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LOGISTICS COST IMPROVEMENT POTENTIAL RE-ENGINEERING TECHNIQUES 1 SRM Logistics, Inc (Stephen R McCleary, Pres) ©2012 COST of FREIGHT The cost ($) of freight is generally between 4% to 8% of a companies Gross Sales Freight ($) is 5.5%* of Gross Domestic Product (GDP) in the United States With the largest mode being truckload {2010 - $520Bn**} Either: Parcel (Ground) Less-than-Truckload (LTL) Truckload Commercial Carriers Private Fleets Dedicated-Contract Carrier Services Inter-modal TOFC –Trailer on Flatcar COFC –Container on Flatcar *Source: APICS Module 3, Managing Customer Supplier Relation