What could your transportation budget achieve with greater accountability for results? Explore Kenco’s interactive guide to outcome-based transportation management.
What Is Outcome-Based Transportation Management?
Outcome-based transportation management connects provider compensation to measurable results. Kenco’s approach combines managed transportation services with contractual savings commitments for qualified shippers, aligning financial incentives around documented improvements.
For transportation and supply chain leaders, that creates a practical question: How much value does your transportation program deliver after management fees? Understanding the relationship between provider costs, freight savings and service performance is essential to evaluating the answer.
The interactive guide above brings those considerations together, showing how Kenco’s model works and what an assessment could reveal about your network.
How Does Kenco’s Model Connect Costs to Results?
Traditional transportation management fees may be tied to freight spend or shipment volume, with projected savings that are not contractually guaranteed. Kenco’s outcome-based model connects compensation to documented results and establishes a savings commitment for qualifying operations.
The process starts with an agreed baseline. Kenco and the shipper define savings commitments, platform costs, service requirements and key performance indicators. Financial and service performance are then monitored against that baseline, providing a shared foundation for measuring progress.
Kenco also participates in documented savings according to the agreed commercial structure. Actual fees, savings commitments and gain-share terms depend on the customer’s network and final agreement.
What Could the Financial Impact Look Like?
The interactive includes an illustrative comparison using $20 million in freight spend. In the Kenco example, a 1% provider fee equals $200,000, while a 3% guaranteed freight savings commitment equals $600,000. Subtracting the provider fee leaves $400,000 in committed net savings within that example.
These figures illustrate how the model works; they are not a quote or a savings commitment for every shipper. Actual results and commercial terms depend on qualification and final agreements.
How Can Shippers Reduce Freight Costs While Protecting Service?
Kenco evaluates opportunities across freight rate benchmarking, routing and mode optimization, freight consolidation, and carrier sourcing. The solution combines transportation expertise, technology, market intelligence and carrier relationships around the needs of the operation.
Service requirements remain part of that design. Matching shipments with appropriate capacity and service levels helps keep cost reduction efforts aligned with delivery commitments.
Explore the guide’s solution tabs to see how cost reduction, operations, visibility and capacity fit together.
Does Your Transportation Network Qualify?
Qualification begins with a no-cost, no-obligation transportation assessment. Shippers provide historical transportation data and participate in a virtual 30-minute discovery session. The assessment typically takes two to three weeks after both steps are complete.
Qualified operations receive a proposed program with a contractual savings commitment. If a network does not qualify, the shipper still receives a benchmark of its current rate position.
Ready to see what outcome-based transportation management could mean for your business? Contact Kenco to schedule a 30-minute discovery call and discuss your transportation priorities, service needs, and opportunities for measurable freight savings.