Margins are tight in the transportation industry, smart forwarders and brokers have employed automation to better understand their cost base and protect their margins against surprise extra fees and over-looked charges. These systems have been available for LTL, FTL and Parcel shipping for years but not so much for intermodal first and last mile – that is until DrayMaster came along.
“Before we automated with DrayMaster, our quoting teams and operators would get rates from our carriers that sometimes wouldn’t include some accessorial charge,chassis charge or accurate fuel surcharge. When the vendor would go to bill, the rates were different and there’d be a dispute,” remembers one of our freight forwarder customers.
“The users would get upset because the charge was sometimes significant and they might not be able to cover the extra cost. If they dispatch an order for $100 and enter $100 cost into their system but then get billed for $150, most of the time they already invoiced their customer. It’s too late to bill the extra charge back to the customer even if the charge is legitimate. There’s such a small margin in ocean, that you know if you lose 20 bucks, that’s a lot of the profit.”
Did you ever eat the extra fees for tolls, equipment and assessorials? That’s a margin killer that turns profitable loads into unprofitable ones.
Another DrayMaster customer on the trucker side reported similar results.
Penny Tertzagian, Customer Support Supervisor at MCO Transport depends on DrayMaster everyday to protect their margins, “I want to make sure our rate structure is correct behind the scenes and the rates are generating the intended margins, and are accurately delivered to our customers every time.”
“We have rate accuracy and security and I have all the confidence in DrayMaster. DrayMaster helped us create a complete and accurate rate structure in place for me to generate a quote,” reported Tertzagian.
Register to see a demo to see how easy it is to save your margins.