“Yield Management” is the process of maximizing the contribution or revenue generated from every slot, vessel, trade, and network within a logistics operation. It involves allocating the appropriate type of capacity to the right customers at the right price in order to optimize revenue or yield.

Goal: strategically manage and optimize the allocation of available capacity to achieve the highest possible revenue or yield.

Importance:

Revenue Optimization: Yield Management enables companies to extract the maximum revenue

Efficient Resource Allocation: By allocating the right type of capacity to the right customers, yield management helps optimize the utilization of available resources

Market Responsiveness: Yield management allows logistics companies to respond to changing market conditions and customer demands in a timely manner.