By their sheer nature, the words ‘value’ and ‘price’ are not synonymous. When you add the words into the context of the freight logistics industry, they can spell mayhem. Our team at Skyfer Logistic loves value over price and here is a concrete example why.

freight logistics

In recent years, with the proliferation of email, 3pl’s, and how savvy clients are with the use of Google, a phenomenon has been seen occurring where potential clients amass a list of five, ten, even fifty transportation brokers or 3pl’s, and broadcast an RFQ (request for quote) by email under the pretext that they will save big.

By acting in this fashion, they are merely relegating a freight logistics service that can have tremendous impact on costs on either side of the balance sheet to a mere commodity, when in fact, it’s to their great advantage to form a relationship with their transportation broker or 3PL so that they can add value to the equation and reap the rewards.

As an example, let’s say you have sent out an RFQ to twenty brokers and saved twenty dollars on a two hundred dollar shipment – thus resulting in a ten percent savings. Not bad you would say, but what if the firm you have now entrusted with your shipment did not insure your product? Or what if they forgot to ask if you or your consignee have a loading dock? Better yet, they never reviewed the commercial document being used to import your shipment from abroad, thus sending your beloved shipment into bond, incurring extra charges and delays far beyond the $20 savings you thought was a great saving.

This puts the word value into perspective quickly. Now this was for a two hundred dollar shipment. What if your shipment was an over dimensional load, requiring permits, or an important air shipment that just had to be there or your manufacturing plant would shut down.

One must look long term to really put value into the proper perspective. The added costs associated with cheap freight shipping when things go wrong can add up quickly, not to mention the costs associated with the time required to sort the mess out.

So if you are planning to or are shipping regularly, seek value and not price and try to establish a mutually beneficial relationship with your transportation broker/3PL of choice. It will pay off in spades in the long term.