Shipper | Best practices
How to build a durable transportation routing guide: 6 best practices
Routing guide durability is key to a strong supply chain.
Routing guides aren’t infallible. They’re bound to hit a few snags as markets change. But routing guide durability is key to a strong supply chain. Decisions you make today will impact the resilience of your routing guide when markets shift and plans change.
Key takeaways:
- A transportation routing guide needs to be flexible enough to withstand changes in freight markets, capacity and business requirements.
- Shippers should provide accurate operational information, account for spot freight and unpredictable lanes, and avoid relying exclusively on contracted carrier rates.
- Strong, mutually beneficial shipper-carrier relationships and digital connectivity can improve recovery when a routing guide encounters disruptions.
Six best practices to follow when crafting your routing guide
Be transparent about rates
Rates are only as good as the information put into creating them. Ensure your rates accurately reflect your needs by being upfront about operational characteristics and requirements.
Don’t forget about spot freight
When lanes are sporadic and unpredictable, locked-in carrier rates are less likely to move your freight when the market shifts. Expect to cover low-density traffic flows with spot prices. Schneider offers two options for your spot freight:
- Schneider FreightPower allows you to quote and book your freight online.
- Market Index Pricing is a simple model where Schneider accepts 100% of your freight.
Maintain your provider relationships
Mutually beneficial relationships are worth investing in. When there is a solid shipper-carrier relationship, carriers will deliver better service through market fluctuations. Buying solely on price today may cause issues in your routing guide tomorrow.
Connect to your carriers digitally
Safeguard your business by working with carriers who provide options to connect digitally. API quoting can accelerate recovery time when your routing guide goes awry.
Keep geography structures simple
Don’t overcomplicate your geography structures. Carriers struggle to get it right when you create large geographical areas for pricing and capacity commitments. The more finite the origin/destination definitions are, the more accurate and competitive your prices will be.
Adjust your strategy when necessary
Remember, a request for proposal (RFP) is a tool, not a strategy. If you’re concerned your original routing guide strategy was a bit short-sighted, it’s not too late. Talk to your carriers about their plans for the coming months and don’t be afraid to pivot if it makes sense for your business.
Learn more about routing guide durability and how our experts can help. See more information about Schneider's Dynamic Pricing Solutions or contact an expert today!
Related resources
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7 tips for a better transportation RFP process and bidding strategy
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