Shared Savings Programs Can Provide a No Risk, No Cost, Profit Center.
How easy is that? We send you a check every month for a portion of the verified savings we provide!
Examples for establishing or tracking savings.

Savings are determined by utilizing a benchmark tariff. A benchmark tariff is established based on history, or the current pricing agreements the shipper has in place. Savings are determined by comparing actual costs for current shipments to what costs would have been using the benchmark rates. The result is the valid savings for that shipment. Savings for all shipments are aggregated for each period with negative savings included.

Savings are predetermined through rate negotiations. Another efficient method of tracking savings is to agree to a tariff that has all savings and compensation predetermined.

  • The parties analyze the shipment history or current pricing agreements in place and establish a benchmark level of rates.
  • TLC conducts a network bid and negotiates new rates.
  • The parties agree that TLC only shares in the difference in the benchmark rates and the newly negotiated rates we were able to obtain.
  • As a result, the shipper is guaranteed savings based on the difference between the benchmark rate.

Savings From Optimization.Transportation optimization generates savings through various methods of order consolidation and improved mode assignment. Optimization savings are typically calculated by comparing what the cost would have been if individual orders shipped alone versus the final load cost for all consolidated orders.

All you have to do is cash the check.

For engagements where TLC manages underlying carrier payments, a highly successful method for distributing savings entails rebates from TLC to shipper. For example, TLC invoices the shipper at the agreed benchmark rate levels. When the savings is calculated, TLC issues a check to the shipper for its share.

A similar method works well when savings are achieved by order consolidation. TLC may invoice the shipper at the individual order level (as if the orders were not consolidated), then after the consolidation savings are calculated, TLC rebates the shipper’s share.

While rebates are often desirable because they allow the shipper to clearly identify the program benefits within their own organization, some prefer to issue separate payment to TLC.

As always, TLC is flexible and understands that every company is unique. Given the opportunity to learn more about your business we would be happy to provide you with a proposal worthy of your serious consideration.