The 2017 freightand logistics marketplace is decidedly competitive. When considering marketforces such as fuel prices and other energy expenses, ocean carrier industryconsolidations, financial market turbulence and intermodal realignments, it’sevident that these factors are contributing to the ever-changing economicpicture. Consider, how does your freight transportation business measure up?What changes will your business need to make in order to adapt?
Benchmarking,as a process, can help answer those questions. By taking a “scorecard”or snapshot view of your company’s key shipping cost performance metrics, agood benchmark analysis can highlight areas where adjustments can be made, orwhere more research should be focused.
Shippers, forexample, can leverage solutions like U.S. Bank Freight Payment to deriveinformation such as shipping costs per lane or accessorial charges per shipmentfrom their freight payment and invoicing data. These measurements can then becompared to the same set of metrics determined for a selected peer group, suchas shippers alike in size, industry or shipping volume.
These insightscan then help gauge your shipping performance and ultimately make decisionsthat will bring positive results in an unsettled, highly competitive market. Byidentifying metrics that are below the line, or below what the peer group isdoing, you can focus efforts on addressing the outliers or on further analysisto determine the cause. Subsequent benchmarks, perhaps on a quarterly basis,can help track the progress being made and continue to provide valuableinsights to your business.
To learn moreabout where the transportation industry is headed and the ways benchmarking canprovide visibility into how your business can face the challenges it’spresenting, watch the webinar U.S. Bank co-sponsored with Logistics Management, “2017 Rate Outlook: Where are freighttransportation rates headed?”