Executive Briefings

Unpacking Transportation Pricing

In its simplest form, transportation is getting your shipment from Point A to Point B within a certain amount of time, using a set amount of space. The cost to transport finished goods from the plant through the warehouse facilities and, finally, to the customer continues to be the largest single logistics expense for most companies, averaging 63% of the company's total logistics cost. Transportation commerce is the business of buying and selling transportation services.

Unfortunately, most companies still rely on the outmoded National Motor Freight Classification (NMFC) schema established in 1936. This method allocates the cost of using the space and/or weight resources the carrier is supplying to the shipper.

The University of Tennessee teamed with thought-leading practitioners from Transolve and Supply Chain Visions to develop this white paper. The team felt strongly that the industry needed to challenge conventional thinking in how companies approach transportation commerce if organizations are to be successful in the future. Our attention is drawn to the LTL segment due to the complex, overbearing and serious inefficiencies in common practice today. The Vested Transportation principles outlined in the last section of this white paper may be applied to all modes of transportation

Please CLICK HERE to view this White Paper

.

In its simplest form, transportation is getting your shipment from Point A to Point B within a certain amount of time, using a set amount of space. The cost to transport finished goods from the plant through the warehouse facilities and, finally, to the customer continues to be the largest single logistics expense for most companies, averaging 63% of the company's total logistics cost. Transportation commerce is the business of buying and selling transportation services.

Unfortunately, most companies still rely on the outmoded National Motor Freight Classification (NMFC) schema established in 1936. This method allocates the cost of using the space and/or weight resources the carrier is supplying to the shipper.

The University of Tennessee teamed with thought-leading practitioners from Transolve and Supply Chain Visions to develop this white paper. The team felt strongly that the industry needed to challenge conventional thinking in how companies approach transportation commerce if organizations are to be successful in the future. Our attention is drawn to the LTL segment due to the complex, overbearing and serious inefficiencies in common practice today. The Vested Transportation principles outlined in the last section of this white paper may be applied to all modes of transportation

Please CLICK HERE to view this White Paper

.