Latest / Outside the Box with Asendia USA: The International e-Commerce Podcast / 36: Stop adding carriers without a strategy - Insights from Jen Baglio

Transcript

36: Stop adding carriers without a strategy - Insights from Jen Baglio · Outside the Box with Asendia USA: The International e-Commerce Podcast

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  There were carrier changes implemented during COVID as a fear factor.
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  Right.
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  Like my carrier may not be keeping up.
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  I got to get someone else on board.
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  That was like a knee jerk reaction.
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  Hopefully we're past that now.
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  So now we have to really look at our data and what are we trying to solve.
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  Step into the future with shipping.
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  Smart Outside the box is where the journey starts.
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  From borders to buyers, we break it down fast.
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  Nick and Jason deliver knowledge that lasts.
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  Insight, innovation.
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  Tune in, lean in and lock the way.
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  Go outside the box with the Cynia USA hey everybody.
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  Welcome back to Outside the Box with Asendia USA podcast.
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  I am one of your co hosts, Nick Agnetti along with my other co host Jason Rowland.
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  Welcome back.
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  Glad to be here.
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  Absolutely.
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  We have a very special guest today.
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  We have Jen Baglio, senior Transportation Business Operations Analyst with Thomson Reuters.
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  Thanks for joining Jen.
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  Good morning, Jason.
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  Good morning, Nick.
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  Thanks for having me today.
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  You're welcome.
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  Thank you for being here.
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  So, so the topic today is new domestic delivery options in the US market today.
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  Right, Right.
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  Could you just take a second for viewers and listeners and do a quick introduction of yourself and kind of what you focus on Thompson maybe what's background on Thompson and what you guys are focused on now?
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  Absolutely.
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  So in my role as a transportation analyst for Thomson really involves quite a bit of things, but new carrier selection is one of those.
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  Our customer base is specific or mainly in the US but we do have some international volume as well.
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  So in my role I'm analyzing those carriers, looking at how we use them, implementing them in a rate shop scenario if applicable.
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  And then anything on the back end like reporting analytics, monitoring our KPIs, things like that, it's all included in my role.
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  All the fun stuff.
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  All the fun stuff.
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  All the fun things.
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  Anything shipping or transportation related.
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  So when I think of Thompson historically.
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  I think of legal and that's.
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  That's a good point.
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  So that is our core business that started our organization over a hundred years ago and that was providing printed products to the legal industry.
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  Okay.
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  So our business has changed over the years.
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  We still support Thomson Reuters and all the professional print products.
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  I specifically work for a division called Core Print Solutions.
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  Okay.
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  So we are a large scale for service book, manufacturing, warehouse and fulfillment company in Eagan, Minnesota.
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  So as I said, we've been in existence for over 100 years.
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  In addition to the legal and tax and professional products that we offer, we have also turned into a commercial Print and fulfillment powerhouse in the area.
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  Yeah.
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  And I always know Opperman Drive is the street from the many visits and things like that.
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  Yes.
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  Okay, Jason, go ahead.
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  Yeah.
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  So as you start doing that analysis for bringing on new carriers and that kind of thing, what are some things that kind of pique your interest when it comes to starting a new or, you know, evaluating a new
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  carrier?
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  Yeah, that's a great question.
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  I would say first, what need are you trying to fulfill?
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  You know the Parcel Forum where we're at, Great show.
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  Been to a lot of sessions in the past few days, learning a lot.
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  Depending on the session you go, they're going to talk about carrier consolidation or carrier diversification, and both are happening.
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  So when I'm looking at a new carrier, what problem am I trying to solve for what, what concerns do I have?
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  Is it an individual lane that I'm having pricing concerns or service concerns?
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  How will implementing a new carrier affect my customer?
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  So, yeah, we're, we're.
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  I think the biggest question is use your data.
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  Trying to figure out what, what need are you trying to solve when looking at a new carrier?
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  And that's a really diverse kind of thing.
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  Right.
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  So, you know, anyone walking up to a booth like that is going to have different concerns, they're going to have different needs, they're going to have a different network they're trying to support.
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  So I think that kind of analysis is really helpful to someone that doesn't know what they don't know.
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  Right.
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  And they're just kind of walking in saying, I have a problem.
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  How can we, how can we make it better?
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  Yes, exactly.
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  You know, and we're here at Parcel Forum.
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  Right.
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  And there's plenty of carriers here and you know, that are, that are showing all their stuff.
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  You know, they've got some exhibits are stuff hanging from the ceiling, others are just, you know, on the ground.
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  But it seems like there have been, there has been a significant expansion of the number of carriers on the final mile side, especially on the regional side.
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  We're seeing a lot more of those smaller carriers.
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  Yes.
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  And I, I think a lot of shippers that are here at the show, most have a national agreement with one of the big guys.
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  So.
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  And I just heard in one of the last sessions, last year or years prior, we would call them niche carriers or regional carriers.
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  Now they're all carriers.
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  Right.
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  And what need do they fill for your organization?
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  Okay.
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  And that's what we're looking at.
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  But in that analysis too, how does it affect my agreement with the national carriers?
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  Will carving out a need affect my tier that I'm at with a national carrier?
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  Will it affect any rebate incentives?
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  All that has to be factored into looking at a new carrier.
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  Yeah.
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  You don't want to have a situation where dialing in your 10% affects your 90%.
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  Right, exactly.
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  Right.
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  You.
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  Right.
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  My goodness.
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  Mr.
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  Jason Roland here.
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  Okay, so, so Jen, what that.
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  I mean, this is all amazing, right.
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  You're sitting on the other side of table.
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  Of the table from, from me.
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  Right.
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  In terms of just, you know, roles.
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  But what is a quick way for you, whether it's personal, professional, whatever that looks like to disqualify a new carrier during your evaluation process?
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  Yeah, also a good question.
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  So I would say at this point, like confusing price structures.
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  If you look at base rates and comparing it with like, like I said, with a national carrier, you may find instant savings on base rates.
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  But what else is there?
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  Are there surcharges that is going to take that cost per package and make it maybe higher than your incumbent hidden pricing things you don't initially see.
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  So a red flag right out of the base would be lack of transparency in a pricing structure.
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  That would be.
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  Yeah.
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  One, one concern on that.
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  And how would, how would.
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  For anybody listening or watching, how would somebody know if there's, you know, the transparency isn't there?
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  I mean, you have so much experience.
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  But how would, let's say maybe a less experienced person, they get a contract from carrier A and they're like, wow, this looks amazing.
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  But you would know instinctually.
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  Well, there's more to this and you're not peeling back the onion.
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  Right?
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  Exactly.
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  It really is more than base rate.
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  So if you're looking at base rates, you may, like I said, see those initial savings.
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  When you look at a niche or regional carrier, you do have to factor in how much is it costing me to get to their location if they don't have a processing facility near me.
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  So first mile could maybe isn't included.
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  Yeah, could be.
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  I mean, carriers are proposing that you provide that, that first mile or it's baked in their cost somewhere.
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  Right.
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  So is that piece makes sense.
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  And especially with all the like geopolitical stuff we have going on right now with the price of oil and gas like those, a lot of them will have variable fuel surcharges and things like that that they'll hide in
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  or say, oh, at any point we can just say, oh, there's a 10% fee for, you know, a gas increase or anything like that.
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  So.
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  Right.
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  You know, keeping an Eye on that to keep your cost down is I would imagine, sure.
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  Fuel is always one of the highest, is the highest surcharge markup.
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  So going into a new discussion with a carrier, what does their fuel look like?
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  Are they strictly passing it on?
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  Is there any type of price protection?
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  Is there anything that's in the long term going to give me predictable fuel costs?
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  Can you negotiate it?
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  Can you negotiate it for sure?
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  Absolutely.
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  I'm going to jump ahead and Jason, maybe I'll have you take the fourth question that we kind of had, but this isn't on.
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  I'm not trying to throw you curveball, it's not going to be crazy.
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  But I just from our conversation, I'm curious, how do you look at peak season or do you have a peak season?
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  Is it something that you prep for or what do you do in preparation for it?
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  Yeah.
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  So sometimes you can use that to your advantage.
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  So in a, the professional industry, we don't have the traditional E commerce peak around the last part of the year, but we do have peaks around school seasons and big product pushes and things like that.
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  But sometimes you can use an off cycle peak to your advantage.
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  The carriers are overwhelmed at the end of the year.
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  If you can go into a negotiation with a new carrier and say, hey, we're pretty light in November and December, we've got volume in June, they love that.
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  So go into that.
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  Yes.
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  Go into those discussions.
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  That's good that you have the opportunity to lean into that.
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  You know, most of the people that might be walking the floor here probably have a, you know, late October through their January push.
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  Exactly what I mean.
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  And just like pricing and transparency on both sides is key.
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  If, if I do have a peak season, a traditional one, I would want a partner, you know, to know that and understand.
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  Okay.
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  What they can do and vice versa.
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  Yeah.
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  So as, as different companies, you know, have their own peaks and valleys throughout the course of the year that's can be separate based on what your company is and what your volume is like.
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  But one of the things that is more universal among all carriers and companies would be like the new regulatory changes that are coming out.
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  Right.
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  So when we have like the Canadian tariffs and, and, and the ongoing kind of geopolitical issues between the US and Canada specifically.
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  So that's more universal I think.
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  So what are some things that you've seen that, that those new Canadian tariffs like changed in the market or how do you prioritize that in terms of your analysis of carriers?
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  Yeah, definitely needs to be prioritized for Our business, we have a commitment to our professional customers that we get a product to them.
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  So we don't have a choice to hold it, not send it.
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  But that awareness of what's happening is critical and understanding what those price increases, tariff increases look like.
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  So even if we don't pass on that cost immediately, something we may do in the future, and working with a partner like Accendia to understand those is really key.
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  I don't think any of us here can be an expert on any piece of shipping altogether.
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  And as I said at the start, you know, my area is mainly domestic, but when it comes to international Canada, that's when we really have to have a great relationship with our partners like Essendia to keep us in
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  the loop of what's going on.
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  What we need to be aware of.
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  Yeah, that's really a common thread that.
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  We teed that one up in a lot of.
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  A lot of our episodes is that we.
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  The power of partnerships is really important.
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  And I think it's one of those things.
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  The more we do these, the more we kind of appreciate all the different partnerships that we have.
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  Because it help.
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  Like you said, you can't be great at everything.
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  Right?
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  Right.
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  So.
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  But having those partnerships in place are what I think really help not only the carriers, but also, you know, the customers, in the end, they get a better result.
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  Absolutely.
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  Jason.
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  Yeah, I agree.
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  So, okay, so I.
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  I love this conversation.
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  It's been a great conversation.
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  We're going to kind of recap things, but if you could leave for, you know, just a couple of nuggets for listeners, viewers, and when it comes to, you know, our focus being new domestic delivery options in the market.
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  You've already laid out some.
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  So many good points.
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  But what are just two more things maybe that you'd leave with people just to focus on when they're going through their evaluation and things like that.
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  Sure.
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  I said it earlier, but know your data.
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  Know your data.
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  Know your data.
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  Yeah.
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  What problems are you trying to solve?
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  I think, and we've heard it at the show, there were carrier changes implemented during COVID as.
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  As a fear factor.
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  Right.
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  Like, my carrier may not be keeping up.
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  I got to get someone else on board.
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  That was like a knee jerk reaction.
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  Hopefully we're past that now.
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  So now we have to really look at our data and what are we trying to solve?
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  Know what you need instead of just adding a carrier to diversify.
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  Why do you want to diversify?
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  Know your data and what are you trying to solve?
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  I love it.
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  Love it.
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  Okay, well, Jen, thanks so much for joining us.
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  And you know, we, we appreciate the conversation.
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  And Jason, anything you want to add?
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  No, it's great having you.
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  Thank you for joining us and enjoy the rest of your time here.
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  Thank you.
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  Okay, thanks everybody for watching another episode of Outside the Box with the Sendia USA podcast coming to you live from Parcel form with our special guest for this episode, which is Jen Baglio, Senior Transportation Business Operations Analyst, Thomson
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  Reuters.
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  Thank you so much.
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  Thank you.
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  Share subscribe and download our podcast to learn more about today's topic or for a free consultation, email us at ecommerce.usa@asendia.com.
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  Com back for more insightful discussions on e commerce, shipping to Canada, Mexico and worldwide.