Modern Transportation Management Systems Make LTL Neutral Rate Bases Obsolete

Years ago, a neutral rate base (NRB) was a pricing strategy that allowed shippers to easily compare the costs of two different carriers. The reason the NRB was introduced is because it was far to complex to successfully understand carrier contracts and carrier pricing. This process typically took days to weeks to accurately depict the difference between the total cost of two different carriers. Modern transportation management systems have negated the need for NRB because both shippers and carriers have access to priceless information right at there fingertips.

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The TMS is innovating the typical way that carriers and shippers previously negotiated the total cost of the shipment, allowing critical relationships to form. No two carrier contracts are identical, carrier pricing will typically even change from year to year. The TMS has allowed carriers to provide shippers with reliable, least-cost choices within seconds.

  • Low cost
  • Better Accuracy
  • Improved Customer Service
  • Increased Shipping Service

The TMS must still be paired with a contract management system (CMS). It is important to understand that the CMS is very technical and not very appealing to the eye however, it offers reliable information in seconds. Much information must be entered when first implementing the CMS because of the abundance of carrier contract information,however, this is the difference between an estimate cost and an actual cost. When implementing the CMS it is important to not overlook attention to detail.

Hard Work + Detailed Input = Reliable Output

http://logisticsviewpoints.com/2012/11/20/guest-commentary-modern-transportation-management-systems-make-ltl-neutral-rate-bases-obsolete/

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