ModeOn-time Equipment and Information Competitive Customer Problem Value-added
It’s an important question that requires analysis. On-time performance, not surprisingly, is the most important performance criterion in carrier selection among shippers using both TL and LTL transport, according to our annual survey of more than 2,000 transportation buyers across Canada. (Respon-dents to our Transportation Buying Trends Survey were asked to rate the importance of the seven performance criteria in their carrier selection on a scale of 1 to 5.) But note also the importance transportation buyers place on competitive pricing – it’s ranked as the third most important criterion for buyers of LTL transport, just slightly behind customer service, and as the second most important factor for buyers of TL transport. That’s not surprising considering that other annual research we conduct shows that not only is cost reduction cited as a challenge by the majority of shippers it is considered the challenge with the highest priority. It’s also important to note, however, that unlike rail and ocean freight services, trucking services are not perceived as so commoditized that shippers view price as the main factor in carrier selection. Finally, note the importance of customer service for both TL and LTL transportation buyers and, in fact, buyers for all transportation services. n
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