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Reducing Cost

How ORBE works to reduce rail expenses

ORBE was designed to help shippers reduce expenses with railroads that frequently have monopoly power over their business. To obtain better rates from railroads you need to have railroads look at your traffic differently, but to accomplish this, you must first look at your traffic differently. With ORBE you look at your overall rate structure with railroads in a different and very efficient way. The following are a few examples.

ORBE helps correct rates that put you at a competitive disadvantage

Railroads thrive on a lack of rate transparency and ORBE provides that transparency.

  • ORBE automatically shows where you are being put at a competitive disadvantage in markets and provides the rates needed to make you competitive
  • ORBE identifies your moves with profit levels significantly above the average profit level railroads make from your competitors
  • ORBE provides potential transload options at captive locations to lower rates on moves with high rail profit
  • ORBE generates benchmark rates for each movement and then quantifies the cost reductions needed for all movements on each railroad
  • To counteract high rate increases, ORBE identifies the moves with rate increases that are greater than the average increase a railroad is obtaining from your competitors
ORBE optimizes your rail expenses

To better understand cost reduction opportunities ORBE calculates the railroads cost and profit for each of your moves.

ORBE uses railroads costs and profits to optimize your rail spend. ORBE automatically determines how you can lower your rail expense while creating greater profits for railroads.

ORBE determines your biggest problems and best opportunities

Bids from your railroads are automatically loaded into the program and ORBE then awards traffic to the moves with the lowest bids. With the click of a button, ORBE then shows:

  • Where your biggest problems occur
  • Your best opportunities for reducing rail expenses
  • Win/win opportunities with your railroads
  • Savings obtained from your least cost options

ORBE quickly breaks down your rail bids and generates illustrations that show what reasonable rates are for your movements and the rate levels that railroads need to provide for your traffic.

ORBE makes strategic planning easy

Strategic planning designed to reduce rail expenses revolves around being able to explain three things to management at railroads:

  1. The rates you need;
  2. Why you need them; and,
  3. The reason the railroad should give these rates to you.

To have an effective position on these three issues, shippers need to look at their traffic differently. This is what ORBE does which makes it easier than ever before to support and obtain cost reductions from your railroads.

Save time and money with ORBE

With ORBE, different bid award scenarios can be run in seconds by simply pointing and clicking which means, you spend your time thinking and not running numbers.

ORBE automatically generates information you need to obtain better rates from railroads. For example, ORBE automatically generates railroad counter proposals based on rates you are competing against in markets

The goal of ORBE is to reduce your rail expenses by more than 15% while saving time in the transportation department. We encourage you to find out more about ORBE because there is nothing else like it and reducing costs and saving time is a great outcome for rail shippers.

Contact Escalation Consultants at 301-977-7459 for more information.

Receive more information on the Optimized Rail Bid Evaluation (ORBE) program

Contact us at 301-977-7459 or use the Contact page to learn more about the benefits ORBE can give you!

Escalation Consultants, Inc.

4 Professional Drive, Suite 129
Gaithersburg, MD 20879

Phone Number: (301) 977-7459
Fax Number: (301) 977-9248
EscalationConsultants.com

Rail Rate Checker

Rail Rate Checker is the largest database that exists on changes in rail rate, costs, volumes, profit by commodity group and what rates are in specific traffic lanes. Visit the Rail Rate Checker website.