I’ve been working with the team at ProvisionAI on a blog series that we’ll be launching soon. Those conversations have brought a few thoughts into sharper focus about the pressures shippers are facing and the opportunities available to respond.
It has been a challenging period for transportation and the broader supply chain. Rising costs have put pressure on budgets, and the recent spike in diesel prices has added another concern for teams already working hard to protect service and manage spending.
I know it can be frustrating to make improvements within your operation and then see external costs absorb the benefit. But there is reason for encouragement. Shippers still have meaningful opportunities to influence transportation performance, including some that sit outside the usual rate conversation.
One question worth asking is: how much of our transportation cost is being shaped by the way we plan, order and ship?
Look at the freight before negotiating the rate
When costs rise, reviewing carrier rates, fuel surcharge agreements and sourcing options makes sense. Alongside that work, it is worth examining the freight itself.
Consider a lane that averages ten loads a day but actually ships four on Tuesday and sixteen on Friday. The average may look reasonable in a bid. The daily pattern is much harder for a carrier to support.
Or consider an order classified as a full truckload because it meets a weight or case threshold established years ago. Does it actually use the trailer’s available capacity once product mix, pallet weight, stacking requirements and axle limits are considered?
These details influence how many trucks you need, how readily carriers accept your freight and how much time your teams spend managing exceptions.
They also reach beyond transportation. Order policies, replenishment decisions, production schedules and warehouse constraints all shape the freight that eventually reaches a carrier. Looking across those decisions can reveal opportunities that are difficult for any one function to see alone.
Why ProvisionAi interests me
What I find compelling about ProvisionAi is its focus on two practical questions: how to make better use of each truck and how to create a shipment plan the network can execute more consistently.
AutoO2 addresses load building, evaluating physical constraints to improve trailer utilization. LevelLoad addresses replenishment flows, considering inventory needs and network capacity to create a more balanced deployment schedule.
For shippers with underutilized loads or uneven replenishment volumes, these capabilities offer a way to address costs that another rate negotiation may leave untouched. They are designed to work alongside existing planning and execution systems.
That is encouraging because it creates a practical starting point. An organization can focus on a defined problem, test the opportunity and build from the results.
Turning opportunity into results
At Argon & Co, we look at the operational and commercial decisions surrounding the technology.
Where does shipment variability originate? Which order policies limit utilization? What would need to change in planning, warehousing or customer service? Will the carrier agreements allow an operational improvement to become a financial saving?
For example, reducing the number of trucks required may create an opportunity, but dedicated fleet commitments or minimum volume obligations can affect when that benefit reaches the freight bill.
Our role is to assess the opportunity, build the business case and align the people, processes, technology and commercial arrangements needed to capture it. That includes establishing ownership across functions and agreeing with finance how benefits will be measured.
The aim is to give teams a clear, achievable path forward and the support to follow through.
Start with a manageable piece of the problem
If transportation costs are a concern, my encouragement is to start with a few important lanes or shipping locations. A focused review can tell you a great deal:
- Compare daily shipment volumes with the patterns awarded to carriers.
- Review tender lead times, first tender acceptance and reliance on backup carriers.
- Check actual trailer utilization against the assumptions used to define a full load.
- Identify which planning rules, customer commitments and site constraints drive those patterns.
Bring transportation, planning, warehouse operations, procurement and finance into the discussion. Look for flexibility that improves the overall outcome while protecting service and accounting for inventory and operating costs.
From there, a focused pilot can test the opportunity against an agreed baseline and give the team evidence to support the next step.
A conversation worth continuing
Our upcoming Argon & Co and ProvisionAi blog series will explore these issues in more detail, from the freight patterns carriers see to load utilization and the decisions surrounding transportation.
I hope it gives shippers useful questions to ask and practical ideas to pursue. The pressures are real, but so are the opportunities. A clearer view of what is happening inside your own network can be the beginning of meaningful progress.
If transportation costs are on your agenda, I’d welcome a conversation about where to start. Together, we can explore the opportunities within your network and identify a practical path forward.
Get in touch with Argon & Co’s transportation team → https://www.argonandco.com/us/transportation-supply-chain-consultants/
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Rob Achtzehn
Finding Room to Act When Transportation Costs Keep Rising
