FTL Utilisation
Typically full Semi-Trailer & B-Double's can be more costly than the general "Road Express" method of delivery. However, there is a tipping point when it can become more commercially (As well as operationally) beneficial to consider an FTL service.
There is always exceptions to the rule, however, I would implore you to consider FTL providers in the event the freight exceeds 8T or 20 cubic volume or range between 16-27 pallets. With costs being flat across many providers for the same service, you are spoilt for choice with availability.
At first glance it may seem cheaper to use your current REXP service, please remember that majority of FTL providers are *Including Fuel + GST*, whilst other bulk providers can have fuels as much as 15%+ & GST. I recently presented to a customer whereby this exact solution was put forward, offering a saving of 40% against 16% of their profile which netted an estimated $30K per annum saving. The other advantage is the lack of handling that takes place with FTL utilisation, in most cases, they collect & go direct! Generally arriving in the early AM for that destination - meaning there is a dramatic service improvement.
Keep an eye out next time you have a large shipment & run the numbers! It might just save you...
As always, I've tagged some industry contacts that may be able to help!
Senior IT Consultant
5 年Hi Matthew Sheen How things? I once built an algorithm to search through previous consignments and map "Good Freight" items around (120x120 - 60x60 - and other measures considered fit) Once identified, I was able to optimise previous volume to predict potential future FTLs Truck it all.... #dontfreightair
CXO @ Bulk Group | End-to-end supply chain solutions
5 年Christopher Spiteri, Shane Shingles, Scott Hannah, Luke Ashton