Why cheaper rates in logistics will cost you more

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The scent of fresh coffee lingered in the boardroom as Sarah, the sales and marketing manager, slumped back in her chair. “Look guys, I get that we’re not an online discount giant,” she began, “but our shipping costs are getting a little out of hand. Seems like everyone’s offering way cheaper rates.” 

Mark, the head of operations, scratched his chin. “Yeah, I’ve noticed those crazy deals too. Tempting, but…makes you wonder what they’re cutting to get those prices.” 

John, the CEO, leaned forward and took a sip of his cappuccino. “I’m with Mark. Could be a case of getting what you pay for. Imagine this: shipment arrives late, items are damaged – customer throws a fit online, and there goes our hard-earned reputation we have built over the years.” 

Sarah nodded. “Right, and that’s way pricier than a few dollars saved on shipping. But isn’t there a middle ground somewhere?” 

“Definitely,” John said. “It’s about finding those freight brokers who get the job done right, but also fit within our budget. Like – not the cheapest guys on the block, but the ones who give us the best bang for our buck and we do not need to manage carriers. We owe it to our customers – and frankly, ourselves – to deliver on time with quality service.” 

Sarah grinned. “Well, let’s brainstorm then. Maybe we should start negotiating with some reliable brokers and see if we can work something out.” 

The room buzzed with renewed energy, the team shifting away from the allure of rock-bottom shipping rates towards a strategy that prioritised quality and reliability without breaking the bank. 

Guess who they called next?

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