Carrier relationships are the backbone of a successful supply chain. When managed well, they ensure smoother operations, fewer delays, and better overall performance. But here’s the catch: many shippers overcomplicate these partnerships with unnecessary processes and unclear communication. The good news? Building better relationships doesn’t have to mean adding layers of complexity. In fact, the simplest strategies are often the most effective.
Let’s face it: the freight world is chaotic. Capacity swings, rate volatility, and supply chain disruptions can make even the most seasoned professionals lose sleep. But here’s the truth: strengthening your carrier relationships doesn’t just help you weather the storm—it puts you in a position to thrive. As Bob Ferrari, Supply Chain Consultant, aptly points out, “The most successful companies are those that understand that their supply chain partners, including carriers, are an extension of their own organization.” And for shippers, seamless collaboration with their carriers starts with a few simple, actionable steps.
Here are five strategies for shippers to improve their carrier relationships while keeping things straightforward:
1. Simplify Communication Channels
In today’s fast-paced business environment, effective communication is critical. But how can you ensure your message is clear, concise, and reaches the right people at the right time?
If your carriers are dealing with fragmented emails, multiple points of contact, or unclear instructions, misunderstandings are inevitable.
What to do instead: Streamline communication. Maintaining communication and nurturing relationships, even without immediate business needs, ensures carriers remain engaged. Shippers’ needs fluctuate, and staying connected makes it easier to secure capacity when demand spikes—a critical advantage during today’s carrier shortage. Use a single platform for updates, schedules, and issue tracking.
Consider adopting a centralized communication platform, such as a Transportation Management System (TMS). A TMS can help you manage all carrier interactions in one place. From sending shipment requests and tracking deliveries to exchanging documents and performance data, a TMS can significantly simplify communication and reduce the risk of misunderstandings.
2. Be Transparent About Expectations
Carriers need clarity to deliver results. Vague instructions or shifting priorities can erode trust and lead to subpar performance.
Imagine embarking on a journey without a clear destination in mind. That’s what it’s like for carriers when expectations are vague or undefined. It leads to frustration, misalignments, and, ultimately, a breakdown in the relationship.
Here’s how to fix it: Outline expectations upfront. Define service-level agreements (SLAs), load details, timelines, and payment terms clearly and in writing. Transparency ensures carriers know exactly what is required, helping them plan and allocate resources effectively. When shippers set clear, measurable benchmarks, it’s easier to identify and address potential issues before they escalate. Having an open feedback loop with your carriers ensures two-way transparency, leading to a more trustworthy relationship.
For example, if on-time delivery is critical for your business, clearly communicate your expectations regarding delivery windows and potential penalties for delays. This clarity helps carriers align their operations with your needs, leading to a more successful partnership.
3. Ensure Timely and Fair Payments
Money matters. Late or inconsistent payments are among the biggest frustrations for carriers. Shippers who fail to prioritize timely payments risk damaging relationships and losing priority status. A recent survey of carriers on Teleroute revealed that 63% identified “late payment” as their top payment-related concern. For shippers, mastering this process can become a significant competitive advantage.
What to do: Pay on time—every time. Set up automated payment systems to eliminate delays. Also, consider implementing a Transportation Factoring program to incentivize better performance from carriers who might benefit from earlier payments.
A carrier who knows you’ll pay promptly will be more likely to prioritize your loads, even during capacity crunches.
4. Recognize and Reward High Performers
Recognizing and rewarding high-performing carriers is a powerful way to strengthen relationships and encourage continued excellence. It shows your carriers that you value their hard work and dedication.
For shippers, showing appreciation can go a long way toward building loyalty among carriers. Recognition doesn’t have to involve elaborate rewards but should be consistent and meaningful.
How to implement: Track performance metrics like on-time delivery rates, load acceptance, and service quality. Share this data with your carriers and highlight top performers. Recognition could be as simple as a quarterly “Carrier of the Month” shoutout or giving high performers access to preferred lanes.
5. Use Technology to Reduce Manual Workload
Manual processes are a common pain point for shippers and carriers alike. They create friction.
Managing carrier relationships involves numerous manual tasks, from onboarding new carriers and scheduling shipments to tracking deliveries and auditing invoices. Constant back-and-forth emails, manual data entry, and redundant check-ins waste valuable time and resources. These tasks can be time-consuming and inefficient, taking your team’s focus away from more strategic activities.
Solution: Invest in tools that automate routine tasks. A true end-to-end TMS can help you with transportation planning and execution which includes carrier onboarding, managing loads, tracking shipments, freight audit & payment, and provide real-time updates without constant manual intervention. This not only saves time but also reduces the risk of errors and improves overall efficiency.
Bringing It All Together
In the dynamic world of supply chain management, strong carrier relationships are the bedrock of success for any shipper. They ensure the smooth flow of goods, enhance customer satisfaction, and contribute to the overall health of your business.
Improving carrier relationships doesn’t require a massive overhaul. Start small. Simplify communication, clarify expectations, pay on time, recognize performance, and leverage technology. These straightforward steps will strengthen your shipper-carrier partnerships without adding unnecessary complexity. A robust TMS can be an invaluable tool in this journey. It can streamline communication, automate tasks, and provide the visibility needed to foster strong carrier relationships.
In an industry where every second counts, better relationships with your carriers mean smoother operations, fewer headaches, and a competitive edge. By acting today, you’re not just building partnerships—you’re laying the foundation for long-term success in an ever-changing logistics landscape.
Josephus Ayoola is the Director of Shipper Growth at Alpega.
5 Steps to Improve Carrier Relationships Without Adding Complexity
Carrier relationships are the backbone of a successful supply chain. When managed well, they ensure smoother operations, fewer delays, and better overall performance. But here’s the catch: many shippers overcomplicate these partnerships with unnecessary processes and unclear communication. The good news? Building better relationships doesn’t have to mean adding layers of complexity. In fact, the simplest strategies are often the most effective.
Let’s face it: the freight world is chaotic. Capacity swings, rate volatility, and supply chain disruptions can make even the most seasoned professionals lose sleep. But here’s the truth: strengthening your carrier relationships doesn’t just help you weather the storm—it puts you in a position to thrive. As Bob Ferrari, Supply Chain Consultant, aptly points out, “The most successful companies are those that understand that their supply chain partners, including carriers, are an extension of their own organization.” And for shippers, seamless collaboration with their carriers starts with a few simple, actionable steps.
Here are five strategies for shippers to improve their carrier relationships while keeping things straightforward:
1. Simplify Communication Channels
In today’s fast-paced business environment, effective communication is critical. But how can you ensure your message is clear, concise, and reaches the right people at the right time?
If your carriers are dealing with fragmented emails, multiple points of contact, or unclear instructions, misunderstandings are inevitable.
What to do instead: Streamline communication. Maintaining communication and nurturing relationships, even without immediate business needs, ensures carriers remain engaged. Shippers’ needs fluctuate, and staying connected makes it easier to secure capacity when demand spikes—a critical advantage during today’s carrier shortage. Use a single platform for updates, schedules, and issue tracking.
Consider adopting a centralized communication platform, such as a Transportation Management System (TMS). A TMS can help you manage all carrier interactions in one place. From sending shipment requests and tracking deliveries to exchanging documents and performance data, a TMS can significantly simplify communication and reduce the risk of misunderstandings.
2. Be Transparent About Expectations
Carriers need clarity to deliver results. Vague instructions or shifting priorities can erode trust and lead to subpar performance.
Imagine embarking on a journey without a clear destination in mind. That’s what it’s like for carriers when expectations are vague or undefined. It leads to frustration, misalignments, and, ultimately, a breakdown in the relationship.
Here’s how to fix it: Outline expectations upfront. Define service-level agreements (SLAs), load details, timelines, and payment terms clearly and in writing. Transparency ensures carriers know exactly what is required, helping them plan and allocate resources effectively. When shippers set clear, measurable benchmarks, it’s easier to identify and address potential issues before they escalate. Having an open feedback loop with your carriers ensures two-way transparency, leading to a more trustworthy relationship.
For example, if on-time delivery is critical for your business, clearly communicate your expectations regarding delivery windows and potential penalties for delays. This clarity helps carriers align their operations with your needs, leading to a more successful partnership.
3. Ensure Timely and Fair Payments
Money matters. Late or inconsistent payments are among the biggest frustrations for carriers. Shippers who fail to prioritize timely payments risk damaging relationships and losing priority status. A recent survey of carriers on Teleroute revealed that 63% identified “late payment” as their top payment-related concern. For shippers, mastering this process can become a significant competitive advantage.
What to do: Pay on time—every time. Set up automated payment systems to eliminate delays. Also, consider implementing a Transportation Factoring program to incentivize better performance from carriers who might benefit from earlier payments.
A carrier who knows you’ll pay promptly will be more likely to prioritize your loads, even during capacity crunches.
4. Recognize and Reward High Performers
Recognizing and rewarding high-performing carriers is a powerful way to strengthen relationships and encourage continued excellence. It shows your carriers that you value their hard work and dedication.
For shippers, showing appreciation can go a long way toward building loyalty among carriers. Recognition doesn’t have to involve elaborate rewards but should be consistent and meaningful.
How to implement: Track performance metrics like on-time delivery rates, load acceptance, and service quality. Share this data with your carriers and highlight top performers. Recognition could be as simple as a quarterly “Carrier of the Month” shoutout or giving high performers access to preferred lanes.
5. Use Technology to Reduce Manual Workload
Manual processes are a common pain point for shippers and carriers alike. They create friction.
Managing carrier relationships involves numerous manual tasks, from onboarding new carriers and scheduling shipments to tracking deliveries and auditing invoices. Constant back-and-forth emails, manual data entry, and redundant check-ins waste valuable time and resources. These tasks can be time-consuming and inefficient, taking your team’s focus away from more strategic activities.
Solution: Invest in tools that automate routine tasks. A true end-to-end TMS can help you with transportation planning and execution which includes carrier onboarding, managing loads, tracking shipments, freight audit & payment, and provide real-time updates without constant manual intervention. This not only saves time but also reduces the risk of errors and improves overall efficiency.
Bringing It All Together
In the dynamic world of supply chain management, strong carrier relationships are the bedrock of success for any shipper. They ensure the smooth flow of goods, enhance customer satisfaction, and contribute to the overall health of your business.
Improving carrier relationships doesn’t require a massive overhaul. Start small. Simplify communication, clarify expectations, pay on time, recognize performance, and leverage technology. These straightforward steps will strengthen your shipper-carrier partnerships without adding unnecessary complexity. A robust TMS can be an invaluable tool in this journey. It can streamline communication, automate tasks, and provide the visibility needed to foster strong carrier relationships.
In an industry where every second counts, better relationships with your carriers mean smoother operations, fewer headaches, and a competitive edge. By acting today, you’re not just building partnerships—you’re laying the foundation for long-term success in an ever-changing logistics landscape.
Josephus Ayoola is the Director of Shipper Growth at Alpega.
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