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!
A few days into 2022, I’d like to reflect on the past year and what’s ahead for shipping. Last year continued to be tumultuous as major supply chain issues remained, but for some, those challenges led to opportunities to reset and adjust. To remain agile as backlogs and capacity issues tightened, many shippers and 3PLs turned to their technology partners for help.
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.
Shippers and 3PLs have welcomed the transparency offered to the freight management industry through pricing APIs, particularly the savings they get when taking advantage of real-time carrier rates rather than relying on dated methods for securing pricing. There’s also the hidden benefit of an instant competitive advantage when competitors using outmoded legacy processes secure outdated rates from carriers. This means pricing API users are spending less on shipping and increasing profit margins while gaining a competitive edge with freight costs.
