What is czarlite

Additionally, more than 2, shippers have used CzarLite as the negotiation base for their LTL contracts. This system for developing base information supports the macroeconomic issues of LTL carriers without yielding to the micro operating and marketing issues of any individual carrier.

The February CzarLite product update will reflect the overall economic impact of rising expenses to transport freight, as well as recent changes within the U. Consistent with prior updates, CzarLite base rate adjustments do not include the impact of fuel prices, which are in a constant state of flux and are addressed separately and individually by the carriers. This verification process ensures that the input data and mathematical processes are accurate and that the CzarLite update is an equitable method for the usability and applicability of baseline rates over time.

SMC3 also utilizes an economic review panel to make recommendations related to the economic portion of the CzarLite update. The panel is comprised of outside experts whose noted familiarity with economic trends and the transportation industry, as well as their lengthy history of accurate economic research and forecasting, assures the practical, fair and unbiased nature of CzarLite rates. Shippers who use CzarLite can confirm the competitiveness of rate offers and have a readily available and understandable alternative for their carrier agreements.

Furthermore, these baseline rates allow those who purchase transportation services to standardize several critical areas of their business operations, including accounting functions, computer systems and purchasing agreements — offering truly competitive rates to their customers and creating economic value in terms of increased productivity and efficiency.

SMC3 plans to release an executive summary detailing the CzarLite update process commensurate with the Feb. For more information regarding SMC3 products and services, call Subscribe Now. Register with JOC. The latter is used by large enterprise-sized organizations that need a more control of their freight environment.

Each scenario allows the shipper to control the CWT and gross costs of each lane. The benefits of using a standardized rate base are strong, and I will get into the reasons below. In order to have this type of control, there is an upfront cost in order to license the desired rate base. There are, however, ways to leverage these rate bases without any upfront costs, which typically involve a third party.

As mentioned, holding rates to a standardized rate base helps a shipper keep control. In fact, in recent years, some carriers have announced a GRI twice in the same calendar year.

In a GRI, carriers are raising the rate base or gross charge. On a 2, lb. The carriers decide which lanes will see increases in charges and by how much, typically based on operating costs per lane. The hardest part for shippers is that carriers will not advertise which lanes increased by greater or lesser percentages. It is the responsibility of the shipper to investigate these changes, and unfortunately most shippers do not study the details of these increases lane by lane and carriers know this.

A lot of work is necessary in finding this answer. In my experience, most shippers end up focusing on their carrier discounts when determining whether or not their rates are improving.

As discussed above, this is an ineffective way to analyze rates when using carrier rate bases. Even though the discount may improve by a percentage point or two, it does not necessarily mean you are getting a better rate. You must identify the gross charge first and see if the discount offsets any rate increase you may have taken on the rate base.

When you are on a standardized rate base, the discount becomes much more significant and easier to analyze. If you were to use a standardized rate base, you would want to make sure all carriers were providing pricing on the same rate base.

Since the gross charge would be the same for all carriers, it becomes easy to identify a higher discount as better rates vs. For example, both Carrier A and Carrier B are on the same rate base. Without a doubt, Carrier A is providing a better rate than Carrier B. Furthermore, on a standardized rate base, the only way a carrier can take an increase is by lessening the discount since the shipper controls the gross charge.

This means understanding the true cost of working with an individual carrier requires complicated math to untangle base rates, freight discounts, and other factors.

This makes it difficult to compare carriers, and it often leads to billing discrepancies. Each time this happens, it usually means a better fit - and possibly a better cost - was left on the table. To solve these multipart issues, shippers and logistics service providers need standardized LTL pricing and a modern neutral base rate that accurately reflects current demographic profiles and domestic freight shipping activity.

As a result, it also delivers valuable process savings that can help shippers and 3PLs streamline their operation, minimize the impact of carrier selection errors, and refocus on high growth opportunities. Analyzing and Predicting Freight Transportation Costs In these 3 resources, BatchMark XL, CarrierConnect XL, and CzarLite, we detail how to ensure accurate freight billing across every carrier agreement, uncover potential freight bill invoice errors, and assist with price negotiation and planning.

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