The True Cost of Shipping: Coffee With The CEO

Coffee With the CEO Graphic - August 2

In our industry, we’re always fighting a pricing battle. Most of our customers still believe in this model to “keep us honest” or to make sure they are getting the best price. My fight isn’t with this concept as much as it is with the cost of it and how it compares to the level of service associated with it.

Company A needs a specific service requirement and they select the lowest of three bidders.  After selection, the logistics company suddenly needs to adjust the terms of the agreement or the level of service agreed to. Sound familiar? The pickup or drop-off time cannot be met, or some additional cost shows up with no changes coming from the customer. This ploy is fairly common, and if you didn’t see it, the logistics company is trying to make money with the load and now cannot, so they want to change the agreement. The end cost to the customer is more than the highest bid. This tactic is terrible for our industry and one of the things we fight against by guaranteeing a truck for the agreed-upon price. We want to be the best value, and in this and many situations we would have been.

So why do customers still fall prey to this type of transaction and then say brokers are not trustworthy? How does taking the low bidder serve the customer or their end user customer when it shows up late?  The cost associated with that or the damage to the customer relationship is immeasurable. If we are $200 higher, but the low bidder doesn’t show up, how much is that really worth? Get off the merry go round and find a logistics partner who will help you solve problems and create value for your organization.

Our expertise and willingness to be in it for the long haul make us the best choice. The trust we build with our customers helps them know our commitment. We communicate the news, and we work to bring solutions to problems before they happen. We use technology to create an understanding of pricing changes by knowing capacity and market challenges. We free up our customers to focus on the manufacturing process, not logistics. That is our job. Our vetted carrier base allows us to perform when it is critical to our customers, and we are at our best when we are challenged.

Whether it is moving 85 tractors in one day, team-driving a flight simulator 1500 miles, or building trucks and managing a project with 1000 pieces. We have a Do Not Fail attitude. Even if it costs us more money, we will get it done for the price we agreed because that is who we are. This is what ZMac stands for. This is our commitment to our employees and customers.  We will do the right thing, every time, without fail.

Care to take us for a test drive?



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