Why? Because if your orders are not delivered on-time and in one piece or without damage you will have likely lost a customer. Like it or not freight shipping services can make or break your company and they are an extension of your business.

The trucking and transportation industry is huge. On a typical day in the USA, about 43 million tons of goods, valued at about $29 billion, moved nearly 12 billion ton-miles on the nation’s interconnected transportation network. These domestic numbers are according to the Bureau of Transportation Statistics and give you a simple snapshot of the scope or importance of this sector. It is staggering how crucial this business is when it comes to moving our goods and it can literally cripple a nation  if it is shutdown for any length of time.

First lets define freight shipping services, freight broker and some other terms used in the shipping industry.

• Truckload: This is where the amount of cargo typically fills the truck. The owner of the goods is paying the cost for a full load to go from point A to point B.

• Consignor:  Shipper, person or firm (usually the seller) who delivers a consignment to a carrier for transporting it to a consignee (usually the buyer) named in the transportation documents. Ownership (title) of the goods remains with the consignor until the consignee pays for them in full.

• Consignee: the person to whom merchandise is delivered over to or receiver.

• TDG: Transportation of Dangerous Good. A regulation used to ensure safe delivery and identification of hazardous goods.

• WHMIS: The Workplace Hazardous Materials Information System (WHMIS) is Canada’s national hazard communication standard. The key elements of the system are cautionary labelling of containers of WHMIS “controlled products”, the provision of material safety data sheets (MSDS) and worker education and training programs.

• Intermodal: Is when your shipment involves more than one mode or form of transportation during it trip from origin to destination. Your shipment might start off on a truck, get loaded on rail then ultimately end up in an ocean carrier or a ship.

• Air Freight Services: Carriage paid for goods transported in aircraft or air cargo.

• Freight Broker: A freight broker is an individual or company that serves as a liaison between another individual or company that needs shipping services and an authorized motor carrier.

• Customs Broker: Assist importers and exporters in meeting Federal requirements governing imports and exports. Brokers submit necessary information and appropriate payments to regulatory bodies behalf of their clients and charge them a fee for this service.

• LTL: Less than Truckload.

• FOB Point: Free on board aka freight on board.  This term determines when legal title of goods passes from shipper to buyer. This site provides a detailed explanation on the importance of FOB Points and how they work.

We have put together some tips we hope will help you make a decision regarding selecting the right freight shipping service for your organization.

1. Request routing or coverage areas. Smaller firms interline or join forces with other networks.
2. Ask about fleet size and number of employees. Do they own their own trucks, how big is their fleet and do they sub-contract work (independents). This may not matter to you but an actual employee of the company versus and independent contractor is the point we are raising.
3. How long they have been in business.
4. Request a copy of their Spill response plan.
5. Emergency response plan.
6. Do they have a safety coordinator on staff. How do they handle training. Get copies of all certifications for handling dangerous goods and proof of driver certifications. If you are shipping toilet paper this may not be on your priority list however if you are moving fuel, chemicals or any other products which could damage the environment much of the above applies.
7. Safety Records – Sample of an accident investigation performed in their organization.
8. Ask for their damage claim history.
9. Copy of their liability insurance. You may wish to request anywhere from $5 – 10 million depending on commodities they ship on your behalf.
10. Workers compensation coverage.

These are just a few of the areas you may wish to target in evaluating and selecting your service provider.

Visit www.RFQPro.com for additional procurement tips. This article may only be used in it’s entirety, with the author’s Resource Box attached. All links must remain included and no changes may be made to the article without the author’s prior permission.

Earning a credential or designation from a recognized association can make a difference!  Professional designations are a means of recognizing individuals who have completed training in their chosen field. Designations can also imply achievement, competitive edge, industry recognition which can relate to higher compensation, and opportunities for promotion and career enhancement.

A recent survey from the National Organization for Competency Assurance (NOCA) reports that more than half of certified professionals said that those certified in their industry received higher compensation than those who were not.

Designations do add weight to the individuals title. For example a P. Eng or a Professional Engineer’s title would add credibility in areas where ones expertise was solicited.

Credentialing and Accreditation requires a certain level of education, experience and some specialized training to qualify for the designation. It also requires the Professionals to practice within a high set of standards.

Some background on organizations responsible for handing out designations in the purchasing field:

In Canada, the designation for a purchasing professional is called a CPP or Certified Professional Purchaser. It appears their program is evolving and will now emulate similar supply chain programs in USA. PMAC’s Strategic Supply Chain Management Leadership Program (SSCMLP), which is the professional development component of the accreditation process leading to its professional designation, offers a graduate level competency-based curriculum, balanced to deliver advanced supply chain management knowledge and high level business skills. The curriculum of Ryerson’s technology-based MBA program with a specialization in supply chain management fulfills the learning outcomes of PMAC’s SSCMLP.

As the most sought-after credential in supply chain management in Canada, PMAC’s internationally recognized designation signals that its holder has attained the highest level of professional competence and is committed to lifelong learning.

In the USA

A CPIM education claims to help you:

Increase your functional knowledge of production and inventory management. Improve efficiency across the processes of your organization’s supply chain. Streamline operations through accurate forecasting. Predict outcomes more accurately.

Maximize customer satisfaction by delivering products and services Just-in-Time. Increase profitability by optimizing your organization’s inventory investment. Enhance your credibility among peers, employers, and customers.

Who should earn the CPIM designation?

A CPIM education is essential for professionals involved in:

Production and inventory management
Operations
Supply chain management
Procurement
Materials management
Purchasing

The designation is CPSM or The Certified Professional in Supply Management® (CPSM®) and is recognized internationally.

The Certified Purchasing Manager (C.P.M.) program is specifically designed for experienced supply managers, with a focus on managerial and leadership skills, plus a variety of specialized functions.

The Accredited Purchasing Practitioner (A.P.P.) designation is specifically designed for entry-level supply management professionals, or those primarily engaged in the operational side of the supply function.

These are some of the associations and professional designations or letters you can add to your title but do they make you more marketable and as an employer, if you had your choice whom would you hire? In today’s economy, my preference would be to hire someone with both experience and education and if possible incorporate a blend of styles and personnel. Meaning, a seasoned manager willing to pass on his trade to a younger educated professional who is willing to listen, learn and take direction from someone that has been around the block. At the end of the day, your firm will benefit greater in this environment versus bringing in an inexperienced individual with a degree or designation but never having gotten their hands dirty or been in the trenches.