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Welcome to the Best Practices for Effective Less Than Truckload (LTL)

Freight Shipping Webinar

Presented By

READ MORE ABOUT FREIGHT BEST PRACTICES AT THE CERASIS BLOG AT http://cerasis.com/blog

Welcome!

Best Practices for Less Than Truckload Freight Shipping Webinar

IntroductionAttendee Screenshot

To Listen by phone vs. listening through your computer simply dial:

• Phone: +1 (646) 307-1720

• Access Code: 724-090-804

• Audio Pin: Provided once you join meeting on panel.

Introduction

Presenter: Adam Robinson, Marketing

Manager

Company: Cerasis

Adam Robinson oversees the creation and execution of the marketing

strategy for Cerasis.

Cerasis is a non-asset based third party logistics service provider who specializes in freight technology solutions and integrated

freight management services.


Webinar Agenda


•This 45 to 60 minute webinar will cover the following material around inbound freight management:

•What is LTL Shipping (Less-Than-Truckload) and how did it Come About? •The Benefits of Shipping via Less Than Truckload Freight •The Factors Which Determine LTL Freight Rates •What is and How To Determine LTL Freight Class •Areas to Look at in Order to Save on LTL Freight Shipping •The Benefits of a Transportation Management System for Better LTL Freight Management •Less Than Truckload Freight Shipping Tips for Improved Carrier Relations •Logistics Service Providers and How a Niche Focus on LTL Creates Better Logistics Outcomes •Conclusion and wrap up •Q&A Session

Why is Cerasis Putting on an LTL Webinar?


•95% of Cerasis Business is managing and empowering shippers to ship freight via Less than Truckload •The Cerasis Transportation Management System, the Cerasis Rater, processed over 300,000 LTL freight shipments in 2013. •Cerasis audited EVERY LTL Freight Invoice for our customers. •Cerasis handled all LTL freight claims on behalf of our customers. •No matter how many LTL shipments any of Cerasis freight shippers had in a week, shippers only had to get ONE freight invoice each week.

Why is Cerasis Putting on an LTL Webinar?


•Cerasis negotiates all the LTL freight rates with preferred and optimal LTL freight carriers on behalf of customers, maintaining those rates each year, and if possible, down to the specific lanes for best pricing. •Cerasis has worked with shippers and carriers in this way for nearly TWO decades, starting off as a niche LTL Freight Management 3PL since 1997.•In short, although most find LTL too volatile and complex, Cerasis LOVES simplifying the process of LTL freight shipping for those who ship freight via LTL freight (and Full Truckload or Small Package for that matter!)

What is LTL Shipping?


LTL = Less Than TruckloadLess than Truckload is a shipment that does not require a full 48- or

53-foot trailer, which is referred to as a FULL truckload.

Many LTL freight carriers specialize in different services, based on your specific needs.



There are many options to ship freight: air, rail, water, truck.

Although intermodal, or rail, has been picking up as of late, truck transportation still can move

items faster with more flexibility.

In the United States, shipping by truck is the dominant mode,

offering a lot of options, flexibility, and lower costs.



FTL vs. LTLFTL = Full Truckload

• Full Container,

• One Product,

• One Customer

LTL = Less than Truckload

• Can be full or not,

• Many Products,

• Many Customers

• More Cost Effective

What are the Characteristics of a LTL Shipping Carrier?



• Generally utilize van trailers which are covered or enclosed trailers

• Few refrigerated LTL carriers who utilize temperature controlled trailers

• Roll up doors on the rear are a trend these days

• Some carriers will use pup trailers that they can haul two trailers in tandem

• LTL carriers will not accept shipments that cannot fit onto one pup trailer

How did LTL Shipping Come About in North America?Trucking Industry regulated first in 1935 by the Interstate

Commerce Commission (ICC)



• The Motor Carrier Act of 1935 required new truckers to seek a “certificate of public convenience and necessity”

• Act required motor carriers to file their tariffs with the ICC 30 days before they became effective & then available to view

• Tariffs could then be subject to a challenge by another carrier or railroad

How did LTL Shipping Come About in North America?Deregulation



• Truman vetoes the act in 1948, but Congress allowed carriers to both fix price and be exempt from antitrust legislation.

• The ICC denied applications from new carriers for the next 30 years

• In the 70s, Nixon, Ford, and Carter put acts in place to reduce price fixing & collective vendor pricing.

• The Motor Carrier Act of 1980 resulted in intense price competition & lower profit margins

• Between 1977 and 1982, the average LTL rate fell by up to 20%.

• The number of carriers doubled between 1980 and 1990, with over 40,000 carriers in the US.

Benefits of Shipping Freight Via LTL


4 Benefits of Shipping Freight via Less than Truckload

1. Often more cost effective with more options

2. More control to get creative and drive down costs

3. More Flexible4. Now able to seamlessly

connect for e-commerce carts



Often Less than Truckload Shipping is More Cost Effective and with More Available Options

• LTL shipments are a fraction of the cost of hiring an entire truck

• LTL carriers normally offer better rates than parcel carriers for competitive reasons and economies of scale.

• Accessory services available from LTL carriers not offered by FTL

• Shifting towards dimensional or cube weight measurements



More Control, Less Financial and Planning Risk via Less than Truckload

Truckloads often more transactional and easy to

procure, but ONLY if capacity is available; some try

multiple truckloads, but it’s a financial risk



Pool Distribution and Pool Consolidation

Pool distribution is picking up one or more truckloads of LTL shipments at an

origination, breaking down the shipments to MULTIPLE trucks

Pool Consolidation picks up multiple LTL shipments from multiple locations, and then loads on a truck for line haul

Pool Program Benefits

• No weekly shipment puzzle• Adaptable• NO charging to ship AIR• Save time and money over multiple

stop truckloads



Flexibility in Less Than Truckload Shipping Offers Cost Savings and Creative Shipping

• LTL freight shipping may take more time, but gives you flexibility

• Drive down costs with LTL shipments going to the same or similar place

• LTL freight shipping can be automated via a transportation management system


Less Than Truckload Shipping is an Attractive Way to Ship to Scale E-Commerce Options

• To keep up with an increase in consumers expectations, manufacturers and distributors now offering ecommerce options to both retail consumers and Business buyers

• The New York Times stated that the rise of e-commerce and the growing of freight expenditures often forces small business owners to reconsider their shipping strategies and also suggested using a reliable transportation partner could help small businesses scale their operations successfully


http://www.nytimes.com/2013/09/26/business/smallbusiness/selling-on-the-web-and-seeking-reliable-shipping.html?pagewanted=all&_r=

http://cerasis.com/about/third-party-logistics-companies-the-cerasis-difference/

LTL Shipments & Rates• Typically weigh between 151 and 20,000 lbs• Carriers provide “weight break” discounts• You can ship more than 5 pallets of freight, but these moves are normally

considered volume moves• LTL freight rates can be very confusing• A mode used for smaller freight shipments, but too big to be sent via small

package and too small to fill and entire Truck• Several different shippers’ shipments are consolidated by LTL carriers onto trailers

for line-haul or staging areas for pool programs


Factors Which Determine LTL Freight Rates


Factors Which Determine LTL Freight Rates

1. Weight2. Density3. Classification of Freight4. Distance5. Base Rates

10 Factors of the Freight Rate

6. Freight All Kinds (FAK)7. Minimums8. Negotiated rate tariffs

with LTL carriers9. Negotiated discounts10. Accessorials/Surcharges

LTL Freight Classification

What is and How To Determine LTL Freight Class


• Allows for common standardized freight pricing

• Freight Classes are defined by the National Motor Freight Traffic Association (NMFTA)

• Published in the NMFC• In the US, each commodity is assigned a

NMFC and class for LTL shipments• 18 classes, from 50 to 500• Class is a major factor in LTL freight pricing



1.(Weight, Length, Height) Density and Value

2.Stow-ability3.Handling4.Liability

Freight Class Factors



(Weight, Length, Height) Density and ValueDensity is the space the item occupies in relation to it’s weight

DENSITY =

Weight of Freight (lbs.)

Volume in Cubic Feet

Cubic Feet=

Length x Width x Height (inches)

1728 Cubic Inches



Stow-abilityRepresents the difficulty in loading and carrying freight.



Handling

Freight that requires extra attention due to shape,

fragility or hazardous properties.



Liability

Probability of freight theft or damage, or damage to

adjacent freight.

Areas to Look at to Save on LTL Freight Shipping


1. Education2. Multiple Modes of Shipping3. Outbound LTL Freight

Accounting4. Inbound LTL Freight

Accounting Options5. Think “Long Term”6. Use tools, such as a TMS7. Use a 3PL



Outbound LTL Freight AccountingPrepaid vs. Prepaid and Add in Outbound

Prepaid and Add• You select the carrier, you dispatch the

carrier, and you pay the carrier• You Invoice the customer for the

product and freight charges, typically marking up the cost for your hard work

• Benefits: Turn LTL freight shipping into a profit center

Prepaid: No markup

Benefits: Offer more competitive rates



Inbound LTL Freight AccountingPrepaid and Add vs. Collect

Collect: • Eliminates handling charges• You designate carrier and arrange shipping

charges on your rates• Option, in which you are invoiced by the

carrier• Reduces having several different carriers

from different suppliers on your dock every day, maximizing staff efforts



Think “Long Term” LTL Freight Shipping costs to TRULY Save

Ask Yourself: • Is the carrier offering the right amount of

insurance for this freight shipment?• Is the LTL carrier reliable in getting your

freight to your customer in time? • Do you have a system or program that

helps you grade your LTL freight carriers performance over time?



Use a Transportation Management System

• Eliminate manual process• Have multiple carriers to choose from at

your fingertips• Ability to analyze data and shipment

activity to arm you with more knowledge• Track and manage employees and activity• Decrease time in training new hires• Easily deploy through web-based

applications

Benefits of a TMS



Use a Third Party Logistics Provider• As a small shipper saving on LTL freight is

vital to your business• But….without volume, you are stuck in a

Catch 22• A 3PL can level the volume field and help

get attractive rates by working with carriers

• A 3PL can also provide a TMS, freight accounting, claims services, carrier relationship and more

Tips For Working with LTL Carriers


Tips in Making Freight and Your Carrier Relations More Attractive

1. Report Accurate Weights2. Accurate Bill of Lading3. Avoid Accessorial Charges4. Proper Packaging5. Units Requiring Less

Handling

Working with a Focused Logistics Provider


Niche and Focus Drives Value

Whatever your needs are, write them down and when seeking out

a logistics provider, make sure they are focused on YOUR needs

by offering solutions.

Cerasis: Your LTL Freight Management Partner

Who is Cerasis?• Founded in 1997• Third Party Logistics Provider Specializing in Freight Management• State-of-the-Art Cloud Based TMS and Mobile TMS Application (Android, Apple)• Comprehensive Freight Management Services Including, but not limited to:

• Analysis and Audit of Existing Shipping Practices and Carrier Rates• Carrier Rate/Rules Negotiations and Bidding Services• Contract Management• Inbound Routing and Compliance Program• Volume/Spot Quotes, Truckload Routing (dedicated lanes & brokering)• Invoice Auditing and Consolidated Weekly Billing• Claims Processing and Maintenance• Shipper Compliance Auditing

• Solutions Custom Tailored to Meet Your Needs



Modes Supported

LTL North America

FTL

Intermodal

Specialized Dedicated Transportation Services

FedEx Small Package



Cerasis TMS = The Cerasis RaterEliminate Manual Processes


Optimization Capabilities

Multi-Enterprise Application

Customer Satisfaction Tools

Freight Accounting Tools and Freight Payment Options

Management Tools and Reporting Functionality

Vendor/Shipper Compliance Solutions


Cerasis Process Approach Customize a solution designed to meet your specific transportation needs

Execute a partnership agreement

Negotiate rates with carriers on your behalf

Conduct a commodity review

Collaborate with your management team to implement our custom solution

Follow up to ensure your staff is fully trained and compliant

Provide you with outstanding service and support on an ongoing basis

Conduct quarterly account review meetings



Cerasis TeamAn Exceptional Group of Experienced Freight

Professionals Striving to Exceed your Expectations

• Dedicated Customer Service Representative• Freight Desk• Claims Specialist• Carrier Relations Group• Implementation Team



Cerasis Technology

In-House IT Department

Integration

XML Web Services

Custom Reports


Conclusion


• Education is Key!• Know what makes up a rate • Provide accurate information• Get Creative!• Use Technology• Write down a checklist of your LTL freight needs and shop a

3PL• If you’d like to schedule a consultation with one of our sales

reps, pleas visit our website at http://cerasis.com to reach out to us!

http://cerasis.com/

Q&A

You may type your questions in the chat area and we will

answer as many as possible.


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