Maximizing LTL Routing Efficiencies

Posted by admin on Aug 26, 2015 11:12:00 AM

AA030509_box_on_belt_movingEvery carrier, large and small, has their "sweet spot" lanes; those lanes that achieve a well balanced mix of freight to and from their core customers and terminals.  Achieving this balance and minimizing empty miles are the most critical aspects of running a profitable trucking company.  Any carrier’s tariff or quoted pricing will absolutely reflect the level of desirability of any pickup or delivery point.  Understanding this information should be an integral part of your freight routing strategy.  Routing a shipment to a carrier for which the origin or destination are considered outside their sweet spot will result in a higher rate and (most likely) sub par transit times.  They really don't want that particular shipment but take it at a premium price to appease the customer.  They will often times hand it off to a carrier that services that origin or destination.  This "Partner Carrier" relationship, as it is commonly referred to today, often causes a reduction in overall customer service.  Dissecting, understanding and utilizing this information is exactly what a 3PL offers its shipper clients.  A 3PL offers maximum utility in routing decisions and the price benefit of large volume freight tendering. 

Where To Start

As with any 3PL the only way to identify areas of efficiency improvement is with a Freight Bill Audit.  Land Link offers this service at no charge to its prospective clients.  The audit encompasses a comprehensive review of a minimum of 3 months historical data.  From this data, a determination is made as to which shipments have been correctly routed in the particular carrier’s "sweet spot.” Based upon the pickup origins and destinations a new algorithm is created using the Land Link Preferred Carriers to insure every shipment is routed to a particular carrier who best services those lanes, thereby maximizing pricing and transit time efficiency.   

Lowest Cost Routing - How It Works For Land Link Traffic Systems Clients

Lowest Cost Routing is a custom computer program based upon a particular shipper’s inbound and outbound needs. Daily shipments are transmitted from the shippers traffic department to our customer service department.  The Lowest Cost Routing system automatically assigns each shipment to the most efficient carrier and electronically requests the pickup.  Routing exceptions are implemented when the standard parameters of a particular shipment are outside the programmed range.  Examples of this are expedited pick up or delivery, after hours service or a freight classification or UN # that is outside the usual. Contingency carriers are then assigned based first upon lowest cost and secondly availability. 

Reporting And Tracking Results

Land Link provides the following management reports to track cost efficiency:

  • Provision of key-critical KPIs that are directly tied to corporate goals and objectives so that progress can be assessed.
  • Ad-Hoc / One-time special analyses to support the making of important business decisions.
  • Dynamic Dashboard Technologies. The power of KPIs at your finger tips

To quote the founder of Land Link Traffic Systems, ”What does not get measured, does not get fixed.” 

Find out what we can fix for your organization.  Get started with a no fee fright bill audit by clicking the button below.

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Topics: Maximizing Routing Efficiencies, Freight Bill Audit