Index-Based Pricing Models in Strategic Freight Procurement

This extended abstract addresses index-based pricing models between shippers and carriers in strategic freight procurement. The increasingly unpredictable transportation cost developments, caused by a variety of different international crises, led to the need for shippers and carriers to find an equitable form of collaboration. Index-based pricing models are one way to regulate the price adjustment between shipper and carrier during the contract period due to cost developments. However, one obstacle to agreeing on such models is to find the correct index for the respective cost component that is adequate for both shipper and carrier and reflects the actual cost development of the carrier. In semi-structured expert interviews, we investigated which strategies are used to reflect volatile cost developments, how index-based pricing models work, and where problems are seen in this context. Furthermore, a broader study can lead to confirmation or further classification of the results. The abstract describes index-based pricing models with focus on road freight, but the mechanism will work for other transportation modes as well

Index-Based Pricing Models in Strategic Freight Procurement

This extended abstract addresses index-based pricing models between shippers and carriers in strategic freight procurement. The increasingly unpredictable transportation cost developments, caused by a variety of different international crises, led to the need for shippers and carriers to find an equitable form of collaboration. Index-based pricing models are one way to regulate the price adjustment between shipper and carrier during the contract period due to cost developments. However, one obstacle to agreeing on such models is to find the correct index for the respective cost component that is adequate for both shipper and carrier and reflects the actual cost development of the carrier. In semi-structured expert interviews, we investigated which strategies are used to reflect volatile cost developments, how index-based pricing models work, and where problems are seen in this context. Furthermore, a broader study can lead to confirmation or further classification of the results. The abstract describes index-based pricing models with focus on road freight, but the mechanism will work for other transportation modes as well

Index-Based Pricing Models in Strategic Freight Procurement

This extended abstract addresses index-based pricing models between shippers and carriers in strategic freight procurement. The increasingly unpredictable transportation cost developments, caused by a variety of different international crises, led to the need for shippers and carriers to find an equitable form of collaboration. Index-based pricing models are one way to regulate the price adjustment between shipper and carrier during the contract period due to cost developments. However, one obstacle to agreeing on such models is to find the correct index for the respective cost component that is adequate for both shipper and carrier and reflects the actual cost development of the carrier. In semi-structured expert interviews, we investigated which strategies are used to reflect volatile cost developments, how index-based pricing models work, and where problems are seen in this context. Furthermore, a broader study can lead to confirmation or further classification of the results. The abstract describes index-based pricing models with focus on road freight, but the mechanism will work for other transportation modes as well