Between complex pricing schedules, variable lead times, hidden extra costs and subjective preferences, it's tempting to systematically opt for the same carrier, out of habit or to save time. But this "default" choice rarely leads to an absolute optimum, one that reconciles cost, service quality and environmental impact. At best, a local optimum is achieved, efficient for a given shipment, but far from reflecting the overall performance expected for all flows. Thanks to technological advances, notably in transport management systems (TMS), shippers can refine their decision-making process and secure their flows. How, then, can they optimize this selection to combine efficiency, savings and customer satisfaction? Christophe Puyjalon, Pre-Sales Director at MyTower, provides the answers.
Selecting a carrier is based on a number of criteria
Choosing a carrier is no longer just a matter of comparing price lists. While the search for the lowest price may seem logical, it can prove counter-productive in the long term. A difference of just a few centimes sometimes masks additional costs, such as fuel taxes or ancillary expenses. As Christophe Puyjalon explains, "This is where a TMS comes into its own: it integrates all costs, whether visible or hidden, for rapid comparison".
But cost is only one aspect. Other criteria are essential to refine the selection:
- Environmental impact: today's companies, necessarily concerned about their carbon footprint, give preference whenever possible to carriers using environmentally-friendly fleets, such as natural gas trucks or electric vehicles. Here, the TMS makes it possible to visualize the CO₂ emissions associated with each solution, facilitating responsible decision-making.
- Transit time: a competitive rate can lose all interest if delivery takes two days longer. "The savings can translate into a costly delay for the company or the end customer.
- The nature of the goods: refrigerated transport, hazardous products or bulky parcels require specialized service providers adapted to each need.
- Type of delivery: home delivery differs from delivery to a relay point, both in terms of cost and logistics.
Carrier service quality: an often subjective deciding factor
Beyond the figures, the quality of service perceived by logistics operators has a strong influence on selection. But this assessment is based above all on past experience. "A carrier may show an excellent service rate on paper, but if deliveries are irregular or the sales contact lacks responsiveness, the operator will naturally be inclined to opt for another service provider".
Reliability then becomes a key criterion. To achieve this, TMS systems integrate historical performance indicators, such as on-time delivery rates, number of complaints or frequency of incidents. This objective data complements the subjective assessment of operators, reinforcing the relevance of the choice.
At the same time, the human relationship, often underestimated, also plays a role. A carrier whose teams are accessible, responsive and ready to exceed expectations offers invaluable peace of mind. Conversely, a contact person who is difficult to reach can turn transport management into a real headache.
Automate decision-making with the TMS
The complexity of these selection criteria makes automation essential for greater efficiency. TMSs, such as MyTower's, revolutionize decision-making through automatic selection based on predefined rules.
For each shipment, the TMS analyzes the data - origin, destination, type of goods, required lead time, cost, environmental impact - and automatically assigns the most suitable carrier. This method guarantees consistent choices and eliminates subjective bias. However, the choice is of course not imposed, but rather an aid to decision-making. The operator retains control over the final decision, while relying on consolidated and comparable information.
In practice :
- Automation speeds up analysis by filtering carriers according to pre-established rules (cost, lead time, environmental impact, type of goods, etc.).
- The operator remains in control, with the option of validating the automatic proposal or choosing another carrier on the basis of intangible criteria such as perceived quality or commercial relations.
Manage the transport plan with a TMS to structure selection more consistently
At the heart of automation is the transport plan, a veritable mapping of assignments by geographical zone, type of flow and specific merchandise. "Historically, this approach was based on simple criteria: for a given origin and destination, a single carrier was designated. Although effective, this method showed its limitations when faced with the diversity of needs.
With a TMS, complex rules can be added to transport plans. For example, they can be used to distribute flows between several carriers according to precise quotas (60% for service provider A, 40% for service provider B). This distribution ensures greater resilience in the face of unforeseen circumstances. If one carrier runs into difficulties - insufficient capacity, strike, technical failure - the other can take over without disrupting the supply chain.
The automated transport plan can also incorporate differentiated service levels according to customer or flow type. A VIP customer may benefit from a premium carrier, while a less urgent stock replenishment may be entrusted to a service provider offering economical rates.
Spot quotation requests: flexibility for unusual destinations
Despite rigorous planning, some shipments remain unpredictable. What to do when an exceptional order has to be sent to a country not covered by existing contracts? This is where spot quotation requests come in.
Previously, this process was time-consuming: the operator would send e-mails to several carriers, wait for replies, compare the often heterogeneous offers and notify the winner, while sometimes forgetting to inform the others.
The TMS simplifies this process. It automatically sends the request to a panel of carriers, collects the responses in a standardized format, compares the offers on the basis of the criteria defined, and enables the selected solution to be booked with a single click. "Unsuccessful carriers are notified immediately, preventing them from withdrawing in the long term due to lack of visibility."
Volume allocation: anticipating to secure capacity
In addition to day-to-day selection, companies also need to anticipate their future needs.Volume allocation enables capacity to be reserved with carriers, thus guaranteeing the availability of the necessary resources, even in periods of high demand.
Take the example of a company planning to ship ten containers to the USA next month. Thanks to the TMS, it can pre-book this capacity with its partner carriers. The latter confirm their commitment, while the company guarantees the allocation of volumes. This anticipation benefits both parties: the carrier optimizes its workload, and the company avoids unpleasant surprises linked to limited availability.
Centralized data for optimized management
In the absence of a TMS, transport management relies on tedious manual processes. The operator has to compare disparate price lists, juggle e-mails, Excel files and telephone calls, all the while ensuring that the planned allocations are respected. This approach is not only time-consuming, it also increases the risk of errors.
Conversely, the TMS centralizes all information on a single platform. It enables real-time visualization of :
- Available options
- Compare solutions objectively
- Automatically trigger reservations
This saves the operator a considerable amount of time, allowing him to concentrate on exceptions requiring human analysis.
This same approach guides MyTower's TMS solution. In addition to automating the choice of carriers, this solution is coupled with real human support from its teams.
Conclusion
Optimizing carrier selection is based on a subtle combination of economic, qualitative and environmental criteria. With TMS, companies can automate simple choices, while benefiting from decision support for complex cases. Making this choice guarantees smooth, economical and environmentally-friendly shipments, while enhancing customer satisfaction.
"It's essential to have the right tools to constantly adapt your transport strategy, based on market developments, internal needs and customer expectations." Christophe Puyjalon, Pre-Sales Director at MyTower
