If you take a moment, you can still smell the flowers and a hint of chocolate as the Valentine’s Day holiday winds down. While the love is palpable, many shippers and 3PLs aren’t experiencing the same warm and fuzzy feelings with the current state of the supply chain and some are desperately seeking a solution.
Increased transparency throughout the supply chain is essential for all modes of shipping, but it is particularly critical in final mile. Customers want more insight into the shipping process to track where their shipments are and when they will arrive at their doorsteps.
Due to their complexity and high incidence of mistakes, inaccurate freight bills are much more common than you may realize and can result in significant losses for your company. About 1 in 4 freight bills contain an error, causing shippers to overpay by 13% annually. In a $1.06 trillion over-the-road (OTR) transportation market, that is equal to about $138 billion in overpayments every year!
Shippers and 3PLs know the advantages of using less-than-truckload (LTL) shipping – cost effectiveness, more delivery options, the ability to ship smaller loads without needing to fill an entire truckload, etc. However, when carrier capacity tightens, quicker shipping options are in higher demand, or the supply chain experiences disruptions, it can be difficult to get the LTL pickups and deliveries you need when you need them. To ensure your LTL shipments are getting to their final destinations without delays or breaking your budget, you have another option – LTL load consolidation.
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.
Happy Holidays!
The team at Banyan Technology would like to wish you a very Merry Christmas and Happy New Year!
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.
