Overview
The multi-stop model offers a sophisticated approach to calculating freight rates, taking into account all relevant factors to provide a comprehensive, accurate, and dynamic pricing estimate each unique multi-stop route.
Applications and Benefits
The multi-stop model:
Lets you add up to 10 extra stops to a route and still get an accurate prediction
Offers a starting point for negotiating with carriers
Increases transparency in pricing
Ensures that pricing reflects actual route complexities.
Prerequisites
Multi-stop functionality has a few requirements. You’ll need:
A minimum of 1000 multi-stop loads in your historical data. The more data we have, the better predictions we can deliver, so over 10000 is preferable here.
A minimum of 10,000 non-specialized loads within your history. Over 10,000 is preferable for maximum accuracy.
You can find data requirements and a mapping template here.
Pricing Calculation
Comprehensive Rate Calculation
When predicting a multi-stop rate, the AI considers all parameters -- mileage, extra stops, and out-of-route miles -- simultaneously.
Dynamic Pricing Components
Origin and destination: These influence the rate based on loads from similar origins and destinations.
Mileage: Influences the rate based on the total distance of the journey.
Extra Stops: Each additional stop is roughly factored in at an average cost of about $50. This may vary depending on how the model can most accurately predict rates for a given lane.
Out of Route Miles: Additional cost based on extra miles traveled outside the direct route.
Example
A journey from Seattle to Portland without an extra stop might result in a rate about $1000. However, an extra stop in Tacoma (assuming zero out of route miles) might result in a rate of $1050, reflecting the base journey plus the cost for one extra stop.
Getting a Multi-Stop Rate
Adding extra stops to a load in Greenscreens is easy. You'll still get an accurate prediction, so long as we have data on your previous multi-stop loads. The multi-stop model aligns closely with familiar 2-stop accuracy, accounting for mile deviations and the number of additional stops.
You can add a stop whenever you run a rate prediction. Here's how:
Single Rate
Enter the origin and final destination of the load.
Click Show Additional Parameters:
Click +Add Extra Stop:
Enter a city, state, and ZIP for the extra stop:
Click Get Rate.
Batch Rates
You can run batch predictions for multi-stop loads. You'll find the new template on the Batch tab:
Widgets and Reporting
In multi-stop mode, widgets show data for both multi stop and single stop loads. Multi-stop loads that are mileage outliers are filtered out.
In the Capacity on Tap widget under Top Carriers, multi-stop loads are indicated with an M.
In the Short-term History Widget, multi-stop loads are marked in orange, and 2-stop loads in green.
In the Rate Accuracy Report, multi-stop loads are included under Top Outliers and are indicated by an M.
The route map shows additional stops:
The map also allows for two stops in the same ZIP.
Quotes and Bids
You can send a quote or request a bid for a multi-stop lane just as you would for any other lane. Extra stops will appear on your quote or bid request form, so you can add details that will be included in your quote and bid emails:
You can see the number of stops when you view a quote or bid on the Quotes or Bids tab:
API
The TMS API endpoint has been updated to import multi-stop data, essential for building accurate multi-stop pricing models for our customers. Documentation is available here.
Prediction API Endpoints have been updated to include multi-stop rates, for easy placement of rate prediction in various environments. Documentation is available here.