Creating Simplicity in Shipping

N2TMS designed their program with the Shipper in mind. Simple control is the key to help shippers get the best value for their shipping dollar. Most transportation management systems only manage the shipping process. But N2TMS has taken the step to provide algorithms for improving competition amongst the carriers by making them compete for the shipper's business.

With simple controls and input of tariff discounts, reduced or waived accessorials, and negotiated fuel surcharges, N2TMS takes the step of providing the best pricing for each route and each route is individually calculated to ensure best pricing.

Calling around to obtain quotes is labor intensive and generally removes the savings of quick quotes. Single Request for Quotes (RFQs) elminate the ability of the shipper to have competition and getting the savings.

The goal of the most shippers is to ensure that their product arrives on time, in good condition and at the best price. Shouldn't your freight decisions program be made for this? If your current program isn't saving you money and time, then you should contact N2TMS today for a free demo.

Do you use a single RFQ?

Singular Request for Quote (RFQ) sounds like it is a good idea. A request for quotation (RFQ) is a standard business process whose purpose is to invite carriers into a bidding process to bid on specific for your business. RFQ generally means the same thing as IFB (Invitation For Bid).

When a company receives a single RFQ, the base rates associated with an individual carrier can vary as much as 8-10% from client to client, so even receiving the highest discount may not ensure receiving the best price for each shipment. This does not take into consideration fuel surcharges (FSC) and accessorials.

For example: a preferred carrier provides a client with an 80% discount, which makes it appear as the lowest RFQ compared to a competitor that only offers a 78% discount. However, the carrier offering the 80% discount’s actual base rate price is $1,100 versus the 78% discount quote which has a base rate price of $1,000; therefore the discounted pricing is as follows:

$1000 x 80% = $220.00 before fuel

$1000 x 78% = $220.00 before fuel

Note that the price is the same although a better discount is provided. Therefore, if one company has a better fuel discount or accessorial, it can provide a lower cost despite the higher discount. This is why competitive analysis provides lowest pricing every time. Despite discounts, lower fuel surcharges, waived or repriced accessorials, N2TMS ensures that your lowest cost is always ranked #1 inclusive of FSC and accessorials.

Getting the Best Pricing for your Freight Dollars

Getting the best freight price for your shipment can be a daunting task in today's market place. The questions you should be asking yourself:

If you are using a broker, when was your last discount increase? Most shippers using brokers or 3PLs will not receive another discount increase. The excuse will be you haven't had a price increase.

How much are you really paying for auditing? Some shipper of $1MM dollar have found they are paying $80,000 for auditing only to have to reaudit their billing to insure they are being charged right.

If you have a single RFP, what is the difference between your base rates and your discount? In some cases the percentage savings in the base rates can cost more money than the discount difference.

Do I manage my tariffs regularly? If you are not holding regular meetings with your service providers, you are leaving money on the table.

Are my carriers competing for my business? Using one carrier provides no competition for your business. Each route is priced differently, therefore on one carrier there can be a difference of 10% for the same lane.

Who is controlling your shipping expense? Is it a clerk within your business? Sometimes a employee can receive "perks" for business. But is those perks influencing their decision process? If there is a possibility you need the reporting of N2TMS.

N2TMS places the control of your freight back into your hands, controlling discounting, accessorials, Fuel surcharges, and using reporting to provide best pricing and competition. If you believe in having service providers compete for your business, then using N2TMS gives you the edge to ensure you are getting the best price for your business.

Join the new way to get your best pricing without brokers and 3PLs. http://www.n2tms.com/