LTL Carriers Lack Capacity and Network Visibility Creating Pricing Issues and Cost Overruns
HaulSuite, a leader in LTL optimization solutions, introduces FreightIQ, which helps carriers analyze mountains of operational data to derive more competitive and profitable freight rates. FreightIQ™ combines API connectivity, dynamic pricing, and optimization technology to create more accurate pricing and better profitability for LTL carriers. Lance Healy, former co-founder and Chief Innovation Officer at Banyan Technology, and LTL pricing industry veteran Ken Burroughs have been tapped to drive the product strategy of this new initiative.
“LTL carriers need to provide timely and accurate pricing for customers thousands of times a day, but offering rates that align with capacity, volume, and profit can be tough,” says Lance Healy, Vice President – LTL Innovations, at HaulSuite. “We deliver the tools for the carriers to dial in the right rates based on dozens of factors. For carriers, we help them proactively influence the freight that enters their network and from whom to balance their networks better and improve their operating ratios through more efficient operations.”
FreightIQ analyzes mountains of operational data so that carriers can design more competitive and profitable rates faster. The software provides details of rates by lane, customer, or time to help pricing managers identify the rates based on capacity in near real-time. The goal is to help carriers reduce lost opportunities and sunk costs from outdated prices that do not reflect the current reality of the carrier’s operations. FreightIQ offers an API-neutral connection for dynamic pricing. Carriers can adjust pricing regardless of how the shipper or 3PL connects to the APIs.
Broad adoption of FreightIQ’s APIs for pricing and shipment execution uncovers tremendous cost efficiencies for the carriers. Also, it enables the replacement of static annual contracts based on inaccurate assumptions with more dynamic tariffs that reflect the reality of LTL carrier demand, shipper volumes, and current market conditions.
“Prior to the formation of HaulSuite, Optym had been developing successful optimization models for the LTL industry for 10+ years for linehaul planning, route planning, and pickup and delivery,” said Ravi Ahuja, Optym’s Founder and CEO. “We are now bringing these proven algorithms to fill a critical gap in the industry for capacity-based price optimization to help carriers fill their capacity better and increase their revenue.”
The company has shared plans to continue developing and enhancing FreightIQ overtime to get as close to real-time pricing intelligence as possible. The introduction of FreightIQ into the broader HaulSuite portfolio of P&D and linehaul optimization solutions represents another step towards the firm’s mission to be the premier provider of intelligent and comprehensive LTL technologies. FreightIQ will be available this year for pilot projects and will be available for general adoption in Q1 2022.