Because the stupidity seems to be everywhere I look, I don't think the names are important, so I'll leave them out. I pull for a dedicated 3PL fleet, out of a Chicago area DC, for a nation wide store chain. During our peak season we may see 250 loads per week, for our 35 truck fleet, and have scored no less than 97% on time deliveries, in the 6yrs we've had the account. Thats no brag, just fact... and honestly I don't know how that compares elsewhere in the industry. But what I do know is, our company takes that 97% very seriously, and you can expect to see office managers, dispatchers and drivers getting fired for our low performance. Enough background.
Twice in the past 3-4yrs I've seen our DC broker some loads to a few mega fleets, with devastatingly bad results. Both times they have dropped their accounts, within a month or two, and some within a week. All to save a round trip fee, stated in our contract... Totally understandable, don't blame them, I'd try it too. But when you get burned you learn, its a mistake you only make once... or twice. Nope, they are not only stuck on stupid, they doubled down on it.
Recently (July 1st), the store chain closed a nearby DC in St. Louis, which meant another 17 stores shipped from our location. They put it to a bid, and one of the largest megas of all megas, took it at a price that we couldn't touch. No surprise there. But now the DC is flipping out, this mega started at 70% and has levelled off at a consistent 83-84% for the past 3wks. And if I understand correctly, they are stuck with these clowns for a year.
This rant may sound like I'm against the megas, but its not... really this has no personal effect on me. Rather its a rant about the total incompetence of the front office pencil pushers that claim to have a degree in something that qualifies them to understand logistics. When its so obvious that at 5yrs old, mom picks me up from school on time, dad is always late... I want mom to pick me up! Its not that simple, but its darn close to a jr. high school math problem.
Silly Shipper, learn your lesson!
Discussion in 'Shippers & Receivers - Good or Bad' started by TheDude1969, Aug 22, 2016.
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The funny thing is, if you work as a contractor for the Megas - you'll constantly be scored/graded on on time performance, if you're under 98% for JBHU they'll drop you
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Worked for a minor-Mega years ago that had the same thing happen. Only the trailers had to have the manufacturer's vinyl trailer wrap down both sides and on the rear doors. After a larger mega came in and under bid us, we had to remove our equipment and strip down the trailer wraps. 6 months later they came crying, but the owner said they would return on one condition, they pay for the new wraps on the trailer (at a cost of $10k each). They refused and we never pulled their freight again.
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The on time delivery, as you can see, is no where
Near as important as the money saved moving the freight.
I'll say it till I'm blue in the face.
I don't care if you have 100 percent on time delivery
With these big dedicated accounts.
When the contracts up for bid, any bottom feeder
Can low ball you out the door.
On time delivery be ######.
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