Pricing Tender Contracts: A Real Option Pricing Approach
The practice of granting twelve or more months of price guarantee in tenders results in a significant value transfer from carriers to shippers. The size of the potential margin given-up by the carriers has increased from under 10% in the pre-Covid era to ~15% recently. Carriers can use basic option pricing…Read more
How Well Do You Price? Assessing Pricing Performance With A/B Testing
In all implementations of ClearD3™ we strongly recommend setting up A/B testing infrastructure. Otherwise known as Randomized Controlled Trial, A/B testing is the gold standard for assessing the impact of any change in decision making. Using this method, it is possible to reliably identify the impact of the…Read more
Links Technologies LLC Receives ISO 27001:2013 Compliance Certification
We are excited to announce that Links Technologies LLC – the production company of ClearD3 B.V. has successfully passed the ISO 27001:2013 audit and received compliance certification. This is a significant achievement for ClearD3 and demonstrates our commitment to maintaining the highest standards of information…Read more
Navigating the rough waters of capacity problems caused by the Rhine draught
The drought of the past months in Europe caused the water levels of the Rhine River to diminish to unprecedented levels and now, in the final week of September, they are barely back to their normal. Disrupting the cargo shipping industry, this is also leaving a negative impact on overall freight transportation…Read more
How do we know we have a pricing problem in transport?
Consider this scenario and think if it is familiar. Every day, customers request a quote from your commercial department. Pricing analysts and the commercial manager have a lot of experience in the market. They calculate the cost of all components: driver costs, paperwork, suppliers, toll, cleaning etc. Then…Read more
Just How Much Margin Does Your Transport Company Leave on the Table?
In very stable environments the under-earned cash margin is nearly 3% of sales due to lack of appropriate (intelligent) pricing. In a more volatile environment, such as post-Covid, transport companies under-earn more than 10% of sales as a margin. Even without Covid, volatility in demand is large enough…Read more
Capacity Management: How to Find Capacity When Demand Is Out of Control?
“Pricing/demand is not an issue for us these days, we just can’t find capacity” was the most typical phrase that we heard during 2022, speaking with managers of customers and prospects. The Transport industry was hit by a massive shortage of capacity, including drivers, trucks, vessels and every other…Read more
Rebooting the Data-driven Revolution in Freight Transport
by: Rob van Doesburg, Founder, Transport Improvement Taron Ganjalyan, Managing Director, LINKS Analytics / ClearD3 Introduction Decision-making backed by data evidence promises to unlock incredible gains in the freight transport industry. Internet of things, blockchain, autonomous vehicles and advancements…Read more