Jarrod Marinello, Executive Vice President/Owner: First, decide how many providers to use, then reward business to each one of the providers. You may want to use some more than others, but use each at least five percent.
Don’t award the lanes based on the provider being the lowest cost. Instead, mix it up. This strategy allows the particular provider to average out on its margin, keeps the provider committed on lanes losing margin, counteracts any changes in market, and sustains from provider needing price increases. In return, shippers hold more leverage over their transportation providers, and build up loyalty and sustain locked in pricing year round.
About BAT Logistics
Backhaul and Track Logistics d/b/a BAT Logistics provides transportation arrangement solutions to the shipping community. Our core strength is in arranging full truckload services in dry, refrigerated, and rail commodities. We arrange transportation using key National carriers with a focus on small to medium sized carriers. We arrange transportation in headhaul and backhaul lanes, both regionally and cross-country. We also use Door-to-Door rail services that cover the entire nation. Our industry knowledge and experience arranging rail transportation gives us a clear and distinct advantage over the competition.
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