Chris Caplice’s Post

The truckload (TL) transportation market, a critical contributor to the US economy with an annual contribution of over $700 billion, has a procurement process that is far from straightforward. The decisions shippers and carriers make, influenced by a myriad of strategic and execution-level considerations, whether to 'make' (vertically integrate) or 'buy' (outsource), add layers of complexity to the process. In a fragmented and highly competitive market, the relationship between shippers and carriers is pivotal. Contracts in this space are unique: they bind prices but not volumes, leading to complexities in managing capacity and demand uncertainties. For those in the industry, the challenge is not just managing costs but also navigating the delicate balance of service levels and contractual obligations. The decision to opt for a private fleet, dedicated capacity, or spot market transactions can significantly impact operational efficiency and profitability. As we move forward, it's essential to bridge the gap between strategic planning and execution in TL procurement, ensuring that both shippers and carriers can adapt to the dynamic market conditions. Here's a link to the article "Research on the truckload transportation procurement: A review, framework, and future research agenda " by Dr. Chris Caplice and Dr. Angela Acocella from MIT Center for Transporation and Logistics. https://lnkd.in/gPaaRMtV

In today's volatile environment, mastering #freight procurement is not just advantageous—it’s vital to staying competitive and providing a high level of service to your customers. Click below to read more on key strategies that can elevate your #transportation game and give your #supplychain a decisive edge. #tms #logistics https://lnkd.in/ghcGjugF

Save time and money within your truckload strategy by automating the bidding process and promoting healthy competition through the right TMS solution.

Tired of sifting through emails and negotiating rates manually? Find out how a TMS bid board can revolutionize your freight procurement and simplify the bidding process. Read our latest blog by clicking the link below👇 https://lnkd.in/etcPynSa #transportation #freightmanagement #transportationinsight

When it comes to freight carrier procurement, balancing service and cost is key. But how can you find that balance? Prioritizing low cost may hurt service levels, while prioritizing service may mean higher rates during low demand. Our latest blog post explores the risks and rewards of a balanced approach to carrier procurement. Check it out here: https://lnkd.in/gRBWc-PC #transportationinsight #procurement

When it comes to freight carrier procurement, finding the right balance between service and cost is critical. In this blog post, we’ll explore the risks and rewards of a balanced approach to carrier procurement. Check out the insights shared in this article to help you make an informed decision for your business. Link: https://lnkd.in/eScbKExQ #transportationinsight #transportationmanagement #procurement

If your freight procurement platform requires your logistics service providers to put "99999" into cost fields they don't want to quote for, you deserve better. Get in touch with a platform that has much newer technology and which makes it actually easier for carriers to quote to freight RFQ's instead of more difficult. Welcome to Freightender! #logistics #procurement

Transportation Management Systems (TMS) have revolutionized the way logistics professionals manage their freight movements. In a recent blog post, we explored the concept of a TMS bid board and its benefits in terms of saving time and money. By implementing a TMS bid board, logistics professionals can streamline their freight procurement process and efficiently manage bids from carriers. This not only saves time but also helps in securing the best rates for your business. Interested in learning more about TMS bid boards and how they can benefit your logistics operations? Check out our latest blog post here: https://lnkd.in/eqrCx49Q #TMS #logistics #transportation #freight #procurement #bidboard #efficiency

FREIGHT LOGISTICS - Cost Management Formulas In freight logistics, several Cost Management Formulas are used to control expenditure, optimize performance and enhance productivity. The most commonly used Cost Management Formulas in Freight Logistics include: - ¬ Total Transportation Cost (TTC). ¬ Cost Per Mile (CPM). ¬ Cost Per Ton-Mile (CPTM). ¬ Freight Density. ¬ Break-Even Point (BEP). ¬ Return on Investment (ROI). ¬ Inventory Carrying Cost (ICC). ¬ Order Fulfillment Cost (OFC). ¬ Lead Time Demand (LTD). ¬ Economic Order Quantity (EOQ). Real-life Application scenario / Example: Let's apply the first three formulas; Transportation Cost (TTC), Cost Per Mile (CPM) and Cost Per Ton-Mile (CPTM) to a real-life scenario. Scenario: A business imports 20 ton of textile materials from Guangzhou, China to New York, USA. The business incurs the following shipment related costs: ¬ Freight Cost: $8,000 ¬ Handling Cost: $1,200 ¬ Fuel Cost: $1,500 ¬ Accessorial Charges: $300 (for customs clearance, port fees, etc.) Application: Total Transportation Cost (TTC) will be: $11,000 Which is the sum of: 8,000 + 1,200 + 1,500 + 300 = 11,000. Cost Per Mile (CPM) will be: $1.38 per mile Since the distance from Guangzhou to New York is approximately 8,000 miles, we apply the CPM formula: Total Transportation Cost ÷ Total Miles Traveled = 11,000 / 8000 = 1.375 Rounded off to $1.38, as Cost Per Mile. Cost Per Ton-Mile (CPTM) will be: $0.069 per ton-mile Because the shipment weighs 20 tons. Therefore, 20 tons x 8,000 miles = 160,000 ton-miles. CPTM = 11,000 ÷160,000 = 0.06875. Cost Management Formulas are critical for Freight Logistics optimization, because they provide essential metrics for cost management and control, better setting of competitive prices, route optimization, efficient resource allocation and better measurement of performance and productivity. In all, these formulas support strategic decision-making, enhance profitability and contribute towards sustainability goals by among other things reducing fuel consumption and emissions through optimized logistics practices. #FreightLogistics #MathematicalFormulas #ProcurementOptimization https://lnkd.in/dPEFxV3w Link: https://lnkd.in/dPEHtdTk

Navigating Freight Brokerage with Innovative Logistical Management The logistics industry is vital to global supply chains, but shipping management is often complex. This is where freight brokers like Innovative Logistical Management come in. We connect businesses with reliable carriers, ensuring cost-effective, timely transportation solutions. Our team provides access to a broad carrier network, offering tailored services for full truckload (FTL), less-than-truckload (LTL), and intermodal shipments. By negotiating the best rates and leveraging real-time tracking, we guarantee transparency and efficiency at every stage. Partnering with us offers cost savings, flexible solutions, and compliance with industry regulations. We integrate seamlessly into your supply chain, so you can focus on your core business while we handle the logistics. Whether you're shipping high volumes or need urgent transport, Innovative Logistical Management is your trusted partner. Let us streamline your freight needs and optimize your logistics process. Contact us today to learn more.