A major theme during this discussion is how the power of empathy, synchronization, and communication can play a role in transportation.
Andy Butler has been with Procter & Gamble (P&G) for over a decade, but has just recently moved into the role of Associate Director of North America Transportation Purchases. Based on his experience procuring other products and services, he states the main difference when purchasing transportation is the highly fragmented industry. P&G is one of the largest non-retail shippers, but still only a small fraction of the total transportation market. However, despite the market fragmentation, Andy believes it is still a very relational industry and relationships are critically important. Data and relationships go hand in hand – even though data is more readily available and visible, it cannot replace relationships. Andy emphasizes the importance of leveraging the power of empathy – understanding not only the carriers, but also the drivers. He believes it is important to create an environment where carriers and drivers actively seek out Procter & Gamble’s freight.
He also discusses the importance of synchronization among suppliers, customers, and transportation providers to avoid friction in P&G’s supply network. For partnerships to work, relationships need to be mutually beneficial, not just transactional. The key to successful relationships is proactive and clear communication. These relationships must also remain consistent regardless of market conditions.
Listen to the full episode to hear how Andy implemented change internally when he started his current role at P&G as well as how he established a vision and strategy for Procter and Gamble to be a shipper of choice.
This episode recap was written by Courtney Schrader, Sr. Product Manager, FMIC.
Market Update & Forecast: 21 November 2019
Dry Van
Active rates dropped 0.25% and spot rates have dropped about 2%
Temp-Control
Active rates and spot rates have remained steady
Intermodal
Active rates dropped 0.25% while spot rates stayed flat
The replacement rate of new contract rates has remained negative over the last two weeks across all modes. We are not seeing the typical Q4 increases that we have seen in the past; the market is remaining soft for the short-term. Shippers will want to continue monitoring their position to market and if a portion of their network is above market it might be a good time for a “mini bid” before the market shifts.
