Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in freight payment


b2ap3_thumbnail_dreamstime_xl_24936632.jpgOnce you gather the necessary data outlined in the previous blog ( ), it is time to take action. Here is a set of steps to follow to save money on accessorial charges.

Set up a cross-functional team

As you will realize when you review your research notes, it will often take a number of parties (sales, production, and warehouse management) plus the customer in many cases and your carriers to address how to reduce accessorial charges. Once you assemble your cross-functional team, have a meeting to share and discuss your findings and create cost saving targets, action plans, persons accountable and timelines.

Create a report to track success on a monthly basis. Share the report with key stakeholders and follow up with any stakeholder who does not fulfill his/her responsibilities.

Hits: 931
Continue reading 0 Comments


In many firms, freight costs can be in the millions or tens of millions of dollars. This large expense can represent a significant percent of a company’s revenue. As a large expense item, it needs to be managed very skillfully.

The first blog in this series ( looked at the need for detailed, accurate, freight spend data. One of the benefits of having this type of quality data is that it allows the transportation leaders of an organization to create a quality freight budget. The budget should be tied directly to the company’s business plan and supply chain strategy. Every manufacturer or distributor must make certain assumptions about how it plans to transport its inbound raw materials and deliver its finished goods. These assumptions outline the modes and expected costs.

The budget should detail on at least a monthly basis, the projected revenues and freight costs. Since many companies utilize multiple modes (e.g. small parcel, LTL , intermodal, etc.) and multiple service options (e.g. next day by 9:00 AM, regular ground, air freight etc.), it is important to capture this type of granular data since the costs will vary based on the mode and service chosen. Similarly, projections should be made concerning fuel surcharges and any other extra cost that can be a significant component of the freight budget.

The company should also produce a monthly transportation expense variance report. The report should be granular and provide variances on expenses by mode and cost item. It should highlight percentage changes in modal utilization and carrier collaboration.

Hits: 905
Continue reading 0 Comments

Most Recent Posts


Tag Cloud

freight payment Politics fuel surcharge Job satisfaction Spanx Infrastructure Transport Capital Partners (TCP) Swift David Tuttle Blogging shipper-carrier contracts Education Transloading Dan Goodwill Accessorial Charges 3PL Doug Davis Comey Outsourcing Sales Freight Rates NS Stephen Harper Trade Vision Freight Carriers Association of Canada Transportation Toronto freight costs Bobby Harris Yield Improvement shipper-carrier roundtable professional drivers FMCSA pipelines CRM 2013 Economic Forecast Canadian economy freight broker routing guide Broker freight cost savings transportation news BNSF transportation audit Sales Freight economy Dedicated Trucking Surety bond Success LTL Trucking Trump CSA Omni Channel dynamic pricing Crisis management freight rate increases employee termination derailments freight transportation in 2011 financial management Business Transformation Strategy energy efficiency consumer centric EBOR CN freight audit ProMiles transportation newspaper US Manufacturing Driving for Profit Retail transportation hiring process broker bonds dimensional pricing Rail KCS Otto freight agreements US Auto Sales Load broker Rate per Mile driver shortages Regina Finance and Transportation Donald Trump Emergent Strategy autonomous vehicles Canada U.S. trade BlueGrace Logistics Canada Social Media carrier conference Business Strategy Canada's global strategy Business skills drones small business CITA Shipper Pulse Survey Adrian Gonzalez USA Truck driverless TMP Worldwide Colilers International shipper-carrier collaboration customer engagement Microsoft Transportation Buying Trends Survey President Obama Crude Oil by Rail coaching Freight Matching Canada-U.S. trade agreement YRC natural disasters Sales Training freight RFP freight bid 2014 freight forecast trucking company acquisitions Inbound Transportation FCPC Social Media in Transportation robotics $75000 bond APL Freight Recession selling trucking companies Conway Freight contracts network optimization truck driver Freight Capacity CN Rail CSA scores LCV's risk management cheap oil Werner business start-up capacity shortages NMFC Schneider Logistics home delibery Celadon Freight Shuttle System US Housing Market home delivery freight payment freight audit peak season Freight Management Life Lessons Distribution RFP Canadian truckers TransForce buying trucking companies TMS Search engine optimization Map-21 Leadership rail safety Failure Deferred Packaging FMS 2014 economic forecast Tracy Matura Global Transportation Hub tanker cars the future of transportation ELD capacity shortage 2014 freight volumes supply chain management Global experience CSX Scott Monty freight transportation conference marketing ShipMax Muhammad Ali shipping wine freight forwarders Associates Wal-Mart Railway Association of Canada Cleveland Cavaliers automation e-commerce Hudsons Bay Company University of Tennessee driver Climate Change 3PLTL Training trade New York Times CP Rail MPG intermodal Career Advice JB Hunt Keystone Pipeline Canadian Transportation & Logistics NAFTA mentoring freight transportation Derek Singleton Right Shoring Transcom Fleet Leasing Carriers Transportation service Reshoring Software Advice solutions provider Doug Nix 2015 Economic Forecast online shopping FuelQuest NCC FCA MBA truck drivers IANA Harper Davos speech Shipper Management Load Boards Ferromex Consulting Horizontal Supply Chain Collaboration Masters in Logistics economic forecasts for 2012 Truckload Sales Management LinkedIn Amazon Canadian freight market shipping Success failure entrepreneur US Economy Twitter Transplace Warehousing Dedicated Contract Carriage Training New Hires UP 2012 Transportation Business Strategies. Jugaad 360ideaspace Whole Foods broker security last mile delivery Retail US Election Fire Phone Entrepreneur Rotman School of Business future of freight industry Driver Shortage Grocery Packaging Facebook Loblaw bulk shipping

Blog Archives