Ongoing Analysis of Transportation Network Leads to Stackable Savings and Cost Avoidance

A Fortune 500 global manufacturer and marketer of cleaning and disinfecting products found sizeable value in partnering with Breakthrough’s Network Intelligence service after participating in a rewarding three-month trial. The purpose of the trial was to evaluate lanes to identify opportunities for new, fair carriers. After the trial, the shipper chose to move forward with implementation for ongoing compliance management and overall network performance.

Since pursuing Network Intelligence in June 2021, Breakthrough has tracked over 84 lanes with opportunities for corrective action, equating to over $7 million in annualized savings and cost avoidance. This averages to roughly a $600 savings per shipment. Network Intelligence has allowed the shipper to make continuous improvements to their transportation network, compared to an annual RFP.

Relentless Focus Delivers Stackable Savings

Recently, Breakthrough found three additional lanes that resulted in over $700,000 in annualized savings – demonstrating the value of a partnership. As the shipper adds lanes and carriers to their routing guide, Breakthrough analyzes each movement for optimal transportation network efficiency. The shipper was drastically overpaying compared to the industry benchmark for a lane that was traveled every other day. The shipper and carrier were able to negotiate the price to be fair with the market – emphasizing the need and value of actionable data.

Curiosity Leads to a Stronger Sourcing Strategy

The shipper has leveraged Network Intelligence and the Breakthrough team for analytical expertise on several special projects. By comparing the top 200 RFP lane rates, an analysis of over 100 best-fit carriers, over 100 SMRT rate recommendations, and advisement on spot spend cost avoidance, the shipper has been able to build a stronger, more enduring strategy.

• Comparison of the top 200 RFP lane rates: The shipper requested an analysis of their top 200 lanes compared to the benchmark to identify specific opportunities for corrective action and to know which lanes they are receiving favorable rates.
• Over 100 SMRT rate recommendations: Network Intelligence provides the shipper access to look up the benchmark, known as a SMRT rate, on each lane.
• Over 100 best-fit carrier recommendations: Network Intelligence identifies over 100 best-fit carriers that match the shipper’s network priorities.
• Advisement on spot spend cost avoidance: The shipper requested carrier guidance in the tight 2021 capacity market. Network Intelligence reduced spot usage by using carrier search and rate benchmarking, which saved roughly 27 million in the three months tracked.

The Winning Streak Continues with Fuel Recovery

The shipper has also found value in Fuel Recovery, Breakthrough’s market-based fuel reimbursement service. Since go-live of Fuel Recovery in 2018, the shipper has collectively avoided paying 32 million dollars across their transportation network between truckload and intermodal. The large sum is the difference between a weekly national average price and a lane-level price that accounts for the time, price, tax, and geography of the shipment – a fair and more accurate fuel reimbursement.

In 2022, this equated to an annualized competitive advantage of:

• $364,000 rail MPG savings
• $1,872,000 TL/Dray MPG savings
• $6,900,000 market-based fuel reimbursement savings

From traditional methods to a strategic sourcing strategy, the shipper has been able to strengthen carrier relationships and proactively navigate market disruption, the shipper’s logistics sourcing group manager commented “thank you to you and the Breakthrough team for proactively giving insights on lanes. We value that kind of proactive communication and analysis.” The Breakthrough team continues to present opportunities in their weekly meetings to improve transportation network efficiency and reduce costs.