Convert data into direct action. The insights gleaned from the analysis can be transformed into tangible, practical strategies that will work to stabilise costs moving forward. These strategies can be tailored to shippers’ particular freight requirements to maximise their return on freight investment.

It’s imperative to monitor results to ensure the cost reduction strategies are working the way they’re supposed to. Setting and forgetting could create further discrepancies in freight spend. Tracking performance allows shippers to ensure their cost savings strategies are working and can reveal opportunities for further spend reductions in other areas.

Freight rate analyses are designed to identify excess spending in unforeseen areas of freight shipping. They often reveal simple, quick fixes that can massively reduce freight spend, looking at factors like shipping frequency and volume, products shipped and freight lanes. Any weak spots in these areas can typically be easily rectified, creating immediate savings for the shipper.

A freight spend analysis can also help shippers understand any discrepancies or extra costs that have occurred. Owners, logistics teams and other decision-makers can use diagnostic analytics tools, which not only identify issues, but can also explain why they occurred and predict where they may potentially arise again. This protects shippers’ future freight spends against recurring or new unnecessary costs, saving them money in the long term.

From there, shippers can take a variety of actions to cut unnecessary costs. Depending on the results of their analysis, shippers may choose to negotiate better carrier rates, invest in new technology, consolidate shipments or improve their load planning.

An often overlooked but significant part of the cost analysis process is continuously monitoring freight costs. Shippers and freight managers must track the performance of their cost savings strategies over time to make sure they’re successful and sustainable. Continuing to monitor performance is also an effective way to spot new opportunities for savings and helps shippers become completely familiar with how their freight spend is being utilised.

Freight lanes are the designated shipping routes between locations that are regularly used by carriers. These are also known as carrier lanes or trucking lanes. There are three types of freight lanes – owner-operator, long-haul and short-haul – each designed to suit a variety of shipping needs.

Understanding freight lanes better can serve as an important component of overall freight cost analysis by helping businesses to better understand their pricing strategy, optimise their network and make decisions about where to ship.

A freight lane analysis can contribute a range of data to an analysis, including transit times, fuel costs, freight cost per lane and kilometre, truck-to-load ratio, reliability and more. These metrics help shippers determine the most profitable freight lanes and ensure a good ROI. Shippers should also compare various carriers to be certain they’re with the most cost-effective carrier and that their freight processes are completely aligned with their needs.