Hi, it is Tom Leimkuhler again! Today I would like to take a dive into the complex world of Less Than Truckload (LTL) and unravel the challenges of understanding this spend.
In the dynamic landscape of Logistics and Supply Chain Management, businesses often find themselves grappling with the intricacies of Less Than Truckload (LTL) spend. This complexity arises from numerous factors, including but not limited to, the pushback against deregulatory changes, numerous accessorial fees and evolving industry dynamics.
Understanding the present challenges requires a glance back at the history of LTL spend. LTL was once strictly regulated, with government intervention determining rates and service levels. However, the landscape shifted with deregulation in the early 1980’s, paving the way for increased competition and flexibility. This shift brought about new challenges, leading to the emergence of czar like standardized class-based system with weight breaks that are not easily understood which paved the way for additional surcharges. Enter the era of accessorial fees, where shippers faced a multitude of additional charges beyond basic freight rates. Fuel surcharges became a significant component, fluctuating with market conditions with carriers marking up fuel to shippers while simultaneously saving money by purchasing fuel wholesale. Accessorial fees in LTL spend can be like hidden obstacles in a maze. They include charges for services beyond standard transportation, such as liftgate usage, inside delivery and residential delivery. Identifying and understanding these fees is crucial for effective cost management.
Navigating this intricate system requires expertise and this is where CPC Consultants can make a huge impact to a company’s bottom line. CPC ‘s consultants make the unrivaled complexity of LTL spend more manageable by eliminating the confusing czar like system and replacing it with a simple to understand cost per pound rate system. Additionally, by leveraging advanced analytics and industry insights, CPC Consulting meticulously scrutinizes freight spend to remove accessorial charges further reducing costs.
The challenge of unraveling LTL spend is real, but so is the expertise of CPC Consulting. Let CPC disentangle the unnecessary complexities, making it easy for your business to focus on what you do best. Please join the countless companies that have partnered with CPC recently. Give me a call/text at 949-390-0279, email me at tom.leimkuhler @ cpc-consultants.net or explore us here on our website (cpc-consultants.net). We would love the opportunity to deliver a simplified cost reduced program and earn your business.