Shipping Cost Analysis with TLI's Shipment Benchmarking Software
Shipping Cost Analysis
TLI is proud to introduce a shipping cost analysis service that helps shippers make informed decisions and secure the best rates available. Our shipment benchmarking software offers LTL benchmarking, FTL benchmarking, and multi-modal analysis, giving you the insights needed to negotiate better shipping contracts that optimize your transportation spend.
What is a Shipment Analysis?
Shipment analysis is a detailed review of your shipping history to assess the efficiency and cost-effectiveness of your logistics operations. By analyzing key shipment data, specifically freight invoices, our benchmarking TMS software compares your current rates against market standards, identifying areas where you can save money or improve service.
Why Shipping Cost Analysis Matters
Conducting a thorough shipping cost analysis can uncover hidden costs and inefficiencies in your logistics strategy. Whether you’re shipping Less Than Truckload (LTL) or Full Truckload (FTL), understanding how your rates compare to the market can lead to significant savings and better service.
Key Features of Our Shipment Benchmarking Software
LTL Benchmarking
LTL Benchmarking: Gain clear insights into your LTL shipments to ensure you're getting competitive rates and partnering with the best carriers for your needs. We handle the complexities for you, whether it's deploying an FAK (Freight All Kinds), customizing accessorials, or ensuring sufficient cargo liability coverage. Let the TLI dream team analyze the weight break nuances based on your historical data to determine if your current approach is effective or if there's room for improvement. Either way, leveraging data-driven insights leads to better outcomes for your business.
FTL Benchmarking
FTL Benchmarking: Ensure you're getting the best value and service from your current FTL contracts by analyzing your shipments. We'll help you determine if certain lanes are better suited for contracted rates or if you're relying too heavily on the spot market. We'll assess whether there's room for improvement in your carrier mix and if you're vetting carriers effectively to protect your company's interests and officers. Our analysis ensures your FTL strategy is optimized for both cost and safety.
Multi-Modal Analysis
Our software supports various shipment types, including volume shipments, helping you choose the best transportation mode.
Understanding LTL and FTL Benchmarking
LTL Benchmarking and FTL Benchmarking are essential processes in evaluating your logistics strategy. LTL Benchmarking focuses on Less Than Truckload shipments, where you share truck space with other shippers. This analysis helps you determine if you're using the most cost-effective carriers and routes for these smaller shipments. FTL Benchmarking, on the other hand, targets Full Truckload shipments, where you have exclusive use of a truck. This process ensures that your larger shipments are handled by carriers who provide the best value, considering both cost and service quality.
Who Benefits from Shipment Benchmarking?
Our freight spend benchmarking service is ideal for:
- Shippers negotiating directly with carriers or through brokers
- Freight forwarders and freight brokers specializing in LTL, volume, or FTL shipments
- Any 3PL business looking to optimize shipping costs and improve logistics efficiency
How Our Process Works
Submit Your Shipment Data: Tell us about your business so we can build a shipper profile and upload your historical shipment history. The more detailed the data, the more comprehensive the analysis.
Run the Analysis: We use ViewPoint TMS to run an optimization benchmarking analysis, comparing your shipment data against current market rates.
Receive Your Results: Our analysis provides helpful tables and insights that guide your contract negotiations and highlight areas for improvement.
Optional Services: If your pricing comes back favorable, you can proceed with uploading your contracts into our TMS if you would like to tap into additional managed transportation services. Additionally, we offer freight claims management, freight bill audits, and custom software development to further optimize your transportation workflows & supply chain process maps.
Required Data for Accurate Analysis
To ensure an accurate shipping cost analysis, certain data points are required:
- Pro #
- Shipment Date
- SCAC (Standard Carrier Alpha Code) or Carrier Name
- Origin Zip Code
- Destination Zip Code
- Weight
- Freight Class (LTL)
- Linehaul Charges
- Fuel Charges
- Accessorial Charges and Description
- Total Charges
Optional data such as the direction of shipment (inbound/outbound), origin and destination cities, states, dimensions, number of pieces, and skids can further enhance the analysis.
Scenario Planning and Contract Validation
Our supply chain analytical services go beyond just analyzing freight spend history; it’s also great for scenario planning and shipping contract validation. For example, if you’re thinking of opening a new distribution center, we can analyze your historical shipment data to estimate how freight costs would change with the new location. This insight is invaluable for making smart expansion decisions. Additionally, when motor carriers propose contracts with steep discounts, our benchmarking can validate those claims. We analyze the linehaul rates and other costs to ensure the discount is real and not offset by inflated charges elsewhere. With our service, you can confidently negotiate and choose the best contracts for your business.
Minimum Charge and Additional Services
| Service | Description |
|---|---|
| Shipping Cost Analysis | The minimum charge for a shipment analysis is $500 |
| Contract Management | If you proceed with uploading your contracts into our TMS, a modest technology service fee of $500/contract applies. |
| Custom Software Development | We offer custom solutions at $199/hr, with a detailed scope of work and time estimates provided upfront. |
What is Mode Optimization?
Mode optimization is about selecting the most efficient and cost-effective transportation method for your shipments. Our dynamic routing guide uses your historical shipment data to check if you’re consistently using the most economical carrier. It can highlight unrealized savings by showing where a different carrier or mode could have been more cost-effective. Mode optimization ensures you’re not leaving money on the table and that you’re making the best logistics choices.
Take Control of Your Shipping Costs Today
Ready to optimize your shipping strategy? Submit your shipment data for a comprehensive shipping cost analysis and discover how our shipment benchmarking software can save you money and improve your logistics operations.
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