Insights into the MarketPosted April 12, 2017
One of the most frequent questions we are getting is: “What’s the best job to put on TNX?” Successful jobs on TNX – i.e. those that have the most amounts of savings – share a few important characteristics:
Being a marketplace, the best jobs for TNX are the ones that create the most competitive tension. If only one carrier can do the job, then there is very little TNX can do to improve prices. A few reasons lead to such a situation: the job is on an unpopular laneway, the service requirements are very high, the cargo requires specialised care or even specialised gear.
This general principle is visible in the data as well: A high match ratio on a laneway (“being popular”), leads to a larger amount of savings. On average, we observe a 1% improvement in the savings amount for each 10% improvement in the match ratio.
For carriers, finding cargos for co-loading is always tricky. Making sure that the cargo is in the right locations, at the right time, and is compatible to be put on the truck at the same time is quite a challenging task.
We find very similar results in the data. A full truckload job is about five times more likely to match, with a similar implication on the amount of savings.
We see a very strong difference in the success for jobs at around $1,000 price, irrespective of other characteristics of the job. Above the $1,000 mark – equivalent to a 300-400km FTL job, the impact of using TNX increases substantially.
Two weeks ago, I wrote about the data TNX’s customers can use to improve their decisions. Check out that post to see how we approach data on a customer by customer basis.