Shipping is a complex and costly aspect of any supply chain, and thus, the way shippers plan and manage their freight costs is of utmost importance. Traditionally, shippers have leaned on historical 1st party data, along with market averages from 3rd party data providers, to gauge whether they were paying a fair price to transport goods. Digging into market averages on specific routes or shipping lanes that have similar distances, weight capacity, and other logistical factors, has become one of the most reliable points of comparison.
Unfortunately, these approaches have limitations because they provide a snapshot in time, and assume market conditions have not changed. They do not account for things like changes in fuel prices, driver wages, seasonal fluctuations, and supply and demand shifts. Using these data sources can lead to a significant misjudgment in shipping costs, especially as new disruption occurs.
Marginal Discrepancies in Transportation Management Costs Shipper Millions
A 1-2% difference in truckload cost might seem small, but in reality, it can make a humongous impact. For instance, if a company spends $100 million annually on freight, a 2% discrepancy equals $2 million. This is a significant sum that could be saved or, if misjudged, unnecessarily spent.
Effectively Manage FTL Budget with 100% Data Transparency
The need for greater accuracy and transparency in freight cost management is pressing. Advanced analytics and actionable insights have helped many large shippers uncover resilience, sustainability & cost-reduction opportunities. “When shippers understand the “true-market cost” to ship their unique freight, they finally have actionable insights to effectively manage their freight procurement budget”, said Michael Paul, VP of Sales Sleek Technologies.
Sleek Technologies provides customers with 100% data transparency into carrier pricing and performance. Shippers always know which carriers are transporting their freight, and what each carrier is getting paid directly– a level of detail that freight brokers and DFBs will not disclose.
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To understand the easiest way to manage a transportation budget, click here.