Why You Should Be Comparing Your Full Truckload (FTL) & Less-Than-Truckload (LTL) Freight Rates
Logistics professionals have their work cut out for them just to get their freight to the customer on time without the added pressure to shop around to find the best deal. At least, that’s the case for folks who are still managing their freight operations in the old-fashioned way, with phone calls to carriers and spreadsheets to track loads. Companies that have already turned to transportation technology to help them optimize their supply chains can easily compare freight rates without wasting extra time.
Technology lets companies automatically pull in all their negotiated carrier rates side by side for easy viewing and comparing. Instead of needing to switch between vendor portals, logistics professionals have all their tariff information contained in one, user-friendly location. This means that they can choose the most attractive rate at the service level they need for every shipment.
Why Should You Compare Your Freight Rates?
Many shippers have carriers that they partner with over and over again, and those relationships can be crucial for the success of the delivery. But if you never get a feel for the market price on a particular lane, you could be vastly overpaying. By comparing rates, you can go back to your carriers to negotiate better terms. You may also discover cheaper capacity is available, helping you save money on total freight spend if you alter your processes for certain lanes.
By shopping around for different freight rates, you could also discover opportunities to deliver faster to your customers. Trends like the “Amazon Effect” are increasing customer expectations, namely the speed at which they can expect their deliveries. Even if you don’t discover freight savings when you shop around, you may discover ways to improve your customer satisfaction.
Another reason to constantly be comparing your freight rates is that prices are continuously changing. Diesel prices fluctuate, the driver shortage and capacity crunch alter carriers’ ability to service their customer base, and competition for capacity grows worse. What may have been the best price one day could suddenly be outperformed by another rate the next. Instead of doing a monthly or quarterly audit of tariffs, companies should be comparing their freight rates each and every time.
Comparing freight rates also allows logistics professionals to determine what mode they want to ship their product. This is particularly important for orders that could be either a parcel shipment of an LTL load. Many people wouldn’t consider shipping what they assumed to be an LTL load as a parcel shipment, or vice versa, though there could be significant savings. By using technology to display multiple mode options all on one screen, companies can be sure to pick the best price, no matter what mode is selected.
Using Technology to Rate Shop
Technology is the answer to this problem for most shippers. By leveraging a transportation management system like Kuebix TMS, companies can quickly view all their options and select the best one. This is like booking a flight online were each and every price and timeline is viewable. At Kuebix, we believe that logistics should be just as easy as booking a flight online. And by comparing multiple modes side by side, users get even more opportunities to save money and provide superior service to their customers.