How Do Best-in-Class Shippers Contain Logistics Costs?

Facing an unpredictable economic recovery, ever-expanding supplier networks, impending regulations and often volatile fuel prices, many companies today are struggling to contain transportation spend. After all, these days, successful transportation cost management means not only immediate survival, but also significant competitive advantage going forward.

So, how are today's Best-in-Class shippers keeping costs under control while optimizing carrier and freight performance? What are the key capabilities needed to make transportation procurement and payment a winning strategic initiative?

A new benchmark report from the Aberdeen Group provides some answers. The 30-page report, Transportation Procurement and Payment: Gain Control Over Spend, compiles data collected in January 2010 from 236 respondents.

The results show that closed loop transportation spend management is optimal because it provides benefits such as improved efficiencies, reduced freight spend and lower administrative costs in accounts payable. In addition the Aberdeen Group found that Best-in-Class shippers are:


1.85-times as likely as Industry Average, and 4.3-times as likely as Laggards to have a centralized spend management platform in place capable of multi-language and multi-currency.


1.6-times as likely as Industry Average, and 6-times as likely as Laggards to use an electronic routing of a TMA solution for daily carrier selection.


1.3 times as likely as Industry Average, and 1.43-times as likely as Laggards to have a single person or department manage transportation spend globally.

Through April 30, 2010, a complimentary copy of the full report is available here.