Actuals vs. Averages | Infographic

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Robust transportation and supply chain networks are made up of innumerable data points, partnerships, and costs. While looking ahead to long term strategies and developing practices to surmount the challenge of the day is important, shippers can’t lose sight of the daily execution that supports that strategy.

The best strategies are most often rooted in a high level of operational excellence. Every single partnership, every line item, and each and every data point along a good’s journey compounds together to create a robust ecosystem that influences an organization’s success. If even one cost is miscalculated by a few cents here and a few cents there, it can add up to millions over time. For many companies, the discipline that drives that ecosystem can be the difference between making or breaking a budget for that fiscal year. 

One of the fastest and most influential ways to drill down into the costs affecting your supply chain is by looking at the way you calculate fuel costs

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How Using Actuals Over Averages Creates Supply Chain Visibility

You cannot manage what you cannot see, and that’s why traditional fuel reimbursement programs skew the actual costs your organization pays to move goods through the supply chain. Current energy indices publish a weekly price that is not reflective of your individual transportation network. When you use average numbers, you get average results, and only by shifting to a market-based approach can shippers feel confident their fuel costs are precise and accurate. 

It’s time to move past the averages provided by the DOE Index Program. Breakthrough’s Fuel Recovery program delivers real transparency into the cost of fuel and helps shippers save millions by eliminating distorted and outdated practices.  

Want more information explaining the value of a market-based approach to transportation fuel management? Download our exclusive eBook, uncover the truth about fuel surcharge programs, and find out why you should ditch the DOE Index.

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