Checklist procurement & buying transport or logistics

Tip 1 of 20 “Waiting time”

Unfortunately a part of the available time of transport equipment is being filled with non-productive time, called “waiting time”.  It happens all the time and everywhere in the suppy chain and carriers always try to find someone to bill these costs. Usually they land somehow most of the time with the customer. Not always is the costomer responsible for the occurred waiting time and extra costs.

Let’s take an example

You just ordered your trucking company to load some products at your supplier and haul them to your warehouse. If you didn’t negotiate how to handle possible waiting time or extra costs thez might be billed to you.

1. Carrier arrives at your supplier: the load in not ready to be loaded. Carrier leaves the loading place without loading: result extra costs due to multiple loading actions.
2. Carrier arrives at loading place in the afternoon, unfortunately your supplier doesn’t load trucks for external trucking companies. He had to return the next day. Result extra costs due to multiple loading actions.
3. Carrier arrives at the requested time at your carrier: unfortunately there are already trucks queuing at the docks, your carrier has to wait 2 hours before he gets his truck loaded. Who is going to pay for the waiting time?

Another examples where waiting time can appear:

Waiting time at loading docks, weighting stations, seaports, rail terminals, customs clearing, distribution points, reloading locations, roadblocks and strikes.

Solution how to avoid getting bills or discussion about waiting times?

1. You need to discuss and negotiate who is responsible for booking & communicating loading and unloading trucks. If your carrier would be responsible, he might as take the additional costs in case waiting time occurs.
2. Calculate the time that is maximal needed to load and unload a truck. Multiply that with time to arrive, get the truck ready, paperwork and some buffer time. Negotiate with your carrier and try to include as much loading and unloading time free in your transport rates.
3. Negotiate with your carrier to what extend you will be responsible for the waiting time. Tip: if you can influence the process (like harbour, roadblocks etc) let the carrier take the responsibility.