The modern supply chain is a data-rich, continuously evolving entity. However, the advancements of supply chain systems have led to a unique problem, information, and data overload. Supply chain leaders have so much information at their disposal that they lose sight of what meaningful decisions can be made and why. According to Reuters, 51% of retailers are experiencing this problem, resulting in delays in freight management. Why? The days of choosing a single carrier based solely on its lowest-cost are over. The modern supply-chain is much more complex. Regardless of freight management parties’ interactions, recognizing the actual impact of origin and destination data can be difficult. Fortunately, SONAR Lane Score provides this snapshot view into how to apply scores to make meaningful decisions across all segments when managing shipping lanes.

Why SONAR uses a 36-unit scale to score shipping lanes

SONAR assesses a Lane Score for shipping lanes based on three categories of hi, med, and lo demand for both inbound and outbound freight. Lane Score 2 is based on the headhaul value for the lane.

Lane Score 2 is a measure of up to -1000.000 to +1000.000 where negative represents the outbound freight and a positive number represents the inbound moves. With that being said, each of the 36 Lane Score 1 values immediately shows what the Lane Score 2 is going to be too.

Then, those six values can be combined to create 36 unique combinations that allude to both the demand for the inbound and outbound side at each location. In turn, that creates value by giving all SONAR users instant views of the next best action, as shown tables below per freight market participant for both inbound and outbound to take.

Carriers

Carriers deploy SONAR Lane Score for managing shipping lanes to maximize asset utilization and ensure they offer the most competitive freight rates, while also increasing profitability by accepting the most lucrative freight tenders

As an example, a carrier would consider refusing most loads in shipping lanes scored with a 21, but that is only for outbound. Instead, they would want to also refuse some outbound loads and leave assets in place for outbound moves. That ensures the best mix of asset allocation and the ability to choose the most lucrative loads from applicable load boards or other inbound means.

How carriers interpret Lane Score data and actions to take by score

LEGEND
Actions to Take Move assets to origin Refuse most loads YES
Move assets to destination Refuse average loads NO
Leave assets alone Refuse some loads Offer higher rates
Accept most loads Book 7+ days early Offer average rates
Accept average loads Book ~3 days early Offer lowest rates
Accept some loads Book with < 24 hrs
Haul Lane Score1 Haul Lane Score2 Outbound & Inbound Actions to Take Bid on the Lane?
1 thru 36 -3 to 3 Outbound Initial Action Outbound Next Best Action Inbound Action to Take Yes/No
1 -3 Move assets to destination Accept most loads Refuse some loads NO
2 -3 Move assets to destination Accept most loads Refuse average loads NO
3 -3 Move assets to destination Accept average loads Refuse some loads NO
4 -3 Move assets to destination Accept average loads Refuse average loads NO
5 -3 Leave assets alone Accept most loads Refuse most loads NO
6 -3 Leave assets alone Accept average loads Refuse most loads NO
7 -2 Leave assets alone Accept most loads Accept some loads NO
8 -2 Move assets to origin Accept most loads Accept average loads NO
9 -2 Move assets to origin Accept most loads Accept most loads NO
10 -2 Move assets to destination Accept some loads Refuse some loads NO
11 -2 Move assets to destination Accept some loads Refuse average loads NO
12 -2 Leave assets alone Accept some loads Refuse most loads YES
13 -1 Leave assets alone Accept average loads Accept some loads NO
14 -1 Move assets to origin Accept average loads Accept average loads NO
15 -1 Move assets to origin Accept average loads Accept most loads NO
16 -1 Leave assets alone Accept some loads Accept some loads NO
17 -1 Move assets to origin Accept some loads Accept average loads NO
18 -1 Move assets to origin Accept some loads Accept most loads NO
19 1 Move assets to destination Refuse some loads Refuse some loads NO
20 1 Move assets to destination Refuse some loads Refuse average loads NO
21 1 Leave assets alone Refuse some loads Refuse most loads YES
22 1 Move assets to destination Refuse average loads Refuse some loads YES
23 1 Move assets to destination Refuse average loads Refuse average loads YES
24 1 Leave assets alone Refuse average loads Refuse most loads YES
25 2 Leave assets alone Refuse some loads Accept some loads
26 2 Move assets to origin Refuse some loads Accept average loads
27 2 Move assets to origin Refuse some loads Accept most loads
28 2 Move assets to destination Refuse most loads Refuse some loads YES
29 2 Move assets to destination Refuse most loads Refuse average loads YES
30 2 Move assets to destination Refuse most loads Refuse most loads YES
31 3 Leave assets alone Refuse average loads Accept some loads YES
32 3 Leave assets alone Refuse most loads Accept some loads YES
33 3 Move assets to origin Refuse average loads Accept average loads YES
34 3 Move assets to origin Refuse average loads Accept most loads YES
35 3 Move assets to origin Refuse most loads Accept average loads YES
36 3 Move assets to origin Refuse most loads Accept most loads YES

Graphical representation of table above

SONAR-Score-Segment_carriers

Broker and 3PLs

Both freight brokers and 3PLs can apply Lane Score 1 and Lane Score 2 data when making decisions that affect bookings across shipping lanes. That includes reaching out to more carriers, recognizing when it is time to possibly scaled-back expansion of the network, and continuously reevaluating freight bidding processes in favor of more lucrative opportunities.

And since the SOANR Lane score includes two unique scores, the implications are unique for both inbound and outbound operations. For instance, brokers and carriers will want to accept most loads for inbound and outbound when Lane score 1 is “1.” However, it may also be necessary to move assets to account for the increased ability to cover loads at the same time. 

How brokers and 3PLs interpret Lane Score data and actions to take by score

Haul Lane Score1 Haul Lane Score2 Actions to Take Bid on the Lane?
1 thru 36 -3 to 3 Outbound Action to Take Next Outbound Action to take Inbound Action to Take Inbound Next Best Action' Yes/No
1 -3 Move assets to origin Accept most loads Move assets to origin Accept most loads NO
2 -3 Move assets to origin Accept most loads Leave assets alone Accept average loads NO
3 -3 Leave assets alone Accept average loads Move assets to origin Accept most loads NO
4 -3 Leave assets alone Accept average loads Leave assets alone Accept average loads NO
5 -3 Move assets to origin Accept most loads Move assets to destination Accept some loads YES
6 -3 Leave assets alone Accept average loads Move assets to destination Accept some loads YES
7 -2 Move assets to origin Accept most loads Move assets to origin Refuse some loads YES
8 -2 Move assets to origin Accept most loads Move assets to origin Refuse average loads NO
9 -2 Move assets to origin Accept most loads Move assets to origin Refuse most loads NO
10 -2 Move assets to destination Accept some loads Move assets to destination Accept most loads YES
11 -2 Move assets to destination Accept some loads Move assets to origin Accept average loads YES
12 -2 Move assets to destination Accept some loads Move assets to destination Accept some loads YES
13 -1 Leave assets alone Accept average loads Move assets to origin Refuse some loads YES
14 -1 Leave assets alone Accept average loads Leave assets alone Refuse average loads NO
15 -1 Leave assets alone Accept average loads Move assets to destination Refuse most loads NO
16 -1 Move assets to destination Accept some loads Leave assets alone Refuse some loads YES
17 -1 Move assets to destination Accept some loads Move assets to origin Refuse average loads YES
18 -1 Move assets to destination Accept some loads Move assets to destination Refuse most loads YES
19 1 Move assets to destination Refuse some loads Move assets to origin Accept most loads NO
20 1 Move assets to destination Refuse some loads Move assets to origin Accept average loads NO
21 1 Move assets to destination Refuse some loads Move assets to destination Accept some loads YES
22 1 Leave assets alone Refuse average loads Move assets to origin Accept most loads NO
23 1 Leave assets alone Refuse average loads Leave assets alone Accept average loads NO
24 1 Leave assets alone Refuse average loads Move assets to destination Accept some loads YES
25 2 Move assets to destination Refuse some loads Leave assets alone Refuse some loads YES
26 2 Move assets to destination Refuse some loads Move assets to origin Refuse average loads YES
27 2 Move assets to destination Refuse some loads Move assets to origin Refuse most loads YES
28 2 Move assets to origin Refuse most loads Move assets to origin Accept most loads NO
29 2 Move assets to origin Refuse most loads Move assets to destination Accept average loads NO
30 2 Move assets to origin Refuse most loads Move assets to destination Accept some loads YES
31 3 Leave assets alone Refuse average loads Move assets to destination Refuse some loads YES
32 3 Move assets to origin Refuse most loads Move assets to destination Refuse some loads YES
33 3 Leave assets alone Refuse average loads Leave assets alone Refuse average loads YES
34 3 Leave assets alone Refuse average loads Move assets to origin Refuse most loads YES
35 3 Move assets to origin Refuse most loads Move assets to destination Refuse average loads YES
36 3 Move assets to origin Refuse most loads Leave assets alone Refuse most loads YES

Graphical representation of table above

Shippers

Shippers apply SONAR Lane Score data in a fashion like brokers. However, their considerations strongly trail back to considering the average lead time when tendering loads and offering appropriate rates.

As an example, shippers with a Lane Score of 36 would be in the most difficult market for carriers and brokers to cover. As a result, they would want to tender loads early enough to secure confirmation at least one week in advance. Meanwhile, they would want to offer better rates to entice carriers or brokers to accept their tenders across both inbound and outbound shipping lanes

Although that sounds counterproductive, it is the ability to book sooner and offer higher rates that make all the difference and ensure shippers actually see a lower tender rejection rate.

However, as a Lane Score changes to 35 for shipping lanes would result in a need to offer average rates for inbound freight and offer higher rates still for outbound freight. 

How shippers interpret Lane Score data and actions to take by score

Haul Lane Score1 Haul Lane Score2 Shippers Bid on the Lane?
1 thru 36 -3 to 3 Outbound Rate Action to Take Inbound Rate Action to Take Advanced Booking Inbound Action to Take Advanced Booking Outbound Action to Take Yes/No
1 -3 Offer higher rates Offer higher rates Book 7+ days early Book 7+ days early YES
2 -3 Offer higher rates Offer average rates Book ~3 days early Book 7+ days early YES
3 -3 Offer average rates Offer higher rates Book 7+ days early Book ~3 days early NO
4 -3 Offer average rates Offer average rates Book ~3 days early Book ~3 days early NO
5 -3 Offer higher rates Offer lowest rates Book with < 24 hrs Book 7+ days early YES
6 -3 Offer average rates Offer lowest rates Book with < 24 hrs Book ~3 days early NO
7 -2 Offer higher rates Offer lowest rates Book with < 24 hrs Book 7+ days early YES
8 -2 Offer higher rates Offer average rates Book ~3 days early Book 7+ days early YES
9 -2 Offer higher rates Offer higher rates Book 7+ days early Book 7+ days early YES
10 -2 Offer lowest rates Offer higher rates Book 7+ days early Book with < 24 hrs NO
11 -2 Offer lowest rates Offer average rates Book ~3 days early Book with < 24 hrs NO
12 -2 Offer lowest rates Offer lowest rates Book with < 24 hrs Book with < 24 hrs NO
13 -1 Offer average rates Offer lowest rates Book with < 24 hrs Book ~3 days early NO
14 -1 Offer average rates Offer average rates Book ~3 days early Book ~3 days early NO
15 -1 Offer average rates Offer higher rates Book 7+ days early Book ~3 days early NO
16 -1 Offer lowest rates Offer lowest rates Book with < 24 hrs Book with < 24 hrs NO
17 -1 Offer lowest rates Offer average rates Book ~3 days early Book with < 24 hrs NO
18 -1 Offer lowest rates Offer higher rates Book 7+ days early Book with < 24 hrs NO
19 1 Offer higher rates Offer higher rates Book 7+ days early Book with < 24 hrs YES
20 1 Offer average rates Offer average rates Book ~3 days early Book with < 24 hrs NO
21 1 Offer lowest rates Offer lowest rates Book with < 24 hrs Book with < 24 hrs NO
22 1 Offer average rates Offer higher rates Book 7+ days early Book ~3 days early NO
23 1 Offer average rates Offer average rates Book ~3 days early Book ~3 days early NO
24 1 Offer average rates Offer lowest rates Book with < 24 hrs Book ~3 days early NO
25 2 Offer lowest rates Offer lowest rates Book with < 24 hrs Book with < 24 hrs NO
26 2 Offer lowest rates Offer average rates Book ~3 days early Book with < 24 hrs NO
27 2 Offer lowest rates Offer higher rates Book 7+ days early Book with < 24 hrs NO
28 2 Offer higher rates Offer higher rates Book 7+ days early Book 7+ days early YES
29 2 Offer higher rates Offer average rates Book ~3 days early Book 7+ days early YES
30 2 Offer higher rates Offer lowest rates Book with < 24 hrs Book 7+ days early YES
31 3 Offer average rates Offer lowest rates Book with < 24 hrs Book ~3 days early YES
32 3 Offer higher rates Offer lowest rates Book with < 24 hrs Book 7+ days early YES
33 3 Offer average rates Offer average rates Book ~3 days early Book ~3 days early NO
34 3 Offer average rates Offer higher rates Book 7+ days early Book ~3 days early NO
35 3 Offer higher rates Offer average rates Book ~3 days early Book 7+ days early YES
36 3 Offer higher rates Offer higher rates Book 7+ days early Book 7+ days early YES

Graphical representation of table above

SONAR-Score-Segment_shippers

Putting It All Together

SONAR Lane Score provides those split-second decisions needed to maximize frontline worker productivity. Request a SONAR demo online today to learn more about how to apply SONAR Lane Score to improve shipping lanes management and tendering or booking processes in your company.

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