As Red Dog has recently introduced our revitalized LTL TMS, we discuss the importance of stabilizing your LTL operation.

Whether shippers rely on the spot market for their Less-than-truckload shipments or are under static contract, the fact remains that LTL shipping has become more frequently utilized in the freight industry today. This is due to many reasons, two of which are optimized pricing and businesses’ shipping needs requiring fewer FTL shipments. As LTL shipping has always been a necessary facet of the freight world and trends more so in that direction, it is now more important than ever to reassess and solidify your business’ LTL operations.?

With LTL rates invariably lower than FTL, companies will settle for unworthy rates when utilizing LTL shipments simply based on price point. To that point, firms must identify cost-saving opportunities through shipment consolidation and lane efficiency. Many shippers take this lower rate at face value and believe their LTL expenses are optimal. However, it is crucial to assess your operation and ensure that service is not mitigated at the expense of saving on rates- after all, you get what you pay for. In terms of service, your LTL provider may be saving you initially on rates, but cost you in the long term with lacking service.

From both a technological and capability standpoint, it is vital to get the most out of your supply chain as possible. You can’t bake your cake and eat it too, and bottom-of-the-barrel rates often sing this sentiment by virtue of their lacking freight capabilities. Not to suggest the highest rates should be taken, but rather that businesses should be vigilant and aware of what value their LTL provider can add. Visibility capabilities, instant quotes, and comprehensive communication are all very important aspects of your supply chain and are not worth sacrificing for the sake of lower rates. The stable structure of every supply chain is what will allow shippers to weather any storm the freight industry endures, and seeing that LTL is becoming more utilized, it is a very important time in the industry for firms to assess and ensure they are getting the most out of their Less-than-truckload providers.?