The Solution
Identified Savings Using the Spot Market vs. Contract Rates
We benchmarked all truckload lanes against spot market rates to determine rate shopping efficacy. We identified 24% of shipments were shipped using contract rates more expensive than spot market rates. We implemented cost-saving measures and generated savings of 18% per shipment.
Developed LTL Freight Class Calculator
We incorporated our client's product SKUs and packaging dimensions to calculate LTL freight class. With this process change, our client could book shipments and retrieve accurate rates from carriers.
Additionally, we implemented a tracking process to identify orders where shipping charges exceeded customer freight charges, leading to tool refinement and cost recovery.
The AMEND Process
Understand Current State Capabilities
Interviewed resources executing rate shopping, shipment booking, freight audit and pay, and customer freight charge processes. Evaluated operational gaps causing increased transportation costs.
Define Future-State Processes
Identified process changes that would eliminate operational gaps. Measured potential impact if process improvements were sustained and operational gaps were eliminated.
Bridge the Gap
Identified routes that would generate savings by using spot market rates instead of contract rates. Constructed LTL Class Calculator to determine shipment class prior to shipment booking, allowing our client to charge freight costs to customers properly.
