FreightWaves and Convoy teamed up to present the first annual Shipper of Choice Award to a top-notch manufacturer, distributor or retailer. The Kellogg Company took home the first place trophy during Transparency19 earlier this year.
The first-of-its-kind award was created to recognize shippers committed to eliminating inefficiencies from the supply chain and aiming to be excellent partners for their carriers.
“The Shipper of Choice Award is all about increasing transparency as we highlight innovative best practices that keep freight moving and contribute to a healthy freight community,” FreightWaves CEO Craig Fuller said.
“We are honored to have been named Shipper of Choice in recognition of our ongoing commitment to our transportation partners,” said Joe Metzger, senior vice president of supply chain at the Kellogg Company. “We have made a concerted effort to improve the driver experience and make things easier for our carriers. Safe, driver-friendly practices across our network are the key to earning this award.”
There are several ways companies can become known as “shippers of choice,” including things as simple as providing bathrooms and coffee for drivers waiting to load at their docks. Being a shipper of choice also means working to cut down detention time and a commitment to getting trucks back on the road.
When capacity was tight and freight rates were high in 2018, the industry was full of companies taking steps to become better transportation partners. Those who placed in the Shipper of Choice Award competition are companies that are likely to continue those efforts despite a looser market.
Like many other companies, the Kellogg Company’s profit margins took a hit in 2018 from surging transportation costs and industry disruptions like the trucking strike in Brazil. Now that the tide has changed and shippers are regaining the upper hand, the hallmark cereal company plans to keep making its transportation partners a priority.
The term “shipper of choice” has been floating around the transportation and logistics industry for quite some time, but the Shipper of Choice Award marks the first time anyone has quantified what it takes to be a true shipper of choice.
Members of the Truckload Carriers Association (TCA) and the Blockchain in Transport Alliance (BiTA) voted on the winners from a list of nominees. The voting was managed by Katz, Sapper & Miller to ensure a credible and independent process.
The Shipper of Choice was determined by a simple points system based on how each voter ranked the industry’s most innovative or disruptive companies. A company received 25 points for each first place vote, 24 for second and so on through to the 25th company, which received one point.
The rankings were set by listing each company’s point totals from highest to lowest. The mathematical formula is the same as the one used for the Amway College Football Coaches Poll, the AP Pro32 rankings and the AP Top 25 rankings for men’s and women’s college basketball.