Dynamic Freight Pricing Done Right

While a TMS was the go-to solution for freight load tendering, more sophisticated versions make it a business essential to manage complexities based on the mode of transportation and the way shipments move.

These complexities make dynamic freight pricing difficult and call for dynamic pricing strategies.

One size fits all doesn’t work here, as a complex transformation network requires different rates based on multiple tariffs and the rules governing them. But accurate freight costs are critical for every business. Besides, carrier agreements vary for different inbound and outbound sites.

Maintaining the validity of rates is a big challenge and an important step in TMS implementation. It needs to be automated, so having a suitable freight rating/pricing engine becomes necessary to test rates or conduct batch ratings.

A dynamic pricing strategy should:

Offer real-time, in-transit freight visibility. Freight/logistics businesses need visibility to optimize shipments across different modes and ensure that the suitable mode and its corresponding price point are being used for each shipment.

Provide all the information businesses need on quote performance with rapid access to quotes and tools for better pricing decisions. Ideally, it must allow businesses to create customized multimodal quotes for all customers and create new business opportunities.

Help businesses get a better handle on costs. The right solution will help businesses understand why actual costs differ from planned costs by providing accurate data to support cost allocations for all transportation moves. It should provide costs by lane, carrier, division, product, and SKU, along with the power to analyze linehaul rates versus all costs. A master view of data is the key to enhance quote performance and optimize margins.

Maintain data quality at all times. In today’s market, shippers and carriers must build efficiency into every process, from freight sourcing to execution. A sophisticated, audit-grade rating engine with accurate data can help calculate linehaul rates, fuel, and accessorial charges while enabling businesses to set a trim tolerance level for each mode. By centralizing complex, disparate data, the engine gives businesses the transparency and agility for growth.

Be customized for business. A customized engine supports global transactions and helps organizations expand into international commerce by handling multiple currencies and analyzing many rate and route combinations.

In addition, a cloud-based freight rating engine with scalable architecture is easier to maintain and offers all decision-makers quick access, irrespective of their geographic location.

The power to maintain strong financial controls and make sweeping transformative changes to other systems while ensuring that freight payments are not disrupted is crucial. Expert IT solutions give businesses the most up-to-date and accurate data to make the right pricing decisions.

Ensuring a comprehensive suite of solutions for effective pricing and rate management enables businesses to view everything from surcharges to exceptions and quickly perform multi-lane Request for Quote (RFQ) searches. The best bet is a customized rating solution that easily integrates into TMS software to respond quickly and efficiently to RFQs.