Three Best Practices for LTL Operations—From Dock to Stock

Managing operations for less-than-truckload (LTL) shipping involves a complex network of transportation options and decision-making. The bill of lading comes into focus as accuracy helps ensure the best rates and minimizes the potential for unexpected charges. Shipments need to be ready to go when the driver arrives at the dock for pickup. And not all truckload (TL) carriers offer LTL transportation, so shippers need a robust network of carriers at their disposal to keep products moving.

In SMC³’s continuing LTL 202 hybrid sessions, a panel discussion examined several critical areas for LTL operations. Panelists John Tillison, senior vice president of integrated solutions at A. Duie Pyle, and Trevor Schirmer, director of operations at Dependable Supply Chain Service, shared their expertise and provided best practices for smooth operations from dock to stock.

1.Keep an Eye on Transit Speed

On-time service is critical for transporting goods from the dock to the end destination—whether that be to a final customer location or an intermediary such as a warehouse or a distribution center. National carriers typically haul between 800 and 1,200 miles, which means transit times are likely to be 3 to 5 days. Panelists recommended adding regional carriers to the mix to shorten transit time and maintain high service levels.

“For the most part, service by regional carriers is next day, with a few second-day markets,” said Tillison.

Schirmer added that smaller regional carriers often offer more specialized and customized types of services that larger, national carriers aren’t accustomed to providing. There’s also less handling, which reduces claims incidents and increases delivery speed, he said.

2. Consider Rail Transport for LTL Shipping

It’s intuitive to think that all products moving through a network for cross country transport are loaded onto trucks. But the panelists noted that some LTL shipments are transported long distance by rail.

“When I worked as a conductor for Union Pacific, I’d see a lot of trailers on flat cars that were LTL carriers—UPS and FedEx,” said SMC³ moderator Joe Tillman.

Tillison pointed to the cost advantage of moving products coast to coast via rail. “It’s about half the price to put it on a train,” he said.

Tillison also noted a disadvantage of rail transport. Coast-to-coast trains usually stop in Chicago and do some exchanges, which can delay transit time. “So, you give up a little bit on the transit time in return for lower costs,” he said.

Unforeseen bigger issues like a train derailment or prolonged stoppage along the route can also add time to rail transit. When this happens, carriers may not be able to get to the site via truck to retrieve their cargo from the train.

“It’s not like a truck incident where you can go ahead and reroute it down another highway,” said Tillison. “It’s much, much different.”

3. Look to Technology to Advance Terminal Operations

While the LTL industry as a whole has been slow to embrace technology, a significant transformation has occurred in recent years to advance operational efficiencies at terminals and improve customer satisfaction. Schirmer noted the formerly manual paperwork process created a lot of room for errors.

“Now, things are much more automated. Almost every carrier has scanners on the dock now, so you know who’s handling what and how many times a trailer comes into a door,” said Schirmer. “The whole manifest comes up; they start breaking the freight and it tells the dock worker exactly where to put it.”

Freight dimensioners are also being used by more LTL carriers today to accurately calculate freight weight, size, and classification. The latest dimensioners are more efficient and less cumbersome than earlier models, and they help carriers with costing models and pricing for customers.

Shippers have also improved their calculations on the front end, so fewer corrections are needed these days, said Tillison. But having technology to verify shipper data at the terminal eliminates any guesswork in measuring and correcting.

In addition, route optimization technology is increasingly present on docks to ensure that freight gets to the right place at the right time, Tillison said. Route software optimizes for the best routes at docks, and drivers, in turn, use the technology to plan their routes.