Using iQ Benchmark, brokers can pinpoint high-cost carriers and lanes, allowing them to develop targeted strategies to reduce overspending.
- From Benchmark Analytics, select the timeframe you are interested in evaluating.
- The data and charts will update to that specific timeframe (eg. 6 months). Red indicates areas that I am most above the benchmark (average) broker’s data, showing me areas that I can improve on. Click on the sliver of ‘red’ showing for Carriers.
- The chart will once again update focusing on the carriers that have been above the benchmark in the last 6 months.
- Right away I can see that it is only 2 carriers making up the data, but that they are 20.5% above the benchmark of RateView. Next, scroll down to the Carrier Details section to view the carriers in question.
- You now see the two carriers above benchmark and by how much they are both above. For instance, USSU is $20k above the benchmark, where FARF is only $785. This tells me which one I should focus on… USSU. Click on USSU to view just their data.
- Now scroll back up to view the Lane Details for the selected carrier.
The most expensive lanes for that carrier will display at the top. Based on the data, it appears that just one lane is driving the majority of the cost… Atlanta to Indianapolis.
Now that the problem has been identified, you can explore solutions to reduce costs:
- Find a Cheaper Carrier: Use the LaneMakers tool to search for more cost-effective carriers for the Atlanta to Indianapolis lane.
- Consider Contracting a Carrier: Instead of relying on the spot market, negotiate a contract with a carrier to stabilize costs.
- Evaluate Carrier Alternatives: Assess whether continuing with the current carrier aligns with your profitability goals.