January 2018 | News | Trends

Multi-Stop Steps

Tags: Trucking, Transportation, Logistics, Supply Chain

How extra stops impact on time delivery
On single-stop truckload shipments, 80 percent of loads that picked up late still delivered on time. Multi-stop loads are different. As the above graphic shows, the more stops there are, the worse the on-time delivery percentage if one of the early pickups is delayed or late. The dark blue line shows on-time delivery if the load picked up on time. The light blue line shows what happens to a load that leaves its origin late. Trucks that picked up late on a three-stop load, for example, averaged on- time delivery only 71 percent of the time.

If you suspect that carriers reject multi-stop truckloads more often than single-stop loads, you're only partially right. While carriers dislike specific factors about multi-stop, you can employ some strategies to make multi-stop freight more attractive to carriers and better control your costs.

Here are four ways shippers can reduce rates and increase acceptance of multi-stop loads, according to a whitepaper published by the MIT Center for Transportation & Logistics and TMC, a division of C.H. Robinson.

1. Plan ahead. Where possible, include multi-stop lanes in the procurement event, minimizing the introduction at time of shipment tender.

2. Use a cluster stop strategy. Clustered stops loads yield lower prices than loads with stops along the route. The key to clustered stops is to make it possible for the driver to pick up and deliver at all of the stops during business hours on a single day.

3. Use continuous moves. When you can plan continuous moves, carriers are more likely to accept them at a lower cost than multi-stop loads that are not continuous.

4. Pay a higher stop-off charge. Paying $100 per stop if there will be two or more drops can reduce the line-haul rate.

 






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