“A Billion Here, a Billion There, and Pretty Soon You're Talking Real Money"
The Billion here, a Billion there quote is attribute to the late Senator from Illinois, Ev Dirksen. Most people reading this may not know who Everett McKinley Dirksen is, since he died in 1969. But Ev Dirksen was always concerned about the rise of the National Debt and was vocal about it…thus the Billion here…Billion there quote.
Now you are most likely asking yourself what does a dead Senator and a Billion dollar quote have to do with anything transportation and logistics.
Well, as best as we can determine here at BestTransport, and according to our resident LTL expert Reo Hatfield, shippers are overspending…something old Ev would have called waste…Billions of dollars on LTL shipments annually.
How and Why - Weight and Inspections Rules
You may be asking yourself the How and Why question?
How you ask…
The carriers are using “their” legal “Weight and Inspection Rules Tariffs” to verify accurate information. They are doing “their” job by following “their” rules. Their…I mean…There…you have it! Each LTL carrier has their own rules which they wrote and they can, and do, enforce these rules which benefits their bottom line and not the shipper.
Why you ask…
Well the answer is simple, because they can. Shippers aren’t following the rules. In fairness to the carriers they have these rules and many shippers simply don’t have the time to review, or understand, or even find where all these rules are written and how they are applied.
Where can I find these rules you ask…
You can find the rules at the carrier’s office. You can go on line and look them up, although even that can be difficult.
THE FAILURE TO KNOW, UNDERSTAND AND COMPLY WITH CARRIER WEIGHT AND INSPECTION RULES ARE COSTING SHIPPERS BILLIONS EACH AND EVERY YEAR!
It is not what you Expect, but what you Inspect that is important…
If you “expect” a carrier is going to tell you, or help you, each time you don’t know, or understand, or violate one of their “rules” you will be a long time waiting.
They have over a billion reasons not to help, not to correct, and not to show a shipper how to avoid all those overcharges.
LTL Carrier’s Unique Profit Center
LTL Carriers, across the country are hiring hundreds of extra personnel in their Weight and Inspection area for they know this is where the greatest opportunity to fatten their bottom line exists.
For an LTL Shipper the solution to the problem is very simple:
UNDERSTAND THE RULES, FOLLOW THE RULES AND ADJUST BEHAVIOR
Well, the solution may seem very simple on the surface, but as we all know the devil in in the details.
- You need to first find the rules
- You need to read the rules… remember they are different from one carrier to the next
- You need to follow the rules…personnel training on rules and procedure
- You need to understand density rules…to avoid extra charges
- You need to adjust behavior…check the weight and sizes of pallets
If a Shipper charges a customer $100.00 for freight then 2 months later gets a $50.00 bill from the Carrier’s Weight and Inspection area (Carrier’s Profit Center)…Who pays…YOU DO!
Now, try and bill a customer $50.00, two months after delivery and see what impression that makes.
That is money from the shipper’s bottom line to the carrier’s bottom line.
SHIPPER LTL PROFIT CENTER
BESTTRANSPORT LTL SAVINGS GUARANTEE: We turn our knowledge and experience into a Profit Center for Shippers. Our Savings Guarantee Program is a no risk evaluation of a shippers LTL systems and procedures. Our Savings Program costs nothing, but can yield large bottom line rewards. We work with and for the Shipper’s traffic department. We do the heavy lifting, we find the savings and the shipper profits.
Our “Share the Profit” pricing model gives us the incentive to save as much as possible for every shipper on the program. We don’t profit until the shipper profits!
Learn how our Guaranteed Savings Program can grow your bottom line!
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Like to learn more before you schedule an interview, download our report on “Understanding the Linear Foot Rule”.