Businesses incur quite a bit of a cost in order to make their products accessible to customers. Freight cost contributes to the final price-point of the product, making it an important factor for your business.
Various rules and regulations have been introduced by the government to ensure public safety. In 1938, the first Hour of Service (HOS) law was introduced. It highlighted the number of hours a truck driver can work each day. This rule was further revised in 2012.
Over the course of years, government has introduced more regulations to make shipping safer for carriers and consumers. To ensure road safety, the Federal Motor Carrier Safety Administration (FMCSA) introduced a Safety Measurement System (aka CSA scores) that ranked the safety of commercial carriers.
What is CSA?
Compliance, Safety and Accountability are the three broad parameters against which the performance of different carriers is judged. CSA aims to mitigate road risk for public and carriers. It collects performance data and highlights the risk factors involved in hiring different carriers.
It measures carriers’ performance on
1. Unsafe driving
2. Crash history
3. HOS compliance
4. Maintenance of vehicles
5. Alcohol abuse
6. Hazardous substance compliance
7. Fitness of driver
Why is compliance important for your business success?
Impact on your freight cost
You’re not just hiring a driver to deliver your product from point A to point B. Your company reputation is at stake; the type of carrier you hire will determine the quality of shipping your customers receive.
Due diligence needs to be conducted when hiring a carrier. Make sure your product reaches the customer on time, undamaged and without incurring any accidents in between.
Reviewing the track record of carriers will help you choose a trusted carrier for your company. Data collected by CSA program and other governmental bodies facilitate your decision-making process and eliminates shipping risk.
Saves you from fraud
You will find multiple carrier options in the market which increases the risk of fraud and mediocre services. Companies that follow compliance are authenticated by government authorities. Data collected by these agencies can be used to save your business from partnering with an inexperienced carrier company.
Things to consider
- Streamlined shipping process and excellent services. Their services should facilitate your business needs and meet delivery standards, like on-time delivery, product returns, and package tracking.
- Find a company that offers competitive freight rates and is willing to customize shipping rates for your business.
- Retailers and e-commerce platforms operate internationally and require a carrier that has no geographic limitation. Therefore, always choose a carrier that has a global reach.
- Since your customers will be introduced to your brand via a carrier, you need to opt for a carrier that provides exceptional customer experience.
- Lastly, make sure your carrier has incorporated latest technology in his operations.
Gone are the days when companies worked with a single carrier. Businesses are going global, especially e-commerce platforms. This makes hiring the right kind of carrier crucial for your business. Leverage competitive freight rates from multiple carriers by integrating your supply chain with freight shipping software.
It allows you to compare different carrier’s rates and make the most cost-effective choice for your business. With help of shipping software and TMS portals, you can streamline your supply chain process and achieve operational efficiencies.
ProcessWeaver can help you choose the right kind of shipping management software for your company. Call 888.932.8373 to request a demo.