TRUCKLOAD TRANSPORATION: ECONOMICS, PRICING & ANALYSIS
Truckload Transportation: Economics, Pricing & Analysis is a 464-page, full color, hardback book covering the truckload business model, one-way pricing concepts, dedicated fleet pricing and design, and bid response analysis. The book covers all the important truckload transportation concepts such as capacity and balance, utilization, length of haul, empty miles and revenue per mile. The book includes over 450 exhibits such as maps, tables and illustrations.
The book provides an in-depth review of all forms of dedicated pricing including fixed-variable, utilization scales and over-under. The dedicated pricing chapters also cover special topics such as shuttle pricing and mileage band pricing. The book also includes four detailed case studies in bid response analysis, a detailed chapter on network analysis, and a special chapter of truckload transportation concepts specifically for truckload shippers.
Since its release in December 2010, the book has been sold throughout the United States, 5 Canadian provinces, Mexico, Germany and Saudi Arabia. One Fortune-100 shipper purchased over 25 books for their transportation procurement team. Countless truckload carriers have purchased copies of the book for training and analysis purposes.
CONTENTS
SECTION 1: INTRODUCTION TO TRUCKLOAD TRANSPORTATION
CHAPTER 1: Introduction to Truckload Transportation
CHAPTER 2: The Trucking Business Model
SECTION 2: ONE-WAY PRICING & NETWORK ANALYSIS
CHAPTER 3: Introduction to One-way Pricing
CHAPTER 4: Core Concepts in One-way Pricing
CHAPTER 5: Advanced Concepts in One-way Pricing
CHAPTER 6: Network Management and Optimization
CHAPTER 7: Operations and Profitability Analysis
SECTION 3: DEDICATED FLEET PRICING & DESIGN
CHAPTER 8: Introduction to Dedicated Fleet Pricing
CHAPTER 9: Dedicated Pricing and Cost Forecasting
CHAPTER 10: Establishing the Proper Margin for a Dedicated Fleet
CHAPTER 11: Special Topics in Dedicated Pricing
CHAPTER 12: Semi-dedicated Pricing and Design
SECTION 4: BID RESPONSE & ANALYSIS
CHAPTER 13: Bid Response and Analysis
CHAPTER 14: Case Studies in Bid Response Analysis
SECTION 5: KEY CONCEPTS FOR SHIPPERS
CHAPTER 15: Key Concepts for Shippers
Click here to view a detailed table of contents.
CARRIER BENEFITS
The book provides simple and fundamental explanations of all the key pricing variables such as length of haul, cycle time, utilization, empty miles and revenue per mile. These straightforward discussions will enhance any carrier's understanding of these critical network concepts.
The book also covers dedicated pricing and semi-dedicated pricing in great detail. Carriers interested in expanding into true dedicated operations will be well-prepared to enter this market with competitive pricing after carefully reviewing the chapters on dedicated fleet pricing and design.
Even the most experienced dedicated carriers will benefit from the analysis of the operating ratio pricing approach in Chapter 10. The chapter explains why a simple cost-plus pricing approach is severely flawed and potentially results in very inaccurate pricing.
The four detailed case studies in Chapter 14 tie all the pricing and analysis concepts together in real-world bid response examples. The case studies cover both one-way pricing and dedicated fleet pricing scenarios.
Truckload carriers will...
- increase revenue per mile
- fine-tune bid response strategy
- expand reporting and analysis capabilities
- master dedicated fleet pricing and design
- learn the weaknesses of the operating ratio measurement
- improve the accuracy of short haul and mileage band pricing
Truckload carriers will also learn...
- how utilization, empty miles, loaded revenue per mile, and length of haul all interact to create a profitable network
- how to evaluate the one-way network through well-designed financial statements and operating reports
- how to analyze the contents of a bid and design creative and effective package bid strategies
- how to properly account for utilization levels and capital investment requirements in dedicated fleet pricing
- how to correctly price semi-dedicated opportunities such as short haul shuttles and mileage band contracts
SHIPPER BENEFITS
While the book is written primarily for the benefit of truckload carriers, shippers and related parties will also gain valuable insight into truckload transportation by reading the entire book. While Chapter 15 focuses exclusively on shipper issues, it is important that shippers read the entire book to gain the maximum benefit from this chapter.
The topics covered throughout the book will provide shippers with a much deeper understanding of the carrier's business model, cost structure, and operating strategy. By having a greater understanding of the needs of their carriers, shippers can become better partners and potentially enjoy improved service and lower transportation costs as a result.
Truckload shippers will learn...
- how shipper requirements impact transportation costs through a deeper understanding of the carrier business model.
- all the key carrier business metrics such as length of haul, utilization, revenue per mile, cycle time, and many others.
- how carriers formulate pricing strategies and use bid opportunities to optimize and balance the freight network.
- how carriers design and price dedicated fleets along with the pros and cons of various types of dedicated fleet contract structures.
- the potential risks of measuring truckload transportation costs on a cost-per-mile or cost-per-unit-of-product basis.
- how to allocate transportation costs, particularly dedicated fleet costs, to individual business units and cost centers.