In last week’s blog, we examined the causes and impacts of the labor shortage on the supply chain. As we know, there are a number of reasons for the impending labor shortage, including changing demographics, skill sets and unemployment benefits. There are also a number of ways that companies can mitigate the labor shortage’s effects on their business’s bottom line.
The driver shortage has been a well-publicized problem in the logistics industry for a long time now. However, it is not the only issue affecting the supply chain. Warehouses, manufacturing plants, factories, retailers and more companies throughout the entire supply chain are seeing a labor shortage. Combined with the record-setting freight increases and capacity issues, the supply chain is suffering widespread negative effects.
Having a robust transportation management system (TMS) that functions as your company’s logistics management hub can speed up operations, reduce waste and improve your bottom line. A TMS will help automate some processes, such as tendering, route and load optimization, carrier management, order visibility, and document storage/retrieval. It will also help aggregate important data to use for future decisions.
A TMS has substantial benefits including saving approximately 8.5 percent on freight costs, according to a report by ARC Advisory Group. Gartner found that companies using a TMS can expect yearly savings anywhere from 5-15 percent. This is well worth the price of implementation, and that doesn’t even consider the amount of time your company will save in employee efficiency.
So now that you know a TMS upgrade is a great investment, how do you begin?
Find a technology provider or solutions expert and ask these questions outlined below.
The increase in freight across the US is projected to continue. In fact, it is expected to grow to more than 35 billion tons of freight with a value of at least $37 trillion by 2045, according to the Federal Highway Administration (FHWA). That’s a lot of freight and a lot of revenue up for grabs.
Of course, with this growth and the continued capacity issues, it also means freight rates are on the rise and not projected to come down anytime soon. As such, shippers are looking for ways to decrease freight spend. One way they are doing that is by expanding their less-than-truckload (LTL) shipping. So, how can shippers and 3PLs effectively grow their LTL business in this market?
Logistics technology can help companies improve functionality and allow them to get things done quicker with less human capital. While the benefits of implementing new technology are great, so are the initial costs. That is why it is important to invest in the technology that is right for your company and important to the current LTL industry.
Freight bill management and auditing is a major cause of headaches for a number of companies. This is because freight bills can be complex, are often inaccurate and not always sent in a timely manner. However, the freight bill management process can be simplified.
Companies are always looking for ways to save money, and one place they look to make cuts is on freight spend. However, because the market is currently oversaturated with freight, it may take some research to find the best rates for less than truckload (LTL) freight.
Full truckload, less-than-truckload, parcel, intermodal. Over-the-road, air, cargo ship, train. In today’s world, there are numerous ways to ship your company’s freight that it can be a daunting task to ensure you make the right call when it comes to moving freight. However, determining the correct shipping mode can have many benefits for your company, including cost-savings, operational efficiencies and improved customer relationships. But, how do companies determine the best mode for shipping their freight?
Shippers and carriers need to work together to get the best results. To do that, they need to be open and honest about their freight and share as much information as possible. By doing so, the shipping and delivery process can be improved and allow each company to garner significant benefits. As such, an effective communication strategy between shippers and carriers begins with transparency.
The recent ransomware attack to the Colonial Pipeline was a huge eye-opener for many companies across the transportation industry. It not only showcased how vulnerable companies are – no matter what size they are – but it also showed how a cyber-attack can have far-reaching negative effects.
