How to Facilitate Productive Fuel Recovery Change Management Conversations with Your 3PL
January 30, 2024
Conversations about change management with a trusted partner can be quite challenging, particularly when introducing a new fuel management software solution. However, it is crucial to approach these discussions with a clear understanding of the value that the solution will bring to all parties involved.
When initiating a conversation with a third-party logistics provider (3PL) regarding the implementation of Fuel Recovery, it is important to consider the benefits it can bring. Fuel Recovery is a fuel management software that replaces an antiquated fuel methodology within the shipper and 3PL relationship with a market-based fuel amount. This approach not only simplifies the fuel cost calculation process but also ensures fairness and transparency between the shipper, 3PL, and carrier.
By implementing Fuel Recovery, you can have visibility to your fuel and freight spend and make more informed decisions. At the same time, 3PLs can streamline their operations and minimize any potential disputes or discrepancies related to fuel charges. This collaborative approach fosters a stronger partnership between you and your 3PL, leading to more transparent and cost-effective logistics processes.
4 best practices for successful Fuel Recovery change management conversations with a 3PL
When facilitating change management discussions with a 3PL, it's critical to practice effective communication, and establish a culture of trust and collaboration. By implementing best practices, involving all stakeholders, and addressing concerns, you can ensure a successful and collaborative transition to Fuel Recovery. Let's dive into these best practices for approaching fuel management software change management conversations with a 3PL.
Involve all stakeholders in your change management conversation. It is crucial to establish a positive and collaborative relationship with your 3PL by working together to plan and implement changes. When everyone understands the rationale and benefits of the fuel management solution, they can work in sync towards a successful implementation.
Communicate what Fuel Recovery is and how it works. To ensure effective communication, it is important that your communication is clear and concise, emphasizing process changes and how they will enhance fairness and accuracy for the carrier. Fuel Recovery offers a market-based calculation that considers the time, price, tax, and geography instead of an all-in rate or index-driven fuel surcharge schedule. By replacing a metric within the shipper-3PL relationship with a market-based fuel amount, you can reimburse carriers closer to what they pay at the pump.
Address any concerns or objections about the program. Some 3PLs may have reservations about making changes due to concerns regarding the implementation process or potential disruptions in existing operations. However, by addressing these concerns openly and honestly, you can effectively mitigate any possible issues. It is worth noting that, on average, carriers in the Breakthrough Fuel Recovery program already haul approximately 84% of a prospective client's miles, and 94 out of the Top 100 Transport Topics' for-hire carriers are part of Fuel Recovery. This data underscores the fact that Fuel Recovery is a familiar practice for most carriers, indicating that a 3PL should encounter little to no difficulty in securing the necessary capacity to support a shipper's transportation network.
Set clear timelines and milestones for implementation. Establishing a concrete timeline with key milestones is essential when implementing fuel management software. This approach provides stakeholders clarity about what needs to be done and by when, enabling everyone to understand their roles and responsibilities in this transition. Developing a well-defined plan can minimize risks and facilitate a seamless transition toward Fuel Recovery.
Achieve greater 3PL change management success through collaboration and clear communication strategies
When it comes to discussing Fuel Recovery with your 3PL, it's important to have a well-defined communication strategy. Collaboration plays a key role in this process. By actively involving stakeholders, addressing concerns, and setting clear timelines and milestones, you can achieve a more effective and efficient implementation of the fuel management software. Keep in mind that ultimately, you have the power to shape your transportation network strategy and the value you can derive from it.
For more Fuel Recovery resources, read our Breakthrough blog! Together, we can transform transportation.