Subscribe to our free, weekly email newsletter!


Aggregate Low Volume Lanes, Lower Transportation Costs

image

Research by students at the Massachusetts Institute of Technology showed that shippers who aggregated low volume lanes acquired favorable pricing. See how aggregating lanes and contract pricing can save shippers up to 15 percent.




September 21, 2011

By default, most shippers send RFPs that ask carriers for point-to-point pricing on long haul loads (moving more than 250 miles from origin to destination). As a result, most lanes will be classified as “low volume,” subject to more costly spot market pricing, rather than contract pricing. Our research shows that by aggregating low volume lanes—by defining origin and destination sizes more broadly than point-to-point—shippers can increase the total shipments moving in a lane at more favorable contract pricing, saving up to 15 percent over spot market rates.

Research by students at the Massachusetts Institute of Technology showed that shippers who aggregated low volume lanes acquired favorable pricing. See how aggregating lanes and contract pricing can save shippers up to 15 percent.

Shippers may already have a general sense that combining and redefining some lanes—particularly those identified as being low volume lanes—could lead to transportation cost savings.


Download this paper:
Aggregate Low Volume Lanes, Lower Transportation Costs
Sponsored by:
image
* Indicates a required field
*Email:
*First Name:
*Last Name:
*Title:
*Company:
*Country:
*Address 1:
Address 2:
*City:
*State:
Province/Region:
*Zip/Postal Code:
*Phone Number:
Save my data on this computer (do not use on public/shared computers)

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Before you invest in a costly upgrade to your existing WMS, consider all of your options. With many solution providers to choose from, it's important to examine all features and functions as you look for a cost effective solution that meets your needs now and into the future. With the 2015 WMS RFP template you'll be able to view all prospective vendors through the same lens, so that you can make a truly informed decision.

During this webcast experts will uncover how an industry first automated technology tool can fill the gaps in the shipment assignment processes, and optimize your transportation network for the lowest possible cost.

Mexico's growing importance in the continental supply chain is now being recognized by North American transportation groups

Satish Jindel, president of Pittsburgh-based SJ Consulting, says that one way for LTL carriers to improve both their bottom lines and overall productivity is to get a better grasp on the cost of handling a shipment and the pricing they have for it.

Falling 5.5 cents to $2.668 per gallon, this follows last week’s 5.9 cent decline for the lowest weekly average price going back to the week of October 14, 2009, when it was at $2.60 per gallon.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA