OTA, CITA join forces to create best practices guide for shippers, carriers
May 22, 2013
OTTAWA, Ont. -- A group made up of shippers from the Canadian Industrial Transportation Association (CITA) and motor carriers from the Ontario Trucking Association (OTA) met in Toronto this month with the goal of opening a mutually beneficial...
OTTAWA, Ont. — A group made up of shippers from the Canadian Industrial Transportation Association (CITA) and motor carriers from the Ontario Trucking Association (OTA) met in Toronto this month with the goal of opening a mutually beneficial dialogue on working together to identify opportunities for efficiencies in the goods distribution system.
The forum, according to the leaders of both organizations, Bob Ballantyne of CITA and OTA’s David Bradley, was aimed at having an informal and honest discussion between the two key players in the supply chain about the opportunities for getting waste out of the transportation system; the positives and negatives of the bid/tender process in attaining long-term efficiency improvements; how changes in the psychology of supply chain management are impacting the relationship; and the challenges posed by a shortage of truck drivers.
“The discussion was very open and respectful of each side’s realities,” said Ballantyne.
Bradley agreed, saying, “We knew going in that one meeting with 20 shippers and carriers wasn’t going to lead to a resolution of all the issues and challenges we share, but dialogue is always good and the participants all felt it was well worth the effort and long overdue.”
The group made some preliminary headway by sharing advice for each other on best practices for managing the business relationship and co-created a Best Practices guide for both shippers and carriers.
For example, on the issue of bids and tenders, shippers advise carriers to take steps to analyze all the data provided in order to best quote prices and pay closer attention to corporate bid processing policies, while carriers suggested bids/tenders be put out as long as possible and contracts and payment terms be more fair and balanced. Representatives said the two sides also had positive discussions on issues such as the carrier evaluation-verification process, better communication strategies and the treatment of truck drivers at shipping facilities.
“This is an important first step, in creating the basis for productive dialogue going forward,” says Ballantyne.
“Everyone wants to be the shipper of choice or the carrier of choice,” added Bradley. “So to get advice from the very people you are trying to win over in that regard is not something to be ignored.”
Participants of both OTA and CITA have agreed to convene again and possibly expand the guide in about six months.
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