The Transportation Management Benchmark Report

The Transportation Management
Benchmark Report

The New Spotlight on Transportation Management and
How Best in Class Companies Are Responding







September 2006



 Transportation Management Benchmark Report

Executive Summary
Transportation management is moving out of the shadows and into a strategic role in
driving supply chain excellence. In recognition of this, most companies are actively re-
evaluating their transportation management processes, organizational structure, and tech-
nology. More than three-quarters of transportation executives surveyed by Aberdeen
have been asked to make recommendations for transportation process improvement in
just the past six months. Nearly two-thirds have also recommended improving their
transportation management technology.
Companies that are Best in Class in transportation management have been able to de-
crease their total freight budget over the past two years (discounting changes in sales
volume). By comparison, 82% of all respondents saw their freight costs stagnate or in-
crease. Across all study participants, the average increase in freight budgets over the past
two years has been 10%. As Figure i shows, the Best in Class also lead in other key met-
rics, including a 69% advantage in transportation spend as a % of sales over Laggards.
Figure i: Best in Class Performance Advantages
Median Freight Spend as % of Sales Median On-Time Delivery Percentage
6% 96%
5%5% 95%95%
5.5 ...