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Showing posts from May, 2014

Refused Damaged LTL Shipments

When an LTL freight shipment is refused because of damage the carrier will notify the shipper and request a RGA# (or RMA#) to have it sent back to the shipper. If the shipper refuses to take it back the carrier will notify the consignee about accepting the freight again. In a case where the shipper will not accept the freight, the consignee should ask for it to be redelivered to them and take possession. If it is a third party drop shipment, the party paying the freight charges may accept it as well. If no response from anyone the carrier will send a letter with time limits before they sell it at salvage. 

The important takeaway is that someone must take possession of a refused damaged shipment before the carrier sends it to be sold at auction for salvage and all hope of receiving a claim settlement is lost. In most instances carriers will send the freight back to the shipper or party taking possession of the damaged freight at no charge, or free astray. If a claim is filed for a damag…

The Gain Share Model 3PL: Friend or Foe?

There are differing opinions and reports from professionals in the supply chain industry about the use of the gain share model by brokers or 3PL’s. Some shippers are happy with the model and some aren't. There’s no denying that it works in some instances, but many logistics experts are reporting that there is a lack of visibility and control associated with it. The model is similar to a consultant finding a client ways to save money on their business processes. The consultant may ask for a percentage or fee of the achieved savings since it took their expertise to find the cost reduction. This sounds good in theory and usually works well in a consultant type situation, but in the freight world this may not be a true representation of what's happening.

With the gain sharing model a shipper agrees to pay a percentage or flat rate fee of the savings a broker has said to have obtained for them. For instance, if a gain share 3PL proposes that they can save a shipper $10,000 off the…