|
|
Home » News » Press Release
 |
Chainalytics Announces Successful Growth of MBBC
Model-Based Benchmarking Consortium Closes In On $7 Billion Mark
Atlanta, GA - October 10, 2006 - Chainalytics LLC, the leading provider of advanced analytical supply chain services, announced today the successful growth of its Model-Based Benchmarking Consortium (MBBC) and results of its latest model-based benchmark for transportation.
In 2003, Chainalytics created the MBBC, a group of shipper companies that use the model-based benchmark to better understand how they are performing in the market. Since then, the consortium has grown to more than 35 shippers -- representing nearly $7 billion in transportation spend. Chainalytics uses an econometric modeling approach to transportation benchmarking, enabling the members to confidentially compare their unique transportation costs against the broader market, gain insight into the business practices that drive transportation costs, and assist them in evaluating the impact of alternative strategies such as deploying a dedicated fleet.
"The truckload study in particular helped to optimize the lanes in which our private fleet operates," said a consortium member. "We realized what we thought were extremely competitive lanes for our private fleet were actually operating well above market. On just four lanes, this study turned into a $65,000 savings annually. We have always found strong value in the consortium, not just in this situation, but in many."
The most recent model analyzed over 7.7 million loads, 530,000 lanes, and nearly $7 billion in transportation spend, with 11 additional participants joining since the previous model. The recent model included benchmarks for truckload dry van, refrigerated, and intermodal modes. Chainalytics continues to expand the operational and geographic scope of the MBBC, recently completing an initial model for LTL and currently gathering data for an ocean model. In addition, MBBC will continue to evaluate management practices' impact on rates, including fuel surcharge program structure, accessorial programs, lane definition, and carrier performance metrics.
"By helping our clients evaluate their transportation rates in the context of overall market rates, they are able to see the effect their operational practices are having on their overall performance," said Gary Girotti, Vice President Transportation Practice at Chainalytics. "Our most recent findings incorporating qualitative assessments show that it's not always the most intuitive business decisions that result in the most profitable practices. MBBC will continue to provide its members with valuable insight as we expand our analysis further into qualitative assessments of transportation practices."
Some of the additional findings and a general discussion about model-based benchmarking will be the basis of the presentation, "Can Being Carrier-Friendly Save You Money?" at the 2006 CSCMP conference scheduled for October 16th at 2:15pm in San Antonio, Texas. The session (16-B2) will present the results of the most recent MBBC model. Included in this discussion will be suggested approaches and methods for making one's freight more 'carrier friendly' in order to secure more advantageous rates. Several MBBC member case studies will also be presented. For more information on this session and the CSCMP conference, visit our website at www.chainalytics.com.
About Chainalytics
Chainalytics provides leading companies advanced consulting and outsourcing services to improve supply chain performance. Specializing in the application of advanced decision sciences technology, Chainalytics supports improved strategic, tactical and operational decision-making in the areas of supply chain design, transportation planning and inventory planning. The company's powerful combination of analysis, technology and methodology enables clients to achieve and sustain double-digit cost reductions and customer service improvements, resulting in millions of dollars of value creation. Chainalytics serves mid- to large-size enterprises with complex supply chains. Learn more at www.chainalytics.com.
|
|
|
