Last week I attended CSCMP's Annual Conference. What a fantastic event! There were sessions covering so many different areas of the supply chain that it was like drinking water from a fire hose. For example, one session featured CEO's from some of the largest transportation companies in America. They shared some thoughts about what transportation will look like in the future. And one thing shippers can to see much more of in the future is dimensional and density based pricing.
And proving that the future is here today, we couldn't help but notice that in FedEx's recently announced General Rate Increase (GRI), one of the things they are doing is reducing the DIM factor. FedEx isn't unique. Carriers are looking to get paid for the space in their trailers and that is why shippers can expect to see more carriers focus on the size of your shipments. To get a better understanding of this and the other changes taking place with the rate increase from FedEx, watch this week’s video.
The pricing changes could result in significantly higher costs—it’s not just the rate increases that will impact you, but the dimensional pricing changes as well!
Another thing I learned at the conference was that shippers either don't have, or are unprepared to use use the tools needed to control their transportation costs. As I heard expert after expert talk about the value of a great transportation management system (TMS), it was music to my hears. Why? Because it confirms the outstanding results we are producing for our customers with our Constellation TMS. In one session,they mentioned that there are tons of practical benefits to a great TMS but the key takeaway is that you could lower your freight costs by as much as 12-15% - or more.
We're on your team, we're here to help, and we're passionate about seeing you be successful. If you have any questions, please give us a call at 630-833-0890 or send us an email.
Mike Regan
Chief of Relationship Development
TranzAct Technologies
P.S. Stay tuned for an On the Record interview with Brad Jacobs, CEO of XPO Logistics, coming next week. In our interview he shared insights on XPO's current strategy and what they see happening in the market.
