---
title: How Understanding Your Shipping Data Can Unlock the Deepest Freight Savings
description: ABC Manufacturing partnered with Customodal to analyze freight costs, uncovering that optimizing shipping expenses involves more than just volume.
image: https://blog.customodal.com/hubfs/Imported_Blog_Media/tools-2836960_1920-scaled-1.jpg
---

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# How Understanding Your Shipping Data Can Unlock the Deepest Freight Savings

TAGS:

- [Blog](https://blog.customodal.com/tag/blog)
- [3pl](https://blog.customodal.com/tag/3pl)
- [Logistics](https://blog.customodal.com/tag/logistics)
- [Freight Brokerage](https://blog.customodal.com/tag/freight-brokerage)
- [Inbound Freight](https://blog.customodal.com/tag/inbound-freight)
- [Digital Freight Management](https://blog.customodal.com/tag/digital-freight-management)
- [Shipping](https://blog.customodal.com/tag/shipping)
- [supply chain](https://blog.customodal.com/tag/supply-chain)
- [Freight Costs](https://blog.customodal.com/tag/freight-costs)
- [Outbound Freight](https://blog.customodal.com/tag/outbound-freight)
- [Specialized Freight Management](https://blog.customodal.com/tag/specialized-freight-management)
- [Technology](https://blog.customodal.com/tag/technology)
- [Freight Forwarding](https://blog.customodal.com/tag/freight-forwarding)
- [TMS](https://blog.customodal.com/tag/tms)
- [LTL](https://blog.customodal.com/tag/ltl)
- [freight](https://blog.customodal.com/tag/freight)
- [Featured](https://blog.customodal.com/tag/featured)
- [Freight Savings](https://blog.customodal.com/tag/freight-savings)
- [Logistics Planning](https://blog.customodal.com/tag/logistics-planning)
- [Controlling Costs](https://blog.customodal.com/tag/controlling-costs)
- [Digital Freight Brokering](https://blog.customodal.com/tag/digital-freight-brokering)
- [supply chain challenges](https://blog.customodal.com/tag/supply-chain-challenges)
- [avoid extra fees](https://blog.customodal.com/tag/avoid-extra-fees)
- [Inbound-Outbound Freight](https://blog.customodal.com/tag/inbound-outbound-freight)
- [Strategic Logistics](https://blog.customodal.com/tag/strategic-logistics)
- [manufacturing](https://blog.customodal.com/tag/manufacturing)
- [outbound](https://blog.customodal.com/tag/outbound)
- [Critical Infrastructure](https://blog.customodal.com/tag/critical-infrastructure)
- [FLEX Outbound Freight](https://blog.customodal.com/tag/flex-outbound-freight)
- [Tracking](https://blog.customodal.com/tag/tracking)
- [import](https://blog.customodal.com/tag/import)
- [sustainability](https://blog.customodal.com/tag/sustainability)
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- [API](https://blog.customodal.com/tag/api)
- [Compliance](https://blog.customodal.com/tag/compliance)
- [EXACT Inbound](https://blog.customodal.com/tag/exact-inbound)
- [EXACT Inbound Freight](https://blog.customodal.com/tag/exact-inbound-freight)
- [Freight Cost Tracking](https://blog.customodal.com/tag/freight-cost-tracking)
- [Outbound Freight Savings](https://blog.customodal.com/tag/outbound-freight-savings)
- [Precision ROI](https://blog.customodal.com/tag/precision-roi)
- [Project-based Logistics](https://blog.customodal.com/tag/project-based-logistics)
- [Vendor Performance](https://blog.customodal.com/tag/vendor-performance)
- [documentation](https://blog.customodal.com/tag/documentation)
- [export](https://blog.customodal.com/tag/export)
- [freight claim](https://blog.customodal.com/tag/freight-claim)
- [freight management](https://blog.customodal.com/tag/freight-management)
- [inbound freight costs](https://blog.customodal.com/tag/inbound-freight-costs)
- [incoterms](https://blog.customodal.com/tag/incoterms)
- [meet the team](https://blog.customodal.com/tag/meet-the-team)
- [ocean freight](https://blog.customodal.com/tag/ocean-freight)
- [parcel](https://blog.customodal.com/tag/parcel)
- [save money](https://blog.customodal.com/tag/save-money)
- [supplychain](https://blog.customodal.com/tag/supplychain)
- [Carrier Selection](https://blog.customodal.com/tag/carrier-selection)
- [Critical Freight](https://blog.customodal.com/tag/critical-freight)
- [Data Driven](https://blog.customodal.com/tag/data-driven)
- [Freight Claims](https://blog.customodal.com/tag/freight-claims)
- [Risk Mitigation](https://blog.customodal.com/tag/risk-mitigation)
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- [Uptime](https://blog.customodal.com/tag/uptime)
- [current events](https://blog.customodal.com/tag/current-events)
- [inbound](https://blog.customodal.com/tag/inbound)
- [priority1](https://blog.customodal.com/tag/priority1)
- [recession](https://blog.customodal.com/tag/recession)
- [shipping delay](https://blog.customodal.com/tag/shipping-delay)
- [4pl](https://blog.customodal.com/tag/4pl)
- [Analytics](https://blog.customodal.com/tag/analytics)
- [Customs](https://blog.customodal.com/tag/customs)
- [Dock Management](https://blog.customodal.com/tag/dock-management)
- [Downtime](https://blog.customodal.com/tag/downtime)
- [FLEX Freight Control](https://blog.customodal.com/tag/flex-freight-control)
- [Heavy Haul](https://blog.customodal.com/tag/heavy-haul)
- [International](https://blog.customodal.com/tag/international)
- [SDK](https://blog.customodal.com/tag/sdk)
- [Strategic Outsourcing](https://blog.customodal.com/tag/strategic-outsourcing)
- [book review](https://blog.customodal.com/tag/book-review)
- [canada](https://blog.customodal.com/tag/canada)
- [covid 19](https://blog.customodal.com/tag/covid-19)
- [customodal way](https://blog.customodal.com/tag/customodal-way)
- [delivery](https://blog.customodal.com/tag/delivery)
- [digital freight broking](https://blog.customodal.com/tag/digital-freight-broking)
- [exports](https://blog.customodal.com/tag/exports)
- [freight broker](https://blog.customodal.com/tag/freight-broker)
- [ftl](https://blog.customodal.com/tag/ftl)
- [holidays](https://blog.customodal.com/tag/holidays)
- [in the news](https://blog.customodal.com/tag/in-the-news)
- [logisitics](https://blog.customodal.com/tag/logisitics)
- [mike eberl](https://blog.customodal.com/tag/mike-eberl)
- [news](https://blog.customodal.com/tag/news)
- [oceanfreight](https://blog.customodal.com/tag/oceanfreight)
- [packaging](https://blog.customodal.com/tag/packaging)
- [rates](https://blog.customodal.com/tag/rates)
- [save on freight](https://blog.customodal.com/tag/save-on-freight)
- [save on shipping](https://blog.customodal.com/tag/save-on-shipping)
- [shipping news](https://blog.customodal.com/tag/shipping-news)
- [shipping solutions](https://blog.customodal.com/tag/shipping-solutions)
- [small parcel audit](https://blog.customodal.com/tag/small-parcel-audit)
- [small parcel refunds](https://blog.customodal.com/tag/small-parcel-refunds)
- [truckload](https://blog.customodal.com/tag/truckload)
- [update](https://blog.customodal.com/tag/update)
- [2022](https://blog.customodal.com/tag/2022)
- [2022 shipping expectations](https://blog.customodal.com/tag/2022-shipping-expectations)
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- [Cold Chain](https://blog.customodal.com/tag/cold-chain)
- [Customs Broker](https://blog.customodal.com/tag/customs-broker)
- [EXACT](https://blog.customodal.com/tag/exact)
- [Electrical Utilities](https://blog.customodal.com/tag/electrical-utilities)
- [Freight Control](https://blog.customodal.com/tag/freight-control)
- [Green Logistics](https://blog.customodal.com/tag/green-logistics)
- [Hawaii](https://blog.customodal.com/tag/hawaii)
- [Hazmat](https://blog.customodal.com/tag/hazmat)
- [In-House Fleet vs Virtual Fleet](https://blog.customodal.com/tag/in-house-fleet-vs-virtual-fleet)
- [Inbound Shipping Skills](https://blog.customodal.com/tag/inbound-shipping-skills)
- [Inventory Management](https://blog.customodal.com/tag/inventory-management)
- [JIT](https://blog.customodal.com/tag/jit)
- [Jones Act](https://blog.customodal.com/tag/jones-act)
- [LCL](https://blog.customodal.com/tag/lcl)
- [Maintenance Logistics](https://blog.customodal.com/tag/maintenance-logistics)
- [Midwest](https://blog.customodal.com/tag/midwest)
- [Oversized](https://blog.customodal.com/tag/oversized)
- [Puerto Rico](https://blog.customodal.com/tag/puerto-rico)
- [Reverse Logistics](https://blog.customodal.com/tag/reverse-logistics)
- [air freight](https://blog.customodal.com/tag/air-freight)
- [all risk shippers protection](https://blog.customodal.com/tag/all-risk-shippers-protection)
- [asset based](https://blog.customodal.com/tag/asset-based)
- [automated audits](https://blog.customodal.com/tag/automated-audits)
- [automated refunds](https://blog.customodal.com/tag/automated-refunds)
- [benjamin lorr](https://blog.customodal.com/tag/benjamin-lorr)
- [broker](https://blog.customodal.com/tag/broker)
- [bullwhip](https://blog.customodal.com/tag/bullwhip)
- [carmack](https://blog.customodal.com/tag/carmack)
- [central wisconsin manufacturing](https://blog.customodal.com/tag/central-wisconsin-manufacturing)
- [cheap logistics](https://blog.customodal.com/tag/cheap-logistics)
- [china](https://blog.customodal.com/tag/china)
- [choose local](https://blog.customodal.com/tag/choose-local)
- [cip](https://blog.customodal.com/tag/cip)
- [coronavirus](https://blog.customodal.com/tag/coronavirus)
- [covid19](https://blog.customodal.com/tag/covid19)
- [cpt](https://blog.customodal.com/tag/cpt)
- [ctb](https://blog.customodal.com/tag/ctb)
- [cybersecurity](https://blog.customodal.com/tag/cybersecurity)
- [dan hendrickson](https://blog.customodal.com/tag/dan-hendrickson)
- [dap](https://blog.customodal.com/tag/dap)
- [dayton freight](https://blog.customodal.com/tag/dayton-freight)
- [ddu](https://blog.customodal.com/tag/ddu)
- [diy shipping](https://blog.customodal.com/tag/diy-shipping)
- [double brokering](https://blog.customodal.com/tag/double-brokering)
- [e-commerce](https://blog.customodal.com/tag/e-commerce)
- [ebol](https://blog.customodal.com/tag/ebol)
- [exporting](https://blog.customodal.com/tag/exporting)
- [factoring](https://blog.customodal.com/tag/factoring)
- [freight damage](https://blog.customodal.com/tag/freight-damage)
- [freight jobs](https://blog.customodal.com/tag/freight-jobs)
- [freightforwarding](https://blog.customodal.com/tag/freightforwarding)
- [from the forest](https://blog.customodal.com/tag/from-the-forest)
- [fuel surcharge](https://blog.customodal.com/tag/fuel-surcharge)
- [fulltruckload](https://blog.customodal.com/tag/fulltruckload)
- [glossary](https://blog.customodal.com/tag/glossary)
- [holiday shipping](https://blog.customodal.com/tag/holiday-shipping)
- [how to switch ltl](https://blog.customodal.com/tag/how-to-switch-ltl)
- [importing](https://blog.customodal.com/tag/importing)
- [inboundfreight](https://blog.customodal.com/tag/inboundfreight)
- [industry 4.0](https://blog.customodal.com/tag/industry-4-0)
- [insurance](https://blog.customodal.com/tag/insurance)
- [insurance claim](https://blog.customodal.com/tag/insurance-claim)
- [last mile](https://blog.customodal.com/tag/last-mile)
- [location](https://blog.customodal.com/tag/location)
- [logistics coordinator](https://blog.customodal.com/tag/logistics-coordinator)
- [low cost shipping](https://blog.customodal.com/tag/low-cost-shipping)
- [maritimeshipping](https://blog.customodal.com/tag/maritimeshipping)
- [michael standley](https://blog.customodal.com/tag/michael-standley)
- [mycarrier](https://blog.customodal.com/tag/mycarrier)
- [newsletter](https://blog.customodal.com/tag/newsletter)
- [non-performance refunds](https://blog.customodal.com/tag/non-performance-refunds)
- [ocean shipping](https://blog.customodal.com/tag/ocean-shipping)
- [onboarding](https://blog.customodal.com/tag/onboarding)
- [our values](https://blog.customodal.com/tag/our-values)
- [outboundfreight](https://blog.customodal.com/tag/outboundfreight)
- [outsource](https://blog.customodal.com/tag/outsource)
- [overview](https://blog.customodal.com/tag/overview)
- [pallet](https://blog.customodal.com/tag/pallet)
- [pandemic](https://blog.customodal.com/tag/pandemic)
- [parcel audit](https://blog.customodal.com/tag/parcel-audit)
- [parcel refunds](https://blog.customodal.com/tag/parcel-refunds)
- [parcel shipping](https://blog.customodal.com/tag/parcel-shipping)
- [partnership](https://blog.customodal.com/tag/partnership)
- [permits](https://blog.customodal.com/tag/permits)
- [predications](https://blog.customodal.com/tag/predications)
- [purchasing management](https://blog.customodal.com/tag/purchasing-management)
- [questions](https://blog.customodal.com/tag/questions)
- [reshoring](https://blog.customodal.com/tag/reshoring)
- [risk management](https://blog.customodal.com/tag/risk-management)
- [rose george](https://blog.customodal.com/tag/rose-george)
- [routing guide](https://blog.customodal.com/tag/routing-guide)
- [save time](https://blog.customodal.com/tag/save-time)
- [sea freight](https://blog.customodal.com/tag/sea-freight)
- [seafreight](https://blog.customodal.com/tag/seafreight)
- [shipment](https://blog.customodal.com/tag/shipment)
- [shipping 101](https://blog.customodal.com/tag/shipping-101)
- [shipping clerk](https://blog.customodal.com/tag/shipping-clerk)
- [shipping costs](https://blog.customodal.com/tag/shipping-costs)
- [skid](https://blog.customodal.com/tag/skid)
- [staff](https://blog.customodal.com/tag/staff)
- [standley](https://blog.customodal.com/tag/standley)
- [supply chain resilience](https://blog.customodal.com/tag/supply-chain-resilience)
- [team](https://blog.customodal.com/tag/team)
- [testimonial](https://blog.customodal.com/tag/testimonial)
- [trade show shipping](https://blog.customodal.com/tag/trade-show-shipping)
- [transportation](https://blog.customodal.com/tag/transportation)
- [transportation management](https://blog.customodal.com/tag/transportation-management)
- [truck broker](https://blog.customodal.com/tag/truck-broker)
- [truckload specialist](https://blog.customodal.com/tag/truckload-specialist)
- [ups shipping](https://blog.customodal.com/tag/ups-shipping)
- [yellow](https://blog.customodal.com/tag/yellow)

#### Recent Articles

[ How Manufacturers Can Lower LTL Costs Without Hurting Service ](https://blog.customodal.com/how-manufacturers-can-lower-ltl-costs-without-hurting-service)

[ When Should Manufacturers Rebid Freight Contracts? ](https://blog.customodal.com/when-should-manufacturers-rebid-freight-contracts)

[ LTL vs Truckload: Which Is More Cost-Effective for Manufacturers? ](https://blog.customodal.com/ltl-vs-truckload-which-is-more-cost-effective-for-manufacturers)

[ How to Audit Your Freight Spend in 30 Days ](https://blog.customodal.com/how-to-audit-your-freight-spend-in-30-days)

[ Contract Freight vs Spot Freight for Manufacturers ](https://blog.customodal.com/contract-freight-vs-spot-freight-for-manufacturers)

[** PREVIOUS ARTICLE ](https://blog.customodal.com/real-savings-shipping-overhaul-benefits-inbound-freight-management)

[ NEXT ARTICLE ** ](https://blog.customodal.com/is-cif-for-sea-freight-only)

[Customodaladmin](https://blog.customodal.com/author/customodaladmin) May 7, 2020

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![How Understanding Your Shipping Data Can Unlock the Deepest Freight Savings](https://blog.customodal.com/hubfs/Imported_Blog_Media/tools-2836960_1920-scaled-1.jpg)

When ABC Manufacturing first commissioned Customodal to review their freight history, they already knew their larger competitors were beating them on overall shipping cost. The assumption was that sheer volume was the reason the big players paid less. But volume is only one factor in optimizing freight dollars.

When a large company gains the sophistication to dictate how they want freight shipped from a supplier, it’s a good bet that they have negotiated rates with carriers they know are better than they could get in a traditional freight scenario. They also probably have put some thought into who that carrier should be. With the resources of TForce Worldwide and Customodal at their disposal, ABC began the process of evaluating and reshaping the way they approached shipping.

## **Building the Foundation for Lasting Freight Savings**

In Phase 1, Customodal developed a baseline sample of inbound shipment data with carrier and cost components and then ran that baseline through our rating model to identify carrier and rate optimizations. We collaboratively developed a letter to the client’s vendor-base, informing them of the new procedures for [inbound freight](https://customodal.com/exact-inbound/). These new procedures dictated to vendors how freight would be shipped, optimized the rate/carrier selection to take advantage of our volume rates and captured all shipments into our TMS for full client visibility as well as data capture.  

The implementation of this initial phase took 60 days, targeted just vendors who were generating freight bills on our client’s account, and resulted in immediate cost improvements as well as reduced freight damage incidence.

## **The Next Phase: Digging for Dollars**

Once the real savings from Phase 1 were put into practice and proven consistent in real-world applications, Customodal initiated Phase 2, which was designed to revisit ABC’s broader vendor-base to apply the same process to vendors where freight was “prepay and add.” 

## **“Prepay and Add”—Code for “Open Your Wallet a Little Wider”**

The “prepay and add” billing system is one of the most consignee-UNfriendly arrangements in freight. In the case of ABC, when they received freight “prepay and add,” they never saw the actual freight bill and never saw whether (or how much) the consignor had added as an upcharge to the invoice. In reasonable likelihood, the carrier was billing a higher rate, and the consignor was making a little off the shipment as well—all driving up the overall cost to ABC and making them a little less competitive in the marketplace.

When ABC took control of their consignee relationships, they were able to cut any additional markup from the consignor completely, plus they were able to choose carriers based on their own optimized carrier list developed in Phase 1. Freight cost reduction in this group of vendors was astounding.

## **Identifying Freight Savings Comes Back to Having a Command of Your Freight History**

But none of these savings could have ever happened without copious data on ABCs shipping habits and freight history. Only after gaining a complete understanding of ABC’s “big picture” could Customodal begin to implement cost controls and freight savings in the “daily picture.”

The beauty for ABC was the significant overall cost savings, but the surprise reveal was how little staff time was necessary on ABC’s part. ABC essentially gained the advantage of a big shipper without the need to increase staff to achieve those savings.

The next and final article in this series will outline just how much ABC saved, and how small the labor footprint remains for them to continue those freight savings.

 

[Blog](https://blog.customodal.com/tag/blog)

## Related Articles

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## [Understanding Cubic Capacity or Density Deficit Surcharge in LTL Shipping](https://blog.customodal.com/understanding-cubic-capacity-or-density-deficit-surcharge-in-ltl-shipping)

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[Customodaladmin](https://blog.customodal.com/author/customodaladmin)

 Oct 2020

[![Understanding Overlength Surcharge in LTL Shipping](https://blog.customodal.com/hubfs/Imported_Blog_Media/shutterstock_1599554080-2-2.jpg) ](https://blog.customodal.com/understanding-overlength-surcharge-in-ltl-shipping)

## [Understanding Overlength Surcharge in LTL Shipping](https://blog.customodal.com/understanding-overlength-surcharge-in-ltl-shipping)

 Overlength surcharge is a source of frustration or profit depending on your perspective as a shipper or carrier. Understanding when and why carriers...

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[Customodaladmin](https://blog.customodal.com/author/customodaladmin)

 Sep 2020

[![How to Avoid Extra Fees When Shipping](https://blog.customodal.com/hubfs/avoid-extra-fees-when-shipping.webp) ](https://blog.customodal.com/how-to-avoid-extra-fees-when-shipping)

## [How to Avoid Extra Fees When Shipping](https://blog.customodal.com/how-to-avoid-extra-fees-when-shipping)

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[Customodaladmin](https://blog.customodal.com/author/customodaladmin)

 Aug 2022

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