Transportation management remains an exhaustive process for companies around the globe. Transportation includes inbound freight management, transfers, deliveries, returns, freight auditing, and much more. These processes vary by segment. Regardless, Accenture Research found that average transportation costs comprise up to $60 million for every $1 billion in materials costs within product-based industries. And maximizing the resources available is critical to keeping total freight costs in check. While there are numerous opportunities to apply digital transformation to conserve resources, it’s essential to isolate the opportunities within carrier sourcing and scheduling and how they benefit from SONAR data.
SONAR data affords real-time rate comparisons
The most significant opportunity to use SONAR data goes back to how real-time rate comparisons and visibility enable more proactive carrier sourcing. Remember that average carrier sourcing with emails can waste up to 30 minutes or more, assuming carriers respond within five minutes. While a few minutes may seem minor, it adds up to a weekly limit on submitting truckload RFPs.
For example, if a user could submit one tender every 30 minutes and secure capacity with a freight management partner, that amounts to 16 total tenders per day. And that assumes the carrier accepts the tender in the first place. However, if the same process were to be based on the most competitive rates, it almost guarantees a booking at the initial cost.
Identification of market trends within custom dashboards streamline truckload RFPs
Custom dashboards further improve carrier sourcing by giving all users, ranging from shippers through carriers, the ability to streamline RFP processes. In today’s age, a digital quoting process is a gold standard. And as more companies amplify tenders through digital means, offering the most competitive rates and embedding them within digital quoting systems will be crucial to growth. That leads to new ways to plan for trucking capacity, adjust rates based on the market, accept, refuse loads based on data, and much more.
INFOGRAPHIC: Using SONAR data to Improve Truckload RFPs and Carrier Sourcing
Diving deeper into the benefits of SONAR data in truckload RFPs by market
Applied SONAR data offers several benefits for all segments in securing and maximizing capacity and resource use. The top benefits by segment include the following.
- Increased ability to offer competitive rates.
- Better profitability by choosing carriers with the most competitive rates.
- Fewer tender rejections to streamline freight management.
- Application of executive-level insights and data to improve RFP processes and save resources.
- Ability to reallocate assets based on trends.
- Get insights from predictive freight rates to pre-empt the market.
- Increased selectivity of loads and carriers to maximize profitability.
- Faster quoting and data sharing processes with carriers and shippers.
3PLs and LSPs
- Market data continues to reveal the value of 3PL services.
- Value-added services, such as auditing, apply SONAR data to justify costs.
- SONAR data increases rapport with freight management partners across multiple segments.
- Using third-party data reduces cybersecurity risks and creates new opportunities to conserve resources.
- Ability to reallocate assets based on granular data.
- Improved visibility into rates creates more competitive rating processes.
- Access to load matching resources combines with SONAR to identify the most lucrative loads more accessible and faster.
- Digital transformation reduces miscommunications and shows the “why” behind all rates.
Get access to SONAR data to maximize the profitability of your digital tech stack
Freight forecasting continues to redefine the standards for shipping and carrier management. As companies look for ways to increase bookings and reduce rejections, having a verifiable, single source of truth for freight market-rate insights will become imperative. And it all begins with learning more about how SONAR can help those processes. Imagine the possibilities if that 30-minute average time for sourcing were cut to 10 minutes or less. That’s a phenomenal volume of savings and opportunities to book more loads and increase revenue. Request a SONAR demo online to get started.