truckload (TL) quote
  • 11+ pallets: pursue a volume LTL, partial TL, or even a TL quote

LTL carriers will rate any single shipment up to 19,999 lbs. as LTL but it will be costly:

  • 8,000 – 10,000 lbs. shipments could be considered as partial TL’s and quoted accordingly
  • Excess of 10,000 lbs. shipments should always be quoted with volume LTL, partial TL, and TL to obtain the most economical rate

Odd size or non-stackable pallets:

  • 1 – 4 pallets: pursue a standard LTL quote (unless the weight exceeds 8,000 lbs., then pursue a volume LTL quote)
  • 5 – 10 pallets:  pursue a volume LTL or a partial TL quote
  • 11+ pallets: always pursue volume LTL, partial TL, and TL quotes to obtain the most economical rate
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LTL 101:Pick-Ups and Deliveries

Posted 6 years ago

Last week covered limited access charges and how they can affect your price. This week highlights some Pick-Up and Delivery Tips.

Pick-Ups:

  • Any pick-up (P/U) entered after 2:30 PM local time should be called into the carrier to insure availability, otherwise the request will roll over to the next day
  • Lift Gate P/Us must be called into the carriers because Lift Gates are not readily available at every terminal
  • All Container Freight Stations and Airline P/Us require Delivery Order and Entry paperwork (3416 document), these need to be sent 24 hours in advance because drivers will need these documents in hand prior to P/U
  • P/Us are not Guaranteed
  • All carriers require a 2 hour window for P/Us
  • P/Us are done in the afternoon because drivers have to deliver freight before they can start pickups
    • If your shipper needs an AM P/U it is best practice to call the carrier to set something up which will most likely incur additional charges
  • The shipper must have our system generated BOL to provide to the driver at the time of P/U or our rates will not apply
    • This is not something the carrier will have via our P/U requests in BTMS
  • If a LTL driver needs to reference a P/U number, it is best practice to put that number on the first line of the shipper name. Please see the example below:

ABC Distribution Co > Ref # 123456

4567 Main Street

Anywhere, NY 10014

 

Deliveries: 

  • Transit times and delivery dates are estimations and can be delayed for many reasons
    • Add an additional day if a shipment is interlined
    • Add 2-3 days if a shipment is traveling by rail
  • Stress to your customers, if the shipment must be delivered by a certain date and time, spend the extra money and have a the shipment guaranteed
    • If “Guaranteed” is not on the BOL at time of P/U no adjustments can be made to the invoice
  • Volume Shipments cannot be Expedited or Guaranteed
  •  Re-delivery Rates are based on weight and can get very pricey

 

It is imperative to make sure the consignee is ready to accept the freight so that additional charges are not incurred

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LTL 101:Limited Access Charges

Posted 6 years ago

Limited access charges were created to compensate LTL carriers for additional time spent at a shipment’s pick up or delivery locations and constraints that can result from these specific locations. Limited access is defined as meeting any of the following conditions:

  • Not open to the walk-in public during normal business hours
  • Not having personnel readily available to assist with the delivery or pickup function
  • Not having access to loading dock or platform
  • Sites where carriers are delayed with security related inspections and processes prior to freight tender

Did you know: Some of these high security locations will ask for a driver’s license and drivers have the right to refuse to do so? This causes the carrier to find a driver who is willing to do so, which in turn causes a domino effect or constraint on the daily operations of that particular terminal.

In order to avoid unexpected charges it is best practice to ask the consignee if they have a dock or way to unload the freight and ask them if they need a liftgate for delivery. Liftgates are commonly associated with limited access and if the consignee advises they don’t need a liftgate let them know that if the driver offers a liftgate and if it is used or signed for even though it was not used, there will be an additional fee charged to them.

Limited access fees can be assessed on both commercial and non-commercial delivery sites. Charges and what constitutes as a limited access will vary based on carrier, but here are some of the most common examples:

  • Camps, Carnivals, Fairs
  • Churches, Mosques, Synagogues, Temples
  • Schools (not including colleges and universities)
  • Colleges and Universities without a dock
  • Medical/Urgent care sites without a dock
  • Prisons
  • Individual / Mini Storage Units
  • Mines, Quarries, Natural Gas or Oil Fields
  • Golf Courses, Country Clubs
  • Nuclear Power Plants
  • Military Bases/Installations
  • Parks, Farms and Rural locations
  • Courthouses
  • Daycares
  • Hotels, Motels, Retirement/Nursing Homes
  • Restaurants
  • Cemeteries
  • Convents
  • Amusement Parks
  • Construction Sites
  • Outdoor Flea Markets

Google Maps is a great tool that can be used to help explain whether or not a location has limited access. However, please keep in mind that even though the location is easy to get in and out of and they may have the necessary equipment to unload they may still be considered limited access. Some great examples of this are as follows:

  • Farms: While they are easy to get to and have equipment, they usually take the driver off his/her usual route which causes delays for the other shipments on the trailer
  • Mini Storage Units: The driver will have to use a smaller trailer with or without a liftgate and thus make fewer deliveries that day because of the space available on the trailer, so the charges are there to compensate for this
    • Carriers normally have fewer trailers with liftgates which makes this even more difficult when the volume of limited access or liftgate shipments goes up

Keep in mind: Commercial buildings with docks are normally clustered in the same area, a carrier can easily make multiple pickups or deliveries in a business park in the same time it may take to make one limited access delivery.

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Intermodal 101:Relationship with 3PL

Posted 6 years ago

In general, the relationship between a shipper and the 3PL should be based on a “Win/Win” setup.  Achieving this setup will enable each party to capitalize on the offering of the other party.

The 3PL will work with capacity providers to establish consistent equipment availability when and where needed.  They will negotiate the optimum rate that meets the shippers’ requirements.  The 3PL operates at many different levels of service as indicated by the desires and needs of the shippers.

The shipper will provide the needed information to allow the 3PL to put together the most beneficial program. The shipper will provide information concerning both the ship from location and the ship to location, such as contacts, loading/unloading hours, first come first server or by appointments. This information enables the 3PL to more closely coordinate the pickup and delivery as transit will allow. The shipper will provide any shipment scheduling information they can to further enhance the 3PL’s ability to make the scheduled pickup and delivery.

The shipper will also provide the 3PL direction on what they value most: cheap transportation rates, fast transit, schedule delivery guarantee, transit time required per lane, etc.  Knowing more about each of these items will help the 3PL put together the best plan to meet the customers’ needs.

Next time, we will talk about intermodal freight characteristics that you should be looking for to see what makes good intermodal freight.  Hint…everything!

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Training Tuesday:Accelerating Sales – Part 1

Posted 6 years ago

Almost all companies, from the smallest to those in the Fortune 100, frequently – if not continually – face the challenge of getting sales fast: next month, next week, even “tomorrow.”

Sometimes you should rely on the tried and true methods, but sometimes you should shake things up. Often the well-established selling principles may need to be shelved.

Here are some of our key tips for improving your and your company’s sales results:

1.Set clear sales objective. Determine what sales you are being asked to make in this situation and then set a strategy for getting them. Make a plan and put it in writing, even just a couple sentences will do. Refer to your plan every day and don’t hesitate to make revisions when necessary.

2.Be certain you have pre-call credibility. Proper pre-call credibility will telegraph what benefits the buyer can expect from your sales call and get him to look forward to meeting you, or to at least listen and learn about what you have to offer.

3.Make use of sales support. Use every ounce of sales and marketing ammunition available to you: telemarketing appointments, email, pre-call letters, literature, testimonials, referrals, leads, ads, etc. Test them, then use what works and discard what doesn’t.

4.Skim the “cream” of your customers, prospects, and suspects. Make a list of prospects most ready to buy. Sort them into groups and then target them in priority order.

5.Rehearse. Even if you’ve sold the same product or service for years, one or two mistakes can kill a sale. Practice, record your presentation and review, role-play with your team; practice and perfection will pay.

Check back next week for more of our top tips to quickly improve your sales success rate.

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LTL 101:Density and Prices

Posted 6 years ago

Density is very important in selecting freight class. Some carriers will rate based on density if the commodities’ National Motor Freight Classification (NMFC) is a density based item.

With these NMFC density based rating carriers the general rule is anything under 48 inches high will be calculated as 48 inches and anything over 48 inches but under 96 inches will be calculated as 96 inches for density purposes.

Please see the actual wording from one of the carrier’s rules tariff below:

Density – Method of Determining

  1. Where rates are applicable according to the density of articles as tendered for shipment, the word ‘density’ means ‘pounds per cubic foot’ (PCF). The cubage of loose articles or pieces or packaged articles shall be determined by multiplying the greatest straight line dimensions (not circumferential) of length, width and height in inches, including all projections, and dividing by 1728 cubic inches (one cubic foot) to determine the number of cubic feet of the article. The density shall be determined by dividing the weight of each article, piece or package by the cube of such article, piece or package.
  2. A vertical dimension (or height) of not less than 48 inches (given the article does not exceed 48 inches in height), or 96 inches if the article exceeds 48 inches, shall be used in determining the cube of any unity on top of which other freight cannot be loaded because of:
    1. The nature of the article; or,
    2. Packaging or lack of packaging, used; or,
    3. Palletization in ‘pyramided,’ ‘rounded off’ or ‘topped off’ manner; or,
    4. Specific instructions by the shipper on the bill of lading, or by labels on the freight (Do Not Stack label or cone), or by the consignee, to the effect that no other freight is to be loaded on top of the article, including, but not limited to, the following: Do not stack, top load only, do not top load, top freight, etc.
    5. If the load bearing surface occupies less than 50% of the surface area (greatest length and greatest width of the article).
  3. The weight per cubic foot relates to the density of each shipping package or piece and not to the shipment as a whole.

 

Say you were shipping 1 pallet of sheet steel, or NMFC 175120, which is a density based item.So how could this affect your shipment?

  • The dimensions are 144” L x 45” W x 18” H
  • The total weight is 550lbs.
  • This equates to 8.1 PCF & Class 100
  • In turn, sub 6 would be selected for this NMFC (175120-6)

However, if you change the dimensions based on the carrier’s rules tariff above, you now have the following:

  • The dimensions are 144” L x 45” W x 48” H
  • The total weight is 550lbs.
  • This equates to 3.1 PCF & Class 250
  • In turn, sub 3 would be selected for this NMFC (175120-3)

 

DUE TO THE HIGHER CLASS OF FREIGHT
THE PRICE WILL GO UP SUBSTANTIALLY!

 

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Training Tuesday:Sales Traits Part 2

Posted 6 years ago

Last week we discussed several sales traits and the signals to improve them that you may be getting from your prospects and customers. This week we’re covering five more of these sales traits and signals.

Handling Resistance. If you’re running into a lot of resistance, the best thing you can do is work on analyzing needs and talking about benefits. When customers ask the same question over and over – even though you feel you’ve addressed it – you may be focusing on a benefit that doesn’t matter to them, and failing to find out their true concerns.

Selling Pressure. You’re coming on too strong if, when you attempt to close, customers become defensive or raise objections that seem irrelevant. When a customer starts defending a competitor they were unsatisfied with, that customer is telling you to back off. And if it seems the longer you’ve known a customer, the harder it is to get an appointment with them, the message is “stop pushing.”

Compatibility. Customers tell you you’re compatible by greeting you warmly, calling you when they think you can help them, and showing an interest in you that goes beyond “strictly business.” If new prospects quickly become unwilling to see you, customers are rude to you and keep you waiting, or customers keep calls short and straight to the point and refuse your invitations to lunch or recreational activities, be concerned about compatibility.

Trust. If customers don’t trust you, they may show it by withholding information you need, especially sensitive information such as budget constraints or involvement with competitors. They may ask you to put everything in writing or require proof, in the form of technical documentation and third-party references, of everything you say. If they’re calling the home office to check up on you, you haven’t gained their trust.

Account service. Simply put, this means getting in touch with your customers often enough to know about any changes that might impact future orders, and being available to handle little glitches before they become big ones. If you’re weak in this area, you may be getting these signals: Business from new customers drops off after the second or third order, or you lose sales to a competitor, even though you believe your product is better.

These are all important sales traits to work on and listening to the signals from your customers will help you determine your strengths and weaknesses. Improving these skills will improve your overall sales success.

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Intermodal 101:Role of a 3PL

Posted 6 years ago

As a refresher, a 3PL is a Third-Party Logistics provider. This means that a 3PL essentially acts as an intermediary between the shipper and the carrier to ensure that freight is transported correctly, efficiently, and cost-effectively. The 3PL will work with the shipper to create the optimum shipping plan using several different means.

The 3PL will coordinate with the shipper and determine if there is a need/opportunity to lock in intermodal pricing where it makes sense to do so.  This could be lanes that have the following characteristics:

  • Require equipment commitments from the rail providers
  • Need to move at predictable pricing, so they can budget the transportation costs.
  • Have static transit requirements that must be met

At the same time, the 3PL will look for lanes may have a higher level of flexibility available to them.  The shipper may be more willing to ride the pricing up and down as it changes throughout the year.  To take advantage of this, the freight should:

  • Have more flexibility to the expected delivery date
  • Be a commodity that may be able to tolerate longer transit times
  • Lane should have consistent equipment availability within 48 hours of request

In the next update, we will discuss the advantage of bringing in a 3PL to assist with shipping.

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