As consumers demand more choices on the shelf, the need for smaller more frequent shipments is increasing traffic at receivers’ docks. In turn, receivers have put pressure on suppliers and imposed lengthy and strict terms that make compliance difficult and result in fees or chargebacks. Transporting LTL time and temperature sensitive shipments with multiple pickups and deliveries makes adhering to these demands even more complex.
Penalties can be assessed for a multitude of reasons, missing a delivery appointment, incorrect tendering shipments for delivery such as product labeling, even the quality of pallets; and these fines can really add up. According to McKinsey & Company, “Penalties could add up to more than $5 billion a year across the US, if the consumer packaged goods sector doesn’t improve its current delivery performance.”
Avoiding these costs altogether may not be possible but there are ways to help reduce them and save your bottom line.
Know receiver requirements
Many times receiver requirements are hidden in fine print and aren’t discovered until an invoice is received. Careful scrutiny upfront can help reduce fees. Work with a 3PL who understands retailers’ demands and has a consistent track record of compliance. This knowledge can save you a lot of headaches.
Build in flexibility
Knowing the details upfront allows your 3PL to set more doable, manageable schedules. This is particularly critical for LTL time and temperature sensitive food shipments. Some receivers will charge a fee for early delivery. If you have a small window, ask receivers for leeway. Setting these expectations will help reduce logistics costs.
Check all shipments
Check and double check shipments before they go out the door. Making sure all documentation is in order will help reduce logistics chargebacks.
Forewarn your carriers
Knowing the challenges and potential repercussions ahead of time can help carriers prevent added penalties. Building in time to respond, constant communication and managing of shipments each step of the way can save you money.
Verify compliance upon delivery
Contact the receiver directly if possible to ensure all terms were obeyed. Keep track if there were any changes in delivery appointments. Don’t wait to receive a surprise fine.
INTERESTED IN LEARNING HOW TRADEMARK CAN HELP YOU LOWER COSTS ACROSS YOUR SUPPLY CHAIN?
KEEPING YOUR FOOD
SAFE AND FRESH
Trademark provides an unbroken chain of cold. With a clear understanding of all requirements upfront, real time monitoring and ongoing communication, we ensure your shipments are on time, intact, on budget with no surprises.