The Pareto principle was developed over a century ago by the Italian economist and sociologist Vilfredo Pareto. This is one of the most-used patterns in business that allows you to pre-estimate the results of measurable actions.
The scientific discovery was to notice certain repetitive patterns, the result of which was always reduced to 80/20, i.e. 80% of the result comes from 20% of activities.
Although the proportion may slightly differ in the final result, the universality of the 80/20 rule allows it to be applied in almost every field.
Areas of use of the Pareto method – shipping and container transport
The use of the Pareto method in any field where there is such a possibility can significantly increase efficiency and productivity in the company.
An interesting fact is that Vilfredo Pareto developed a container volume distribution pattern 60 years before its invented😉
This proves that the 80/20 rule is consistent with the following data:
- 80% of the container volume is shipped from 20% of ports;
- 80% of the container volume is sent by 20% of forwarders.
The data pattern applies to Russia, China, Brazil or any other country and remains similar for import and export, FCL and LCL, sea and air.
Container transport is a very complex field. Differentiation starts from the way of transport to the types of containers. Liquid freight rates are an additional factor. Here we’re talking about freight charges as well as numerous and various subsidies, bonuses or discounts. Almost every freight quote is prepared individually, according to the client’s needs. Due to this complexity, the freight offers are full of comments, exceptions and special conditions of contract implementation. Managing, monitoring and analyzing this data is not an easy task.
Using applications and systems created in response to the above needs allows you to automate the quotation process.
Quotiss is one of the reliable systems for managing freight quotes. Unlike competitive solutions dedicated to container transport, Quotiss didn’t programed technology to easily handle extremely complex data, but developed a solution that allows maximum simplification of the process of freight quotation and cargo management by reducing the number of parameters in the equation.
Although the freight industry is extremely complex, using the Quotiss application can be seen that it can be significantly simplified, including thanks to the 80/20 rule developed over 100 years ago.
Despite the above, we still have the opportunity to develop instant freight quotes with 100% accuracy. In addition, the application is adapted to the shipping industry and has a user-friendly interface. You can also use the free trial.