In this article, learn about:
The potential fees associated with delayed shipments
Options for rescuing delayed freight
Cost considerations for choosing between rescue carriers
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It’s inevitable that at any point during the preparation, packing, and shipping process, something can go wrong. A multitude of issues can crop up between a product’s manufacture and its eventual destination on store shelves, including traffic delays, inclement weather, road and terminal closures, truck breakdowns, and many more.
Even when delays are unavoidable, suppliers unfortunately still have to absorb the costs associated with related deductions. In the case of a shipping delay, suppliers should ensure that the goods are still delivered, as this will result in an on time violation rather than an in full fine or a Supplier Quality Excellence Program (SQEP) charge for purchase order cancellation. To learn more about Walmart’s Must Arrive by Date (MABD) process, check out SupplierWiki’s How to Meet Delivery Appointments article.
So, when unavoidable and potentially deduction-causing issues arise, how do suppliers rescue their shipments and ensure their arrival to the destination?
Choose a Different LTL Carrier
Sometimes, issues that could delay shipments are caught early, before the goods have left the distribution center. In these cases, suppliers can often instruct the original logistics provider to hold the items at their distribution center and authorize a separate LTL carrier to retrieve the items.
Arranging for a new LTL carrier typically requires a new bill of lading (BOL), as well as written authorization instructing the original carrier to facilitate the transfer. This method will have extra associated costs, since suppliers are still responsible for paying the original carrier for the distance already traveled. However, choosing another LTL carrier can often allow delayed goods to arrive at their destinations on time.
Related Reading: What is a Bill of Lading (BOL)?
Choose an Expedited/Dedicated Service
Some LTL carriers, such as ArcBest and UPS, offer expedited or express shipping services. Typically, these carriers will provide a sprinter van or a box truck that exclusively carries the supplier’s freight non-stop from the distribution center to the final destinations. Additionally, full truckload (FTL) carriers can be employed for a similar expedited service.
In one instance of expedited shipping, a truck in New York impacted a low-hanging bridge, damaging the truck bed and shifting most of the freight. An emergency freight and rescue recovery company, MO Trucking Inc., brought the truck to its warehouse, unloaded the trailer, re-palatalized the freight, and delivered the goods utilizing its own vehicles. Since transportation is never predictable, examples like this show the importance of emergency freight rescue services.
While this method can ensure that items arrive on time, suppliers should be aware that expedited shipments often command a premium price point. In order to make informed business decisions, suppliers should be aware of how expedited shipping costs compare to the costs of potential deductions associated with shipping delays.
Recommended Reading: Walmart’s Shipping and Routing Transportation Guide Glossary
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