The Key Questions in Logistics Investments

Throughout my experience in logistics, every time we considered adding new capabilities, the same questions arose:
• How much does it cost?
• What are the savings?
• How fast is the payback?

I quickly learned that logistics projects must demonstrate cost savings and a positive return on investment (ROI) within a short period. A two-year payback was acceptable, but a one-year payback was ideal.

When implementing an International Transportation Management System (ITMS), we focused on the best opportunities to cut costs and optimize operations.

Top Areas Where an ITMS Reduces Costs

1. A Solid RFP Strategy & Execution

A strong RFP strategy requires accurate, reliable data. Without it, businesses risk cost increases of 5-10%. With an ITMS, we were able to:
• Work directly with carriers, securing 10-15% lower pricing and more stable contract rates.
• Identify the best carriers for our shipping lanes, optimizing freight costs and transit times.

2. Improved Container Utilization

Another significant cost-saving opportunity was container utilization. By analyzing our data, we uncovered inefficiencies:
• Average container utilization was below 80%.
• The best average fill rate was 88-90%, meaning we were wasting over 10% of usable capacity.

By identifying underperforming shipping locations and making corrections, we increased our average container utilization to the mid-80% range, leading to a 5% reduction in ocean costs.

3. Additional Cost-Saving Opportunities

An ITMS also helped us cut costs in other key areas:
• Validating invoices for errors.
• Monitoring booking and sailing performance of carriers and shippers.
• Identifying missed or canceled sailings by shippers.
• Correcting carriers when they roll containers, avoiding costly delays.

Fast Payback and Proven ROI

By implementing an ITMS, we achieved significant cost savings and justified the investment with a quick payback period. A great team, paired with the right technology, was key to our success.

See the Savings for Yourself with WOWL

Curious about the cost to install and operate an ITMS? Try a FREE DEMO with WOWL and let’s discuss how we can help you optimize your logistics, cut costs, and improve efficiency.

Request a demo today and discover the savings you’ve been missing!