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Truckload Pricing Dynamics with Jon Payne

Release Date: 07/20/2022

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More Episodes

Jon Payne and Joe Lynch discuss truckload pricing dynamics. Jon is the Director of Pricing Strategy & Analytics at Loadsmart, a freight technology company that is removing the barriers between shippers and carriers so freight can move in the most efficient, transparent and automated way.

About Jon Payne

Jon Payne is the Director of Pricing Strategy & Analytics at Loadsmart, a leading digital freight technology company. Jon directs a team of Analysts & Data Scientists focused on optimizing algorithmic pricing and innovating business strategies by leveraging Loadsmart's supply and demand data. Under Jon's leadership, Loadsmart has developed and gone to market with several customized pricing solutions for shippers, including Reliable Contracts, a dynamic contract solution that guarantees 100% PTA and incentivizes Loadsmart to purchase below market. Prior to joining Loadsmart in 2019, Jon began his career as an Analyst in Investment Banking at J.P. Morgan. Jon holds a B.S. in Economics at Duke University where he also spent his 4 years in a leadership role as a Student Manager for the Men's Basketball Team.

About Loadsmart

Loadsmart is a freight technology company that is removing the barriers between shippers and carriers so freight can move in the most efficient, transparent and automated way. By bringing shippers, carriers, and warehouses together on a connected platform, Loadsmart is helping to solve deep-rooted inefficiencies in transportation. Loadsmart’s Flatbed Messenger leverages artificial intelligence, machine learning and strategic partnerships to bring the first supply-led marketplace. Flatbed Messenger eliminates empty miles by matching Home Depot’s dedicated capacity to Loadsmart shippers who need flatbed services. Enterprise brands looking to reduce empty miles from their dedicated/private flatbed capacity can reach out directly to [email protected] for more information.

Key Takeaways: Truckload Pricing Dynamics

Jon Payne is the Director of Pricing Strategy & Analytics at Loadsmart, a leading digital freight technology company.
In the podcast interview, Joe and Jon discussed truckload pricing dynamics including dynamic pricing engines, reliable contracts, and the network effect.
Dynamic pricing enables shippers to get an instant freight quotes created by a dynamic pricing tool that delivers the right price with guaranteed capacity. No more back and forth emails and phone calls haggling over pricing.
Dynamic pricing powered by artificial intelligence provides an instant rate that reflects the most updated market intelligence. Loadsmart also has the ability to quote multiple modes (LTL, Truckload, rail, etc.)
Reliable contracts is Loadsmart’s antidote to the wild price swings that are common in the freight market. When a broker is unable to provide capacity for a given lane, the shipper sometimes finds themselves in the spot market, where they may pay dearly for a truck.
Loadsmart’s reliable contracts solutions provides shippers with a target price and a “ceiling price” which is the not to exceed price. When a shipper working with Loadsmart pays above the target price, Loadsmart gets a reduced margin. With reliable contracts shippers are less likely to be forced in the spot rate market and Loadsmart has an incentive to meet the target price.
Reliable contracts ensures that Loadsmart is aligned with the customer (shipper) which leads to better lane coverage, lower pricing, and a win-win relationship between Loadsmart and their customer.
Loadsmart now benefits from the “network effect” which means they have sufficient scale (shipments moved) that they have more data, more insights, more capacity, and more capability to do help their customers and carrier partners. If you are a carrier looking for a back haul, Loadsmart is more likely to have a solution because they probably have freight in your vicinity.
Loadsmart is a Chicago-based freight tech company founded in 2014. As the ‘nerds of logistics’, they seek intelligence in data to solve deep rooted inefficiencies in the industry.
Pairing advanced technologies with deep-seated industry expertise, Loadsmart fuels growth, simplifies operational complexity and bolsters efficiency for carriers and shippers alike.

Loadsmart gives their customers access to their data connections that link supply and demand in addition to a suite of award-winning solutions to strike the perfect balance of cost and service.
Loadsmart has acquired or developed a full suite of freight tech solutions that enables them to better serve shippers and carriers: Kamion (truck management system), RFP Guide (RFP management), OpenDock (dock scheduling).