Transportation Leadership Journal
The transportation industry is fundamentally changing. The year 2020 will kick off a decade with new frontiers in data science, artificial intelligence, and optimization—all leading up to a shift in focus.
Are you a savvy supply chain professional looking for the best strategies to move products to market?
Traditional fuel surcharge programs fail to align fuel reimbursements to fluctuating prices, state taxes, and other market disruptors.
Fuel is the second-largest and most volatile cost in transportation spends — and it goes largely unmanaged. Take back control of this important component of your transportation spend.
Some shippers still reimburse carriers for diesel fuel based on a national average, like the DOE Fuel Price Index. Unfortunately, that’s an outdated and inaccurate method of reimbursement from 1981, which is costing your company millions.
Relying on averages from the DOE Index means you overpay for fuel. If your carriers pay $2.75/gallon in Oklahoma, should you reimburse them at $3.00/gallon because of high prices in Pennsylvania?This inaccuracy adds up.
Using a market-based approach, we calculate the actual cost of fuel based on your real shipment data. This means your fuel reimbursements are free of distortions like:
Fuel reimbursements are calculated according to lane-level shipment data, removing distortion.
Fuel reimbursements are distorted because key data is omitted, leading to inaccuracies.
The data we collect fuels effective strategies and establishes best practices to set your organization up for success.
Isn’t it time to move forward and manage fuel costs instead of reacting to them?