Freight Under Management
Average Realized Savings
In the Gartner® Analyst report
Published 13 October 2021 - Analyst: Brian Whitlock
Recommendations. Supply chain leaders responsible for logistics strategy and operational performance should:
The perennial question — Am I paying too much for transportation? — is difficult to determine. Most transport rate benchmarking services offer broad comparisons of freight costs by lane, service and mode. However, there can be differences across services.
For many industries, transportation costs continue to be one of the highest of all logistics costs. This is more true in today’s volatile markets. A transportation rate benchmark can help provide an understanding of what rates logistics leaders should pay for transportation and provide factual data to help improve decision making when sourcing transportation services. It can also help logistics leaders determine whether they should put lanes up for bid or stay with current providers.
Although benchmarking transportation rates may appear simple, there are challenges in acquiring data that can effectively be used to compare. The factors involved in transportation vary by more than cost alone. Thus, logistics leaders must ensure that rate benchmarks will provide exact comparisons to their needs.
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