How One Freight Forwarder Saved 25% and Doubled Their Profit Margin with CoLoadX
When we’re shopping online, we expect experiences to be fast and easy. And we should expect the same thing when shopping for B2B services, right? Information about price and availability should be right at our fingertips.
But in our business - logistics - the opposite is often the case. Rate data is seldom transparent; it must be gathered inefficiently, usually one quote at a time. Vendors are annoyed at being pitted against each other. The process relies on antiquated systems that involve multiple phone calls, emails, and even fax machines. In short, it is anything but free or easy.
At CoLoadX we’ve solved this problem in the ocean freight markets by creating an online environment that allows freight forwarders and NVOCC’s to get rates and analytics on their pricing, win new business, and reduce the time it takes to get a competitive container shipping rate. Here’s a quick case study of how we recently saved a freight forwarder 25% on an FCL shipment without creating any extra work on their part. (In keeping with our promise of neutrality and anonymity we’ve changed the names of the companies involved in the shipment:)
Export FF had a shipment of 1 x 20’ & 4 x 40’ containers from Pittsburgh, PA to Nhava Sheva, India. As usual, they emailed GlobalNVO, Inc. who has a nearby office and sales rep, got a rate, and quoted to it to their shipper. And they got the booking because of theirs years of superb service and years of goodwill with their shipper. The shipper wasn’t really interested in shopping for lower rates as long as they got the usual stellar service Export FF has always offered them.
Before setting up the booking with GlobalNVO, however, Export FF came to coloadx.com and submitted their rate request for the exact same shipment. Within an hour, CoLoadX was able to save ExportFF 25% per container using GeneralNVO. Here’s a look at the numbers:
Key Takeaways:
- ExportFF was able to save over 25% on their shipment just by coming to CoLoadX. Even better, they doubled their profit margin per container.
- CoLoadX matched ExportFF with an NVOCC who was neutral and had excellent rates into Nhava Sheva, but they had no sales presence anywhere near Pittsburgh. Thanks to CoLoadX they picked up a $11,445 sale with no upfront costs, and only paid AFTER winning the business.
- ExportFF received several competing offers which varied based on price and transit time, and was able to select the best service for their customer’s needs.
- For ExportFF and GeneralNVO CoLoadX made the rate comparison and sales opportunity both free and easy.
If you’re ready to enjoy a similar experience, you’re invited to create a free account at CoLoadX and explore the many benefits of our automated platform.
Read more: Will Platforms Ever Take Over the Logistics Industry?
By: CoLoadX on May 17, 2017, 11:03 a.m.