Transportation cost relative to overall supply chain performance is the top pressure cited by 57 percent of transportation executives according to a recent report by Aberdeen Group. In response, over 53 percent of survey respondents are seeking to gain better visibility to costs.

The report notes that the No. 1 strategy for best in class companies to control overall transportation costs is renegotiating cost and service contracts with trading partners. As a result of proactive efforts, 91 percent of the best in class companies have reduced transportation spend year over year.

Bob Heaney, senior research analyst for Aberdeen’s supply chain management research practice, reveals that almost 60 percent of respondents are focused on improving the ability to analyze and automate true freight spend.

“Today’s supply chain executive has taken many steps to reduce transportation costs. In fact, previous Aberdeen reports over the course of the last two years have highlighted several examples of companies with savings of up to 36 percent in baseline freight costs. However, the economic downturn produced consolidations and constrictions in transportation capacity by lane and mode,” explains Heaney.