Transportation Cost Savings Identified Through Post Hoc Bid Analysis

Open Access
Author:
Waschenko, Emily Ann
Area of Honors:
Supply Chain and Information Systems
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Robert Alexander Novack, Thesis Supervisor
  • John C Spychalski, Honors Advisor
Keywords:
  • Supply Chain
  • Transportation
  • Network Optimization
  • Carrier Selection
  • Intermodal Utilization
Abstract:
As one of the highest expenditures within the supply chain, transportation has increasingly become a key area of focus for shippers. Across industries, shippers are designing and optimizing their logistics networks to mitigate the rising costs intensified by driver shortages, capacity constraints, fluctuating fuel prices, and other factors. A variety of frameworks and tactics exist to address this challenge, such as optimization-based bidding technology for awarding freight to carriers. Although these enablers support shippers in their cost-savings efforts, they are preliminary in nature and often do not offer post hoc analyses to evaluate performance, conformance, and actual costs. This thesis will seek to fill that void by demonstrating how to conduct a post hoc analysis of freight procurement using bid data from a large consumer packaged goods company. The analysis will introduce three strategies for cost-savings: use of intermodal shipments, carrier consolidation on a per-lane basis, and carrier consolidation on a regional basis. The thesis concludes with recommendations for future research including the incorporation of accessorial charges, and implementation of 57-foot trailers to achieve greater economies of density.