There are many ways shippers and 3PLs can utilize multi-mode shipping for truckload (TL), less-than truckload (LTL), parcel, and final mile to increase efficiencies and cost savings. Much like many previous shipping advancements, those added efficiencies and savings wouldn’t be possible without implementing automated technology solutions with multi-mode capabilities.
The top tier of shippers, 3PLs and carriers that move about 95% of LTL freight have advanced technology solutions that include automation and information-sharing capabilities. These leading companies have a competitive advantage and can share data easily, whereas smaller companies with limited technology capabilities have more difficulty with end-to-end automation.
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Technology and automation have helped make significant advancements in the supply chain and shipping industry. However, shippers and 3PLs need to understand that a human touch remains a critical element in keeping a supply chain functioning properly. The two must work together in a hybrid approach.
The ever-changing landscape of the transportation industry continues to force shippers and 3PLs alike to, once again, evaluate their processes, efficiencies, and business objectives for the coming year. With little to no relief in sight to help manage the growing supply chain challenges, it’s critical now more than ever to look to technology solutions to help streamline efficiencies and manage costs to combat the most basic of industry challenges… labor shortages and rising costs.
Rising carrier costs directly related to capacity constraints and elevated fuel costs are making it difficult for 3PLs and shippers to control shipping costs. The Journal of Commerce says shippers are preparing for another year of elevated less-than-truckload (LTL) rates and tight capacity, as a 2022 surge in demand from consumers, retailers, and manufacturers looks increasingly likely.
With great challenges comes the opportunity for change and growth. It forces you to think outside the box and deploy new tactics to overcome disruptions. With no end in sight for the current challenges in the supply chain, you may want to take another look at implementing a technology solution that will help you conquer those issues. Technology can enhance your visibility and efficiency while helping to control your freight costs to more effectively manage your shipping needs.
In what’s considered a “carrier’s market”, Shippers and 3PLs are scrambling to secure carriers to pick up and deliver their freight. Many are paying premiums in tight capacity lanes because carriers can be selective in what they move and how much they charge.
Wouldn’t it be nice if we could see what the future of freight and the supply chain will be in 2022? Industry experts predict that we will still see backlogs of shipments, labor shortages, capacity issues, rate increases, and lack of warehouse space at least within the first few months of the year. If only we had a way to determine how to navigate these issues or some type of crystal ball that we could use to help us predict where we will be six months or a year from now, we could more efficiently and effectively plan for the course ahead.
This year remains a challenge for the supply chain. Labor shortages and carrier capacity are ongoing issues, and lane restrictions and rates continue to steadily increase with no end in sight. According to The Washington Post, fallout from the COVID-19 pandemic exacerbated increases in freight bills and delivery delays throughout 2021.
