Freight Cost Intelligence & Rate Benchmarking

Nexara Industrial Distributors • Q1 2025 • Target: 8.8% Freight-to-Revenue

Freight Cost / Revenue $

9.4%
0.3% vs target

Contract Compliance Rate

96.2%
+1.8% MoM

Accessorial Cost Ratio

18.3%
+2.1% QoQ

Rate Benchmark Variance

-3.7%
Below market avg

Invoice Dispute Rate

4.8%
+0.6% MoM

Savings Pipeline (Annual)

$1.84M
+$340K identified

Freight Spend by Business Unit & Mode — Q1 2025 ($11.9M Total)

Contract Rate Compliance by Carrier

Accessorial Cost Breakdown

Rate Benchmark Variance — Top 12 Lanes

Lane Volume Contracted Rate Market Index Variance
CHI→ATL 1,240 $1,850 $1,710 +8.2%
LAX→DFW 980 $2,140 $2,030 +5.4%
NYC→MIA 760 $1,620 $1,690 -4.1%
SEA→PHX 650 $1,920 $1,840 +4.3%
HOU→CHI 590 $1,780 $1,850 -3.8%
DEN→BOS 520 $2,450 $2,280 +7.5%
ATL→LAX 480 $2,680 $2,590 +3.5%
DFW→NYC 440 $2,150 $2,240 -4.0%

Mode-Shift Opportunity Index

LTL → Intermodal $420K/yr

840 eligible shipments • 4–6 day transit acceptable

Parcel → Regional LTL $285K/yr

1,120 shipments • Weight range: 120–450 lbs

Expedited → Standard Ground $178K/yr

320 shipments • Lead time negotiable with sales

FTL → Pool Distribution $142K/yr

Midwest region • 6+ delivery clusters identified

Fuel Surcharge Effective Rate vs. DOE Benchmark — Last 90 Days

Freight Spend Concentration — Top 5 Carriers

Top 5 carriers represent 68.4% of total quarterly spend ($8.14M). Diversification opportunity identified in Healthcare BU.

Invoice Dispute Details

Accessorial Overcharges $68,400

142 invoices • Avg resolution: 18 days

Rate Variance (Non-Contract) $52,100

89 invoices • Requires carrier reconciliation

Duplicate Billing $28,900

34 invoices • System integration gap identified

Fuel Surcharge Calculation $13,200

26 invoices • Incorrect index date applied

Invoice-to-Pay Cycle Time by Carrier — Days (30-Day Rolling Avg)

Carrier Avg Cycle Time Within 30 Days 31–45 Days 46+ Days Status
SwiftLine Logistics 22.4 days 94% 5% 1% On Target
Ridge Transport 28.1 days 87% 11% 2% On Target
Midland Carriers 31.7 days 76% 19% 5% Review
Apex Freight 34.2 days 68% 24% 8% Review
National Parcel Express 38.6 days 61% 28% 11% Action Required
Continental Freight Systems 26.3 days 89% 9% 2% On Target

Priority Action Items — $1.84M Annual Savings Pipeline

Renegotiate Top Variance Lanes

CHI→ATL, LAX→DFW, DEN→BOS showing +5–8% over market. Target Q2 contract renewal.

$620K/yr Due: Apr 15

Recover Accessorial Disputes

$163K in validated overcharges pending carrier reconciliation. Focus: Apex, National Parcel.

$163K one-time Due: Mar 30

Execute LTL→Intermodal Shift

840 shipments eligible for intermodal conversion. Pilot with SwiftLine on CHI–West Coast lanes.

$420K/yr Pilot: May 1

Automate Compliance Audits

Deploy TMS rate validation module to catch non-compliance at invoice receipt vs. post-payment.

$280K/yr ROI: 8 months