Welcome! Welcome to the Best Practices for Effective Less Than Truckload (LTL) Freight Shipping Webinar. Presented By

Transcription

1 Welcome! Welcome to the Best Practices for Effective Less Than Truckload (LTL) Freight Shipping Webinar Presented By READ MORE ABOUT FREIGHT BEST PRACTICES AT THE CERASIS BLOG AT

2 Introduction Attendee Screenshot To Listen by phone vs. listening through your computer simply dial: Phone: +1 (646) Access Code: Audio Pin: Provided once you join meeting on panel.

3 Introduction Presenter: Adam Robinson, Marketing Manager Company: Cerasis Adam Robinson oversees the creation and execution of the marketing strategy for Cerasis. Cerasis is a non-asset based third party logistics service provider who specializes in freight technology solutions and integrated freight management services.

4 Webinar Agenda This 45 to 60 minute webinar will cover the following material around inbound freight management: What is LTL Shipping (Less-Than-Truckload) and how did it Come About? The Benefits of Shipping via Less Than Truckload Freight The Factors Which Determine LTL Freight Rates What is and How To Determine LTL Freight Class Areas to Look at in Order to Save on LTL Freight Shipping The Benefits of a Transportation Management System for Better LTL Freight Management Less Than Truckload Freight Shipping Tips for Improved Carrier Relations Logistics Service Providers and How a Niche Focus on LTL Creates Better Logistics Outcomes Conclusion and wrap up Q&A Session

5 95% of Cerasis Business is managing and empowering shippers to ship freight via Less than Truckload The Cerasis Transportation Management System, the Cerasis Rater, processed over 300,000 LTL freight shipments in Cerasis audited EVERY LTL Freight Invoice for our customers. Cerasis handled all LTL freight claims on behalf of our customers. No matter how many LTL shipments any of Cerasis freight shippers had in a week, shippers only had to get ONE freight invoice each week. Why is Cerasis Putting on an LTL Webinar?

6 Why is Cerasis Putting on an LTL Webinar? Cerasis negotiates all the LTL freight rates with preferred and optimal LTL freight carriers on behalf of customers, maintaining those rates each year, and if possible, down to the specific lanes for best pricing. Cerasis has worked with shippers and carriers in this way for nearly TWO decades, starting off as a niche LTL Freight Management 3PL since In short, although most find LTL too volatile and complex, Cerasis LOVES simplifying the process of LTL freight shipping for those who ship freight via LTL freight (and Full Truckload or Small Package for that matter!)

7 What is LTL Shipping? LTL = Less Than Truckload Less than Truckload is a shipment that does not require a full 48- or 53-foot trailer, which is referred to as a FULL truckload. Many LTL freight carriers specialize in different services, based on your specific needs.

8 What is LTL Shipping? There are many options to ship freight: air, rail, water, truck. In the United States, shipping by truck is the dominant mode, offering a lot of options, flexibility, and lower costs. Although intermodal, or rail, has been picking up as of late, truck transportation still can move items faster with more flexibility.

9 What is LTL Shipping? FTL vs. LTL LTL = Less than Truckload Can be full or not, Many Products, Many Customers More Cost Effective FTL = Full Truckload Full Container, One Product, One Customer

10 What is LTL Shipping? What are the Characteristics of a LTL Shipping Carrier? Generally utilize van trailers which are covered or enclosed trailers Few refrigerated LTL carriers who utilize temperature controlled trailers Roll up doors on the rear are a trend these days Some carriers will use pup trailers that they can haul two trailers in tandem LTL carriers will not accept shipments that cannot fit onto one pup trailer

11 What is LTL Shipping? How did LTL Shipping Come About in North America? Trucking Industry regulated first in 1935 by the Interstate Commerce Commission (ICC) The Motor Carrier Act of 1935 required new truckers to seek a certificate of public convenience and necessity Act required motor carriers to file their tariffs with the ICC 30 days before they became effective & then available to view Tariffs could then be subject to a challenge by another carrier or railroad

12 What is LTL Shipping? How did LTL Shipping Come About in North America? Deregulation Truman vetoes the act in 1948, but Congress allowed carriers to both fix price and be exempt from antitrust legislation. The ICC denied applications from new carriers for the next 30 years In the 70s, Nixon, Ford, and Carter put acts in place to reduce price fixing & collective vendor pricing. The Motor Carrier Act of 1980 resulted in intense price competition & lower profit margins Between 1977 and 1982, the average LTL rate fell by up to 20%. The number of carriers doubled between 1980 and 1990, with over 40,000 carriers in the US.

13 Benefits of Shipping Freight Via LTL 4 Benefits of Shipping Freight via Less than Truckload 1. Often more cost effective with more options 2. More control to get creative and drive down costs 3. More Flexible 4. Now able to seamlessly connect for e-commerce carts

14 Benefits of Shipping Freight Via LTL Often Less than Truckload Shipping is More Cost Effective and with More Available Options LTL shipments are a fraction of the cost of hiring an entire truck LTL carriers normally offer better rates than parcel carriers for competitive reasons and economies of scale. Accessory services available from LTL carriers not offered by FTL Shifting towards dimensional or cube weight measurements

15 Benefits of Shipping Freight Via LTL More Control, Less Financial and Planning Risk via Less than Truckload Truckloads often more transactional and easy to procure, but ONLY if capacity is available; some try multiple truckloads, but it s a financial risk

16 Benefits of Shipping Freight Via LTL Pool Distribution and Pool Consolidation Pool distribution is picking up one or more truckloads of LTL shipments at an origination, breaking down the shipments to MULTIPLE trucks Pool Consolidation picks up multiple LTL shipments from multiple locations, and then loads on a truck for line haul Pool Program Benefits No weekly shipment puzzle Adaptable NO charging to ship AIR Save time and money over multiple stop truckloads

17 Benefits of Shipping Freight Via LTL Flexibility in Less Than Truckload Shipping Offers Cost Savings and Creative Shipping LTL freight shipping may take more time, but gives you flexibility Drive down costs with LTL shipments going to the same or similar place LTL freight shipping can be automated via a transportation management system

18 Less Than Truckload Shipping is an Attractive Way to Ship to Scale E-Commerce Options To keep up with an increase in consumers expectations, manufacturers and distributors now offering ecommerce options to both retail consumers and Business buyers The New York Times stated that the rise of e- commerce and the growing of freight expenditures often forces small business owners to reconsider their shipping strategies and also suggested using a reliable transportation partner could help small businesses scale their operations successfully Benefits of Shipping Freight Via LTL

19 Factors Which Determine LTL Freight Rates LTL Shipments & Rates Typically weigh between 151 and 20,000 lbs Carriers provide weight break discounts You can ship more than 5 pallets of freight, but these moves are normally considered volume moves LTL freight rates can be very confusing A mode used for smaller freight shipments, but too big to be sent via small package and too small to fill and entire Truck Several different shippers shipments are consolidated by LTL carriers onto trailers for line-haul or staging areas for pool programs

20 Factors Which Determine LTL Freight Rates 10 Factors of the Freight Rate 1. Weight 2. Density 3. Classification of Freight 4. Distance 5. Base Rates 6. Freight All Kinds (FAK) 7. Minimums 8. Negotiated rate tariffs with LTL carriers 9. Negotiated discounts 10. Accessorials/Surcharges

21 LTL Freight Classification What is and How To Determine LTL Freight Class Allows for common standardized freight pricing Freight Classes are defined by the National Motor Freight Traffic Association (NMFTA) Published in the NMFC In the US, each commodity is assigned a NMFC and class for LTL shipments 18 classes, from 50 to 500 Class is a major factor in LTL freight pricing

22 LTL Freight Classification Freight Class Factors 1.(Weight, Length, Height) Density and Value 2.Stow-ability 3.Handling 4.Liability

23 LTL Freight Classification (Weight, Length, Height) Density and Value Density is the space the item occupies in relation to it s weight Cubic Feet = Length x Width x Height (inches) 1728 Cubic Inches DENSITY = Weight of Freight (lbs.) Volume in Cubic Feet

24 LTL Freight Classification Stow-ability Represents the difficulty in loading and carrying freight.

25 LTL Freight Classification Handling Freight that requires extra attention due to shape, fragility or hazardous properties.

26 LTL Freight Classification Liability Probability of freight theft or damage, or damage to adjacent freight.

27 Areas to Look at to Save on LTL Freight Shipping 1. Education 2. Multiple Modes of Shipping 3. Outbound LTL Freight Accounting 4. Inbound LTL Freight Accounting Options 5. Think Long Term 6. Use tools, such as a TMS 7. Use a 3PL

28 Areas to Look at to Save on LTL Freight Shipping Outbound LTL Freight Accounting Prepaid vs. Prepaid and Add in Outbound Prepaid and Add You select the carrier, you dispatch the carrier, and you pay the carrier You Invoice the customer for the product and freight charges, typically marking up the cost for your hard work Benefits: Turn LTL freight shipping into a profit center Prepaid: No markup Benefits: Offer more competitive rates

29 Areas to Look at to Save on LTL Freight Shipping Inbound LTL Freight Accounting Prepaid and Add vs. Collect Collect: Eliminates handling charges You designate carrier and arrange shipping charges on your rates Option, in which you are invoiced by the carrier Reduces having several different carriers from different suppliers on your dock every day, maximizing staff efforts

30 Areas to Look at to Save on LTL Freight Shipping Think Long Term LTL Freight Shipping costs to TRULY Save Ask Yourself: Is the carrier offering the right amount of insurance for this freight shipment? Is the LTL carrier reliable in getting your freight to your customer in time? Do you have a system or program that helps you grade your LTL freight carriers performance over time?

31 Areas to Look at to Save on LTL Freight Shipping Use a Transportation Management System Benefits of a TMS Eliminate manual process Have multiple carriers to choose from at your fingertips Ability to analyze data and shipment activity to arm you with more knowledge Track and manage employees and activity Decrease time in training new hires Easily deploy through web-based applications

32 Areas to Look at to Save on LTL Freight Shipping Use a Third Party Logistics Provider As a small shipper saving on LTL freight is vital to your business But.without volume, you are stuck in a Catch 22 A 3PL can level the volume field and help get attractive rates by working with carriers A 3PL can also provide a TMS, freight accounting, claims services, carrier relationship and more

33 Tips For Working with LTL Carriers Tips in Making Freight and Your Carrier Relations More Attractive 1. Report Accurate Weights 2. Accurate Bill of Lading 3. Avoid Accessorial Charges 4. Proper Packaging 5. Units Requiring Less Handling

34 Working with a Focused Logistics Provider Niche and Focus Drives Value Whatever your needs are, write them down and when seeking out a logistics provider, make sure they are focused on YOUR needs by offering solutions.

35 Cerasis: Your LTL Freight Management Partner Who is Cerasis? Founded in 1997 Third Party Logistics Provider Specializing in Freight Management State-of-the-Art Cloud Based TMS and Mobile TMS Application (Android, Apple) Comprehensive Freight Management Services Including, but not limited to: Analysis and Audit of Existing Shipping Practices and Carrier Rates Carrier Rate/Rules Negotiations and Bidding Services Contract Management Inbound Routing and Compliance Program Volume/Spot Quotes, Truckload Routing (dedicated lanes & brokering) Invoice Auditing and Consolidated Weekly Billing Claims Processing and Maintenance Shipper Compliance Auditing Solutions Custom Tailored to Meet Your Needs

36 LTL North America FTL Intermodal Cerasis: Your LTL Freight Management Partner Modes Supported Specialized Dedicated Transportation Services FedEx Small Package

37 Customer Satisfaction Tools Multi-Enterprise Application Management Tools and Reporting Functionality Cerasis: Your LTL Freight Management Partner Cerasis TMS = The Cerasis Rater Eliminate Manual Processes Freight Accounting Tools and Freight Payment Options Optimization Capabilities Vendor/Shipper Compliance Solutions

38 Cerasis: Your LTL Freight Management Partner Cerasis Process Approach Customize a solution designed to meet your specific transportation needs Execute a partnership agreement Negotiate rates with carriers on your behalf Conduct a commodity review Collaborate with your management team to implement our custom solution Follow up to ensure your staff is fully trained and compliant Provide you with outstanding service and support on an ongoing basis Conduct quarterly account review meetings

39 Cerasis: Your LTL Freight Management Partner Cerasis Team An Exceptional Group of Experienced Freight Professionals Striving to Exceed your Expectations Dedicated Customer Service Representative Freight Desk Claims Specialist Carrier Relations Group Implementation Team

40 Cerasis: Your LTL Freight Management Partner Cerasis Technology In-House IT Department Integration XML Web Services Custom Reports

41 Conclusion Education is Key! Know what makes up a rate Provide accurate information Get Creative! Use Technology Write down a checklist of your LTL freight needs and shop a 3PL If you d like to schedule a consultation with one of our sales reps, pleas visit our website at to reach out to us!

42 Q&A You may type your questions in the chat area and we will answer as many as possible.

43 THANK YOU! RSS LinkedIn Facebook Twitter Google+ YouTube