The transportation consultant analyzed the business case for less-than-truckload carriers investing in dimensioners, including how it might affect their relationships with shippers.
The transportation and logistics advisory firm CarrierDirect on Wednesday released a new white paper that explains the impact of dimensioning technology relative to its revenue impact on the less-than-truckload industry.
The white paper, “The New Dimension of LTL Pricing,” also weighs up the accuracy of freight classification for LTL carriers, 3PLs, and shippers.
At the start of 2015, the LTL divisions of integrated parcel carriers FedEx and UPS began switching to dimensional pricing in lieu of the traditional National Motor Freight Classification standards, with other LTL carriers expected to switch to that method of pricing eventually as well.
“Although excellent costing tools are utilized, the accuracy of freight classification has been compromised due to changes in packaging, shipment stacking, manufacturing processes and materials, causing a controversial relationship between shippers, intermediaries and carriers,” said CarrierDirect Senior Vice President Rich Luhrs, who authored the white paper.
Luhrs said dimensioners were created to remove doubt and opportunities for error in freight clarification, thus increasing transparency and data integrity across the supply chain.
The white paper analyzes cases for use, benefits to the supply chain and what the future may bring in terms of dimensioning technology, including areas of true compatibility, or lack thereof, between carriers and shippers.
“It’s important to note that the cost of dimensioning technology has been decreasing over the years, while its capabilities to minimize exceptions and increase profits for all parties have been increasing, making it more readily available to small, regional and niche carriers,” Erik Malin, executive vice president of CarrierDirect, said of the report. “As with any technology, however, good communication, new processes and training are key to successfully implementing a dimensioning program.”
CarrierDirect white paper explores LTL dimensioning technology
