Using Freight Rating Software in Transport Management System Performance

Freight rating tools embedded in a transport management system improves customer service.

As more and more shippers and carriers look for ways to improve customer service, the focus again returns to the need for visibility to freight rating through a transport management system.

Recovery continues across most industries. Shippers need adaptability, flexibility, and scalability to manage the volatile capacity environment. But that visibility can fall short when it comes to a shipment’s accessorials, lanes, delivery deadlines, and more. A carrier’s rates may look vastly different when only the smallest criterion changes.

According to Supply Chain Quarterly, many transportation market experts “believe contractual pricing may increase in the mid-to-high single digits next year because of limited driver availability and the prospects for robust demand created by economic recovery and a prolonged inventory-replenishment cycle.”

Such growth reflects why shippers must have a firm grasp of a freight rating software’s capabilities. It is important to understand the freight rating tools it features, and how it maximizes visibility into current rates by unifying all load data and quotes into a single system.

How Limited Freight Rating Visibility Impacts End-User Experience

When shippers cannot maintain a clear vision of total costs and rates for each transport mode, it impacts the customer’s experience. The balance between shippers and end-users relies heavily on implementing a reliable compendium of current rate data.
Limited visibility into rates creates uncertainty over whether the right carrier, mode, service level, and ETA are chosen for each executed load. Part of the challenge has historically been having a rigid workflow to assess carriers and obtain rates. While a rigid pathway helps ensure visibility, it also means that TMS users might fail to fully rate all shipments across all channels to find the best servicer for that load.
As an automated transport management system, the MercuryGate platform offers multiple pathways and methods to access rating data. This includes reviewing rates based on all known variables for the shipment, basic costs by mode for O/D pairs, and more.

Furthermore, users need more than the base rate. They also need to know what accessorials may exist, such as live animal surcharges or fuel costs. That is especially true when carriers assess fuel surcharges by other names or acronyms that may go unnoticed. The best-of-breed transportation solutions put that information front and center for users.

What are Customer Rating Tools in a Transport Management System?

Literally speaking, customer rating tools include the information and resources housed with a TMS platform that helps shippers get a better view of their landed spend.
These include reviewing rates in differing formats. For instance, seeing what rates run between an O/D pair for each mode without all shipment data, or entering a search string to obtain rates on demand.
Technically, most modern TMS platforms offer this on-demand function. Still, there is always the chance that a customer might find a better rate. In this case, rating tools can be coming with bid requests to:
  • Reach out to additional carriers within the TMS
  • Set a maximum rate.
  • Create a rate at which the quote is automatically accepted.
In other instances you can create a better strategy by saving carrier rate information, adding an in-house pricing sheet for carriers outside the TMS, and using that information to see all rates at once.

Remember, the goal is to find the best way to execute a load and drive landed costs into retreat.

The Benefits of Utilizing Rating Software to Provide Better Customer Service

A fully vetted and implemented transport management system can help freight transportation and shipping managers provide better customer service, which brings a host of other benefits.

  • Continuous rate monitoring and customer feedback. Using a TMS system allows for fast and easy monitoring of all stages of a shipment lifecycle. This technology makes it easier for managers to promote service personalization with improved transparency and adaptation. At the same time, expand the preferred price sheet and keep track of which carriers are right for shipments of different types. All of this is possible with an innovative rate monitoring and feedback setup.
  • Customer services scale based on customer demands. An innovative freight rating system should be scalable to meet specific company and industry-directed needs. This is where system-generated rating tools can compile data and present a bigger picture of costs for a load when customers must look for additional carriers due to growth. Accounting for customer demands, market stability, and other outside factors makes booking and managing loads within transport management systems much easier and more streamlined.
  • Highly customized and automated service options. Understanding what is transport management software means understanding the workflows that comprise shipping rating, review, and execution overall. This approach to customer freight rating applies preconfigured rulesets to weed out carriers from transportation networks that do not fit the needs of each load. It also ensures the rates shown are more aligned with the company’s needs to more easily implement strategies and accommodate services.

Calculate your potential Saving While Using an enterprise TMS

Put the Power of Freight Rating Software to Work by Choosing the Right TMS Vendor

Most industries and markets today are still in recovery mode. This has led to a renewed focus on adaptability, flexibility, and scalability in the supply chain. The need for effective transport management system platforms has become a primary focus once again.

Customer freight rate management software allows supply chain managers to better monitor customer experiences within their day-to-day operations. This is why understanding what is transport management software, and how it impacts your transportation and freight management is so important. Unlock the answers with personalized TMS system-embedded freight rating tools today.

Connect with an expert from MercuryGate to get started.

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