Rate setting in the shipping and transportation industry hinges on striking a delicate balance between all the factors that drive rate: Mode, origin, destination, time of year, capacity, and more. In the eighth episode of B2B Reimagined, Zilliant General Manager of Commercial Excellence Barrett Thompson and Zilliant Senior Director of Solutions Consulting Jay Foulkrod discuss how technology can exploit pockets of opportunity in this complicated industry.
Some examples of the complexities that conspire against rational rate-setting include:
- What is the size of the customer?
- How often does the customer order?
- What is the size of the shipment?
- Are there handling or special services requirements on the first mile or last mile?
- What is the value of the package being shipped?
While it might be possible to understand what a single customer ships most, which lanes they prefer and what their special requirements are, it’s a monumental task to solve for all these variables across your entire customer portfolio. That’s where a reimagined approach to rate-setting technology comes in.
Thompson and Foulkrod talk through examples of how the purposeful application of data science can transform reams of information into actionable insights. This empowers shipping providers to consistently deliver daily rates, matrix rates and rate agreements that are rational to the market and profitable. This technology also enables intelligent automated negotiation through online channels to give customers the self-service experience they expect.
Listen now to learn how to build and target specific shipping profiles that allow you to consistently set the right rates for the right types of services to the right customers.
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