FreightMath Engineering
Keep Moving in the Right Direction
Most carriers base their business success on a few top customers who pay on time and generate revenue, often overlooking any shortcomings that may impede efficiency or hamper future company growth. But what if you could have the best of both – customers that increased your profitability and also contributed to your ongoing success?
FreightMath Engineering explained in 70 seconds.
KSM Transport Advisors’ FreightMath™ Engineering practice helps clients take a hard look at all facets of their customer relationships to evaluate profitability, lanes, and network fit. FreightMath Engineering is a process based on irrefutable data and algorithms that provides carriers with the math and logic to understand the profitability relationships in their freight networks. This process reduces the subjective reasoning behind supporting customers and lanes that do not fit your sales, marketing, or operating strategies and provides confidence in decisions based on factual data.
To better understand the value we may bring to your trucking company, access our Expected Benefit Calculator.
How the FreightMath Engineering Process Works
Overall, FreightMath Engineering analyzes all aspects of a carrier’s revenue stream (price, cost, velocity, and network fit) to calculate a YIELD metric, which is the single metric that factors in all freight issues in order to provide a true picture of a carrier’s gross margin. YIELD is sliced on multiple attributes, such as shipper, bill to, lane, consignee and salesperson to provide insight into areas of concern and opportunity.
A FreightMath Assessment is conducted by our analysts and FreightMath engineers using our proprietary configuration, business processes, and custom work products to provide quantitative and qualitative feedback. The results are analyzed, compiled, and then presented to clients along with a plan to implement suggested changes. To help you stay on track, we hold regular progress meetings to ensure your efforts are moving in the right direction.
In addition to YIELD, the FreightMath Assessment utilizes the industry-leading TMW IDSC Market Rate Index (MRI) to provide price benchmarking that allows carriers to know not only the value of their freight (YIELD), but also how that value fits in the market (MRI) and where rate opportunities may exist.
Optimizing Your Freight Network
The deliverables from the FreightMath Assessment provide a carrier with quantifiable results that lead to increased knowledge, greater profitability, and a streamlined customer base. On average, our clients see a significant return on their FreightMath Assessment investment, improving 7-10 cents per total mile with a 5-15 times return on their investment in KSMTA services and technology.
Take the first step in evaluating and improving your freight network. Contact a KSMTA professional or complete this form.
FreightMath Intelligence Tools
- FreightMath intelligence tool
- FreightMath pricing tool
- Lane desirability index
- FreightMath dashboard