There are several points throughout the year when less-than-truckload carriers prepare take a general rate increase (GRI). Rather than get caught off guard, there are a few tips that can decrease the impact of a GRI. Establish a planned approach to a GRI with a few simple guidelines.
Strategize
Have a strategy or standing operating procedure that you immediately go to when faced with a GRI. Be sure to acknowledge the pending increase and let the carrier know that you welcome the opportunity to discuss rates and rate structure. This will effectively maintain a solid business partnership without stressing the carrier/customer relationship.
Divide
Sometimes the best way to swallow something is in little bites. Carriers are often open to taking a portion of the GRI now and the remainder at a later date. This approach is advantageous to both parties as it allows the customer to potentially enjoy a rate advantage over their competition and it may allow the carrier to achieve the entire GRI amount. A win-win result is helpful in maintaining a strong business relationship for both parties.
Reduce
At times, it may not make sense to take a full GRI. If business levels are not be where they were anticipated to be, it may be necessary to ask for a reduced GRI. Be prepared to explain the reduction and look to make business commitments to the carrier where necessary.
Maintain
When a GRI isn’t feasible, you may consider leveraging future business opportunities. Find out if you have access to significant lanes that fit well into your carriers’ strategic plans. This eases any ache about not receiving a GRI with possibilities of future opportunities.
Review
Knowledge of the relationship history is a valuable resource when faced with a GRI. What has the carrier typically asked for with their GRI? How does their current request compare to past GRI requests? Understanding and having a well-documented history of previous GRIs may allow you to prepare for the carrier’s GRI request.
Be prepared for any GRI with these tips. Use historical trends and data to anticipate the timing and cost of a GRI. Blending research with the guidelines listed above will enable you to better manage the impact of a GRI on your business. A solid strategy is the key to a positive GRI experience.
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The England Logistics Less-Than-Truckload (LTL) division can provide nationwide service for shipments of almost any shape or size. To bring simplicity to shipping processes, LTL offers a one-stop solution with the information needed to get shipments on the road. Dedicated team members are available 24/7 to ensure timely and cost-efficient delivery.