A non-asset LSP can better react to unexpected demand in a new location than an in-house carrier. The ability to analyse carriers with backhauls or ability to entice carriers by providing a round trip to them allows us to stay competitive and deliver on the desired reaction time and cost. This exercise is complex and time consuming and requires multiple regressions of rates and availability in order to converge on the right supplier.
Example:
Our customer needed quick safety stock from a secondary source closer to base, and was already faced with higher cost of raw material. We created circuits for our carrier to mitigate highly irrational one-way market rates prevailing due to seasonality on the lane thus balancing the costs between two shippers.
