Most of the shippers I speak with today want to ensure that what happened in 2020 does not happen again in 2021. They want the utmost guarantees and reliability in their supply chain this year. Here are three main ways that NYSHEX is helping them achieve this.
Whether monthly, quarterly, or annual, NYSHEX contracts are built with two-way performance commitments for both the carrier and the shipper. There is a financial incentive for the carrier to ensure that the space and equipment they committed to are there for you without fail from week to week.
Additionally, NYSHEX provides a more robust alignment of expectations between shipper and carrier as to how they are going to fulfill volume commitments. There may be volume surges at the beginning of the month or seasonality that a shipper needs to ensure will be covered. Our technology enables shippers to avoid the “MQC divided by 52-week” structure of most contracts today to build terms that work for their business.
Most procurement executives create a freight budget at the beginning of each year which they are expected to adhere. The reality, however, is that things often go wrong with a contract and it becomes necessary to work with a backup carrier at a higher rate. When there are clear terms, incentives to fulfill the contract, and fair and swift resolution of all exceptions, there will be no surprises and no added costs.
When a contract is performing, discussions between carrier and shipper can be focused on expansion and innovation. NYSHEX is handling all the exceptions so our members can use their time much more wisely than chasing down exception resolution. Not only carrier relationships, but what end-customer wouldn’t be thrilled that they got what they contracted for from you?