RSI’s rate management services help shippers achieve lower rail rates and or reduce the administrative burden associated with managing tariff and contract information. For many firms this is an area with substantial room for improvement. Processes included in rate management include:

• Managing rate quotes for internal or external customers
• Obtaining the most competitive transportation rates
• The organization of quote/contract/tariff data and business planning

In recent years rail carriers have been able to command record setting rate increases as well as fuel surcharges that are nearing 20%. Is it possible in today’s environment to achieve rail freight savings? Absolutely! Shippers have been able to reduce and control carrier costs through the use of RSI’s costing and analytical tools, experience and expertise. RSI provides three types of services to help companies achieve lower rates:

• Rate studies
  For rate studies we develop baseline costs and cost ratio data for all existing lanes. We identify alternative routing scenarios and rate structures. On average we identify immediate cost savings equal to 2% of a shipper’s rail spend and cost savings of 5-7% are common. This service is also used by organizations that pay freight costs indirectly.
• Rate estimate with cost analysis
  Companies approach the rail process in different ways. Some shippers are passive and tend to accept whatever rail carriers quote. These shippers invariably pay higher rates - shippers should always approach carriers with targeted and realistic numbers. Others take a very aggressive approach and many of these firms have successfully controlled their rail rates. However, a lot of the shippers in the more aggressive camp spin their wheels fighting battles in ways that they'll never win and end up frustrated.
  
  After having the proper strategy in place, a transportation team needs a disciplined process and time to work the plan. Many corporate transportation departments run lean and don’t have adequate time devoted to managing their rates. A common sore point is the need to respond to frequent transportation quote requests coming from the sales department. While sales may need to respond to a customer within hours, it may take days or weeks before a rail carrier is able to provide an answer. Flooding a carrier with rate requests that never materialize into actual movements can diminish your relationship with the carrier. This process can be a drain on a rail managers time, is often not productive, yet accurate quotes must be provided.
  
  RSI solves this issue with our online rate management tools. This service provides you with the information needed to submit a targeted rate request and business case to a carrier or an estimate to supply your sales organization with rail costs in a timely manner. We offer 3 levels of rate services to match the different needs of our customers. Our rate methodology utilizes both proprietary and commercially available tools and data sets. We also use the industry’s leading cost modeling software, USRail.desktop.
• Carrier negotiations
  Shippers can take advantage of RSI’s relationships and 25 years of experience in negotiating rail rates with the carriers.

Managing rail rate data has always been a challenge. It has become even more difficult with the industry trend to tariffs. It’s important to maintain up-to-date rail rate information so that you can proactively manage tariff changes, rate expirations and have accurate freight accrual data. We find that most rail managers don’t have the time to stay on top of their rates. If you operate under contracts, it is important to have all of the data organized and begin working on them 90 days before the expiration date. Public rates need to be constantly monitored on a weekly basis. You should be monitoring not only your own direct tariffs, but also industry related tariffs and those used by your competitors. RSI’s solution for helping you to manage rates in this dynamic environment is delivered through our web-based application RSInet.

Contact us to discuss how we can help you achieve more competitive rail rates. Ask us if you qualify for a free and confidential audit of your current rates.