Chapter 14. Shipper/Carrier Network Strategies. Introduction. Both shippers and carriers utilize strategies to manage their respective networks. The shipper strategy is focused on purchasing and managing transportation services to meet the needs of their external and internal customers.
Shipper/Carrier Network Strategies
Auditing/paying the freight bill
Claims, if nay
Other – private car or truck fleet management, transportation budget managementLine Aspects of Traffic management
Some shippers have direct computer links with carrier shipment systems. These provide daily position reports of all the shipper’s railcars or shipments.
Some carriers provide tracing services via the Internet.
Other carriers place information in a secure Web site that only particular shipper can access.
This information is updated on a scheduled basis.
Expediting/tracing is a valuable control tool for the shipper and consignee because they can plan production and assembly around shipment progress or problems.Expediting/Tracing
Some firms do this in-house, whereas others hire outside consultants to perform this job after the bill has actually been paid.
Contract rates and services, the diminished importance of rate bureaus and their complex tariffs, and the growth of computers enable preauditing and postauditing to take place with fewer resources than in the past.
Many carriers offer their rates often computer floppy disks or will update a shipper’s file via an EDI link automatically.Auditing/Paying the Freight Bill
Demurrage is the same concept in the rail industry.
The traffic manager is usually responsible for monitoring, managing, and paying for detention and demurrage obligations.
The manager must trade off the loading, unloading, and personnel costs against the cost of holding carrier equipment.Detention/Demurrage Processes