Two types of the shippers are working in the logistics industry that are the Strategic and Transactional shipper. The key difference between both the shippers is given in the following article.
What is Strategic shippers?
The strategic shippers are risk opposing and they worked with renowned logistic companies. They are cost sensitive and strategic shoppers pay less price for freight and to get better services.
Strategic shippers consider their logistics capacity as basic to their prosperity.
What is Transactional shippers?
They do not work for any logistics company. The Transactional shippers are price driven and see logistics services as a trade product. In transactional shipper case the decision on the purchase is based only on the value of the freight.
What are the key differences between the both types of the shippers?
A solid relationship with logistics providers
The Transactional shippers have less sense about to create a solid relationship as the strategic shippers build. The relationship between the workers and surroundings is most fruitful for the business development. The strategic shipper on the other hand can build a healthy relationship with logistics services. However the transactional shipper are not the true image of relation development.
Difference of shipping cost
The strategic shipper’s sole concentration is on the cost of the shipping. In some events they pay some amount for the shipping but they consider the total cost to decrease the logistics charges.On the other hand the transactional shippers do not examine the cost of the shipping because their sole decision of the purchase is based on the total price of the freight.
The use of technology
Strategic shipper is connected with a logistics company so that they can use their software to store the information and records of the shipping. They are advanced than the transactional shippers in the setting of technology. The use of technology reduces the risks and errors in the process of shipping. However, the Transactional shippers do not use the technology. They cannot take the benefits of software provided by outdoor logistics services.
The use of KPIs (Key Process Indicators)
The use of KPIs is a key process in the system of shipping. The value of KPIs can describe the quality value of the logistics service. In the case of strategic shippers and transactional shippers the concept of key process indicators is very different. According to the strategic shippers point of view without the use of key process indicators you cannot manage the process of shipping. They use the KPIs to decrease the cost and to develop the shipping service. The transactional shippers are totally different from strategic shippers because they don’t use KPIs in their process of shipping.
