Freight visibility is more than knowing where a package is in its journey to its final destination. Freight visibility is most valuable when you use it to make better business decisions and predict and prepare for possible disruptions. Leveraging historical shipping data that can be analyzed to drive and support those decisions is critical when justifying changes to operational processes and responding to supply and demand.
Experts are predicting severe disruptions to supply chains from flooding, power outages and high-wind damage in the aftermath of Hurricane Ian that could significantly impact over-the-road (OTR) freight. They estimate it will take at least nine weeks for shipping to recover based on the amount of damage to both buildings and inventory sustained by Shippers in the affected area.
As peak shipping season 2022 gets well under way, a recent survey conducted by Supply Chain Dive has identified five predictions that Shippers and 3PLs need to understand before implementing solutions to manage the heightened over-the-road (OTR) shipping season. In this blog, we analyze those insights below and offer solutions and best practices for managing any shipping environment.
In shipping, visibility and access to data are critical for monitoring shipments and evaluating your shipping operations. The data captured by those companies utilizing a digital solution when they rate and schedule their freight gives them a heightened view into their shipping so they can analyze processes, shipping costs and overall freight management.
In the current shipping environment, Shippers and 3PLs need access to real-time, over-the-road (OTR) carrier connectivity to respond quickly to rapidly changing market conditions. According to FreightWaves, “Shipper networks have been put to the test over the past two years and data has allowed for shippers to build resilient supply chains despite the curveballs they have been thrown.”
Expectations for added efficiencies in First/Final Mile shipping are increasing for B2B customers. According to a report from the Capgemini Research Institute, 55% of the companies that were surveyed said they would switch to a competing brand if it offered more efficient delivery services. However, successfully fulfilling the demand for faster shipping in First/Final Mile is complicated and requires an automated solution.
Shippers and 3PLs are learning to embrace the changes in the supply chain by relying on technology solutions that keep them agile and positioned for success. To mitigate issues with carrier capacity and protect profits while managing costs, they are seeking providers that have solutions for all over-the-road (OTR) shipping modes, including Parcel.
More and more Shippers and 3PLs are turning to technology to help manage their freight and ensure consistency in their over-the-road (OTR) shipping operations. These leading companies have a competitive advantage and can access data easily to make important, cost-saving business decisions, whereas companies utilizing outdated technology or manual processes have not maximized their shipping potential.
Disruptions to the supply chain aren’t new, and with the COVID-19 pandemic, shippers and 3PLs have had to adjust their operations to accommodate frequent changes. The most-recent issue to impact shipping, specifically for over-the-road (OTR) transport, is the “Freedom Convoy” protest in Canada. In addition to capacity issues, rate increases, and shipping delays, the blockade, created in protest of vaccine mandates and restrictions, has proven to be another hurdle for 3PLs and shippers in providing timely deliveries for OTR shipping in the U.S.
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.
