How much do paper and packaging companies spend on transportation?

FreightWaves estimates that the Top 5 U.S. paper and packaging companies had combined revenue of $68 billion and a combined market share of about 75% of the U.S. paper and packaging market. Assuming each spends 10% of its revenue on transportation, then as a group the companies spent approximately $7 billion on transportation in 2019.

The estimate of transportation spend as a percentage of revenue is based on the leading paper and packaging company spending $2 billion on U.S. transportation in 2015 compared to a total 2015 revenue of $20.7 billion (according to a 2015 Wall Street Journal article and interview with the CEO). This is about 9.7% of its total revenue.

This means that if FreightWaves (through its data intelligence and SONAR) can drive a 1% savings on transportation spend ($25 million in annual savings) that it would drive a 3% increase in net income for the leading paper and packaging company in 2020.

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What's the SONAR ROI?

By increasing the number of loaded miles per day your drivers drive by 1% and your rate per mile by $0.03 you will make more per week #WithSONAR.

#WithSONAR you can save up to per week through better bid negotiations and more effective management of your routing guide.

#WithSonar you can add 1 more load per person each day and increase $5 margin per load, earning your company an extra per week.

Disclaimer: Every company’s circumstances are unique. Fixed and variable expenses, market conditions and operational factors vary. Unforeseen events may also affect results. Calculated potential results reflect the consensus expectation of FreightWaves’ experts. Actual results may vary.

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