Logistics is a complex and swift-changing industry, and decision makers need to be armed with accurate data – and actionable insights – when navigating the evolving landscape. This is especially true in the face of the current freight recession.
Shippers understand the importance of data. When people talk about understanding the market and being prepared for changes, they often focus almost exclusively on the importance of accurate, real-time data. While data is the backbone of preparation, leaders also need access to concrete insights in order to turn that preparation into proactiveness.
High frequency data can unlock a whole new world of cost savings for shippers, but it is useless if companies do not know how to use it. Additionally, this type of data has proven reliable in predicting future market shifts well ahead of time, giving users a serious edge when planning their next steps.
That is where supply chain intelligence comes into play.
SONAR Supply Chain Intelligence (SCI) takes the high frequency data SONAR is known for one step further by providing data analysis that leads to actionable insights.
The platform works to provide logistics leaders – including transportation planning, procurement and finance teams – with the information they need to balance the optimization of rates and tender reliability in the present and create a game plan for the future. This level of data-informed decision making allows businesses to become more efficient and better utilize their resources.
SONAR SCI delivers high-frequency supply chain market intelligence empowering teams to:
- Increase efficiency of performance analysis
- Assemble bids with confidence
- Create new revenue opportunities
- Forecast transportation spend with ease
- Minimize risks and costs
By moving beyond simple benchmarking, SONAR SCI enables users to identify the most effective price in a lane, not just the lowest. Finding that sweet spot – even if it isn’t the lowest possible number – ultimately leads to reduced transportation costs and improved routing guide compliance. In fact, SONAR SCI customers reduce transportation costs by 4-10% on average.
“It is not always bad to be priced above the market or good to be priced below the market,” according to a recent SONAR SCI case study. “Lanes that are priced below the market tend to have lower compliance rates. Even though these lanes are ‘saving money’ on the bid sheet, they may not be saving money on the income statement because of two main reasons – the loss of time and manpower spent in trying to move the freight and paying more per load on the spot market. “
When shippers utilize supply chain intelligence to pinpoint the best – not lowest – price in a given lane, they can avoid exposure to service failures along with other costly mistakes, like disrupting previously harmonious carrier relationships.
When shippers attempt to negotiate rock bottom rates with carriers during a market turn, they risk offending their transportation partners and jeopardizing the strong relationships necessary to keep the supply chain running smoothly.
“By targeting both high- and low-cost lanes shippers and carriers can both win and build stronger partnerships that keeps costs more manageable,” according to the case study.
Not only do those stronger partnerships offer pricing benefits, they also insulate shippers from some of the volatility that accompanies market turns because crucial relationships will already be intact.
For shippers, investing in technologies that lead to a more efficient, optimized supply chain – alongside stronger relationships – during a recession is the best way to ensure they are ready to jump into action to moment the market turns, keeping them ahead of the curve.