Jarrod Marinello, Executive Vice President/Owner: First, decide how many providers to utilize, then reward business to each one of the providers. You may want to utilize some more than others, but use each at least five percent.
Don’t award the lanes predicated on the provider being the lowest cost. Instead, mix it up. This strategy sanctions the particular provider to average out on its margin, keeps the provider committed on lanes losing margin, counteracts any transmutations in the market, and sustains from provider needing price increases. In reciprocation, shippers hold more leverage over their conveyance providers, and build up staunchness and sustain locked in pricing year round.