4 Reasons Why Shippers are Adopting Truckload Logistics Technology
Trucks move the majority of goods for shippers throughout the U.S. today, to the tune of 10.5 billion tons of freight annually. According to the American Trucking Association, this freight is moved by no less than 3.4 million heavy-duty Class 8 trucks, driven by more than 3.5 million truck drivers.
A common logistics challenge experienced by shippers is the ability to efficiently keep track of their goods while keeping costs down and meeting delivery deadlines. Adding to this dilemma is the manual labor that is required to manage the process using phone calls, faxes, and Excel spreadsheets. At Transfix, we believe that technology can streamline this process and bring tangible data and actionable insights to shippers, making the process faster and more efficient.
The right technology platform can help shippers not only book loads faster, but also provide data-driven insights to help improve their overall truckload supply chain. Below are four reasons why shippers should consider implementing truckload logistics technology into their supply chain.
1. Increased Visibility Into Shipments
The ubiquity of GPS-enabled vehicles and devices is proving to be a game changer. According to Frost & Sullivan, by the year 2020, 35 million trucks globally will be connected. Furthermore, 40 percent of fleet managers today have expressed that GPS-enabled trucks are a must-have going forward.
While not everyone in the trucking industry is looking forward to the coming ELD-mandate, it’s important we get ready for it. With the ability to know exactly where goods are at any moment in time, shippers can be smarter about where those goods end up, how they’re priced, and speed up the delivery process.
Using technology to improve efficiency also provides shippers with more control over their costs. A technology-enabled marketplace allows for a more transparent, faster and competitive pricing of loads.
2. Create a Stronger, More Reliable Carrier and Consignee Team
Truckload logistics software can help shippers determine who their most reliable carriers are by tracking shipment delivery times, loading times, and other metrics. Technology can also help shippers gain visibility into who their most reliable consignees and warehouses are by tracking unloading times and detention time. It can help shippers evaluate the conditions of various lanes your trucks may be travelling and update upcoming shipments accordingly. In addition, seasonal differences in shipping times can be quantified and planned for.
3. Better Exception Management for Shippers
Unforeseen events can happen on the road for trucks and carriers, resulting in shipment delays and in worst cases, lost products. With the use of technology-driven solutions such as Transfix, shippers are alerted as soon as there are any delivery deviations from the norm, giving them more time to react, prepare, and make necessary changes to their supply chain logistics.
4. Consumers are Demanding Faster, Cheaper Shipping
Amazon has upped the ante for retail. End consumers now expect, and often make purchasing decisions, based on deliveries in two-days or less, for free. This puts greater pressure on e-commerce retailers to meet those expectations in order to take advantage of selling through the Amazon’s of the world, or to compete on their own. It will require close tracking of freight pricing, lanes, carriers and warehouse performance to optimize shippers’ supply chains to meet these increased pressures.
The Bottom Line
The supply chain, and in particular, truckload freight logistics, is changing. It needs to keep pace with shippers’ demands, competition, and the need to transport goods faster, better, and at a lower cost. Some of the largest shippers in North America are already utilizing Transfix to gain better visibility and efficiency into their logistics and truckload freight, and we are seeing more companies every day looking to gain more control over their logistics by embracing technology.