Aggregate Low Volume Lanes, Lower Transportation Costs

Research by students at the MIT showed that shippers who aggregated low volume lanes acquired favorable pricing.

<p>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.</p>

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.

in the News

The E-commerce Logistics Revolution
ITA reports third consecutive year of record-breaking forklift sales in 2017
Bluff manufacturing acquires Wesco Industrial Products
How Industry 4.0 Design Principles are Shaping the Future of Intralogistics
Supply chain management survey indicates greater pressure on companies to demonstrate sustainability
More News
By · 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.


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!

Latest Whitepaper
The E-commerce Logistics Revolution
The technology and processes that are revolutionizing logistics and supply chain operations are helping today’s organizations keep pace with digital commerce.
Download Today!
From the January 2018 Logistics Management Magazine Issue
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and the most successful shippers will be those that are able to mitigate their impact on profitability. And, the right technology will play an increasingly vital role in driving efficiencies across the global logistics network.
The Future of Retail Distribution
Navigating the Reverse Supply Chain for Connected Devices
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
IAM, IoT and the Connected Supply Chain
There are three primary models of Identity and Access Management (IAM) technology that CTOs, CSOs, and Supply Chain executives are using to enhance their trading partner communities. While each leverages IAM and the IoT as core components only an “Outside-in” approach truly connects people, systems and things reliably and securely across the supply chain.
Register Today!
EDITORS' PICKS
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...

Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...