Brand new research by McKinsey & Company uses Transporeon Market Insights data to explain how road freight carriers and brokers could improve EBIT by 15-30%, by leveraging data for decision making.
Drawing on European road freight data across trade lanes, this report examines the carrier’s decision between allocating capacity to long-term contracts or to the spot market to illustrate the impact that data-driven decisions can have for trucking companies.
Key takeaways include:
Understand lane differences and make decisions lane by lane, rather than adopting a “one size fits all” approach.
Make the decision on contract / spot mix a dynamic one, and update it frequently.
Leverage demand forecasting to improve decisions and predict changes in rate differences between spot and contract per lane.
Carriers can use the research to support efforts to define the optimal spot/contract mix to maximize value and minimise risk.
For shippers, the research reveals valuable insight into how carriers set their optimal spot/contract mix to find capacity, and build win-win relationships. Use it to strengthen your procurement strategy for the year ahead.