A Transportation Cost Perspective from JEC Consulting Services
Transportation is one of the largest recurring expenses for many companies—and often one of the least thoroughly examined.
Freight invoices are approved and paid. Annual budgets are based on prior-year spending. Carrier agreements renew, surcharges increase, and shipping patterns change. Yet few organizations regularly step back and ask an essential question:
Are our transportation rates, carrier agreements, service levels, and operating practices still competitive?
For many businesses, the answer is no. They are paying more than necessary but lack the data, time, or specialized expertise to identify the causes.
A transportation spend analysis from JEC Consulting Services provides an independent, fact-based review of where your transportation dollars are going and where meaningful savings may be available.
JEC Consulting Services founder John Curtis began his career with UPS, where he gained firsthand knowledge of carrier operations, pricing, service performance, and transportation management. He later led large-scale warehousing, distribution, transportation, and third-party logistics operations.
That combination provides an important advantage.
JEC understands how carriers structure their services and pricing—but also understands the operational realities facing shippers. This perspective helps uncover savings opportunities that may be missed during a basic rate comparison.
The objective is not simply to negotiate lower rates. It is to determine whether your entire transportation program is aligned with your customers, shipment profile, service requirements, and business goals.
Transportation overspending is not always obvious. It is often spread across thousands of shipments, invoices, surcharges, and accessorial fees.
Several warning signs may indicate that a closer review is warranted.
Carrier pricing, discounts, service offerings, and market conditions change continuously. Rates that were competitive several years ago may no longer reflect current market opportunities.
Fuel surcharges, residential delivery fees, address corrections, liftgate charges, detention, redelivery fees, oversized-package charges, and other accessorials can quietly become a substantial portion of total transportation spending.
Long-standing carrier relationships can be valuable, but loyalty should not prevent periodic evaluation. Regional carriers, alternative modes, or a revised allocation of shipment volume may provide better cost or service performance.
Growth, acquisitions, new customers, different products, and changes in distribution locations can alter the transportation profile. A carrier agreement negotiated for the business three years ago may not fit the business today.
Frequent expedited shipments may indicate inventory, order-management, production, routing, or planning problems. Paying premium freight repeatedly can mask a larger operational issue.
Transportation and finance teams are often focused on daily execution. They may not have the time or analytical tools required to examine thousands of invoice lines, validate contract terms, and identify recurring discrepancies.
If any of these conditions apply, it does not necessarily mean your transportation program is poorly managed. It may simply mean the business has not had the time or resources to conduct an independent review.
Transportation expenses are structurally complex.
Total cost can include:
Each charge may appear relatively small when viewed individually. Across thousands of shipments, however, minor pricing issues and inefficient decisions can add up to hundreds of thousands of dollars annually.
A shipment may also be billed correctly under the existing agreement while still costing more than necessary because the service, carrier, mode, or contract structure is not optimized.
That is why an effective transportation spend analysis must look beyond isolated billing errors.
A comprehensive analysis evaluates both the rates being paid and the decisions that generate transportation costs.
Current carrier agreements are reviewed to determine whether discounts, minimum charges, incentives, service terms, and pricing structures remain competitive.
The analysis identifies which surcharges and additional fees have the greatest financial impact and whether operational changes could reduce or eliminate them.
Freight invoices can be reviewed for potential issues such as:
The review evaluates whether shipments are being assigned to the most appropriate carriers and transportation modes based on cost, service, geography, shipment size, and customer requirements.
Companies sometimes pay for premium or expedited services when lower-cost options would meet the customer’s required delivery date. The analysis identifies where service levels may be unnecessarily expensive.
Opportunities may exist to consolidate shipments, improve routing, adjust shipping frequency, or convert eligible freight to a more economical mode.
Not every transportation problem begins with the carrier. The analysis may identify internal factors such as:
The strongest savings programs address both carrier pricing and the operating practices that influence transportation costs.
Savings vary based on transportation spend, shipment characteristics, existing agreements, service requirements, and how recently the program was competitively reviewed.
JEC Consulting Services has identified potential transportation savings ranging from approximately 10% to 25% in selected client assessments. Results are not guaranteed, and every operation must be evaluated individually.
In one recent assessment involving approximately $7 million in annual transportation spend, the analysis identified nearly $980,000 in potential annual savings—approximately 14% of the reviewed spend.
The opportunities included a combination of carrier pricing, parcel improvements, transportation-management strategies, and other cost-reduction initiatives.
The value of the analysis is that leadership can see the opportunities before deciding what, if anything, to implement.
Some companies delay transportation reviews because they expect the process to be expensive, time-consuming, or designed to force an immediate carrier change.
JEC Consulting Services removes those barriers by offering an initial transportation spend analysis at no cost and with no obligation.
You are not required to:
The purpose of the initial analysis is to provide an objective view of your current transportation spending and identify whether a meaningful savings opportunity exists.
Leadership can then make an informed decision based on data.
The initial analysis generally begins with:
Depending on the scope, the analysis may include parcel, less-than-truckload, truckload, dedicated transportation, final-mile services, or a combination of modes.
Every engagement begins with a mutual nondisclosure agreement to protect confidential pricing, customer, shipment, and operational information.
The goal is to provide a clear executive-level summary—not an overwhelming collection of spreadsheets.
The findings may include:
Most initial executive summaries can be completed within approximately 10 business days after the necessary data has been received.
Transportation savings do not always require replacing existing providers.
Many opportunities can be captured by:
When a carrier change is worth considering, the recommendation should be based on measurable cost, service, capacity, and risk—not price alone.
If your carrier agreements have not been reviewed recently—or if no one on your team has had time to analyze the invoices—you may be paying more than necessary.
A no-cost transportation spend analysis from JEC Consulting Services can help answer three important questions:
There is no cost, no obligation, and no requirement to change carriers.
The most common warning sign is not having a clear answer.
If your rates have not been benchmarked recently, your shipping profile has changed, accessorial charges are increasing, or no one regularly reviews your transportation invoices and agreements, a spend analysis may identify savings opportunities.
Most initial reviews require recent carrier invoices, current carrier agreements, and shipment-level data. Additional information may be requested depending on the transportation modes and opportunities being evaluated.
No. Many savings opportunities can be achieved by improving terms, correcting billing issues, modifying service levels, or changing internal shipping practices with existing carriers.
A carrier change may be recommended when supported by the data, but it is not a requirement.
Savings depend on your current rates, shipment profile, carrier agreements, operating practices, and how recently the program was reviewed.
Selected JEC Consulting Services assessments have identified potential reductions of approximately 10% to 25%. These results are not guaranteed, and each transportation program must be evaluated independently.
Yes. The initial transportation spend analysis and executive summary are provided at no cost and without an obligation to implement the recommendations or continue working with JEC Consulting Services.
Most initial executive summaries are completed within approximately 10 business days after all required transportation data has been received.
Yes. JEC Consulting Services begins each engagement with a mutual nondisclosure agreement to protect confidential rates, contracts, shipment information, and operational data.
Yes. Depending on your operation and available data, the analysis may include parcel, less-than-truckload, truckload, dedicated transportation, final-mile services, and other transportation modes.