Spotlight on Business Intelligence: Least Cost Opportunity Report

Least Cost Opportunity Report – Identifying Missed Savings

This Least Cost Opportunity Report highlights instances where a Revcon client selected a carrier that was more expensive than the TMS (Transportation Management System) suggested routing. The report quantifies the lost potential savings—opportunities where cost-effective alternatives could have reduced transportation expenses without compromising service levels.

Key Insights from the Report

1. Missed Cost Savings

   • Each row represents a shipment where the client used a carrier that was more expensive than the TMS-recommended option.

   • The "Lost Potential Savings" column quantifies the exact amount that could have been saved per shipment by selecting the least-cost routing.

   • Over time, these small differences add up to significant cost avoidance opportunities.

     
     

2. Optimizing Carrier Selection

   • The TMS provides optimized carrier recommendations based on cost, service level, and efficiency.

   • This report helps identify patterns where certain lanes, carriers, or regions consistently result in higher-than-necessary transportation costs.

     
     

3. Strategic Adjustments for Future Savings

   • By reviewing this data, Revcon clients can refine their carrier selection process and adjust internal workflows to prioritize cost-effective routing.

   • Implementing a TMS-driven decision-making process can lead to immediate cost reductions and long-term transportation spend optimization.

Bottom-Line Impact

If the client had consistently followed the TMS recommendations, they could have saved thousands of dollars in freight spend. This report serves as a critical tool for financial decision-making, enabling Revcon clients to maximize profitability by minimizing unnecessary transportation costs.