Freight Optimization Services
Shipper-focused transportation strategy
Take control of your freight costs
Reduce total shipping costs without sacrificing the service your customers and operations require. CPC studies the full transportation program and helps put practical changes into action.
Shipment data and transportation spend
Carrier pricing and contract terms
Mode selection and routing rules
Carrier and distribution networks
7:1
Average ROI per CPC project
Results vary by engagement. A data-based evaluation determines the opportunity for your business.
Optimize total transportation spend
What freight optimization improves
Freight optimization is more than a one-time invoice audit or a request for lower rates. It reviews the decisions that shape each shipment.
How freight is priced
How shipments are routed and combined
How freight is assigned to carriers
The goal is to cut avoidable costs and improve visibility. The transportation program should also remain effective as business needs and market conditions change.
Freight rates and contracts
Benchmark each part of the price:
Base rates and minimums
Fuel schedules
Accessorial charges
Contract terms
Mode and load selection
Match the service to each shipment:
Parcel and LTL
Truckload and intermodal
Air and ocean freight
Routes and networks
Review the network for:
Better lane coverage
Useful consolidation points
Fewer miles and handoffs
Less premium service
Carrier performance
Compare carriers using:
Cost and capacity
Transit performance
Claims experience
Fit with daily operations
How Freight Optimization Services Work
Freight optimization requires adjustments in key areas. While many logistics tools promise efficiency improvements, meaningful freight optimization usually comes from strategic changes in pricing structure, carrier relationships, and mode selection.
Freight optimization strategies include:
- Cost-per-pound pricing
- Freight rate negotiation
- Mode and truckload optimization
- Carrier network changes
Applying Cost-Per-Pound Pricing vs. Class-Based Pricing
Most shippers are familiar with class-based pricing, the default pricing method across the carrier industry. Established in 1933 to regulate and protect trucking companies, it consists of base rates, accessorial, fuel, and detention stop charges, waiting time, and other factors. This pricing model results in shippers paying well above the market average—without even knowing it.
Cost-per-pound pricing, on the other hand, is a simplified rate system CPC uses, based on actual shipping weight and state-to-state movement. This model includes fuel and accessorial charges in the base rate—rather than adding them later—resulting in significant savings.
Medical Supply Shipment Example
Let’s say you’re shipping a 600-pound pallet of medical supplies from Torrance to Phoenix.
- Under a traditional LTL pricing model, multiple variables—classification, discounts, and fuel surcharges—drive up the final cost, often without full visibility.
- With cost-per-pound pricing, that same shipment is priced simply on total weight. No added surcharges. No fluctuating variables. Just a clear, all-in rate that reduces cost and makes pricing easier to understand.
| Medical Supply Shipment Example | ||
|---|---|---|
| What You're Paying For | Class-Based Pricing | Cost-Per-Pound Pricing |
| Base Rate |
$406.26 Dependent on class (shipment density) |
$95.00 minimum Based on total weight* |
| Freight Discount |
-$304.70 75% |
N/A |
| Fuel Surcharge |
$81.25 20% of base rate |
N/A |
| Inside Delivery Charge | $35.00 | $0 |
| Lift Gate Charge | $25.00 | $0 |
| Total Freight Charge | $242.81 | $150.00 |
| Cost Per Pound | $0.40/lb | $0.25/lb |
*Cost-per-pound pricing is based on total billable shipment weight.
- All fees are rolled into the base rate, which includes fuel at today’s price for a gallon of diesel, and any accessorials.
Negotiating Freight Rates
Yet negotiation is critical to freight optimization. You have to be able to:
- Analyze shipping records to identify inefficiencies
- Benchmark carrier rates against industry data
- Apply consultant-level expertise to structure more competitive contracts
Keep in mind, your carriers may insist you’re getting the best rates available—but those rates are not in your favor. Carriers simply aren’t positioned to take a holistic view of your total shipping costs.
average net savings for
our clients
Optimizing Mode and Truckload
Determining mode usage is a critical factor in shipping optimization. Most contracts lock shippers into “overspecified” modes, which keeps rates artificially inflated. For example, all your freight may be routed as LTL, even for lighter loads that could qualify as partial or full truckloads. Or routing rules may limit you to national carriers when a regional carrier could do the job just as well at a lower cost.
Mode optimization, on the other hand, takes into account your business needs and the types of shipments you’re sending. By shifting freight between truckload, LTL, rail, or other combinations, you can reduce costs or improve delivery timelines based on shipment characteristics. Instead of relying on legacy routing guides or defaulting to expedited service levels, you can identify where standard transit would suffice.
A good mode optimization strategy also includes:
Dimensionalization
Considering parcel, package, and freight dimensions and how sizes affect costs and capacity
Vendor routing
Streamlining the vendor routing process to reduce transit times and expenses
Dedicated carriage
Leveraging specific truck, fleet, or carrier capacity to improve the reliability of your shipments
Real-time tracking and visibility tools help you identify bottlenecks and proactively adjust routing decisions.
Some shippers are starting to incorporate predictive freight optimization tools that use historical shipping data to anticipate demand and capacity constraints, and shape routing decisions. Although these tools can bring greater clarity to your logistical ecosystem, the greatest impact still comes from aligning mode usage with your business needs.
CPC tracks and reports on every variable, helping you stay ahead of rising costs.
Start Saving on Freight >
CPC tracks and reports on every variable, helping you stay ahead of rising costs.
Changing Freight Carrier Network
To make sure you have the best freight carrier network for your needs:
Evaluate carriers on a range of factors—not just pricing. Assess carrier reliability, performance, and capacity to create your optimal network.
Source competitively with reverse auctions and bidding, so you can easily compare multiple carrier bids and choose the most competitive pricing and service levels.
Review and restructure existing transportation agreements so contract terms and conditions are in your favor.
Consolidate the number of carriers, selecting preferred partners and simplifying carrier management while improving pricing and service consistency.
Apply peer and industry benchmarking and performance metrics to carrier evaluation.
Changing carriers is really about strategic sourcing. In many cases, the same carriers you’ve always used will gladly negotiate with you rather than lose your business altogether.
Same carriers. Better rates.About 75% of the time, shippers we work with are able to keep their existing freight relationships. We negotiate the savings on your behalf. Get a free freight evaluation to see how much you can save.
Start Saving on Freight >
About 75% of the time, shippers we work with are able to keep their existing freight relationships. We negotiate the savings on your behalf. Get a free freight evaluation to see how much you can save.
Why Optimize Freight?
Rising Costs
As a shipper, you’re so used to paying consistently high prices that you probably haven’t noticed that carriers have raised shipping rates by 80 to 95% over the last two decades. You may also have missed the steadily creeping annual rate increases that carriers justify as “inflation” or “fuel adjustments” (even when fuel prices are down!).
Carrier Contract Inefficiencies
As a shipper, you’re often working within contracts that were never designed to benefit you. Carriers rely on complex pricing structures—fuel surcharges, dimensional weight (dim weight), and layered accessorial fees—that quietly drive up costs while making it difficult to see where you’re overpaying.
Overuse of Expedited Shipping
Freight optimization isn’t always about making shipments faster. It’s more about aligning transit times with actual business needs. For example, shipments are often locked into the wrong modes with many transportation programs unintentionally use expedited, more expensive service levels than necessary.
Freight optimization can reveal hidden costs, simplify pricing, and deliver measurable savings across your entire shipping operation.Start Saving on Freight >
CPC-reported client outcomes
Freight optimization results
The value of an optimization program should be measured against an agreed baseline and verified after implementation. These examples summarize results currently reported by CPC.
57%
International freight savings
A computer-peripheral manufacturer realigned its freight strategy after sourcing shifted from Japan to Malaysia.
Savings from service alignment
A computer-storage manufacturer changed suitable exchange-program returns from priority overnight to ground service.
Of savings target achieved
A global PPE manufacturer reduced a carrier base of more than 80 providers to fewer than 10.
CPC is the Shipper’s Advocate
“CPC significantly impacted my bottom line and over-delivered on their promise. I highly recommend them as a trusted savings partner.”
“After implementing CPC’s solution, in addition to the promised savings, we streamlined auditing and removed two post auditors.”
“One year after the project and over a million dollars in savings, I still receive kudos from upper management. CPC makes me look good.”
“CPC became a trusted partner, supporting us at every stage of our growth, reducing costs by 20% and improving throughput by 10X.”
“CPC significantly impacted my bottom line and over-delivered on their promise. I highly recommend them as a trusted savings partner.”
“After implementing CPC’s solution, in addition to the promised savings, we streamlined auditing and removed two post auditors.”
“One year after the project and over a million dollars in savings, I still receive kudos from upper management. CPC makes me look good.”
“CPC became a trusted partner, supporting us at every stage of our growth, reducing costs by 20% and improving throughput by 10X.”
Frequently asked questions about freight optimization
▸What does freight optimization mean?
▸What is the difference between a freight optimization assessment and a freight audit?
▸What does a freight optimization consultant do?
▸How much does a shipping consultant cost?
▸Can freight optimization reduce costs without changing carriers?
▸How can I optimize freight volume for cost savings?
▸How can transportation route optimization reduce costs for my business?
▸What data is needed for a freight optimization assessment?
Find out where your freight spend can improve
Request a no-cost evaluation of your current transportation program. CPC will review the available information, discuss your priorities and determine whether a measurable optimization opportunity exists.