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Welcome to the Best Practices for Effective Less Than Truckload (LTL)
Freight Shipping Webinar
Presented By
READ MORE ABOUT FREIGHT BEST PRACTICES AT THE CERASIS BLOG AT http://cerasis.com/blog
Welcome!
Best Practices for Less Than Truckload Freight Shipping Webinar
IntroductionAttendee Screenshot
To Listen by phone vs. listening through your computer simply dial:
• Phone: +1 (646) 307-1720
• Access Code: 724-090-804
• Audio Pin: Provided once you join meeting on panel.
Introduction
Presenter: Adam Robinson, Marketing
Manager
Company: Cerasis
Adam Robinson oversees the creation and execution of the marketing
strategy for Cerasis.
Cerasis is a non-asset based third party logistics service provider who specializes in freight technology solutions and integrated
freight management services.
Best Practices for Less Than Truckload Freight Shipping Webinar
Webinar Agenda
Best Practices for Less Than Truckload Freight Shipping Webinar
•This 45 to 60 minute webinar will cover the following material around inbound freight management:
•What is LTL Shipping (Less-Than-Truckload) and how did it Come About? •The Benefits of Shipping via Less Than Truckload Freight •The Factors Which Determine LTL Freight Rates •What is and How To Determine LTL Freight Class •Areas to Look at in Order to Save on LTL Freight Shipping •The Benefits of a Transportation Management System for Better LTL Freight Management •Less Than Truckload Freight Shipping Tips for Improved Carrier Relations •Logistics Service Providers and How a Niche Focus on LTL Creates Better Logistics Outcomes •Conclusion and wrap up •Q&A Session
Why is Cerasis Putting on an LTL Webinar?
Best Practices for Less Than Truckload Freight Shipping Webinar
•95% of Cerasis Business is managing and empowering shippers to ship freight via Less than Truckload •The Cerasis Transportation Management System, the Cerasis Rater, processed over 300,000 LTL freight shipments in 2013. •Cerasis audited EVERY LTL Freight Invoice for our customers. •Cerasis handled all LTL freight claims on behalf of our customers. •No matter how many LTL shipments any of Cerasis freight shippers had in a week, shippers only had to get ONE freight invoice each week.
Why is Cerasis Putting on an LTL Webinar?
Best Practices for Less Than Truckload Freight Shipping Webinar
•Cerasis negotiates all the LTL freight rates with preferred and optimal LTL freight carriers on behalf of customers, maintaining those rates each year, and if possible, down to the specific lanes for best pricing. •Cerasis has worked with shippers and carriers in this way for nearly TWO decades, starting off as a niche LTL Freight Management 3PL since 1997.•In short, although most find LTL too volatile and complex, Cerasis LOVES simplifying the process of LTL freight shipping for those who ship freight via LTL freight (and Full Truckload or Small Package for that matter!)
What is LTL Shipping?
Best Practices for Less Than Truckload Freight Shipping Webinar
LTL = Less Than TruckloadLess than Truckload is a shipment that does not require a full 48- or
53-foot trailer, which is referred to as a FULL truckload.
Many LTL freight carriers specialize in different services, based on your specific needs.
What is LTL Shipping?
Best Practices for Less Than Truckload Freight Shipping Webinar
There are many options to ship freight: air, rail, water, truck.
Although intermodal, or rail, has been picking up as of late, truck transportation still can move
items faster with more flexibility.
In the United States, shipping by truck is the dominant mode,
offering a lot of options, flexibility, and lower costs.
What is LTL Shipping?
Best Practices for Less Than Truckload Freight Shipping Webinar
FTL vs. LTLFTL = Full Truckload
• Full Container,
• One Product,
• One Customer
LTL = Less than Truckload
• Can be full or not,
• Many Products,
• Many Customers
• More Cost Effective
What are the Characteristics of a LTL Shipping Carrier?
Best Practices for Less Than Truckload Freight Shipping Webinar
What is LTL Shipping?
• Generally utilize van trailers which are covered or enclosed trailers
• Few refrigerated LTL carriers who utilize temperature controlled trailers
• Roll up doors on the rear are a trend these days
• Some carriers will use pup trailers that they can haul two trailers in tandem
• LTL carriers will not accept shipments that cannot fit onto one pup trailer
How did LTL Shipping Come About in North America?Trucking Industry regulated first in 1935 by the Interstate
Commerce Commission (ICC)
Best Practices for Less Than Truckload Freight Shipping Webinar
What is LTL Shipping?
• The Motor Carrier Act of 1935 required new truckers to seek a “certificate of public convenience and necessity”
• Act required motor carriers to file their tariffs with the ICC 30 days before they became effective & then available to view
• Tariffs could then be subject to a challenge by another carrier or railroad
How did LTL Shipping Come About in North America?Deregulation
Best Practices for Less Than Truckload Freight Shipping Webinar
What is LTL Shipping?
• Truman vetoes the act in 1948, but Congress allowed carriers to both fix price and be exempt from antitrust legislation.
• The ICC denied applications from new carriers for the next 30 years
• In the 70s, Nixon, Ford, and Carter put acts in place to reduce price fixing & collective vendor pricing.
• The Motor Carrier Act of 1980 resulted in intense price competition & lower profit margins
• Between 1977 and 1982, the average LTL rate fell by up to 20%.
• The number of carriers doubled between 1980 and 1990, with over 40,000 carriers in the US.
Benefits of Shipping Freight Via LTL
Best Practices for Less Than Truckload Freight Shipping Webinar
4 Benefits of Shipping Freight via Less than Truckload
1. Often more cost effective with more options
2. More control to get creative and drive down costs
3. More Flexible4. Now able to seamlessly
connect for e-commerce carts
Benefits of Shipping Freight Via LTL
Best Practices for Less Than Truckload Freight Shipping Webinar
Often Less than Truckload Shipping is More Cost Effective and with More Available Options
• LTL shipments are a fraction of the cost of hiring an entire truck
• LTL carriers normally offer better rates than parcel carriers for competitive reasons and economies of scale.
• Accessory services available from LTL carriers not offered by FTL
• Shifting towards dimensional or cube weight measurements
Benefits of Shipping Freight Via LTL
Best Practices for Less Than Truckload Freight Shipping Webinar
More Control, Less Financial and Planning Risk via Less than Truckload
Truckloads often more transactional and easy to
procure, but ONLY if capacity is available; some try
multiple truckloads, but it’s a financial risk
Benefits of Shipping Freight Via LTL
Best Practices for Less Than Truckload Freight Shipping Webinar
Pool Distribution and Pool Consolidation
Pool distribution is picking up one or more truckloads of LTL shipments at an
origination, breaking down the shipments to MULTIPLE trucks
Pool Consolidation picks up multiple LTL shipments from multiple locations, and then loads on a truck for line haul
Pool Program Benefits
• No weekly shipment puzzle• Adaptable• NO charging to ship AIR• Save time and money over multiple
stop truckloads
Benefits of Shipping Freight Via LTL
Best Practices for Less Than Truckload Freight Shipping Webinar
Flexibility in Less Than Truckload Shipping Offers Cost Savings and Creative Shipping
• LTL freight shipping may take more time, but gives you flexibility
• Drive down costs with LTL shipments going to the same or similar place
• LTL freight shipping can be automated via a transportation management system
Best Practices for Less Than Truckload Freight Shipping Webinar
Less Than Truckload Shipping is an Attractive Way to Ship to Scale E-Commerce Options
• To keep up with an increase in consumers expectations, manufacturers and distributors now offering ecommerce options to both retail consumers and Business buyers
• The New York Times stated that the rise of e-commerce and the growing of freight expenditures often forces small business owners to reconsider their shipping strategies and also suggested using a reliable transportation partner could help small businesses scale their operations successfully
Benefits of Shipping Freight Via LTL
LTL Shipments & Rates• Typically weigh between 151 and 20,000 lbs• Carriers provide “weight break” discounts• You can ship more than 5 pallets of freight, but these moves are normally
considered volume moves• LTL freight rates can be very confusing• A mode used for smaller freight shipments, but too big to be sent via small
package and too small to fill and entire Truck• Several different shippers’ shipments are consolidated by LTL carriers onto trailers
for line-haul or staging areas for pool programs
Best Practices for Less Than Truckload Freight Shipping Webinar
Factors Which Determine LTL Freight Rates
Best Practices for Less Than Truckload Freight Shipping Webinar
Factors Which Determine LTL Freight Rates
1. Weight2. Density3. Classification of Freight4. Distance5. Base Rates
10 Factors of the Freight Rate
6. Freight All Kinds (FAK)7. Minimums8. Negotiated rate tariffs
with LTL carriers9. Negotiated discounts10. Accessorials/Surcharges
LTL Freight Classification
What is and How To Determine LTL Freight Class
Best Practices for Less Than Truckload Freight Shipping Webinar
• Allows for common standardized freight pricing
• Freight Classes are defined by the National Motor Freight Traffic Association (NMFTA)
• Published in the NMFC• In the US, each commodity is assigned a
NMFC and class for LTL shipments• 18 classes, from 50 to 500• Class is a major factor in LTL freight pricing
LTL Freight Classification
Best Practices for Less Than Truckload Freight Shipping Webinar
1.(Weight, Length, Height) Density and Value
2.Stow-ability3.Handling4.Liability
Freight Class Factors
LTL Freight Classification
Best Practices for Less Than Truckload Freight Shipping Webinar
(Weight, Length, Height) Density and ValueDensity is the space the item occupies in relation to it’s weight
DENSITY =
Weight of Freight (lbs.)
Volume in Cubic Feet
Cubic Feet=
Length x Width x Height (inches)
1728 Cubic Inches
LTL Freight Classification
Best Practices for Less Than Truckload Freight Shipping Webinar
Stow-abilityRepresents the difficulty in loading and carrying freight.
LTL Freight Classification
Best Practices for Less Than Truckload Freight Shipping Webinar
Handling
Freight that requires extra attention due to shape,
fragility or hazardous properties.
LTL Freight Classification
Best Practices for Less Than Truckload Freight Shipping Webinar
Liability
Probability of freight theft or damage, or damage to
adjacent freight.
Areas to Look at to Save on LTL Freight Shipping
Best Practices for Less Than Truckload Freight Shipping Webinar
1. Education2. Multiple Modes of Shipping3. Outbound LTL Freight
Accounting4. Inbound LTL Freight
Accounting Options5. Think “Long Term”6. Use tools, such as a TMS7. Use a 3PL
Areas to Look at to Save on LTL Freight Shipping
Best Practices for Less Than Truckload Freight Shipping Webinar
Outbound LTL Freight AccountingPrepaid vs. Prepaid and Add in Outbound
Prepaid and Add• You select the carrier, you dispatch the
carrier, and you pay the carrier• You Invoice the customer for the
product and freight charges, typically marking up the cost for your hard work
• Benefits: Turn LTL freight shipping into a profit center
Prepaid: No markup
Benefits: Offer more competitive rates
Areas to Look at to Save on LTL Freight Shipping
Best Practices for Less Than Truckload Freight Shipping Webinar
Inbound LTL Freight AccountingPrepaid and Add vs. Collect
Collect: • Eliminates handling charges• You designate carrier and arrange shipping
charges on your rates• Option, in which you are invoiced by the
carrier• Reduces having several different carriers
from different suppliers on your dock every day, maximizing staff efforts
Areas to Look at to Save on LTL Freight Shipping
Best Practices for Less Than Truckload Freight Shipping Webinar
Think “Long Term” LTL Freight Shipping costs to TRULY Save
Ask Yourself: • Is the carrier offering the right amount of
insurance for this freight shipment?• Is the LTL carrier reliable in getting your
freight to your customer in time? • Do you have a system or program that
helps you grade your LTL freight carriers performance over time?
Areas to Look at to Save on LTL Freight Shipping
Best Practices for Less Than Truckload Freight Shipping Webinar
Use a Transportation Management System
• Eliminate manual process• Have multiple carriers to choose from at
your fingertips• Ability to analyze data and shipment
activity to arm you with more knowledge• Track and manage employees and activity• Decrease time in training new hires• Easily deploy through web-based
applications
Benefits of a TMS
Areas to Look at to Save on LTL Freight Shipping
Best Practices for Less Than Truckload Freight Shipping Webinar
Use a Third Party Logistics Provider• As a small shipper saving on LTL freight is
vital to your business• But….without volume, you are stuck in a
Catch 22• A 3PL can level the volume field and help
get attractive rates by working with carriers
• A 3PL can also provide a TMS, freight accounting, claims services, carrier relationship and more
Tips For Working with LTL Carriers
Best Practices for Less Than Truckload Freight Shipping Webinar
Tips in Making Freight and Your Carrier Relations More Attractive
1. Report Accurate Weights2. Accurate Bill of Lading3. Avoid Accessorial Charges4. Proper Packaging5. Units Requiring Less
Handling
Working with a Focused Logistics Provider
Best Practices for Less Than Truckload Freight Shipping Webinar
Niche and Focus Drives Value
Whatever your needs are, write them down and when seeking out
a logistics provider, make sure they are focused on YOUR needs
by offering solutions.
Cerasis: Your LTL Freight Management Partner
Who is Cerasis?• Founded in 1997• Third Party Logistics Provider Specializing in Freight Management• State-of-the-Art Cloud Based TMS and Mobile TMS Application (Android, Apple)• Comprehensive Freight Management Services Including, but not limited to:
• Analysis and Audit of Existing Shipping Practices and Carrier Rates• Carrier Rate/Rules Negotiations and Bidding Services• Contract Management• Inbound Routing and Compliance Program• Volume/Spot Quotes, Truckload Routing (dedicated lanes & brokering)• Invoice Auditing and Consolidated Weekly Billing• Claims Processing and Maintenance• Shipper Compliance Auditing
• Solutions Custom Tailored to Meet Your Needs
Best Practices for Less Than Truckload Freight Shipping Webinar
Cerasis: Your LTL Freight Management Partner
Modes Supported
LTL North America
FTL
Intermodal
Specialized Dedicated Transportation Services
FedEx Small Package
Best Practices for Less Than Truckload Freight Shipping Webinar
Cerasis: Your LTL Freight Management Partner
Cerasis TMS = The Cerasis RaterEliminate Manual Processes
Best Practices for Less Than Truckload Freight Shipping Webinar
Optimization Capabilities
Multi-Enterprise Application
Customer Satisfaction Tools
Freight Accounting Tools and Freight Payment Options
Management Tools and Reporting Functionality
Vendor/Shipper Compliance Solutions
Cerasis: Your LTL Freight Management Partner
Cerasis Process Approach Customize a solution designed to meet your specific transportation needs
Execute a partnership agreement
Negotiate rates with carriers on your behalf
Conduct a commodity review
Collaborate with your management team to implement our custom solution
Follow up to ensure your staff is fully trained and compliant
Provide you with outstanding service and support on an ongoing basis
Conduct quarterly account review meetings
Best Practices for Less Than Truckload Freight Shipping Webinar
Cerasis: Your LTL Freight Management Partner
Cerasis TeamAn Exceptional Group of Experienced Freight
Professionals Striving to Exceed your Expectations
• Dedicated Customer Service Representative• Freight Desk• Claims Specialist• Carrier Relations Group• Implementation Team
Best Practices for Less Than Truckload Freight Shipping Webinar
Cerasis: Your LTL Freight Management Partner
Cerasis Technology
In-House IT Department
Integration
XML Web Services
Custom Reports
Best Practices for Less Than Truckload Freight Shipping Webinar
Conclusion
Best Practices for Less Than Truckload Freight Shipping Webinar
• Education is Key!• Know what makes up a rate • Provide accurate information• Get Creative!• Use Technology• Write down a checklist of your LTL freight needs and shop a
3PL• If you’d like to schedule a consultation with one of our sales
reps, pleas visit our website at http://cerasis.com to reach out to us!
Q&A
You may type your questions in the chat area and we will
answer as many as possible.
Best Practices for Less Than Truckload Freight Shipping Webinar
THANK YOU!
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Best Practices for Less Than Truckload Freight Shipping Webinar