Market Insight rate cards allow some customers to run Network Optimisation simulations using benchmarked rate cards, allowing them to see potential rates available across the market.
Part of the benefit of the 7bridges software is access to insights and knowledge from around the logistics industry. Market Insight rate cards give you this knowledge right in your Network Optimisation simulations. The available Market Insight rate cards give a cross section of the market and allow you to try out potential rate cards that you may be able to access through a procurement exercise.
They also have the advantage of exposing you to potential ideas in your logistics fulfilment through more varied shipping methods and transit times.
How are Market Insight rate cards created?
When Customers use Market Insights simulations, they anonymously to provide their rate cards and shipment data to an AI that can then accurately synthesise representative rate cards based on all rate cards it sees from each customer. The AI then identifies rate cards used to move similar shipments, and maps the costs and performance data to a standardised underlying model - creating perfect “apples to apples” comparability between rate cards with very varied terms, charges and services. Finally, it creates a set of synthetic rate cards across different percentile rate brackets to use in Network Optimisation simulations.
How are rate cards anonymised?
No business (e.g. contracting parties) or personal (e.g. shipper, receiver) identities associated with rate cards or shipments are ever shared with our AI when it synthesises a rate card. In addition, if any business represents more than 25% of the sample provided to the AI for a particular shipment profile they are excluded. Finally, once the AI has synthesised a Market Insight rate card, these are only used in the simulation, so users can see the impact on their business as it was represented to the AI, preventing the moral hazard of sharing minimal or unrepresentative data that doesn’t support market transparency.
Why are the rate cards anonymised?
Our customers - be they logistics and transport providers or businesses consuming those services - need their contracts to remain confidential. They also want transparency in how their prices (or costs) and service levels compare to what is possible in the market so they can drive better partnerships focused on value through differentiated product and service offerings. By creating truly anonymous Market Insight rate cards we allow businesses that opt in benefit from transparency without compromising confidentiality.
How does this compare to benchmarking?
It’s solving the same problem - to increase market transparency for all participants - but in a very different way. It focuses on total impact over simplified cost metrics, standardisation and comparability of total cost and performance data, rather than standardisation of terms, and driving shared understanding of the market rather than trying to create negotiating leverage over a supplier or customer.
Why not provide the Market Insight rate card?
Firstly, because that doesn’t allow you to see what the real impact of these rate cards would be on your business. As you introduce new rate cards into your network they may come with different performance levels and second order effects, such as the attractiveness of one route over another or consolidation levels. By simulating your network with these Market Insight rate cards you can see how your business would be affected by rate changes holistically.
Secondly, this reinforces market transparency through a principle of “you get out what you put in”. No party is able to supply unrepresentative or inaccurate data simply to extract a Market Insight rate card, which they can then test on their real business data (which would also be inaccurate, because the AI wouldn’t have faulty input data about the shipment profile).
How to use Market Insight rate cards
Only Optimise Intermediate and Advanced tier customers can use Market Insight rate cards. Contact your Customer Success Manager for more information on upgrading.
When creating a Network Optimisation simulation, you can select Market Insight rate cards to use just like your own Provider accounts. They will be used as another option for fulfilling a demand item just as if it was your own account.
In addition, the output results of a Network Optimise simulation will highlight where a Market Insight rate card was used so you can see clearly where the improvements can be made.
Getting access
There is an additional setup step to get access to the Market Insight rate cards in the simulations. This step also involves agreeing to submit your own rate cards into the AI process outlined above. This process is handled by your Customer Success Manager so get in touch with them to activate Market Insights today.