Insider Blog

The density-based freight costing model

During a panel at the Jump Start 2018 supply chain conference, I talked about the wider acceptance of dimensioning equipment among LTL carriers. The merits of shipment density and the usefulness of dimensioning tools used to be a debated (or even ignored) topic; thankfully, many of today’s most successful carriers realize the benefits of having a greater understanding of the freight packed in their trucks.

An added benefit of the dimensioning technology is a more thorough realization of the cost of moving individual shipments. With its freight costing model software for carriers, SMC³ helps companies in both the LTL and truckload space save time and money by showing them how to accurately analyze costs and adjust their operations accordingly. The Cost Intelligence System (CIS) is an activity-based costing model and profitability management tool that gives carriers a comprehensive look into the shipment-level costs of their operations.

SMC³’s freight cost models contain unit costs and statistics developed directly from each carrier’s general ledger and operating data. CIS is unique in that unlike optimization and cost-averaging systems, the SMC³ solution shows carriers the true cost of the freight they have.

We’ve partnered with Old Dominion, Forward Air and Xpress Global Systems, among dozens of other carriers, to provide greater clarity in how much of their resources are used to move each shipment. These carriers have all recognized the benefit of analyzing their individual costs with an eye toward optimizing their pricing.

Unlike optimization and cost-averaging systems, CIS shows carriers accurate and credible costs at the shipment level. With the use of dimensioners and the introduction of volumetric data into the carrier’s system, this tool can provide even more benefits to each user.

At SMC³, we’re constantly improving the cost systems. When we meet with our users, we talk about new ways of looking at cost results and how SMC³ solutions can help them optimize their pricing. By constantly listening to our users and sharing new information with them about our products, we’re making sure we remain on the front lines of the supply chain, adapting to changing needs to help LTL and truckload carriers use the latest and greatest tools to analyze costs and streamline their operations.

To learn more about SMC³’s Cost Intelligence System, contact a sales representative at, and don’t forget to register for Connections 2018 to learn about emerging trends, current challenges and new innovations in the supply chain.

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Categories: Carrier Relations, LTL