Best In Class Companies Cutting Transportation Costs 10%

Oct. 13, 2006
Daily scorecarding and collaboration produce results.

Best in Class companies have been able to reduce their freight budgets while the average respondent saw costs rise by 10%. They also have better on-time delivery performance according to a new study "Transportation Management Benchmark Report" released by Boston-based Aberdeen Group.

More than three-quarters of the 173 manufacturing, distribution and retail organizations surveyed by Aberdeen Group have recommended transportation process improvements in just the past six months, while two-thirds have recommended improving their transportation management technology.

"Traditional outbound domestic transportation no longer dominates the transportation agenda," said Beth Enslow, Aberdeen's senior vice president of enterprise research and report author. "Inbound freight management and online access to transportation costs and status are now a key focus and technology providers are having to respond with new extensions to their transportation management software."

One way best in class companies are achieving savings is that are twice as likely than their counterparts to do daily scorecarding. They also share tactical capacity forecasts with carriers.

Online resources are proving themselves useful, with 54% of the survey respondents providing online transportation costs and status information. Additionally, 90% of the companies expressed concern that their current transportation technology will not meet their future needs. Four times more firms plan to adopt commercial transportation management applications vs. building systems in-house.

To view the survey visit:

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