HeadHaul & BackHaul

HeadHaul is the process between the first loading point of the vehicle and the final unloading in Logistics operations.

BackHaul, on the other hand, is returning the vehicle to the first exit point after unloading the cargo in Logistics operations. In this process, called deadhead in a sense, fuel, time, and opportunity costs arise, which are the highest costs of the logistics operation.

KPI from the perspective of the construction industry;

• Occupancy rate KPI: Occupancy rate of vehicles x km driven

Ways to minimize BackHaul cost;

• Use of 3rd Party Logistics companies

• MilkRun Approach

• Using sophisticated LoadBoard software

• Although it is a bit of a utopia, HeadHaul cooperates with other market companies on routes with low KPIs.

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References

• https://www.txintlfreight.com/faq-article/what-is-a-backhaul-in-logistics/#:~:text=A%20backhaul%2C%20as%20it%20relates,when%20it%20comes%20to%20backhauls.

• https://www.inboundlogistics.com/cms/article/stop-calling-it-backhaul/

• https://blog.intekfreight-logistics.com/definition-headhaul-backhaul-importance-to-freight-pricing

• https://www.redwoodlogistics.com/how-to-save-money-with-your-backhauls/

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