Section 2: 
One-Way Pricing and Network Analysis

Section 2 covers all the key components of one-way pricing strategy and analysis, as well as network profitability analysis. 

Chapter 3 introduces the key components of one-way pricing such as lane definitions, accessorial charges, and fuel surcharges.

Chapters 4 and 5 cover all the critical strategic elements of one-way pricing including cycle time, length of haul, utilization, capacity and balance, and many other key areas.

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Chapter 6 focuses on how truckoad carriers manage the one-way network in order to maximize utilization and minimize empty miles.  The chapter also covers tactics for insuring on-time delivery and getting drivers home on a regular basis.

Chapter 7 provides a variety of detailed reports for analyzing network performance at the lane, market, customer and fleet levels.  The chapter also introduces the concept of segmented income statements to evaluate profitability at the fleet and business unit levels.

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Chapter 3:  Introduction to One-Way Pricing
Chapter 3 provides a general introduction to one-way pricing including lane definitions, accessorial charges, fuel surcharges and the basics of a one-way pricing agreement.  The chapter also covers the state-to-state matrix and pricing regions based on zip code definitions.  Key topics include: 
  • Lane Types and Definitions
  • Accessorial Charges
  • Fuel Surcharges / The Fuel Peg 
  • Detention Charges / Power Detention / Trailer Detention
  • Sample One-Way Contract
  • The Pricing Matrix

Chapter 4:  Core Concepts in One-Way Pricing
Chapter 4 covers all the basic variables and concepts considered by a carrier in the development of one-way pricing.  The chapter provides a detailed breakdown of the load cycle including dock time, transit time, buffer time and dwell time.  The chapter also includes a detailed analysis of the roles of length of haul, empty miles and utilization in the one-way pricing process.  Key topics include:

  • Cycle Time
  • Buffer Time
  • Length of Haul and Cost Per Mile
  • Empty Miles and Net Revenue Per Mile
  • Profitability Optimization
  • Utilization Maximization
  • Revenue Per Truck Per Week / Per Day

Chapter 5:  Advanced Concepts in One-Way Pricing
Chapter 5 covers the advanced areas of one-way pricing strategy, with particular emphasis on capacity and balance as well as backhaul and headhaul markets.  The chapter also details all the key questions a carrier must ask both internally and externally in the development of one-way pricing.  Key topics include:

  • The One-Way Pricing Process
  • Key Questions for Lane Pricing and Analysis
    • External Lane-Related Questions
    • Internal Carrier-Related Questions
    • External Shipper-Related Questions
  • Network Capacity and Balance
  • Headhaul Markets
  • Backhaul Markets
  • Seasonality and One-Way Pricing
  • Round-Trip Pricing

Chapter 6:  Network Management and Optimization
Chapter 6 covers the basic strategies used by carriers on a real-time basis to manage the network and how these tactics influence the pricing decision.  The chapter includes a detailed presentation of the linear programming optimization formulation of the basic tractor and load assignment model.  Key topics include:

  • The Tractor and Load Assignment Problem
  • Load Assignment Optimization Model
  • Capacity and Balance Management
  • Freight Solicitation
  • Strategic Load Swaps
  • Customer Network Diversification Concept

Chapter 7:  Operations and Profitability Analysis
Chapter 7 provides a number of detailed analysis reports for measuring key metrics in a truckload transportation network.  Sample reports cover such topics as tractor movement, empty mile analysis, revenue per mile analysis, load cycle time, and capacity and balance.  The chapter also includes an overview of carrier income statements and on-time service reports.  Key topics include:

  • Fleet Level Analysis Reports
  • Customer Level Analysis Reports
  • Market Level Analysis Reports
  • Lane Level Analysis Reports
  • Carrier Income Statements
  • On-Time Service Reporting

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