Curate Your Carrier Base: A Case Study in Strategic Carrier Relationship Pairing
In 2018, La Cantina Doors faced a challenging predicament with their shipping needs. Due to the high value and claims ratio associated with their product, carriers were hesitant to handle their freight. As a result, La Cantina found themselves heavily reliant on one carrier with exorbitant rates, severely impacting their profitability. Seeking a solution to diversify their carrier base and improve overall efficiency, La Cantina turned to Razor Logistics for expert assistance.
Understanding that not every carrier is a perfect fit for every shipping lane or service, Razor recognized the importance of strategic relationship pairing to connect customers with carriers that would mutually benefit from the partnership. This approach ensures the establishment of strong and long-lasting relationships, maximizing the success of both parties involved.
Upon engaging with La Cantina, Razor immediately embarked on a thorough analysis of their current shipping operation. Two key issues emerged as barriers to attracting carriers: insufficient packaging and carrier perception. To address these challenges head-on, Razor set out to implement solutions that would enhance La Cantina’s appeal to carriers.
To mitigate concerns regarding packaging, Razor sourced and introduced new, robust packaging solutions that exceeded carrier standards. This step instilled confidence in carriers, demonstrating La Cantina’s commitment to secure and damage-free shipments. Additionally, to further safeguard shipments, Razor secured additional outside insurance, providing carriers with the reassurance that their cargo would be well protected throughout the transportation process.
With the packaging and insurance concerns addressed, Razor then turned its focus to expanding La Cantina’s network of carriers through personalized negotiations. Leveraging their extensive connections in the industry, Razor strategically approached carriers that had previously rejected La Cantina’s freight. Drawing on their in-depth understanding of carrier preferences and requirements, Razor presented the unique value proposition that La Cantina could offer to carriers, making their freight more attractive.
One by one, La Cantina’s carrier base began to grow and diversify, with carriers now willing to take on their shipments. What was once an exclusive reliance on a single carrier transformed into a vast and tailor-made collection of Local, Regional, and National carriers. This carefully curated carrier base not only resolved La Cantina’s earlier profit-draining issue but also significantly reduced their claims ratio, contributing to a more cost-effective and efficient shipping process.
The success story of La Cantina exemplifies how strategic carrier relationship pairing and personalized negotiations can bring about a transformative impact on a company’s logistics operations. By understanding and addressing the unique challenges faced by each customer, Razor Logistics creates tailor-made solutions that foster symbiotic relationships between shippers and carriers.
This case study showcases Razor’s commitment to going above and beyond for its customers, ensuring that they not only benefit from a well-connected network of carriers but also from the expertise and resources to optimize their shipping operations. With a profound understanding of the industry and the willingness to adapt and innovate, Razor Logistics continues to be a trusted partner for businesses seeking to curate their carrier base and drive success in their logistics endeavors.