ASSOCIATION INSIGHTS
TIA: Navigating the WIN-WIN-WIN of a Business Relationship
s the industry leaders of the third-party logistics industry, TIA members know they have two customers in every transaction: the shipper
AND the carrier. About a third of TIA members are asset- based and we work closely with ATA and TCA on carrier issues. On the shipper side, TIA works within the logistics divisions of the many industry verticals as well as with NASSTRAC, NITL, and United Fresh.
To further enhance our relationship with shippers, TIA created a Shipper Council. The Council is made up of 30 shippers. Most of these companies are household names. We formed the Council to help shippers navigate the many changes taking place in the supply chain as well as to help them better utilize their 3PLs.
Along with the TIA Shipper Committee, the TIA Shipper Council developed and released a survey that assessed the key factors that shippers, motor carriers, and 3PLs look for in a business relationship. We received more than 100 responses, with results from all three segments of the industry.
The results of the survey were then turned into a report entitled: “Creating a Win-Win-Win Business Relationship.” The survey results outlined in the report tell the key findings and provide a preview into what shippers, motor carriers, and 3PLs are looking for in Creating a Win- Win-Win Business Relationship that mutually benefits everyone involved.
Some of the key findings identified in the report were:
• Relationships were the key component when working with a 3PL or motor carrier, heavily outweighing price or service.
• Motor Carriers identified fair and reasonable detention time and pay after two hours as their top priority.
• Motor Carriers noted that the ELD mandate has helped in addressing delay times, but there is still a lot of work left to do.
• 86% of shippers surveyed noted that 3PLs are an essential part of their core carrier database.
• Motor carriers and shippers heavily rely on what technology is provided by their 3PLs.
At the TIA Capital Ideas Conference in April, the Shipper Council conducted a plenary session in which they expressed the desire for cutting edge technology. They want their 3PLs to provide complete track and trace capability. And, they want to talk to their 3PL about how frequently or under what circumstances they want to be alerted. The shippers stressed that they wanted no surprises. They stressed that their 3PLs need to be realistic in what they say they can do, and then execute it. To paraphrase “Horton Hears a Who” by Dr. Seuss, “Do what you say, say what you mean, a 3PL is faithful 100%.”
The shippers also talked about the fact they are competing internally for technology investment, so they are looking to their 3PLs to bring them the latest and greatest at a variable cost rate.
TIA will continue to help its members navigate technology changes through Technovations (November 12-13, 2019 in Amelia Island, FL) and the Capital Ideas Conference (April 1-4, 2020 in Austin). To receive a free copy of the Win-Win-Win Business Relationship document, please visit the TIA website at
www.3plsdeliver.org.
By Robert Voltmann, President and CEO, Transportation Intermediaries Association
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