You’re a Director of Transportation overseeing a sizable LTL spend. How much is working with legacy LTL carriers that price based on the class system or CWT holding you back?

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How often are you seeing:

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- Surcharges that you have to pay an admin to identify and fight

- Re-classifications or reweighs

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For a fast-growing company in a competitive market, the class-based pricing model can significantly hamper your efficiency and scalability.

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Consider these specific downsides and their costs of inaction:

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- Operational Complexity: Navigating the intricate NMFC classification system can lead to frequent misclassifications, resulting in costly disputes and operational delays. Continuing this approach can add millions in unnecessary expenses to your transportation budget over time.

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- Inflexibility in Pricing: The rigid structures of class-based pricing fail to accommodate the dynamic needs of a rapidly scaling business, limiting your ability to negotiate customized rates and optimize shipping costs. This inflexibility means missed opportunities for cost savings and improved logistics efficiency.

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- Increased Operational Costs: High-density and low-density items often fall into broad classifications, leading to excessive charges that eat into your margins. Persisting with this model can result in significant hidden costs that impact your profitability.

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- Inefficiency for Specialized Goods: Unique or high-value items, common in innovative product lines, incur additional handling costs that the class system doesn't justify accurately. This inefficiency can slow down your supply chain, affecting your ability to meet customer demands and stay ahead of competitors.

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- Market Adaptability: Legacy pricing models don't keep pace with market fluctuations or regional cost variations, leading to inconsistent and often inflated shipping expenses. Not adapting can mean higher costs and lost competitive edge.

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- Administrative Overhead: The time and resources spent on managing freight classifications and resolving disputes divert attention from strategic growth initiatives. Additionally, the need for specialized training increases operational overhead. The ongoing administrative burden diverts valuable resources away from innovation and growth-focused projects.

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As your business continues to expand, it's crucial to reassess how these limitations impact your freight network efficiency and explore more modern, flexible pricing models that align with your growth trajectory. The cost of inaction is too high to ignore.

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Chat with us here to move the future of logistics forward with WARP: https://www.wearewarp.com/contact-us