UltraShipTMS Technology Unleashes the Power of Competitive Bidding to Drive Freight Spend Down and Increases Access to Scarce Truckload Capacity
Fair Lawn, NJ – October 31, 2018 – New Spot Quote Automation tools from leading provider of transportation logistics automation solutions, UltraShipTMS are helping high volume truckload shippers bend the freight cost curve down, while simultaneously unlocking more effective access to severely constrained truckload capacity.
The data collected from a group of UltraShipTMS customers using this exciting new solution module reveals the significant benefits yielded by these customers’ utilization of this timely technology including, among other benefits, an average of 5.7% savings on expedited freight costs.
The solution, rolled out in 2017, leverages cloud TMS infrastructure to support competitive bidding, distributing expedited bid requests electronically to all the carriers available in a shipper’s existing base of vetted, on-boarded carriers. Once tenders are submitted, a shipper enjoys real-time visibility into all the bids proffered by participating respondents. The shipper can then select the best quote from among the responses received. Requiring carriers to compete against one another in what is essentially a reverse auction incentivizes carriers to present their lowest bid to win the job. It also affords shippers a far more accurate view of the actual market rate for expedited freight in any given lane.
As part of a blind study performed by UltraShipTMS, data was culled from three discrete shippers using this new solution. The anonymized data captured from a two-week period in early 2018, reflected the impressive results of leveraging competitive bidding in the management of expedite/overflow shipments.
At the end of the two-week term, a combined 2912 truckload shipments had been moved by the three shipper subjects over the spot market, yielding savings of almost $29,000. The average spread between the first bid received and the final bid ultimately awarded was a respectable 5.7%. Extrapolating these savings across the entire year, these shippers saved more than three quarters of a million dollars on spot market shipping alone.
“This solution is very easy to configure and implement” according to Shannon Potter, Director of Application Development at UltraShipTMS. “For most customers, we can create the environment and have transportation users applying the power of competitive bidding to their spot quote requests, usually in less than a week” he said.
Click here to view the data and details behind this blind study.