Open Pricer and rateHERO Partner to Revolutionize LTL Pricing

Revolutionizing LTL Pricing

Open Pricer, a leading provider of price management and optimization software for parcel logistics and Less Than Truckload (LTL) freight, has announced a new partnership with rateHERO (rH), an LTL workflow optimization firm founded by Curtis Garrett. This collaboration aims to enhance pricing strategies, process efficiency, and profitability for carriers and third-party logistics (3PL) providers.

Addressing Manual Pricing Practices

The partnership was conceived after both companies observed that the current pricing processes in the North American LTL market largely rely on manual practices and a cost-plus methodology. The goal is to introduce best pricing practices within the market, supported by a digital pricing solution powered by AI. This solution offers deep data analysis, integrating granular variables, customer-specific attributes, and current market conditions into the pricing calculation.

Modernizing LTL Pricing Approach

Open Pricer and rateHERO aim to modernize the approach to LTL pricing, which has remained relatively unchanged for the past 30 years. They emphasize the importance of considering factors such as the shipper’s industry and fair market principles to accurately reflect operational costs and customer willingness to pay. The solution brought by this partnership promises to enhance the accuracy and relevance of LTL pricing.

Emphasizing Automation and Real-Time Calculations

Furthermore, the partnership highlights the need for pricing calculations to become more automated, real-time, and industry-specific to maintain a competitive edge. This comes at a time when carriers and 3PLs are facing weaker demand and rising operational costs. The innovative approach also includes contract monitoring and compliance, crucial for maintaining a strong market reputation.

Enhancing Yield and Reducing Carbon Footprint

The dynamic pricing solution aims to increase LTL providers' yield through higher network utilization, enabling them to price their services more responsively while reducing their carbon footprint.

Statements from Key Figures

“While new to the North American freight market, Open Pricer is impressively advanced in evaluating factors not commonly used in US, Canadian, and Mexican LTL pricing. rateHERO is eager to engage in this innovative partnership, which will further advance pricing methodology and enhance yield for carriers and 3PLs alike. Open Pricer has built a strong brand working with some of the largest parcel and freight providers in Europe, Asia, and South America, thanks to their superior technology, forward-looking data utilization, and elite team of builders and thinkers,” said Curtis Garrett, Founder of rateHERO.

“rateHERO has strong LTL industry knowledge and experience in pricing, making them a trusted partner to many stakeholders in the market. This partnership paves the way for Open Pricer to better serve the North American LTL freight market,” added Dao Nguyen, Head of Sales and Business Development at Open Pricer.