Loadsmart, a leading freight technology company, today announced that enterprise shippers are averaging 10-20% in cost savings since Q4 of 2021 through the use of the company’s dynamic contract solution, Reliable Contracts.
This solution is ideal for shippers planning their contract spend for the upcoming year who are exposed to locking in above-market rates given that the market is expected to soften over the next six to nine months. Loadsmart’s Reliable Contracts allows shippers to enter into contracts that provide flexibility to ride the market down to cheaper rates in a soft market, while maintaining 100% primary tender acceptance (PTA) in any market condition - all while avoiding the spot market and constant re-bids. Powered by complete rate transparency and an incentivized margin structure, Reliable Contracts gives shippers the ability to better prepare for market uncertainty.
“Loadsmart’s Reliable Contracts allows us to take our difficult-to-contract lanes and have guaranteed capacity,” said Matt Jolles, Full Truckload Manager at Stanley Black & Decker, one of the world’s largest tool and storage companies. “With how lean we operate, Reliable Contracts helps keep shipments off the spot board where there’s so much variability on what you’ll see day-to-day. We are happy to say that the solution provides our team with 100% tender acceptance and 100% on-time pickup.”
This solution also solves one of the biggest concerns that many customers voice about a dynamic pricing contract model: the potential back-office hassle of manually adjusting contract rates after they've been tendered. Within the coming months, Loadsmart’s Reliable Contracts will also be available to shippers using Blue Yonder’s Dynamic Price Discovery API via TMS integration so that tendered Reliable Contract loads will be adjusted automatically and shippers like Stanley Black & Decker will have full transparency into Loadsmart's margins and purchasing power for every load.
“Unlike existing floating contract solutions, Reliable Contracts contains a fully transparent margin incentive structure to ensure Loadsmart always pursues the lowest costs available,” said Jon Payne, Director of Pricing Strategy & Analytics, Loadsmart. “If a dynamic pricing contract is the answer, shippers and carriers need aligned incentives and full transparency. One hundred percent PTA isn’t enough.”
Traditionally, when costs go up within a volatile market, digital freight brokers make more money when shippers have to pay more. With Reliable Contracts, Loadsmart only gains a larger margin when shippers pay less, due to a built-in margin incentive structure.
To learn more about Reliable Contracts and Loadsmart’s solutions for a soft market click here.https://loadsmart.com/shipper/