Case Study – Supplier Performance: In the marine industry there are often three primary components that make up a freight rate. These three components include the base transportation rate, the variable cost of fuel, and free time at the loading port, unloading port, or both. In order to evaluate multiple proposals from transportation providers, consumers must be able to predict the variable components that makeup the overall rate which is often the free time and applicable demurrage rates. Through the use of analytical tools provided in Match Tracks, clients are able to develop statistical models to more accurately evaluate proposals and in turn, identify the most cost effective proposals.
In addition to helping clients more accurately predict overall freight rates, the controllable costs such as demurrage can be managed by not only identifying when demurrage is going to be incurred, but analytical tools help clients being able to quantify the events that cause specific delays at loading or unloading facilities. Being able to make a fully informed decision allows users to not only fairly evaluate suppliers, but to be able to quantify the impact of unexpected events in a supply chain.