Wednesday, December 24, 2008

What to consider when hiring a transportation consultant - Pt 2

By Tom Moore

Finding a good transportation consultant that can offer good solutions for your needs can be tricky. In part 1 of our two part series we looked at 5 items to consider. We will review the final five in this part.

1. Rate reductions are becoming very difficult to get. Knowing about systems that can increase and support efficiency in transportation is a major role of a transportation consultant. Systems can include everything from minimizing clerical work to improving consolidation, packing of containers, optimizing load size and routing.

2. Do you know the real costs for fuel charges and fuel surcharges? Good Transportation Consultants do. And their understanding of fuel surcharges can save you money. In fact, it is not unusual for some shippers to pay in excess of 15%, just because they don't know any better. The railroads have been singled out for pulling the wool over the eyes of many shippers with fuel charges, but they are not the only ones.

3. One way of creating savings is to understand that bigger loads can equal big savings. Transportation consultants understand this, at least the good ones do. By maximizing container loads and pallet building, shippers can optimize space on trucks. More product on each load means that there will be fewer shipments. Few shipments = big savings. Good transportation consultants can show shippers the advantages of this and bring the systems and needed process changes. As an example, a major transportation consulting firm, Transportation Warehouse Optimization saved Procter & Gamble, a long time client, 7% with software called AutoVLB. It is just one of the many reasons Fortune 50 companies continue to retain this transportation consulting firm for their counsel and advice.

4. Think back to our discussion on finding someone who views the long-term relationship. That specifically deals with transportation consultants who are after a quick buck and say they will work for contingency fees. That is short-term thinking and it may save you money on a one-time basis, but will hurt you on the long term. That transportation consultant will no doubt get a great check, but you will eventually not be satisfied and it does not foster a long-term relationship. Short cuts may be taken but they are not anything you would consider for the long haul.

5. Finding a good transportation consultant can only be a benefit for you. They understand your problems and your industry. They can help you save the money and produce a superior ROI.

Test your skills and see how efficient you are at managing costs by loading a truck or a warehouse. Visit www.TransportationOptimization.com. While there, ask for a call with one of the premier transportation consultants in the industry, Thomas Moore and his associates at Transportation | Warehouse Optimization. Working for many companies in the top 50 fortune 500 like Procter & Gamble and BP they understand your unique problems and know how to solve them. - 15478

About the Author: