Winning the Data Game
Rates shift as dynamically as the market does so it’s important for shippers to have some benchmarks in place to navigate it as cleanly—and cheaply—as possible. However, that requires investing a lot of time and focus on top of simply getting the job done right. So where can shippers go to manage all the information they need?
Chad Kennedy, group product manager at DAT Freight & Analytics, shared his advice in a recent Inbound Logistics podcast, and Will Post, CSCP, offers three key takeaways:
1. Conduct thorough market research and benchmarking to identify your highest cost lanes. Use this data to target these lanes for improvement and negotiate better rates with carriers. Do this before running an RFP.
2. Avoid taking your below-market lanes out to RFP and potentially losing your best partners. Instead, have a strategic conversation with your carriers and work out a mutually beneficial agreement.
3. Update your fuel surcharge program by adjusting your miles per gallon assumption to reflect carriers’ increased efficiency. This will help you save money on fuel costs and renegotiate better rates with your carriers.