The industry is abuzz… APIs are taking the shipping industry by storm, but it’s time to hit the pause button.
If you’re considering APIs for process improvement alone, you’re missing the point. Here’s why.
At its core, connecting directly to your carriers fundamentally changes the relationship with your carriers – for the better.
Traditionally, shippers and carriers squared off each January to negotiate a deal. Those prices then stuck for a year, and didn’t take into consideration if a given carrier had an opportunity in 1 month, 2 months, or 6 months to bid more competitively on a given lane. Instead, without a method for your carriers to offer better prices throughout the year, shippers are stuck with a possibly padded price, despite any cost-savings opportunities throughout the year that might arise.
When you’re directly connected with your carriers, as you approve the lane specific adjustments, that new price is immediately available, so there’s no wait to start saving. There are no static tables to license or routing guides to update. And because shippers aren’t hosting tables, they can invite carriers to set up the agreements on whatever rates can be most aggressive, rather than forcing them to quote off an averaged industry rate.
Why lock down rates in January, when carriers have the opportunity to bid more competitively throughout the year?
That’s how the relationship changes. It’s no longer a yearly showdown to lock down prices. Instead, it’s an easy-to-manage, fluid relationship where your carriers are always invited to bid competitively to win your business.
Carriers welcome the change in relationship. Banyan has 1,300+ established carrier connections, so we’re likely already connected with your carriers. When you hook up with your own, pre-qualified carrier base directly, you enable your carriers to bid on every shipment. The carriers are happy because they can be more competitive on the lanes they choose, rather than bidding on lanes that aren’t a good use of their resources.
Here’s what it means:
• Improved process – APIs make shipping more efficient. Who wouldn’t want that? It’s like going from shipping with Fred Flintstone’s car, to a Mack Truck.
• Improved relationships – Instead of squaring off with your carriers for the best price, invite your carriers to bid competitively. You’ll always win with full visibility to the best carriers for the job.
Both improvements are key differentiators that will result in increased ROI.
And let’s not forget, APIs are just one part of live connections. Yeah, APIs are the buzzword. But when you look at the benefits as a whole, it’s about live connections in all of its forms, way beyond APIs.
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