Browse Tag

ltl

How fuel scale surcharge effects transportation cost.

“It drops like a feather, and rises like a rocket”… People have said this for a long time in relation to fuel costs.

Fuel surcharge has both a good and bad impact on the economy. Of course increased fuel costs decrease personal purchasing power. Though, when fuel costs drop, top line revenue for transportation companies drops, while spend for businesses who have need for transportation gets lower. Consumers pay less for gas and transportation, as well. Airline pricing is the exception to this rule.

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Above is a simple chart explaining how increasing fuel surcharge, in addition to line haul, raises transportation cost overall. According to a recent Boston.com article Will Gas Prices Drop Below $2 a Gallon? AAA Says Yes. And, gasoline is approaching less than $2 a gallon in many states.

YRC reports their current LTL FSC is 21.30% and TL FSC is 42.60%.

It may be a good idea to get out on the road and enjoy it now, before fuel costs rise again.

Business Boondoggle: Multiple Business Units with Unaligned Transportation Strategy.

BlueGrace-ThinkOutsideTheBox

Businesses with multiple units employing different processes for the same task are NOT running lean or effective. It’s easy to get this way. Start-ups enjoy rapid success. Acquisitions are made. Technology is rapidly evolving. The skill set of the workforce changes. The result of which is that you end up using multiple systems, processes and even vendors to solve a single business problem. The business implications are far reaching and too often the executive suite or business owners are not privy to them.

Even when a need and benefit are identified, execution requires more complexity.

Whereas there is often a technology solution to the business problem or problems to increase efficiency and streamline productivity, it is not always understood. Technology often involves a subject matter expert in both the innovation and the problem it is intended to solve. Technology solutions are often misunderstood. More often than not – the business problem itself is misunderstood. Even when a need and benefit are identified, execution requires more complexity. This could include infrastructure, capital investment, training and most of all – change management. Poor Change Management is the single greatest threat to technology innovation and implementation.

During the sales process there are typically multiple detractors. They can come from all over the organization. “I do not like change,” Is the statement sales people hear most often. However, change is key to helping businesses run effective and lean. Change is critical to staying ahead of competition. And most of all change is inevitable, and should not be left alone in the hands of anyone not directly and greatly affected by the outcome.

Here are key issues facing businesses not already benefiting from a transportation and technology provider

  1. Visibility and Reporting. Without technology visibility is the hardest thing to management. Many shippers that do not utilize transportation technology typically have no key performance indicators nor know if their locations utilize a LCC (least cost carrier) program. BlueGrace is able to build a hierarchy to have each location reportable to a top tier level. Reports are limitless and business specific. Reports are built to see items like if your end users are choosing the least cost carrier or not, what is your price per pound or percentage of freight as a sale cost, and how those items are trending.
  2. Not negotiating pricing or GRI’s with full buying power: When a business has multiple units shipping with a number of different carriers and different rate structures the full price negotiation power of the organization is not being used. The pricing is being determined on a pure location spend basis and based on the skill and knowledge base of the decision maker on site at each location. BlueGrace takes all of the information from all of the locations and brings it to our key partner carriers to get tariffs for the entire organization to use. This makes things such as GRI (general rate increase) and KPI (key performance indicator) management so much easier.
  3. Consolidated Billing and Invoice Audit. When multiple business units manage their own freight and price negotiation this means there are freight bills flying around at a fast pace. If a bill goes to the individual unit to be approved, and then sent to corporate for payment how long does that process take? With a number or different carriers and billing times and schedules this has to be a business boondoggle. BlueGrace sends one consolidated invoice per week. This can be sent to multiple end users and is customizable. We also pre audit these bills to also save you time rather than having to perform this practice yourself.

 

These are a FEW of the issues facing businesses with multiple units doing multiple different processes. Please reach out today so we can help you run your business more profitably and effectively. This is our main thing.

 

“Keep the main thing, the main thing”

MainThing

 

BlueGrace Logistics CEO Bobby Harris is fond of saying “Keep the main thing, the main thing. BlueGrace employees embody, promote, live and breathe the Core Values. The most important core value of the employees themselves? #2 Be Caring of Others. It’s the people at BlueGrace that make it a great place to work. It’s the people that drive everyone to deliver their best and to be their best. It’s then also the people who carry these values into their interactions with prospects, customers and partners. Transportation and Supply Chain Management is what BlueGrace does – and does well. But the “Main Thing” is the company culture – the people themselves. If we were ever to stray from the main thing, our performance would suffer in all areas. So every day we focus on keeping the main thing, the main thing.

 

Transportation and supply chain management are simply a parts of manufacturers, distributors, wholesalers and e-commerce businesses in the United States. Each company has their core business offering – their main thing. And like us, if they stray from their main thing, their performance suffers in all areas.

 

So, how can our Main Thing allow you to focus on your Main Thing?

 

  • Our Employees.
    • We are built with industry veterans in key departments such as the C-Level suite, carrier relations, and pricing. A positive attitude is so vital to performance that it counts as 50% of job performance reviews. We do not hire unhappy people.
  • Technology and Integration:
    • Technology needs continue to evolve, and so does our technology. We outspend anyone else in our space on IT. Our BlueShip TMS is user friendly and easy on a transactional basis, it also is able to support large level client engagements and can plug into different ERP, e-commerce, and WMS systems.
  • Customer and supply chain engineering:
    • Through collaboration with our customers and through needs analysis we present a total supply chain solution. We look for current inefficiencies and gather data to send to our pricing team to present both hard and soft cost savings.
  • Proactive and daily support:
    • We see our roles as an extension of your own customer service. We send tracking, reporting, and pre invoice auditing to you as value adds as no cost to you. We are your advocate to the carriers, so you can run your business and not have to think about dealing with multiple people at multiple carriers on a daily basis.
  • Scale-ability
    • We are a private business with no debt or no stake holders to answer to. We can take on the largest of customer and projects along with hiring staff as need be to fulfill customer needs. We work with a large variety of customers and unique partnerships in our industry.
  • Franchise offering
    • We have the strongest franchise offering in our space. Logistics is a one trillion + industry per year and is over 8% of US GDP. We have low start up fees, as well as industry best training and support. You can find out more at BlueGraceFranchise.com

 

Please let us know how we can help you “Keep your main thing, the main thing” today.

 

Con-way Freight’s New President

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In June, Con-way Inc. announced Joe Dagnese as the new president of Con-way Freight, succeeding W. Gregory Lehmkuhl.

A 32 year veteran of the transportation and logistics industry, Dagnese served as the president of Con-way Truckload prior to this role, getting his start at Con-way in 1995 when he joined Menlo Logistics.

What are you wasting by not auditing your freight invoices?

At BlueGrace we make it our business to audit every invoice before it gets billed. To maximize the value our services provide, we research all invoice discrepancies and identify as either customer, carrier, or internal error.

If it is determined that the carrier has billed us in error, we dispute directly with them and a corrected invoice before we billing our customers. In the event it was caused by an internal error, we correct the error and adjust the invoice to the quoted price before the customer receives the bill., we will send that invoice at your quoted price. When there is a customer error, we inform you of the carrier findings, justification and educate you on how to avoid costly mistakes in the future. Should you dispute the findings, we provide you the opportunity to dispute with the proper paperwork, pictures, etc. and advocate on your behalf.

Failure to audit your invoices and hold your carrier’s accountable can result in thousands of dollars of annual waste. Here’s a recent, real life example:

If you were to ship, for example, 20 LTL shipments per a week, it could take 5 minutes each shipment to audit. The median salary in the United States is $33k a year. This means by BlueGrace professional auditing your shipments and letting you run your business we save you $26.45 a week in actual money as well as an hour and forty minutes in time. We provide this auditing service as an added service to our customers at no added charge. We can also provide data analysis of your current provider transportation costs to either validate or advise on if you are getting the most competitive rates possible. We also report on these audit savings in quarterly business reviews as you can see in the slide below:

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To learn more about our services email [email protected] or call 800-697-4477 today

Guaranteed vs Expedited Shipping

Every day shipments are booked for pickup with LTL carriers, and on occasion those carriers get overloaded and miss the pickup. A serious problem arises when that freight was time critical, such as a manufacturer waiting on freight from their vendors to finish a product. In cases like this, we have seen plants shut down until the freight arrives.

One way to help prevent this situation from occurring is a guaranteed shipment. By placing a day guaranteed on your shipment, the LTL carrier will be responsible if the freight misses that guarantee. They are much more inclined to pick up freight with guarantees attached to avoid paying the freight charges.

In case a carrier does miss the pickup on a time sensitive shipment, an expedited shipment may be required.  A dedicated carrier is called in to move the freight. This carrier picks up the freight and drives straight through until it arrives at the specified delivery location. Shipping costs for Expedited Freight can become expensive, as you are paying for a dedicated truck. However, when you compare the costs of expedited shipping versus the cost of shutting down the manufacturing plant, it may be a bargain.

Freight traveling cross country may require an air rate. When the freight is sitting in Laredo, TX and needs to be in Boston, MA by 10 AM the next day, the freight must be sent by air. This can be very expensive as airline space is very limited.

BlueGrace Logistics are the experts in expedited situations and the phrase our LTL representatives typically hear is “you just saved my job!” The worst feeling in the world as a customer is knowing that your job may be on line if the freight does not arrive. When you have a hotel opening in New York on Saturday and the drapes are still in Alabama on Thursday morning, that sinking feeling in your stomach will not go away until the freight arrives. On Friday morning when the customer calls to say “Thank you! You saved my job!” there is a feeling of significant relief for them – which is the best feeling for our company.

Avoid the stress and don’t play with chance, setup your next time sensitive shipment with BlueGrace Guaranteed services.  In the event you need expedited help, BlueGrace can help you there too.

 

BlueGrace Logistics

Got Freight? Get a Quick and Easy Freight Quote
1-800-MY-SHIPPING

A Guaranteed Shipping Story by: Michael Sannuto

WHY! OH! YOU! YOU! YOU!

Companies ship with us because they believe or have some type of faith in the person who contacted them from BG to get their business. Case in point:

I just set up a new shipper yesterday that had very high anxiety about shipping because his products are shipped in very time sensitive situations and he has been burned before. His freight was lost, still had to pay and was not compensated in anyway.  He hammered me with questions about what BG does if we book a shipment with “Guaranteed” delivery and it does not arrive on time.  He wasn’t totally happy with my answer as I explained we will “fight” for him, but he ended up shipping with me anyway.  I gave my word that I would keep a close eye on his shipment and “babysit” it for him.  I meant what I said and delivered on my promise for his guaranteed shipping needs. I have been keeping him in the loop with email status updates over the last 2 days, kept in touch with the carrier and made sure the delivery was a smooth process.  He continually responds with “You are great”, “Thank you for taking care of this for  me”, “I really appreciate your help”, “You’re doing a great job”. Helping people keeps me going at BlueGrace and we do it for people every day.

We’re happy to say that his shipment is on track for pick up today. I sent him an update to let him know and he is very happy someone actually cares.
This is how we roll. We care, we go beyond expectations, we are BlueGrace.  It’s all about YOU!

My Shared Experience by: Michael Sannuto, National Sales Representative

Let BlueGrace fight the complex battles of shipping for you. We know the meaning of Exceptional Logistics.

Our Guaranteed Shipping services come with a 100% Money-Back Guarantee. Click here to learn more about BlueGrace Logistics’ Guaranteed & Expedited Services. To book a shipment, please call 800.697.4477– you can even ask for Michael Sannuto himself!

Lesson for Heavy Weight Shippers

Overloaded Dry Van
This is a caution to heavy weight shippers! You cannot overload a trailer in the middle of the van.

Now this is something you don’t expect to see on your way home from work…

One of our team members captured this scene of a dry van that caved in, and as you can imagine – causing major delays during 5 o’clock rush hour on northbound I-75.

This is a caution to heavy weight shippers! You cannot overload a trailer in the middle of the van. Instead, the weight (under 45,000 lbs) must be evenly distributed throughout the trailer. Perhaps this shipment was best fit for a flatbed. Flatbeds have reinforced steel beams underneath that are designed to support heavy loads compared to a dry van.

For more information on flatbed versus dry van shipping or to book an LTL or truckload shipment with a top rated carrier contact us today.

Our team of logistics experts is happy to assist you – and fellow commuters will thank you!

The Blurry Line Between LTL and Small Parcel

Often the line between the use or difference of UPS and freight services may seem a bit blurry.  Most would agree it’s easier to ship a few boxes via UPS Small Parcel versus LTL (less-than-truckload) via a third party logistics solutions provider…. And at times, it may be the best option.  Although with a bit of information you may learn the benefits of using an LTL provider. 

Here are a few thoughts to consider before shipping:

  • How many boxes are shipping to the same location?
  • If you have a few boxes shipping to the same location it may be advantageous to use an LTL provider.  Why? Well, you can assure that all of the boxes will reach the destination at the same time. 
  • Most people believe LTL providers only move palletized material – WRONG. You do not have to put them on a pallet. However doing so may offer a sense of comfort and confidence knowing that they will arrive together. The average cost of a pallet is under $5.00.
  • What are the dimensions and specs? How long or heavy is the box? A UPS Small Parcel provider is equipped to carry smaller, lighter boxes.  Therefore when the boxes reach certain dimensions or weight the transportation provider will charge additional fees.  These fees can be avoided if shipping with an LTL Freight carrier – and the package may qualify as a “minimum” charge depending on the distance.

There are many other factors to consider when choosing to ship through UPS Small Parcel versus LTL services provider.  Hopefully these helpful tips have provided you with more resources to help your decision making a smoother process and also save your wallet!

If you have any questions, please contact a member of our team at BlueGrace Logistics to help with your shipping needs!
800-MY-SHIPPING
Twitter: @myBlueGrace

– Vanessa Castillo, Sales Manager
Follow me @Vanessa_BGmngr