The Bottom Line? Benchmarking Is Where It’s At
As the end of 2014 nears, many may find themselves evaluating results from this year and planning new goals for the upcoming year. For shippers, an important yearly goal is to optimize cost-effective procurement efforts in the freight marketplace. One way is by benchmarking your organization against the market to create an action plan that can put you in a better position to control accessorial costs.
Our annual accessorial benchmarking survey resulted in some substantial insight into the changes and trends in transportation accessorial charges. The study, which included data from more than 150 shippers, identified the customary types of charges and rates implemented by shippers beyond the basic line-haul fees in order to help organizations better understand how their accessorials compare to market competitive standards.
Common accessorials revealed in the survey include detention with power and stop-off charges – both of which contribute to and affect the bottom line to a shipper’s costs. However, the survey showed that 93% say fuel surcharges (FSC) is the most common accessorial they have to deal with. One way to minimize FSC spend is to utilize intermodal solutions – an optimized intermodal FSC is generally half that of the truckload FSC, and can help put a stop to bleeding costs to your bottom line. In fact, getting the right action plan in place by benchmarking can help you uncover up to 12% savings of your total freight spend.
So, where does a shipper go from here? Try answering these questions to help you get headed in the right direction:
- Do you know where your accessorials and rates stand in the market?
- Do you need a current benchmark on market data?
- Do you know your competitive landscape and are you optimizing freight flow and shipping modes for savings and efficiency?
So what’s next? Check out these important steps to start benchmarking your accessorials to uncover savings:
- Compare your spend to the market rate and receive comprehensive reporting that outlines rates and accessorials. There could be other areas of opportunity where you can optimize and plan out your next steps.
- Identify gaps across your supply chain and be armed with a prioritized action plan to save on your total freight spend.
- Stay on top of the market with frequent benchmarking reports, whether quarterly or annually for continuous optimization.
You can read more about the Transplace Accessorial Benchmarking survey results here!
How do you plan to reduce costs and increase efficiency across your transportation network this upcoming year?