Collaborative Transportation Management

6. Reported Performance Benefits

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CTM pilot initiatives have been implemented in various companies and settings in the U.S. starting in 1999. These pilot projects have demonstrated that the benefits of CTM are very real and substantial. Shippers and receivers have documented gains such as:

• On-time service improvements by 35%
• Lead-time reductions of more than 75%
• Inventory reductions of 50%
• Sales improvements of 23% (through improved service to customers)
• Premium freight cost reductions of greater than 20%
• Administrative cost reductions of 20%

Carriers have recorded equally dramatic benefits from CTM pilot projects, including:

• Deadhead mile reductions of 15%
• Dwell time reductions of 15%
• Fleet utilization improvements of 33%
• Driver turnover reductions of 15%

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