It would be better to have more accurate forecasting in the first place. However there will always be volatility. The scenario goes against economic models of elasticity which say that a product in high demand will achieve a higher price and therefore improves a company's margins. Some companies encourage 'shortages' as a marketing plan. The concept of offering delayed delivery at a reduced cost does allow greater consumer choice. Would it also be worthwhile to have discounts on 'where' the product is purchased, for example, with products purchased closer to a supplier's site having a greater discount because of reduced shipping costs to a central distribution location?
Fist we have to determine how the price is determined. If you think you can still use the NMFC class rates
for your LTL freight pricing, you are in that group that is using a system that is over 80 years
old. Think of what the carriers and shippers could do wih a system that allowed daily updates to cost
and lane balance and space occupied. I posted a paper and PDF on this site, please read and let me know
what you think.
The same applies to packages (if it fits, it ships USPS) and Truckload, keep those wheels moving and profits soar.
Hank Mullen Dynarates 770-241-6630
Update on Sunsetting the NMFC 4.pdf 476.7 KB