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by Jared Spude
Jared Spude

3 min read

Unlock Precision in Freight Benchmarking

April 3, 2024

Jared Spude
by Jared Spude

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In the fast-paced landscape of transportation and logistics, benchmarking has long been the compass by which companies navigate market trends, align strategic action, and recognize their position within the industry. However, the effectiveness of this compass is only as good as the precision and timeliness of the data it reflects.

According to our 2024 State of Transportation Report, shippers have a greater interest in detailed information about industry-specific negotiated linehaul rates than the year prior. By utilizing advanced data analytics and machine learning, shippers can enhance their benchmarking practices with greater visibility to near real-time, shipper-transacted freight benchmarks. This level of precision and timeliness allows shippers to make more informed decisions and develop sustainable carrier relationships.

The Advantage of a Near Real-time Freight Benchmark

Data is the key to unlocking precision in freight benchmarking. By leveraging accurate and timely data, shippers can gauge current market conditions effectively and offer carriers a fair-market linehaul rate. This level of transparency was previously obscured by delays in traditional data reporting or initial market reactions, which don’t reflect market realities. For example, when a market disruption occurs carrier load boards may initially show heightened linehaul rates to capitalize on the situation. However, the impact on linehaul rates may vary depending on the timing of freight movement. By utilizing near real-time linehaul rates based on shipper-transacted rates, shippers can confidently execute data-driven, strategic choices on current market conditions rather than fleeting trends. Ultimately, this leads to improved carrier relationships and often lower transportation costs.

Optimizing Linehaul Rate Strategies for Competitive Edge

While shippers find industry-specific freight benchmarking valuable for precise rate negotiations, carriers view loads across industries similarly. Instead, consider load weights and equipment types in your linehaul rate strategy to ensure optimal decision-making. This method allows shippers to negotiate rates more effectively, ensuring that procurement decisions are not just based on the industry but on detailed, freight volume data. This level of specificity brings invaluable precision to procurement teams, empowering them to optimize their linehaul rate strategies, thereby enhancing their competitive edge in a crowded marketplace.

Why the Source of Your Freight Benchmarking Data Matters

Understanding the source of your freight data is crucial for accuracy and reliability. Some benchmarking services may unintentionally duplicate benchmarks from imprecise sources, costing shippers millions. But by choosing a freight benchmarking provider that offers clean, nearly real-time, shipper-transacted linehaul rates, you gain a more precise view of the transportation ecosystem and reduce costs in the process. With this level of precision and reliability, shippers can confidently steer their strategic decisions in the right direction and uncover optimization opportunities.

Capac-ID: Your Freight Benchmarking Solution

The need for precise freight benchmarking within the transportation industry cannot be overstated. Near real-time, shipper-transacted linehaul rate benchmarking not only provides a competitive edge in strategic decision-making but also ensures fair-market pricing, contributing to efficient and cost-effective procurement operations. The value of selecting a benchmarking provider that can offer clean and accurate shipper-transacted rates in near real-time is pivotal.

Capac-ID, a comprehensive productivity platform, combines real-time, shipper-transacted rate benchmarking, lane-specific carrier identification, and actionable recommendations. This solution leverages advanced technology and clean data to provide fair linehaul rate benchmarks by equipment type and mode, empowering shippers to make data-driven, strategic decisions.

Why settle for unintentional duplicate benchmarks from imprecise sources when you can have near real-time insights from shippers that drive success? Discover why an increasing number of shippers are leveraging Capac-ID for enhanced visibility into shipper-transacted linehaul rate benchmarking. 

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