TRUCKLOAD TRANSPORTATION:
  Economics, Pricing & Analysis   

Section 4:  Bid Analysis and Response  /  Section 5:  Key Concepts for Shippers

Section 4 includes two detailed chapters covering all areas of bid response and analysis.  Both chapters provide extensive information and strategies for designing "package" bids.

The case studies in Chapter 14 provide detailed examples of bid response analysis and strategy.  The cases cover both one-way pricing and dedicated fleet pricing.

Click here to view sample pages from Chapter 14.

Section 5 includes a variety of concepts specifically for use by shippers.  The chapter provides a detailed overview of different shipper cost metrics with particular emphasis on Cost Per Ton and transportation cost variance analysis.

Click here to view sample pages from Chapter 15.


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Section 4:  Bid Analysis and Response

Chapter 13:  Bid Analysis and Response
Chapter 13 summarizes the entire bid process from the perspective of both the shipper and the carrier.  The chapter covers carrier qualifications, bid summary analysis and the bid optimization and lane packaging process.  The chapter also includes a sample bid analysis from the perspective of three different carriers, a large national carrier, a regional carrier and a small local carrier.  Key topics include:

  • Request for Proposal (RFP) Contents
  • Carrier RFP Qualificiations
  • Carrier Summary Analysis of Bid Contents
  • Bid Response Strategies by Carrier Type
    • Large National Carrier
    • Regional Carrier
    • Local Short Haul Carrier 
  • Bid Optimization Tools and Strategies
    • Carrier Capacity Constraints
    • Shipper Carrier Selection and Business Award Constraints
  • Lane Packaging in Bid Analysis
  • Formatting Shipment Data in RFP's

Chapter 14:  Case Studies in Bid Response Analysis
Chapter 14 includes four detailed case studies in bid response analysis.  Each case study includes each step in the bid response process including preliminary analysis, follow-up questions to the shipper, solution design, pricing design and the final proposal.  Case studies include:

  • Case 1:  Traditional One-Way Bid
    • Capacity and Balance Analysis
    • Network Mapping
    • Shipper Follow-up Questions
    • Lane-by-Lane Pricing Strategy
  • Case 2:  One-Way Bid with Lane Packaging
    • Capacity and Balance Analysis
    • Out-and-Back Packages
    • Balanced Tour Packages
    • High-Volume Network Packages
  • Case 3:  Regional Distribution Bid
    • Delivery Schedule Design
    • Fleet Sizing and Estimating Trailer Requirements
    • Dedicated Pricing and Dedicated Driver Pay Design
    • Hybrid One-Way / Dedicated Solution
  • Case 4:  Dedicated Fleet with Fixed-Variable Pricing
    • Extensive Fixed-Variable Pricing Design
    • On-site Management
    • Extra Trailer Pricing
    • Implementation Schedule


Section 5:  Key Concepts for Shippers

Chapter 15:  Key Concepts for Shippers
Chapter 15 provides a variety of shipper-specific truckload analysis concepts.  The chapter includes a detailed analysis of the risks of measuring and benchmarking truckload transportation costs on a per-unit-of-product basis.  The chapter also includes a detailed approach for allocating truckload transportation costs, particularly the cost of dedicated fleets.  Key topics include:

  • Shipper Transportation Cost Measurements
  • Flexible Budgeting and Transportation Cost Variance Analysis
  • Network Analysis with Carrier Shipment Data
  • Allocating Truckload Transportation Costs
  • Dedicated Fleets and Marginal Cost Analysis
  • Shipper Cost Strategies for Short Haul Pricing
  • Diseconomies of Scale in the Truckload Carrier Network
  • Volume-Based One-Way Pricing
  • Outsourcing Private Fleets to Dedicated Carriers

While this chapter is intended specifically for shippers, shippers will benefit greatly from the entire book.  By reading the entire book, shippers will develop a much deeper understanding of the truckload business model and the financial and operating challenges faced by all truckload carriers.  As a result, shippers will become better partners for carriers and improve their ability to effectively negotiate with their truckload transportation providers.

Bonus Feature:  Technical Tips
The book also includes a number of technical tips at the end of certain chapters.  The tips provide truckload transportation applications of many common spreadsheet and database features.  Technical tips include:

  • Basic database report design in Microsoft Access® (Chapter 7)
  • Vlookup and Hlookup spreadsheet functions (Chapter 3)
  • Solver / Linear Programming spreadsheet feature (Chapter 6)
  • Spreadsheet design for time-based calculations (Chapter 7)
  • Net Present Value and Internal Rate of Return Spreadsheet Setup (Ch. 10)
  • Spreadsheet design for Monte Carlo simulation sensitivity analysis (Ch. 12)
  • Sensitivity analysis using the "Table" spreadsheet feature (Chapter 12)
  • Using "Pivot Tables" in spreadsheets (Chapter 13)
  • Text function tips and tricks for manipulating data in spreadsheets (Ch. 13)
Content copyright . Leo J. Lazarus. All rights reserved.