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Chainalytics Updates on Continued Growth of Transportation Consortium
Model-Based Benchmarking Consortium Surpasses $14 Billion Mark
Atlanta - April 20, 2010 - Chainalytics LLC, a supply chain consulting firm focused on enabling fact-based supply chain decisions, announced today the continued growth of its Model-Based Benchmarking Consortium (MBBC) and results of its latest model-based benchmarks for transportation at its fifth annual summit which included companies such as Wal-mart, PepsiCo, and Kraft Foods. The members-only MBBC Summit is a private forum where peers across all industries meet to discuss techniques for improving transportation management processes, rates, and carrier relationships.
The MBBC is a group of shipper companies that use a proprietary econometric model to better understand how they are procuring and managing freight transportation services. Since 2003, the consortium has grown more than 1000% to include 78 members with over $14 billion in transportation spend -- roughly 5% of the U.S. for-hire truckload market.
Chainalytics uses an econometric modeling approach to transportation benchmarking, enabling consortium members to confidentially compare their unique transportation costs against the broader market, gain insight into the business practices that drive transportation costs, and evaluate the impact of alternative strategies such as deploying a dedicated fleet.
As well as detailed reports that show lane-level market position, consortium members also receive analytical tools to assist them in day-to-day operations. "My internal users were skeptical at first about using the MBBC estimated rates,” said one consortium member. “But once they tested the output, they found it to be extremely accurate. They now use it every day and save us millions."
The most recent model analyzed over 14.5 million loads and $14 billion in transportation spend. The most recent model covering the US, Canada, and in and out of Mexico included benchmarks for truckload dry van, temperature-controlled, flatbed, and intermodal, as well as short haul. Chainalytics continues to expand the modal and geographic scope of its services, which now include models for North American less-than-truckload (LTL) freight, global ocean container services, and full-truck service in India. In addition, MBBC evaluates the impact of management practices and policies on rates, including fuel surcharge program structure, accessorial programs, lane definition, and carrier performance metrics.
"Transportation professionals are under a lot of pressure to reduce costs and improve service, and are turning to the MBBC to help them collaborate across companies to reduce empty miles,” said Gary Girotti, vice president of transportation services at Chainalytics. “Implications are moving upstream too. Members are not just using the model as a benchmark of their own performance, but also as the standard for which they measure their suppliers.”
About Chainalytics
Chainalytics is a professional services firm that enhances competitive advantage and shareholder value through optimized supply chain strategies. Chainalytics' fact-based decision making approach improves and innovates our clients' strategies and tactics with particular emphasis on supply chain design, transportation strategies, inventory strategies, and product and customer portfolio planning. Offered as both project-based and managed services, this approach is achieved via a unique combination of domain expertise, resilient methodologies, and exclusive research and content - all supported by the world's most advanced decision sciences tools and techniques. Chainalytics targets enterprises with a high degree of complexity created by their unique combinations of scale, change and geography. With offices in North America and Asia, Chainalytics serves companies globally in a borderless fashion. Learn more at www.chainalytics.com.
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