Nestor™ is our in-house benchmarking platform. It was developed at ArgusI to assess transport rates and delivery performance. It benchmarks the rates and delivery performance of our clients based on their negotiated rates, their actual shipments, and service level agreements. It differs from most other benchmarking tools available that use average rates and shipments. Nestor™ provides output on multiple levels of details, the total output is broken down into subsets such as country, weight class, service level, and service provider, and in addition a detailled analysis on individual lane or customer is also possible.
The Nestor™ data-base (with rates and performance information) is continuously updated through the projects we conduct for our clients. Using the Nestor™ database allows to benchmark against a group of the clients’ peers, the industry standard, or best in class rates. The database contains most logistics service providers. Not only published rates but also many transport tariffs from previous benchmarks and negotiated tariffs of large multinational companies. Note, that we never share the rates or performance information of individual carriers. We benchmark against the average rate in the industry, the average of peers, or the average rate of the top 5%.
In addition to the benchmarking capabilities, Nestor™ is also used in network design to deliver input parameters such as transportation costs on specific lanes. Combining the data from Nestor™ with our network design software, LogicNet Plus XE, enables us to work efficient and fast and gives realistic solutions based on actual rates. The fact we have access to this sample of actual rates of a range of services allows us to conduct a scenario analysis at our clients. What is the cost impact if we shift from Next Day Express to Economy? What if we start using Pre12 in the Benelux? What if we would negotiate rates in line with the industy standard? All these type of questions can be answered and presented very rapidly.