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Shippers and carriers need to work together to get the best results. To do that, they need to be open and honest about their freight and share as much information as possible. By doing so, the shipping and delivery process can be improved and allow each company to garner significant benefits. As such, an effective communication strategy between shippers and carriers begins with transparency.

Why Transparency is Important

The supply chain is constantly moving and continuously changing. If a shipper and its carrier do not have a transparent relationship, it can be extremely challenging and result in freight management errors.

Shippers need to be transparent about their freight – the good and the bad. Conversely, carriers need to be honest about the lanes that are profitable for them versus the lanes that they may hike rates on because they are not as desirable. 

Additionally, carriers need to be transparent about delivery times and additional charges that may occur, such as fuel rate surcharges and accessorial charges. This helps shippers prepare their warehouse as well as their budget. Providing this information upfront helps build trust rather than upsetting the shipper at the time of delivery.

This level of visibility and transparency throughout the freight transportation process is essential for limiting costly supply chain disruptions. The best way to achieve higher levels of transparency is through data. Technology helps provide that necessary information to shippers and carriers.

Technology is Key to an Effective Communication Strategy 

For a company to get the most accurate, actionable and detailed information about freight, shipping lanes, rates and more, it should integrate freight-pricing APIs into its transportation management system (TMS).

An LTL rate aggregator platform, such as Banyan Technology’s LIVE Connect™, allows shippers to see rate quotes and transit from their preferred carriers in real time. Therefore, the shipper can choose the best carrier for each shipment they load. However, it doesn’t just make booking shipments easier and more accurate, it also provides the ability to track the freight, aggregate all order documents in one place and improve the billing process. This data all comes in handy when needing to communicate transparently to carriers.

Shippers can utilize this data to make better decisions on future shipments as well as to negotiate better rates with carriers. Additionally, by sharing this data with carriers, they understand what shippers are looking for and how they as a carrier can better meet that customer’s needs. It is truly a win-win situation.

Does Your Company’s Need to Improve Carrier Communications?

The transparency in communication and data that volume-pricing APIs provides is increasingly being seen as a required service offering by shippers and carriers. Transparency leads to stronger relationships between carriers and shippers, so it is essential to think strategically about how freight management technology can help meet that objective and achieve that goal. The agility it provides helps build true partnerships that maximize effectiveness and lead to measurable benefits for all supply chain stakeholders and their customers.


Get more information about how cultivating a transparent relationship with carriers will benefit your company by downloading Banyan's guide, "Transparency: The Key to Effective Shipper and Carrier Partnerships." Click the button below to get your free copy.

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