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case study - Improving LTL Pricing
A trucking client was looking for ways to improve margins and grow business in the competitive LTL market during an economic down-turn. Norbridge consultants worked with a client team to identify both short-term and longer-term opportunities to increase revenue and/or increase profitability through more effective pricing.

Approach
The team analyzed the client's tariffs against competitor base-rate tariffs to understand differences in base rates, assessorial charges, and minimum shipment charges. Based on this analysis, we mapped client competitiveness from major origins to all destinations served by the client, highlighting areas of relative price differences. Using this input and competitive intelligence, it was then possible to estimate discounts necessary to win business in various test-case bidding situations. The team identified several customer segments, and developed pricing strategies for each. Shippers with profiles that fit with the client's competitive map were targeted for new or additional business. An Excel-based tool was built to assist the sales force in responding to requests for pricing.

Value Added
The client has obtained new customers and won business that they would have been unlikely to win without the new pricing approach. A variety of specific changes were quickly implemented, which provided significant additional revenues to the client shortly following project completion. In a difficult environment, the client was able to shore up revenue and profitability.

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