REPORT

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Matching freight demand with capacity is becoming increasingly challenging, especially in today’s volatile environment. Carriers are rejecting up to a quarter of all contract loads, forcing more Shippers into the spot market. The solution to this imbalance is an investment in network-based transport management systems. New technologies make automated freight-matching possible for both Shippers and Carriers at a whole new scale. 

This original report includes survey responses from industry insiders and expert analysis from Adrian Gonzalez, President of Adelante SCM. 

 

ABOUT THE AUTHOR

Adrian Gonzalez is a trusted advisor and leading industry analyst with more than 20 years of research experience in transportation management, logistics outsourcing, global trade management, social media, and other supply chain and logistics topics.

In addition to launching Talking Logistics, Adrian is the founder and president of Adelante SCM, a peer-to-peer learning and networking community for supply chain and logistics executives and young professionals. He is also the founder of Indago, a market research service that brings together a community of supply chain and logistics practitioners who share practical knowledge and advice with each other while giving back to charitable causes.

TAKE A LOOK INSIDE

What happens when your primary carrier rejects your load tender?

Automated processes break down, leading shippers and carriers to engage in manual and inefficient ways to match loads with capacity. The net result is higher costs, delayed shipments, and sub-optimal utilization of trucks and drivers. It also adds to the waste and inefficiencies that continue to plague the industry – for example, in the form of empty miles/journeys (15-30% empty) and increased CO2 emissions. Looking at the problem more broadly, therefore, especially in light of current market conditions, another question arises: Has the time come to transform the traditional transportation procurement process?

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INFOGRAPHIC

The building blocks of smart procurement

Today, relatively few shippers and retailers are using a network-based Transport Management System (TMS) to find carriers and meet their capacity demands. But this is changing — fast. 

Just as on Facebook or LinkedIn, transport professionals are starting to take advantage of the industry networks that connect large numbers of shippers, carriers, LSPs, and other stakeholders. 

These network-based platforms offer solutions to the most pressing challenges of the day: rising costs, delayed shipments, sustainability concerns, and sub-optimal utilization of trucks and drivers.

See our infographic on how the right TMS can provide ready-to-go solutions to improve your procurement strategy. 

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