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One of the biggest game changers for haulage companies is securing long-term contracts. These agreements can boost productivity, offer stability, provide predictable revenue streams, and of course, build lasting relationships with clients, but how do you make the most of long-term contracts? They’re not always easy to attain. So here’s a number of methods to ensure that you can maximise the benefits if you acquire a winning long-term contract:
Expanding Your Service Offerings
Long-term contracts allow you to understand your clients’ needs intimately, so you should use this knowledge to offer additional services that complement your main haulage offering. This could include warehousing, basic assembly services, inventory management, or you could incorporate third party logistics capabilities. By partnering with or developing your own 3PL services, you can offer clients a more comprehensive logistics solution, which could lead to longer and more lucrative contracts.
Focus on Fleet Efficiency
Steady work provides greater peace of mind, so therefore you can justify investing in new, more fuel-efficient vehicles, which means that your operating costs go down, but you can also showcase your commitment to environmental sustainability. Sustainability is naturally one of the more growing concerns for many clients, and that concept of working smart rather than hard can be displayed more prominently.
Embracing Technology
Efficiency is always the name of the game. When you are working with clients, they will always benefit from real-time updates, as this enhances their experience and makes for a far better working relationship. Tracking and logistics software is easily accessible these days, therefore it’s absolutely worth your while to invest in these.
Training and Retaining Staff
Long-term contracts mean guaranteed work, therefore you can capitalise on this by investing in your workers. There is often an ill-conceived notion that we should focus on the financial side of things and make the contracts worth our while by presenting how we offer value to the clients, but we also need to ensure that the people performing the work feel like they are an investment as well. Haulage can often be challenged through high turnover, therefore if you focus on improved service quality and retaining valuable employees through comprehensive training programs, you will see the difference.
Negotiating Wisely
We can often be focused on the financial factors, but when securing long-term contracts, think of the things beyond the price. Look for clauses that can allow for the adaptability to change in market conditions, whether this is fuel cost adjustments, performance bonuses, or just asking for more flexibility in general.
Prioritise Building Strong Relationships
Treat your long-term contracts as partnerships rather than fleeting relationships. Ensure that you stay proactive in your problem solving and communicate regularly, but also be willing to go the extra mile, as these can turn a good standard contract into something way beyond.
Plan for Growth
It can be tempting to view a contract as a stop-gap, particularly if you think you could benefit from a better one further down the line. However, we should plan to grow with our clients and see what we can do to go the extra mile, while also ensuring that they feel they’ve chosen the right partners themselves.
A long-term contract can ensure sustainable growth and success within a competitive logistics market. It’s more than a business agreement but an opportunity to showcase your company’s value at every turn!
About the Author: John Loughran
