Disconcerting calls for help – from all over the country. Calls of distress, from panicked ship captains who either inherited their leaky clippership and are paying WAY too much in maintenance at a ridiculous annual rate to keep their craft afloat (or having to throw many sailors at the clippership’s leaks – water coming in quicker than they can bail), or from those unfortunate, disheartened souls who left harbor thinking they had a sleek craft worthy of being a Flagship, leading the way to shipping success only to find that that they were way… too… slow… and unfortunately for some, they came to a halt in the middle of the sea with their crew and ocean freight at a standstill.

“How could we have been so misled?” they ponder. “Why is it that we have to keep working around all of these problems?” Notification and calls to their ship builders either fell on silent ears, or promises were made that were not kept.

Their shipping competitors pass them by, pointing and others even laughing. Some even lamented that they made the same mistake themselves. The stories are sad, but consistent; even the most skilled crew – salty veterans of the sea – could not hold these poor clipperships together. And all of the money they spent! Is anyone accounting for the time and labor involved in keeping this thing afloat? Oftentimes, mutiny ensues, and the ships’ captains sometimes end up walking the plank. Little did they know, they held the key – will they ever learn?!? Perhaps they should have bought American…

If you should find that your clipper ship or flag ship is sinking, your lifeboat solution is here. No need to walk the plank, no need to hear from the admiral who is consulting you that you are in trouble, none of that. Stick your chest out and confidently and calmly advise your crew to pack their small parcels, that it’s time to migrate to a faster, more tightly – integrated ship – with an engine system more robust than any, capable of transport across any hazardous ocean or at a rate faster than any ship could ever manage. “Hold it together for one more month lads, for we are moving to the USS ShipLinx!”

Looking to disembark YOUR sinking clippership, while saving face in front of your crew and superiors? Send us a message in a bottle to sales@ratelinx.com. You have options and alternatives, captain. We’ll show you how to set sail and free yourself of a lingering logistics nightmare without giving up any of the booty.

Tags: ShipLinx, small parcel shipping solution
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Inboundlogistics.com and Inbound Logistics magazine approached RateLinx owners and asked if RateLinx personnel would be interested in providing a TMS-related “Knowledgebase” article in their May 2010 publication (since voted onto their 2010 Top 100 Logistics IT Providers list). Steve Shoemaker obliged and his article can be seen in the May Inbound Logistics print edition as well as their internet edition at http://www.inboundlogistics.com/articles/knowledge/knowledge0510.shtml.

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NEW YORK, NY APR 23 2010 / PRNewswire/ Each April since 1995, Inbound Logistics editors have recognized 100 logistics IT companies that support and enable logistics and supply chain excellence. Editors seek to match readers’ fast-changing needs to the capabilities of those companies selected, and Inbound Logistics has recognized Madison, Wisconsin-based RateLinx for innovative solutions empowering logistics and supply chain excellence. Fueled by the exponential growth of RateLinx’ popular ShipLinx logistics technology, RateLinx was recognized by Inbound Logistics editors as one of the logistics services and technology companies leading the way in 2010.

When choosing this year’s Top 100 Logistics IT Providers, Inbound Logistics editors evaluated excellence in solving transportation and logistics challenges. Selections were based on how transformative logistics IT solutions impact all business activities and drive integration across internal processes for shippers, as well as external processes for both their vendors and customers. Using questionnaires, personal interviews, and other research, Inbound Logistics makes their selection. All companies selected reflect leadership by answering Inbound Logistics readers’ needs for simplicity, ROI, and efficient implementation.

“RateLinx was selected because of the sheer breadth of their logistics management and technology solution,” stated Felecia Stratton, Editor of Inbound Logistics. “RateLinx clients are particularly passionate about the RateLinx offering,” Ms. Stratton continued, “which must explain RateLinx’ rapid growth over the last few years. Inbound Logistics is proud to honor RateLinx for innovative solutions empowering logistics and supply chain excellence.”

“It is always nice to be recognized, especially by a publication as venerable as Inbound Logistics,” said Steven Shoemaker, owner of RateLinx.

Inbound Logistics is the pioneering publication of demand-driven logistics practices, also known as supply chain management. IL’s educational mission is to guide businesses to efficiently manage logistics, reduce and speed inventory, and neutralize transportation cost increases by aligning supply to demand and adjusting enterprise functions to support that paradigm shift. More information about demand-driven logistics practices is available at www.inboundlogistics.com.

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As the global economy expands, there are currently varying levels of sophistication regarding U.S. companies’ abilities to navigate international shipping. Utilizing brokers, 3PL’s, 4PL’s, etc. have been a generally-accepted practice for many international shippers for years. Due to the advent of RateLinx technology, shippers now have the ability to develop their own international shipping program directly with carriers.

Managing an RFQ is generally a very time-consuming and tedious task for companies that “go it alone.” Contacting carriers, structuring the RFQ itself, obtaining bids, reviewing bids, and quantifying the results can be an overwhelming task that can take months to endure. And, once completed, it is very important to determine if the bids that were received in this process are at or below market level pricing for a company with similar freight volume – that determines the success of a company’s bid process. This is the inherent problem – how does one know?

Until recently, companies had two choices: They either 1) performed the RFQ process themselves; or 2) utilized a Third-Party Logistics Company (3PL) to manage the RFQ process.

In #1 above, managing the RFQ process internally is extremely time-consuming, and in the end, the company is limited by their own market knowledge. It is difficult to measure the success of the bid before the program is actually implemented.

In #2 above, using a 3PL will greatly reduce the time consuming process – and will leverage market knowledge of the 3PL, but the problem exists of not truly knowing why the particular carriers were chosen – was it to meet the needs of the shipper, or the 3PL? Also, the problem of not fully knowing the actual true market level pricing exists as well.

Utilizing the RateLinx Solution:

Benefit 1 – ANALYSIS – As with anything, it is difficult to establish direction to one’s destination without knowing where one is actually starting. Establishing the starting point is precisely what a RateLinx Analysis does, and is the first step to determining the direction. By having RateLinx input historical shipping information and data, one’s overseas freight characteristics are accurately captured in the RateLinx Analysis, the results of which are important to move to the next step – the Strategy.

Benefit 2 – STRATEGY – The Strategy is based on the freight characteristics determined in the above Analysis, through the use of RateLinx’ Normalization process. It is extremely difficult to compare different rate bases due to the inherent biases that each carrier applies to their own rates. These biases, both for the shipper and against the shipper, are then used to determine which carriers are the best fit to haul the shipper’s freight. Once these biases are removed through the statistical normalization process, RateLinx is able to rank the carriers based on which carriers will provide the pricing that is at or below market discount levels – it is very clear.

Benefit 3 – EXECUTION — Execution is actually obtaining and securing the market level pricing from the carriers that were determined by RateLinx’ Normalization Engine as the best fit(s) for the shipper’s freight. This entails facilitating and obtaining the necessary tariffs, contracts, etc.– between the shipper and the carrier – in order to move onto the next step in the RateLinx process. Nothing is finalized with the carriers until the Quantification process occurs below.

Benefit 4 – QUANTIFICATION — The most important mechanism in the RateLinx Solution – determines and re-affirms that the pricing obtained is where it needs to be in relation to current market levels. The proposed pricing is entered and modeled against the historical shipment data to determine what the shipper’s actual final freight cost would be, and the final carrier mix is also distinguished and re-affirmed.

IMPLEMENTATION – The final carrier pricing, rules, terms, etc. are then entered into the shipper’s RateLinx Solution (ShipLinx) which enables the shipper to comply with the most optimal freight decision on a transaction by transaction basis – from any and all of the shipper’s shipping locations, thus ensuring that the shipper enjoys maximum benefit derived from the RateLinx process.

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We’re looking forward to this year’s NASSTRAC Logistics Conference & Expo at the Buena Vista Palace Hotel and Spa in Orlando, Fla on April 25th – 28th, 2010.

We have had a number of requests for meetings from both carriers and prospects while we are there, and are happy to oblige. To set up an appointment, please email nasstracmeeting@ratelinx.com with contact info and proposed time, and we can set up a meeting time/place while there. The RateLinx booth will be set up by the stage, and will be hard to miss. RateLinx clients who are interested in attending may contact their RateLinx sales representative for more information.

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Logistics Software  /  Transportation Management Solutions

Tags: 2010 NASSTRAC Conference and Expo
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RateLinx’ Truckload business continues to grow rapidly. Since our expansion into Truckload late last year, we have been systematically adding our RateLinx clients to our Truckload program, and the positive feedback has been great. For years, RateLinx logistics software has been supplying easy-to-use transportation, financial, and procurement tools to our customers for Small Parcel and LTL shipments. Since our development of systematic truckload tools and expanded TL carrier base, our clients are receiving the same high-quality access to the truckload mode, satisfying all types of truckload shipment needs, including dry van, flatbed, heavy haul specialized, drop decks, reefers, etc.

Deb Keier, RateLinx’ Senior Vice President of Truckload Operations: “We’ve always viewed ourselves as a facilitator for both our clients and carriers, to not only simplify their workload(s), but also to give visibility to their important transportation issues while providing cost savings, as well as providing new business opportunities to the most cost competitive/highest-quality carriers.”

The following details some of the benefits to our clients and carriers as a result of Deb and her team’s work in 2009:

RateLinx Client – When RateLinx developed our Truckload application, we brought on some of the brightest and the best in the Truckload industry in order to build a state-of-the-art Truckload Program, with the primary goal of upfront ease-of-use and extensive back-end visibility. Through the RateLinx – ShipLinx procurement software, it is easy for our clients to create their shipments, procure the desired carrier at the best rate, bill and audit the invoices, as well as provide an extensive dashboard and reporting suite supplying critical transportation information. By leveraging our total shipment volume and combined transportation spend (currently exceeding $12 billion/yr) to attract a wide variety of high quality/high volume carriers that effectively drive down our clients’ transportation costs, we offer greater capacity and economies of scale. This practice is a win/win for both RateLinx clients and carriers utilized.

Carriers – There are numerous challenges facing today’s truckload carriers – increased costs (fuel, insurance, vehicle maintenance, employee turnover), decreased volumes, increased legislative mandates, reduction in the experienced driver pool – the list goes on and on. RateLinx’ Truckload program personnel understand what TL carriers need, having been in the Truckload industry themselves. As Deb Keier explains, “Give carriers the ability to increase their volume of business, particularly in their “core” geographic areas, and do it without adding a lot of overhead to the process, and carriers will love us.” The love affair has begun.

At RateLinx, we understand that if we continue to satisfy many of the carrier’s needs, the results are reduced costs, and ultimately, increased quality for our clients. Providing TL carriers with increased business opportunities, helping them with backhauls, and reducing their empty miles, while providing them a system that will alert them of potential shipments without having to staff people to sit in front of yet another web procurement screen – was vital to our success. Carriers are telling us that we “nailed it” and that “somebody has finally got it right.” Additionally, we allow our clients to rate the carriers’ performance, on both cost and quality, and we give the carrier a dashboard that allows them to see just how well they’re satisfying our mutual clients’ needs – these are factors that drive down costs and drive up quality.

Why should a truckload shipper utilize the RateLinx Truckload program for their truckload shipments?

• Critical Mass
• Exceptional, easy-to-use system
• Experienced transportation professionals who understand the industry
• Carrier relationships and increased capacity for our clients
• Competitive pricing & freight payment & auditing, yielding increased saving opportunities

All of this while leaving the transportation decision and authority where it belongs – with our client. Unlike a 3PL, we provide our customers and carriers with the tools they need, and systematically help facilitate the procurement process. At RateLinx, your truckload carrier contracts are between you and the carrier – we are not a 3PL. We simply make the entire process easier, faster and smarter, a process more in tune with today’s transportation industry.

For more information, or to speak to Deb Keier and her team directly about your specific truckload shipping needs, please email Deb at deb.keier@ratelinx.com or call 262-565-6150 ext 119.

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As 2010 matures here at RateLinx, we are currently finding ourselves in an interesting business atmosphere, and analysis is in order to understand exactly why we are growing much, much faster than the current marketplace should allow. As anyone knows that works with us, we rely heavily on analysis in our business model. It came down to a question we asked ourselves as 2009 wound down – why are we growing so much faster than we planned?

According to our prospects, clients, and especially carriers, it is becoming clear that there is an ongoing “flight process” for U.S. shippers from utilizing third-party logistics companies (3PL’s), and companies are looking for a 3PL alternative. While some group RateLinx in this “3PL category” (which is unfortunate since we are NOT a 3PL), the common theme that is materializing is that companies that utilize 3PL’s are figuring out that once they made their commitment to a 3PL, they gave up a business asset – their own carrier rates (along with carrier choices, control, leverage, relationships, etc.). Make no mistake, these companies no longer have rates with carriers. Their 3PL does. The moment they signed the agreement, it was over. Companies are realizing that they are paying too much to “borrow” these discounts, custom rate bases, etc., plain and simple. It looks like that party may be ending soon, and carriers and shippers alike are becoming wiser.

Third-party logistics (3PL) companies offer a wide variety of services – from warehousing, to consolidation services, customs brokerage, cargo management, distribution services, etc. Companies that utilize 3PL’s obviously have specific needs, and 3PL’s may offer these companies needed services and these companies will contract with the 3PL’s because they feel that they a) are not as well-suited to handle on their own, or b) they were told/sold by the 3PL that it makes financial sense to outsource these services, or both.

Utilizing a 3PL specifically for warehousing services can make a lot of sense right now, especially with the current commercial / industrial real estate market in the U.S., and the general availability of space. However, we are finding from both less-than-truckload carriers and shippers alike that companies outsourcing their freight to a third party in order to enjoy better rates – especially LTL rates – is becoming a business practice that is starting to wane. There are a number of reasons for this.

A fair amount of 3PL’s closed their doors in late 2008 and 2009. While many simply went out of business, there was also a bit of consolidation in the industry as well. Apparently, a new crop of 3PL’s are starting to emerge, according to many LTL carriers – with the same old business model – and they are getting nowhere with the carriers. The fact is that LTL carriers are finding it harder to offer “volume discounts” to 3PL’s, and their appetite for doing so is starting to wane as well. Current market conditions in the LTL industry, with carriers losing millions of dollars and/or teetering toward financial disaster and bankruptcy, is dictating that this is beginning to negatively impact most 3PL’s financial model(s). 3PL’s, in order to increase their profit margins, have few choices… they have to raise their customers’ rates, and/or decrease their costs – their rates with their stable of carriers. Carriers are starting to resist.  And, if a major carrier or two in the industry should exit the marketplace for whatever reason, excess capacity will vanish and the carriers will begin to shed “bad” pricing immediately. First on the chopping block? Third-party logistics company rates.

We have nothing against 3PL’s. Just like everything else, some are better than others (although we have yet to find one with technology that is even remotely close to RateLinx’ technology). We specialize in helping companies unwind from their current 3PL mess in an easy, clear, economical fashion. Our clients are often surprised how easy our process is.

Our industry has discovered in the last few years that the RateLinx offering is unlike no other company’s in the transportation arena, and our growth is indicative that it makes sense for both shippers and carriers alike. It is no secret how we do what we do – except that nobody on the planet can do it but us. Will that change? Who knows, but right now we are enjoying our success and are truly humbled by the companies that employ us. We are blessed to have many carriers bringing us new potential clients – for which we are very grateful – and that is why we strive to never, ever lose a RateLinx client.

Logistics Software

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RateLinx Retail Solutions

Apparently, RateLinx integrated logistics technology is continuing to show success for the Retail logistics segment along with their suppliers, according to Dan Hatzenbuhler, Regional Vice President at RateLinx. Dan specializes in RateLinx’ Retail clientele, and is having success with our transportation management solution because it supports retailers’ critical business initiatives and strategies while providing the retailers’ suppliers with a more integrated – yet non-invasive – supply chain enhancement strategy.

Dan Hatzenbuhler is a former LTL company senior Vice President, and has been involved with RILA (Retail Industry Leaders Association) members for many years. “Our comprehensive portfolio of services helps our clients manage the complexities of a multi-modal logistics network, while improving efficiencies and reducing costs. The RateLinx integrated system produces client capabilities that create a competitive advantage and demonstrates value within the retail supply chain.”

Dan further explains the capabilities:

• Lane analysis and transportation sourcing to achieve consistent product movement and lowest landed cost
• Network optimization applicable on all modes of transportation
• Vendor compliance to established requirements
• Supply chain visibility
• P.O.# visibility
• Collaboration and planning
• Reducing lead time and meeting fulfillment needs
• Reducing inventory and distribution costs
• Transportation management tools that support daily operational needs and required functionality at multiple locations
• Pre-audit and freight payment based on client-specific rules
• Customized real time reports to manage corporate KPI’s

Dan Hatzenbuhler can be reached at 417-496-7563 for those companies in the retail/chain store segment interested in discussing how to improve their transportation strategies while improving logistics technology. Look for both Dan (dan.hatzenbuhler@ratelinx.com) and Angelo Savaiano, RateLinx’ Senior Vice President of Business Development (262-565-6150 ext. 112 angelo.savaiano@ratelinx.com) at the 2010 RILA Logistics Conference in Orlando February 21st through February 24th, and the NACDS (National Association of Chain Drug Stores) 2010 Supply Chain & Logistics Conference in San Antonio on February 28th through March 2nd to discuss how RateLinx can help your company.

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Madison, WI – September 1, 2009 – Construction of our new office is finally complete, and RateLinx has moved its headquarters from Brookfield, WI to Madison, WI in order to accommodate our rapid growth, house our many new employees, and prepare for future expansion. Our new address is 4602 S. Biltmore Lane, Suites 104 and 105, Madison, Wisconsin 53718.

We appreciate the patience and assistance of our staff in this transition, and are looking forward to our continued success in the Madison area. Madison has much to offer – and as an added benefit, the University of Wisconsin offers us a pool of many talented individuals that will help fuel our growth.

We welcome our clients to come visit us!

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RateLinx has been fortunate to have a strong relationship with the Prophet 21 Worldwide User Group (P21WWUG) for several years, providing logistics software solutions for many of its members. This non-profit organization is comprised of more than 600 users that utilize the Prophet 21 ERP manufactured by Activant Solutions.

On July 28, 2009, the P21WWUG held a webinar in which RateLinx unveiled a special program designed specifically to leverage their members’ collective annual LTL freight activity to drive down pricing on LTL freight rates and provide other needed services (thus eliminating the need for LTL providers). Members choosing to enroll in this program receive reduced rates for LTL shipping, freight audit and payment services, as well as a whole suite of transportation technology at little to no up-front cost, including ShipLinx TMS, ShipLinx Customer Service Inquiry Module (CSI), and the RateLinx Dashboard. RateLinx also provides seamless integration to Prophet 21 for shipping and reconciling carrier invoices. With ShipLinx, members can enter or scan pick tickets and ship any mode (parcel, LTL, TL, etc.) or carrier of their choice for domestic and international shipments. Once the shipment is processed, ShipLinx generates carrier documentation, labels, packing list, and a file containing shipment information that is pulled into Prophet 21 to update the order and automatically confirm the shipment in a one-step process. Prior to RateLinx, shipment integration with Prophet 21 was done in a three-step process and was very time consuming and inefficient. The RateLinx Dashboard provides members with key performance indicator (KPI) tracking on their actual freight payment information with charts and graphics, helping to reduce, monitor, and control freight spending near real-time, a capability that is not available in most ERP systems.

With RateLinx, members can now get everything they need for shipping (transportation technology and logistics services) from a single provider – market-level carrier pricing, anywhere-to-anywhere electronic routing, shipment tendering, freight auditing, general ledger (GL) coding, freight payment, accurate reporting, and graphical KPI tracking.

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