Ottawa, ON – 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 in May with the goal of opening a mutually beneficial dialogue on working together to identify opportunities for efficiencies in the goods distribution system.

CITA and OTA Develop Advice on Best Practices in Shipper-Carrier Relationship

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 agrees, 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 did make some preliminary headway by sharing advice for each other on best practices for managing the business relationship and co-created a helpful 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 in return carriers suggested bids-tenders be put out as long as possible and contracts and payment terms be more fair and balanced. The two sides also has positive discussions on issues such as the carrier evaluation-verification process, better communication strategies and the treatment of truck drivers at shipping facilities. Please see below the complete CITA-OTA Best Practices guide for becoming a shipper or carrier of choice.

"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 agreed to convene again and possibly expand the guide in about six months.

Shipper Advice on Best Practices for Carriers

Educate yourself on the bid/tender process: analyze all data provided in the tender to quote appropriate price

Put your payment terms in writing

Faster invoicing helps with faster payment

Re-evaluate your sales approach: increasingly shippers have strict policies in place prohibiting them from accepting such things as tickets to entertainment/sporting events, trips and other enticements

Increasingly be prepared for more formal carrier evaluation/verification of safety programs, hiring practices, sustainability programs, including site visits

Be aggressive in communicating with shippers: where transportation and procurement functions are separated, communicate with both but provide analysis/data

Hold regular meetings/business reviews with your shipper: bring your operations people not salespeople

Prepare a list of the five things you would like to see the shipper or their third party service provider do/provide for drivers when they check-in

Carrier Advice on Best Practices for Shippers

Put out bids/tenders for as long as you can in order to ensure you will be able to attract quality carriers and drivers and allow for engineering of longer-term cost-saving solutions

Provide accurate and realistic data including site specifics so carriers can conduct proper analysis

Provide reasonable payment terms, fair and balanced contracts

Conduct proper evaluations/verifications of your carriers to make sure they are up to the job and not exposing your company to operational/service risk or potential liabilities

To increase efficiency, don't treat carrier as a vendor/supplier but as a strategic partner

Hold regular meetings with your carriers

Drivers are more apt to leave a carrier because of the way they are treated by a shipper as opposed to the way they are treated by the carrier: show drivers respect

OTA