Imagine having to optimize something without having all the facts and data. This is what transportation/ logistics professionals are forced to do all the time. Unfortunately, many shippers don’t have actionable data and rely heavily on historical benchmarks or market averages when making crucial transportation decisions. This approach leads to implications that could impact a large company’s financial health by millions of dollars. Several issues can be solved by closing the freight procurement data gap, such as selecting the best possible carrier for each run, and level-setting truckload prices.
Poor Carrier Selection
Many shippers continue to use the same roster of carriers, even when far better options are available because they lack actionable insights to identify existing problem areas. It’s like the old saying… You can’t fix what you don’t know is broken. Without complete and accurate carrier performance and pricing data, shippers can’t make informed data-driven decisions about which carriers to keep, drop or add. This leads to suboptimal carrier selection, higher transportation costs, and poor service levels which lead to unhappy customers.
Not Understanding Truckload Price
When working with freight brokers, shippers are presented with a non-transparent truckload cost, with no insight into how payments are divided between brokers and trucks/carriers. To truly comprehend the real truckload cost, it’s crucial to obtain pricing directly from the truck/carrier without any hidden middlemen fees. Incomplete data puts shippers at a massive disadvantage and falls short of providing the insights necessary to level-set or standardize truckload pricing across the entire carrier network. Overpayment leads to millions of dollars in transportation budget overages, and underpayment leads to poor service levels and late deliveries. Request a complimentary lane assessment to uncover if and where your truckload rates are not aligned with the current market.
Closing the Data Gap
Emerging data tech companies, like Sleek Technologies, are stepping in to challenge and address the existing data transparency gap. They offer shippers complete data transparency into carrier pricing and performance data. This enables shippers to identify not only the specific carriers transporting their freight but also the exact payment received by the truck/carrier – a level of detail that freight brokers and DFBs have never disclosed. To see sample reports, click here.