Benchmarking negotiated express rates

Where do we stand compared to others? This is the key question we try to address when benchmarking the current rates. Based on actual freight rates, per mode, country, service level, service provider, we provide valuable insight and an answer to the question where do we stand compared to our peers? Moreover, we can provide an answer to the question what the potential cost reductions could add up to. Based on standardized input we are able to rapidly benchmark the current rates and spend. In contrast to most other benchmarking services we compare complete rate schedules instead of average rates or single shipments.

Our database includes rates for Next Day, Pre9, Pre10, Pre12, Economy and a range of surcharges. We benchmark our client against its peers in the same industry, using the Average of Peers , the Best of Peers, and finally against the Best of All. Our methodology compares the rates on the individual lanes per region, per weight class, service level, and per carrier. In the figure above an example is provided. The objective of a benchmark study is to gain insight in the rates and performance.

All major carriers

To conduct such a benchmark we use an up-to-date set of rates of the service providers. This set of rates consists of express, freight, airfreight and deepsea/short sea and covers not only Europe, but in addition the US, EMEA, and Asia.These rate structures come in many forms; they differ in carriers, country, region or type of business; they differ in type of transport, the weight classes and service levels. Different postal code zones, different fuel surcharge percentages, and different accessorial costs are used..

One simple overview

We standardized these rate schedules to make it possible to compare apples with apples. We first try to gain insight in the current rates and contracts and compare them with the rates we have stored in our Nestor™ Platform. This includes service levels, lead times, weight classes, volume/weight ratio’s, accessorial costs, surcharges and rate structures. And as we have basically every major carrier in our database.

How about surcharges?

We are familiar with their structure and performance, making it fairly easy to delineate the impact of changing between services (from 24 to 48 hour), between carriers, and so on. Based on a list of about 40 services in the US, EMEA, ASIA we conduct these benchmarks. Our Nestor™ platform covers these regions in the world (express, freight, airfreight, deepsea, and shortsea) and is updated every 2 or 3 months. Especially in the healthcare our database is comprehensive. In this industry we not only benchmarked the European rates, but also the US and Asia rates were uploaded in our Nestor™ platform. Next to the projects conducted in Healthcare we have clients that periodically have their rates benchmarked in the three major markets (US, EMEA, Asia), keeping our set of rates and performance up-to-date.

Additional information

DL_Express

In this document we present our methodology to benchmark the Express rates in Europe. In addition we provide an overview of the results we deliver.
Versie: 2012.0231A
Pages: 20
Language: English

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