In today’s rapidly evolving logistics industry, effective transportation management plays a pivotal role in optimizing supply chain operations. Managed transportation services are a strategic solution, helping shippers alleviate the complexities of moving goods from one point to another with efficiency. 

Managed transportation services are a comprehensive outsourcing solution wherein businesses entrust the planning, execution, and optimization of their transportation activities to a specialized third-party service provider. A multifaceted engagement that encompasses various services to streamline the transportation of goods, a managed transportation partnership removes the burden of transportation management from the shipper. Instead, an experienced, field-proven partner handles all aspects of transportation management. 

In the current landscape, where supply chains are becoming increasingly complex, managed transportation services can transform logistics operations. 

Understanding managed transportation services

At its core, a managed transportation service partnership entails the strategic outsourcing of transportation functions to expert service providers for optimized planning, execution, and control. These freight management services include carrier selection and negotiation, transportation procurement, route planning, load optimization, and more.

This strategic partnership extends beyond overseeing basic freight movement and encompasses a spectrum of activities designed to enhance efficiency, reduce costs, and ensure timely delivery. This arrangement allows businesses to focus on their core competencies while leveraging the expertise and resources of a dedicated transportation management partner.

One key component is a transportation management system (TMS), a software solution that acts as the central hub for managing and optimizing transportation-related activities. A strong TMS facilitates real-time visibility, route optimization, and performance analytics, contributing significantly to overall operational efficiency.

Additionally, managed transportation service providers can also operate as a freight brokerage, acting as an intermediary that connects shippers with carriers. This includes selecting the most suitable carriers for a particular shipment and negotiating contracts that align with the client’s goals and budget. Carrier selection and negotiation play a crucial role in optimizing costs, improving service levels, and mitigating risks associated with transportation.

Different types of logistics service providers (LSPs):

Third-party logistics providers (3PLs) offer outsourced logistics services, including transportation, warehousing, distribution, and freight forwarding. They may offer a range of services tailored to the specific needs of their clients. By outsourcing specific transportation activities to 3PLs, businesses can leverage their expertise, resources, and technology for more efficient and cost-effective logistics operations. 

While 3PLs use their own solutions to manage specific processes, such as shipping or warehousing, fourth-party logistics providers (4PLs) take full ownership of your logistics program, working with your team to optimize all aspects of supply chain management. 4PL providers go beyond the services offered by 3PL providers by managing and optimizing the entire supply chain on behalf of their clients, including overseeing multiple 3PL providers.

Logistics outsourcing plays a pivotal role in achieving economies of scale, no matter the kind of partner. By partnering with a logistics service provider (LSP), businesses gain access to consolidated transportation solutions that drive down costs. For instance, logistics partners can leverage proprietary, cutting-edge technology to enhance visibility and real-time tracking, allowing businesses to make informed decisions and adapt swiftly to evolving market dynamics. 

Benefits of managed transportation

The advantages of embracing managed transportation services include cost reduction, efficiency improvements, and enhanced visibility. Embracing a proactive approach, businesses can conduct a comprehensive cost-to-serve analysis, a critical tool in the world of supply chain management. Cost reduction strategies and key performance indicators (KPIs) can be integral components of the managed transportation framework. By aligning transportation strategies with overarching business goals, organizations can not only cut down on transportation costs but also enhance overall operational efficiency.

Managed transportation services bring logistics teams unparalleled efficiency improvements by streamlining processes and minimizing disruptions. By leveraging real-time shipment tracking, businesses gain granular insights into the movement of goods throughout the supply chain. Together with KPIs, this visibility enables businesses to make data-driven decisions, identify bottlenecks, and proactively address potential issues: in other words, businesses can drive performance improvements. 

Efficient transportation management is a result of the seamless integration of various components. By adopting managed transportation services, businesses can optimize route planning, reduce transit times, and mitigate the risk of delays, all contributing to heightened efficiency.

Core components of managed transportation

Managed transportation services require that service providers take over transportation activities on behalf of their client—but how? These key elements of managed transportation help ensure that service is smooth and seamless. 

Transportation management systems (TMS)

At the nucleus of managed transportation lies the transportation management system (TMS), a sophisticated entity designed to revolutionize the way businesses oversee and optimize their transportation processes. The TMS not only acts as a central hub for managing shipments but also encompasses features that span route planning, optimization, and fleet management solutions.

The integration of TMS with other logistics technologies, including warehouse management systems (WMS), creates a unified ecosystem where information flows seamlessly, facilitating synchronized decision-making from the C-suite to the distribution center. 

Read our guide to Transportation Management Systems (TMS) to learn more.  

Route optimization 

Route optimization is crucial in managed transportation services. Using real-time capacity and traffic data, route optimization algorithms enable companies to reduce costs, improve efficiency, enhance customer service, and minimize carbon emissions and fuel waste. 

Route optimization platforms help managed transportation services partners ensure that shipments are being moved as efficiently as possible, without deadhead. Meeting delivery deadlines consistently builds customer trust and loyalty, leading to higher satisfaction levels and repeat business for shippers using managed services. 

Carrier management

Well-managed carrier relationships are part of a streamlined and responsive supply chain. Trust and partnership with carriers can be bolstered when carrier management is handled by the managed service provider. These providers have more bandwidth for contact with carriers and can offer more responsive and immediate communication. 

Plus, effective carrier management involves ensuring that carriers meet all regulatory requirements and comply with safety standards. By carefully selecting and monitoring carriers, companies can mitigate risks associated with non-compliance or safety incidents.

Risk management

With dedicated compliance and risk management teams, managed services partners help shippers manage risk and create resiliency amid dynamic and unpredictable conditions. Service providers can liaise with all stakeholders and review historical and seasonal challenges to create a proactive contingency plan for unforeseen events. 

Freight audit and payment services 

By delving into the significance of freight audit and payment, businesses gain not only cost transparency but also enhanced control over their supply chain finances. And through robust compliance and risk management strategies, businesses can mitigate potential issues and foster a secure and controlled transportation environment. Because they have experience handling the complexities of freight shipping, including regulations, carrier contracts, and industry best practices, a managed services provider is an ideal choice for businesses looking to stay on top of audits and payments. And, dedicated internal staff can execute these processes with industry-specific context and expertise. 

Strategic partnership

Managed logistics service providers establish strategic partnerships with their clients by offering comprehensive solutions that go beyond basic transportation services. Working closely with clients to understand their supply chain requirements, business objectives, and challenges, LSPs can create tailored strategic plans that fuel business growth and transportation efficiency. 

Using tools like mode and route optimization, data and predictive analytics, and continuous improvement assessments, LSPs work to continually adapt transportation strategy as business goals evolve and market conditions shift. With dedicated internal analysts and strategists, these LSPs don’t just create and execute transportation plans: they serve as a close partner in driving the whole business forward, creating trust, collaboration, and mutual success.

Implementing managed transportation in your business

In the dynamic landscape of modern business, the implementation of managed transportation services has become a strategic imperative for companies seeking to enhance efficiency and optimize their supply chain operations. This transformative process requires a comprehensive evaluation of your transportation needs and aligning these with your overarching business goals.

Assessing your needs and goals

Before implementing transportation services, businesses must assess their transportation needs and set clear objectives. Evaluate your current approaches across workflows, paying attention to oft-neglected areas such as inventory management, distribution network design, and customer service. Is your transportation strategy aligned with business goals? If not, set this foundation now so that you begin your partnership on a strong foundation, or enlist the help of your managed services partner to do so. A partner with an experienced consulting and strategy team can help you realign strategy and engage in process improvement as they take over your shipping operations.  

Consider also what technology your partner might be able to provide that could help you better understand your transportation needs. For instance, companies that leverage advanced supply chain analytics can make more informed decisions, enhancing their ability to align transportation strategies with overarching business objectives. 

Selecting the right managed transportation provider

Choosing the right managed transportation provider is a critical step in this transformative journey. LSP, freight brokerage, and 3PL providers play pivotal, but different roles in delivering efficient transportation solutions. 

Freight brokerages are the least involved type of partner, specializing in connecting shippers with carriers. Logistics service providers, or LSPs, include both 3PL and 4PL partners. While 3PL providers take over order fulfilment, including warehousing, packing, and shipment, 4PL providers are end-to-end partners that manage the entire supply chain. 

First and foremost, seek a provider that understands the needs of your industry. This context and understanding will form the foundation of your trust, as your partner will be able to give you the most helpful advice for a given situation. Also look for cutting-edge technology to streamline operations, and exemplary customer service to ensure a seamless collaboration.

Transitioning to a managed transportation model

Once the right managed transportation provider is selected, the transition to a managed transportation model requires a systematic approach. This involves integrating supply chain processes, managing change effectively, and providing adequate training and support. Common challenges associated with the transition include data cleaning and validation, redundant processes and workflows, and internal alignment. 

To address these challenges, invest in supply chain integration, change management, and comprehensive training and support. Effective change management strategies are crucial to overcoming resistance to change within the organization, ensuring a seamless flow of information between all stakeholders. When the implementation goes smoothly, a cohesive and efficient transportation system follows. 

Advanced strategies in managed transportation

Sustainable transportation practices:

Sustainability is a growing priority in the logistics industry, as heralded by the growth of green logistics. Managed transportation services can contribute to sustainable practices by incorporating eco-friendly practices, such as utilizing electric vehicles, optimizing delivery routes to minimize fuel consumption, and implementing packaging strategies to reduce waste. These principles don’t just matter to the earth: the long-term advantages extend beyond environmental stewardship to cost savings and enhanced brand reputation.

Leveraging data and analytics:

Data and analytics play a pivotal role in driving decision-making within transportation services. Supply chain analytics provides invaluable insights into the performance of transportation processes, enabling companies to identify bottlenecks, optimize routes, and enhance overall efficiency. KPIs serve as benchmarks for success, allowing businesses to measure and improve their transportation operations continually. And real-time tracking and visibility, facilitated by advanced technologies, empower organizations to make data-driven decisions, ensuring timely and transparent transportation processes.

Innovations in managed transportation technology

Innovation continues to accelerate, and logistics is no exception. New technologies like artificial intelligence (AI), the internet of things (IoT), and blockchain offer unprecedented functionalities to shippers. 

For instance, AI-powered logistics now has a variety of use cases, including streamlining logistics operations, optimizing route planning, and predicting maintenance needs. IoT enhances real-time tracking, providing granular visibility into the movement of goods. And blockchain for supply chain ensures transparency and security in supply chain transactions, mitigating risks associated with compliance.

The future of managed transportation

Managed transportation services have become a pivotal tool for businesses seeking to optimize their logistics operations. By understanding the core components, benefits, and advanced strategies, companies can harness the power of transportation services for sustainable growth.

As the logistics industry continues to evolve, embracing transportation services will be imperative for businesses aiming to stay competitive. The strategic value of transportation services, coupled with the adoption of innovative technologies, will shape the future of logistics, driving efficiency, sustainability, and overall business growth.

At Uber Freight, we understand that choosing the ideal partner to outsource your logistics is a consequential choice for your business. Taking the time to thoroughly explore your options and prepare your company for change will ultimately help you improve service and reduce costs for the long term. Interested in outsourcing your transportation operations in 2024? Our teams have the resources and guidance you need: connect with an Uber Freight expert today. 

Additional resources:

• CSMP Managed Transportation Guide
• 8 KPIs transportation management leaders are prioritizing this year
• A buying guide to outsourcing transportation management: What to consider when investing in solutions

The post A guide to managed transportation services appeared first on Uber Freight.

The modern supply chain is embracing innovation at a rapid pace. Just a decade ago, real-time freight tracking was still in its infancy. GPS and RFID tagging systems already existed but few thought to use them for monitoring shipments. Carriers relied on phone calls to verify shipment details and schedule appointments. To compile reports, we had to sift through an endless pile of miscellaneous spreadsheets—a headache-inducing task that ended up taking way too much time and effort. But we’ve come a long way.

Fast forward to 2023, customer expectations are higher than ever. Businesses are competing to provide the best service and fastest delivery times in an effort to keep pace with demand. Automation of vital workflows, like demand forecasting and route optimization, are empowering leaders to execute shipments faster, smarter, and bolder. 

Gaining a competitive edge in this evolving market requires 360-degree visibility. We have to think five, ten, twenty steps ahead in an effort to predict the unpredictable—and integrating a custom transportation management system (TMS) is an essential first step to replacing outdated workflows with cutting-edge technology. 

A TMS empowers businesses by:  

• Expanding carrier capacity 
• Applying data-driven logistics planning 
• Mitigating risks with real-time visibility 
• Streamlining payment processes
• Providing industry-leading intelligence 

What is a transportation management system? 

It seems like every industry now—from food and beverages, to manufacturing, to online retail, to healthcare—is using a transportation management system (TMS) to gain better network visibility. A software solution designed to optimize the planning, execution, and monitoring of shipments in transit, a TMS serves as a central platform for businesses and their logistics providers to make data-driven decisions about how to move their goods. 

The importance of TMS in the modern supply chain

If your supply chain is getting bogged down by cost overruns, missed deadlines, and lack of transparency, TMS integration might be the answer. The TMS serves as the “brain” of logistics operations by optimizing a wide range of tasks related to supply chain management. It brings together data, automation, and decision-making capabilities to ensure that goods move efficiently, cost-effectively, and in compliance with regulations

Armed with a centralized repository of data, reliable communication channels, and access to real-time carrier performance insights, a TMS can help you easily overcome these challenges by pinpointing significant cost-saving opportunities and streamlining operations. 

It even offers unobstructed visibility into shipments, enabling precise tracking and proactive issue resolution, which are crucial to ensuring on-time deliveries—even when unexpected disruptions occur. Depending on their magnitude, these disruptions can start a domino effect of inventory shortages, delayed shipments, customer complaints, and reputational damage. But with a reliable TMS, you’re well prepared to handle the worst. 

One global manufacturer of bottled waters proactively mitigated the impacts of a hurricane on their transportation operations by using Uber Freight TMS. Our Control Tower capabilities enabled their logistics team to pull capacity from other regions to avoid paying high premiums and ensure their shipments were delivered without a hitch.

Uber Freight’s custom management system can protect your bottom line and help you successfully address the demands and challenges of the modern marketplace, all while navigating unforeseen events. Learn more about our offering here. 

Key benefits of TMS adoption

Adopting a TMS is a proven way for shippers to secure favorable rates, achieve unparalleled transparency, and leverage data for proactive decision-making. With a Control Tower view, the all-in-one platform can empower your team to cut costs while improving service levels and delivery speed. 

Optimize capacity procurement 

Relying on a single carrier or a limited pool of carriers can be risky. If a specific carrier happens to go out of business, or faces operational challenges and capacity limitations, you might be left without any options. Market demands can also fluctuate dramatically due to seasonal changes or unforeseen events. Your logistics team needs a diverse range of carriers to handle varying shipment volumes efficiently. 

A TMS can effectively expand your carrier capacity. By building enhanced visibility into your network, a TMS can match shipment requirements with available carriers in real time, ensuring that you can tap into capacity easily, even during peak demand periods. Under one single platform, you can run spot auctions and access instant quotes from multiple carriers at once. 

To remain competitive, continuous improvement is key. A TMS will typically allow you to evaluate carriers and capacity utilization on an ongoing basis. Uber Freight’s TMS, for example, can give you the ability to monitor carrier KPIs with data-driven scorecards. Transparency is key to selecting the right carriers and nurturing fruitful, collaborative partnerships. 

Execute shipments seamlessly

Data is king in the world of logistics—and a TMS is engineered to collect, process, and analyze a wealth of information in real-time. 

Using sophisticated optimization algorithms, fuel efficiency metrics, and dynamic route adjustments, you can easily reduce fuel wastage and save time during transportation. Taking into account factors like distance, traffic patterns, delivery windows, and carrier availability, a management system can help minimize transit times by analyzing every possible transportation route and ensuring effective resource allocation. 

Uber Freight’s TMS empowers businesses to move goods more efficiently with load matching and route planning using Dynamic Continuous Moves. Our Dock Scheduler tool also prevents delays by connecting you with carriers to help coordinate and streamline dock appointments. 

Monitor shipments in real time

Today, customers expect transparency at every stage of the delivery process. They want to know when their orders will arrive and where they are at any given moment. 

A TMS offers real-time tracking capabilities that allow you to monitor the exact location and status of in-transit shipments as they move through the network. Whether it’s truck, rail, or ocean, Uber Freight can help you access the most up-to-date information about your goods with Control Tower, and even enable your customers to keep tabs on their orders through the platform’s Public Tracking Portal. 

In case of potential delays, you can choose to receive automated notifications so you can take proactive steps if alternative capacity is needed. KPIs and reports are also instantly accessible using intuitive dashboards displaying the specific visibility metrics and shipment information you need.

In addition to real-time shipment tracking, managed solutions often include features for predicting Estimated Time of Arrival (ETA) based on real-time insights and historical performance. Predictive analytics empowers your team to plan and make appropriate time-sensitive decisions. 

Streamline payments 

The time-consuming process of manual invoicing and payment reconciliation can be a major setback for shippers. 

A TMS can help simplify financial transactions by automating billing, verification, and payment workflows. It consolidates all payment-related data under one unified platform, eliminating paperwork discrepancies. Automation of approvals also means you can process invoices efficiently before payment is initiated, improving financial control and accountability—and, ultimately, preventing costly rate disputes. 

By allowing relevant stakeholders to access payment-related data under one unified platform, your team can establish a single source of financial truth. Uber Freight’s own TMS helps businesses of all sizes reduce missing paperwork, late fees, overcharges, and duplicate invoices by thoroughly auditing their financial records. 

Maximize big data to win big savings

There’s no doubt benchmarking is an essential practice that boosts productivity and optimizes operations. 

By integrating a TMS, you can open a window into your network’s performance by using reporting tools. From customizable report builders and service dashboards to carrier scorecards and route guide compliance assessments, your team can make informed decisions based on a wealth of network and industry data.  

You can even compare your facility’s performance against industry standards using facility insights and benchmarking data derived from direct carrier experiences. This enables your team to flag areas of concern and receive next-step recommendations for enhancing operations, driving greater efficiency and cost savings. 

Making the most of TMS

TMS technology is transforming transportation, propelling us to harness data-driven planning to mitigate disruptions, optimize routes, and reduce transit times. Real-time visibility grants us an omniscient view of our supply chains, enabling proactive responses and elevating customer satisfaction to unprecedented heights. 

With automated financial processes, administrative burdens melt away, freeing resources for innovation and growth. It’s upending how shippers operate, setting a new course towards greater efficiency, cost-effectiveness, and strategic agility. 

Find out how you can maximize your ROI with Uber Freight TMS. In Q4, stay tuned for our comprehensive guide on TMS implementation to unlock even more insights on how to achieve next-level growth and productivity.

The post Here’s how a TMS can help you ship faster and smarter appeared first on Uber Freight.

Transportation assessments offer evidence-based recommendations from third-party experts, ensuring an unbiased evaluation of a shipper’s capabilities. Many shippers have already completed these exercises in the wake of transitional periods this year, be it navigating new leadership, an acquisition, or unexpected growth. 

But shippers of all sizes and circumstances can benefit. From benchmarking capabilities and identifying process gaps, to designing effective cost-saving initiatives, an assessment can surface actionable problems and opportunities at every stage of the transportation process—in effect, delivering a personalized playbook for shippers to drive short-term and long-term stability. 

A transportation assessment can reveal unexpected opportunities

A comprehensive assessment involves developing a baseline, identifying and developing optimization opportunities, and delivering a final assessment report. 

Uber Freight’s Consulting team uses a proprietary transportation modeling toolkit to analyze the state of a shipper’s transportation metrics, process documentation and costs involved in operation. They also evaluate data, process flows, site staff interviews, and other observations to document and quantify expected costs and performance metrics. After developing a baseline, data modeling tools are used to generate analytics and best practice benchmarks, which help identify opportunities for improvement. The Consulting team can then deliver the shipper a final evaluation that documents the findings, lays out improvement initiatives in transportation performance, and provides a roadmap to implement those changes. It’s important to note that transportation assessments can also be part of larger supply chain or logistics assessments, and conducted alongside facility or inventory assessments as well. Once completed, the Consulting team supports shippers with their new transformational initiatives and program deployments to ensure the assessment delivers continuous value. 

At a high level, shippers can use an assessment to gauge their current state of operations to identify potential areas of improvement, with a special focus on three key areas: people, process, and technology.  Using this three-pronged strategy, a transportation assessment can provide a detailed snapshot of what an organization’s baseline capabilities look like. 

Often, an assessment unearths unexpected opportunities. One large consumer goods retailer initially approached the Consulting team to identify savings programs on more than $400 million in annual transportation spend. However, an evaluation of its entire logistics process helped pinpoint not only cost-savings opportunities, but also specific issues that were causing declining service levels across the retailer’s network. 

As a result, experts were able to come up with tailored strategies for the retailer to optimize full truckloads, implement LTL pooling and load consolidation, expand its dedicated fleet, and apply lane priority to increase use of intermodal transportation. The retailer ultimately received a step-by-step strategy that not only promised annual savings of as much as 13%, but also materialized quick solutions to the issues that were deteriorating service. 

A comprehensive view of people + teams

A transportation assessment also analyzes how an organization’s workforce measures up to industry standards by consolidating basic information such as employee skills, training, and organizational structure. This is incredibly important as high turnover rates among supply chain managers and warehouse teams remain a prevalent concern in 2023. 

Through a methodical approach of understanding and documenting how teams work, an assessment uncovers unproductive practices that have become permanent and blind spots that new team members are not aware of. Performing assessments helps organizations ensure their frontline resources aren’t spread too thin and that carrier management isn’t overwhelmed by the chaos of day-to-day operations.

One multinational retailer, for example, wanted to conduct an assessment with the goal of finding new ways to improve the people-side of its operations. The company had recently implemented a new team structure that didn’t perform quite as well as the leadership team had hoped it would. 

The company partnered with Uber Freight’s Consulting team to take a deeper, objective look at what was happening on the ground. In-person interviews with site leadership precipitated a standardized framework for operational management to ensure that team members with varying levels of experience could communicate reliably and coordinate their tasks.

Ensuring processes and technology are set up for success

Assessments also look beyond on-site management issues to evaluate operational systems in their entirety, from administration and compliance to sourcing and procurement. 

With an eye on the bigger picture, the Consulting team helps shippers determine make-or-break factors in shipment process flows, identify opportunities for automation, increase visibility into order management, and optimize planning and execution. 

Technology is also an essential part of a transportation assessment. A technology review highlights where teams may not be fully leveraging technology investments such as transportation management systems (TMS) that provide process efficiency, data insights, and business intelligence.

There are many ways that a shipper can use technology to maximize savings, which include automating shipment optimization and routing, integrating a freight payment portal and adopting real-time shipment tracking. An assessment targets areas that would benefit from these tools, helping shippers achieve more with less labor. 

From navigating supply chain bottlenecks and delayed freight to staying on top of uncertain demand and labor issues, transportation assessments are more important than ever to ensure successful operational performance without breaking the bank. By delivering a one-of-a-kind roadmap for success, assessments empower shippers to apply targeted improvement strategies based on real data—with the support of some of the most trusted logistics experts in the world.  

To learn more about transportation assessments and get started, connect with an Uber Freight expert.

The post Get rebound ready – our transportation assessment can help appeared first on Uber Freight.

By: Tracy Rosser, Executive Vice President of Operations

In the freight industry, we often contextualize fluctuations in market trends in terms of contract rates versus spot rates. When spot rates are beneath contract rates and trending down, or are significantly below contract rates regardless of trend, we consider that environment a deflationary market. The inverse is an inflationary market.

For the first time in over a year, current spot markets rates have dropped below the contract average, a rapid decline from January highs. This transition means a move from an inflationary market to a deflationary one. For shippers, that often means a change in strategy. It can seem like a daunting prospect after having recently adapted to inflationary conditions.

Coming off a high inflationary market, today’s slow-down is resulting in a huge gap between spot and contract rates over the course of the year. But shippers can still take advantage of the new market circumstances — and even recover some of the overspend in budget that was necessary to use when rates were high.

The key to taking advantage of any market shift in the middle of an RFP cycle starts with monitoring freight rates at a lane level. That means looking closely at all-in blended rates, contract rates, backup (LCP) rates, spot and contract benchmarks, and internal budget benchmarks — and comparing the lowest cost options. From there, shippers can identify opportunities in the following categories:

Lever #1: Be Intentional with Your Routing Guide

To capture value in a deflationary market, it is critical to be intentional with how freight is being covered through the routing guide, with backup carriers, or utilizing the spot market. To achieve the optimal results, start with understanding lane level costs for contract and spot, and then ensure the routing guide is set up correctly to take advantage of those rates.

If spot rates are less than contract rates, one approach is to limit the freight sent to contract carriers to what has been committed in the bid. Agility in changing the routing guide setup based on market fluctuations can help to reduce costs. For example, say a carrier has a commitment of five loads per week but nine are generated. If the routing guide is set to a limit of five, then the four remaining shipments will be able to automatically go to freight auctions for cost savings. The inverse applies in a stable or inflationary market, and the primary carriers should always get first right of refusal on loads.

Shippers should also remove backstop broker carriers from the routing guide unless they’re used for a specific service or deflationary price strategies with transparent margins. This allows more volume to flow to freight auction, since in a deflationary market spot rate is typically a more viable cost-savings option.

Lever #2: Address Existing Contract Rates

Assessing existing contract rates during hyper deflation is necessary, but it might mean a difficult conversation with an existing carrier or working with a new carrier altogether. Some shippers might feel bullish on making these changes — others might be more inclined to avoid disrupting existing relationships altogether. No matter a shipper’s risk tolerance, there are still levers shippers can pull to improve existing contract rates as those things that caused a carrier’s costs to increase during inflationary times typically have the opposite effect in deflationary times.

Lever #3: Develop a Low-Volume Strategy

As shipper requirements allow, align the low-volume strategy to the most optimal cost solution. Often, that means most low volume shipments should be covered by the spot market (see step 1). Shippers can also expand the definition of “low volume” (from, say, lanes with 10 loads/year to, say, lanes with less than 50 loads/year) to increase cost savings. Working with a network partner can also open more competitive market rates.

A more conservative approach is twofold: exploring opportunities in new lanes (establishing new routing guides through mini-bids) and focusing any adjustments to existing carrier contracts on poor-performing lanes. Throughout the process, closely monitor how routing guides compare to the market and be prepared to move to a more medium-risk approach if needed.

A medium-risk approach should also include strategies around new lanes and poor-performing lanes. In addition, for broker and non-core asset-based carriers, shippers can:

• Completely replace with more cost-effective carrier
• Reduce commitments to let more shipments flow to freight auction or other targeted network solutions
• Surgically renegotiate rates to bring closer to market

The most aggressive approach centers around finding margin with core, asset-based carriers. That includes more closely monitoring these carrier lanes and, if necessary, acting to completely replace an existing carrier with a more cost-effective one. There are also opportunities to renegotiate rates or reduce commitments to allow volume to flow to the spot market.

Lever #4: Optimize Spot Market Utilization

The spot market is always changing and reacts faster to market conditions than contract rates. For unpredictable freight in a deflationary market, it can be a viable option for shippers to find cost savings. Shippers can leverage freight auctions and automate shipments to go directly to auction, for example, to achieve equal or below existing contract rates.

Shippers can also use data to find opportunities that take advantage of available solutions quickly and effectively. Machine learning models can identify opportunities within a 2–3-day window, reducing transportation costs by $140 per load on average. Working with a transparent brokerage partner can also open access to more favorable network pricing. By having an always-on approach to the spot market, shippers can identify patterns, trends and opportunities for continuous performance improvement.

Moving Forward with Transparency and Flexibility

The current slowdown poses new challenges for shippers, particularly considering fast-rising fuel prices. Q2 2022 has seen record high diesel prices, with an average price of $5.56/gallon. Moreover, a high level of uncertainty in the market remains due to unknowns like demand inconsistency, the reopening of production and shipping in Shanghai, and lease defaults. (Read more about these factors in our market report, here.)

For shippers, a strategy that uses all the resources at their disposal is key. And it means, as market conditions shift, shippers can leverage different tactics to solve for specific conditions as they arise — including striving for rate transparency with partners so they can have visibility to market comparisons and margins. Whether we continue in a deflationary market for a period, or find ourselves in inflationary conditions again, shippers can ensure no shift takes their business by surprise.

Learn More About Freight Rates in 2023 here.

The post 4 Levers Shippers Can Pull to Master a Deflationary Market appeared first on Uber Freight.

Transplace manages more than 800,000 shipments into major retailers each year for iconic brands like Del Monte, Nestlé Waters, Kellogg’s, McCormick and Mars.

With a centralized group focused solely on OTIF excellence, our team of retail logistics experts has deep experience in the OTIF program and the appointment scheduling process to help shippers avoid incurring a 3% fine for noncompliance. Based on our long-term relationships with CPGs and hyper-care, white glove approach, we can anticipate issues and offer solutions to avoid schedule slowdowns, lower overall cost-to-serve and dramatically improve on-time service.

Below we share three key drivers for achieving OTIF excellence with Transplace’s advanced logistics technology and services.

1. Harness the power of a cloud-based transportation management system (TMS)

With fluctuating capacity and more demanding delivery service times, accurate visibility is required to mitigate risks and maintain schedules.

Transplace’s TMS and Global Control Tower offer complete visibility, as well as risk prediction analytics. Shippers can track and trace in real time where their shipments are and optimize route plans. With automated delivery appointments and scheduling, Transplace customers gain greater control of the logistics process.

In addition, our team of CPG and retail supply chain experts create proactive reports for loads scheduled to deliver late, as well as the Carrier Update Compliance report, which identifies leading indicators of service failures.

We use a root cause analysis data tracking system to identify common points of failure. The system spots trends and takes corrective action. After reviewing lead time, live vs. drop, asset vs. broker, delivery appointment times and more, shippers are armed with significant data to make necessary improvements.

2. Take advantage of industry-wide analytics and best practices

Transplace distributes a weekly supplier performance OTIF benchmarking report that is open to all CPG shippers and all participants are anonymously compared to other shippers in the program. With extensive data from our TMS, the benchmark report identifies trends and opens opportunities for shippers to share best practices.

3. Collaborate with your partners

The Transplace team makes recommendations that improve shipper-carrier-retailer relationships. Leveraging more than $11 billion of freight under management allows us to look for carriers that may be a better fit for a CPG’s specifications. Transplace’s Network Services provides significant advancements in multi-shipper collaborations, improved capacity and cost management. Shippers can be matched to the carriers and routes that will best improve delivery times. In addition, TNS optimizes shipments while minimizing deadhead and wasted miles.

Transplace’s commitment to hyper-care elevates collaboration, trust and continuous improvement for OTIF performance.

Download our OTIF Excellence infographic

Learn more about Transplace’s OTIF excellence program and weekly supplier performance benchmarking report here.

The post Three Key Drivers for OTIF Excellence appeared first on Uber Freight.

As consumers embrace ecommerce shopping, supply chain and logistics leaders have a renewed focus on last-mile delivery strategies. Before the pandemic, Frost & Sullivan estimated that global logistics spending would grow beyond $10.6 trillion annually by 2020, with last-mile distribution accounting for an estimated $3 trillion of that spend.

The COVID-19 stay-at-home response created an unexpected surge in consumer demand and expectations. Retailers are scrambling to compete for a smoother delivery experience including faster fulfillment, transparency and cost reduction.

When deliveries fail to reach the intended recipient on the first attempt, there are increased costs and decreased customer satisfaction. Stepping up to meet these challenges, parcel delivery startups, commercial fleets and ride-share companies are turning to technology partners to help build in visibility and efficiency. For many retailers, this means managing a complex mix of 3PLs, fleets, crowd-sourced and other delivery models to serve their customers.

With Uber Freight’s acquisition of ScanData and integration of their Parcel Transportation Management Solution (PTMS) with Uber Freight’s industry leading TMS, shippers and logistics leaders can reduce the complexity and disruptions of last-mile delivery.

Last-Mile Delivery Challenges

When a consumer order is placed, the parcel might go through many stages of production and warehousing before being distributed and delivered to hundreds or thousands of individual addresses, each with its own route.

While the last mile continues to evolve to meet industry trends and consumer demands, it is the most inefficient stage in the supply chain. Next-day and same-day delivery, at a reasonable cost, expectations by customers is on the rise.  In response, logistics leaders are getting creative to deliver transparently, quickly, and, with continued concerns for safety, touchless.

The COVID-19 shutdown strained supply chains as shippers attempted to forecast demand, meet demand despite manufacturing delays, manage inventory levels and make the switch to no-contact deliveries. Even prior to the pandemic, delivery drivers faced traffic and often struggled to locate, gain access to or park near delivery addresses. A study in the Seattle area, for example, found that looking for tenant locations accounted for 61% of overall delivery time.

The inability to deliver a single parcel the first time can offset the gains of many efficiently planned deliveries. Reducing failed delivery attempts and creating a more efficient last-mile delivery strategy can cut logistics costs, improve customer satisfaction and increase brand loyalty.

Last-Mile Delivery Strategies with Uber Freight and ScanData

A technology-driven last-mile delivery solution for shippers will be flexible, data-driven and focused on the customer experience. An effective last-mile delivery strategy includes the means to:

• Identify existing gaps and optimize the operational workflow
• Form strategic alliances with other shippers to expand the reach of networks and utilization of unused capacity
• Re-route shipments as needed, such as Alternate Delivery Locations, where customers can pick up their deliveries faster from other designated locations

Uber Freight and ScanData are implementing this strategy through the integration of Uber Freight’s industry-leading TMS and ScanData’s powerful PTMS. With this integration, the last mile is optimized, and operational efficiency is improved through:

Increased Supply Chain Visibility and Route Optimization

With Uber Freight’s real-time supply chain visibility and ScanData’s service disruption handling, shippers gain access to a comprehensive, graphical view of all shipments, dynamic dashboards of key performance indicators and predictive analysis. These include weather, traffic and other shipping restrictions such as COVID-19 location impact. Drive time and mileage can be reduced as artificial intelligence and machine learning further improve routes.

Carrier Flexibility and Expanded Supply Chain

To aid in managing complex multi-modal options, ScanData’s integration expands carrier relationships to include Uber Freight’s more than $11 billion in freight-under-management. Multi-carrier rate shopping and zone skipping allows shippers to have consolidation options to optimize fulfillment of customer orders.

Reporting and Analytics

Analytics drive down costs and isolate cost-impacting factors across shipments. With an actionable Business Intelligence dashboard, active performance monitoring, historical and custom reports, the total cost of last mile delivery logistics is reduced as waste is removed from the network.

Reduce Last-Mile Delivery Disruptions and Improve Customer Experience

The increased adoption of PTMS technology reduces last-mile delivery disruptions and improves customer experience. ScanData’s shipping status, alerts and tracking, as an example, meet customer demand for increased visibility of their orders. With supply chain transparency, shippers and retailers can more easily manage their expanding options for last-mile delivery and build trust and loyalty with customers through an enhanced delivery experience.

Has your last-mile delivery strategy been affected by COVID-19?

The post How Uber Freight’s Acquisition of ScanData Relieves Last-Mile Delivery Disruptions appeared first on Uber Freight.

Years of fundraising, investments, and improving the product led to opportunities to showcase Lanehub’s cloud-based collaborative solution to the logistics community, such as their demonstration at FreightWaves’ Transparency18 event in 2018.

In early 2020, Transplace acquired Lanehub, a cloud-based platform and community that encourages shipper-carrier collaboration by automatically identifying and connecting companies with complementary freight lanes to help shippers save on shipping expenses. The transportation community provides its members with opportunities to collaboratively source reliable, contracted capacity on recurring, consistent lanes at a sustainable lower cost from carriers and private/dedicated fleets by matching headhauls and backhauls.

Lanehub Integration with Transplace TMS

The Lanehub acquisition bolstered Transplace’s Network Services for its customers by providing the technology to deploy Planned Continuous Moves. Transplace’s transportation network is used to identify and execute continuous move shipments, increasing truck utilization and reducing transportation costs. The integration with Lanehub added automation and enhancements to the solution and the Lanehub collaborative network expanded opportunities for the combined shipper community. Customers within the combined networks have the ability to lock in competitive rates, reduce inefficiency, and maintain carrier capacity.

Solving Capacity Issues through Collaboration

Under-utilized capacity and empty miles result in added costs and inefficiencies for shippers and carriers. With the ubiquitous adoption of technology across the industry, Lanehub  identifies synergies faster and easier so collaborative efforts are ongoing.

Carriers need relationships with shippers along freight lanes or those using the same lanes to reduce empty miles. Shippers, on the other hand, are subject to changing freight rates of carriers, sending out annual RFPs in search of better deals, and losing out on potential cost savings by building relationships with carriers.

Lanehub solved these challenges by creating a Planned Continuous Moves matching system for carriers and shippers. Through Lanehub’s technology, complementary recurring shipping lanes are identified and those in its transportation network are matched and invited to connect with each other.  Shippers can connect with carriers or other shippers to maximize truckload capacity, build synergistic, long-term partnerships, and reduce costs.

Lanehub’s collaboration network includes over 150 shippers, 250 carriers, and 180,000 freight lanes.

Learn More about Freight Lane Matching and Collaboration with Mark Hackl

Taking Collaboration to the Next Level

The strategic acquisition of Lanehub has made collaboration simple, transparent, and efficient for Transplace’s more than $9 billion of freight-under-management. To date, Lanehub’s technology has provided 26 million matches within its customer network. With Transplace’s Transportation Management System (TMS) and advanced logistics technology platform combined with Lanehub’s technology, millions more Planned Continuous Moves through freight lane pairings are possible, reducing miles of waste in logistics and supply chains.

Transplace also created a team to assist Lanehub shippers with executing identified and agreed upon Planned Continuous Move opportunities. The team is working as an intermediary for management, tendering, and freight payment activities between shippers, particularly with identified opportunities for private and dedicated fleets.

The integration provides Lanehub with Transplace’s broad range of logistics services and technology, global trade management, and strategic capacity solutions. Transplace optimizes capabilities for Lanehub’s customers, including greater efficiencies, more cost savings, and outstanding customer service.

With the acquisition and integration, both company’s customers gained access to the most advanced transportation technologies, increasing competitive advantage in the marketplace. Customers also have more opportunities to connect and convert traditional one-way moves into more collaborative round trips, improving fleet revenue while significantly reducing empty miles and poor asset utilization.

How can Lanehub and Transplace save you money? Contact your Transplace account team to learn more!

The post Increasing Shipper-Carrier Collaboration with Transplace’s Planned Continuous Moves Lanehub Platform appeared first on Uber Freight.

We recently announced real-time visibility for truckload as a standard capability, without any extra transaction or integration fees, for all of our managed transportation services and Transportation Management System (TMS) customers. We are thrilled to be the first to provide real-time visibility as a standard within a TMS solution as part of our commitment to deliver an unprecedented level of service and value to our customers.

We also want to raise the expectations within the logistics industry itself. We believe real-time visibility should be an industry standard and a fundamental part of transportation management.

What Can You Expect from Real-Time Visibility?

To deliver this service, we will be leveraging Descartes MacroPoint as our real-time visibility partner. Seamless incorporation of Descartes MacroPoint into our TMS and managed services solutions will enable us to deliver consistent and reliable real-time shipment tracking for hundreds of thousands of carriers. In addition, we will be placing an enterprise level real-time control tower within reach for shippers of all sizes and scale.

The integration of real-time visibility extends our ongoing efforts to apply the benefits of machine learning and data science to help shippers take a more predictive and proactive approach to supply chain management. Real-time visibility combined with our existing predictive risk analytics capabilities will enhance service predictions and enable us and our customers to more proactively manage potential supply chain disruptions.

The Benefits for our Customers

Including real-time visibility as a capability for our entire logistics services and technology offering delivers significant benefits to customers, including:

• Access to best-in-class, real-time visibility. With this new offering, we will be able to provide current and future customers with unprecedented coverage and drive new consistency and efficiency in their track and trace execution.
• Automatic real-time visibility from a single vendor. By building Descartes MacroPoint into our TMS and managed services solutions, customers no longer have to purchase a real-time visibility solution from another vendor.
• Greater supply chain visibility and efficiency. Customers will now be able to view a large percentage of their freight with greater efficiency and coverage at a lesser overall cost, resulting in superior differentiation and immediate return on investment.

Implementation and the Future

We will begin to roll out the solution for truckload shipments in the U.S. and Canada by January 2020 and will expand the offering to Mexico and other geographies, as well as other modes in the future as part of our vision to deliver superior, full, end-to-end real-time global visibility as standard practice. There is much more to come!

Learn more about freight tracking. 

The post Introducing Real-Time Visibility: A Standard for All of Our Customers appeared first on Uber Freight.

By: Frank McGuigan, Chief Executive Officer, Transplace

As many of you may already know, we recently announced that Tom Sanderson has transitioned to the role of executive chairman and will serve on Transplace’s board of directors, and that I have moved into the role of CEO. I am honored and excited to have the opportunity to continue as a leader of our company and build upon the rich heritage that has made Transplace a dominating player in transportation management and 3PL services.

Having had the opportunity to lead Transplace’s North American sales and operations for the last several years, along with the opportunity to work alongside Tom, this is a natural transition for us as a company. I want you to be confident that throughout this change, no matter what, our mission and core values will continue to be the standard in which we will all strive.

Over the past eight years, Transplace has experienced record growth and made significant investments in its people and technology. We’ve also expanded our geographic presence in the U.S., Mexico and Canada – allowing us to better provide exceptional logistics and trade compliance services to our growing customer base throughout North America. These investments and our ongoing commitment to supply chain excellence will enable us to deliver even greater value to our customers.

This legacy of success has as much to do with the dedicated people handling day-to-day operations, in all functions across North America, as it does the executive team. We are where we are as a company, because of our outstanding people and their commitment to providing outstanding service to our customers every single day. Our customers can rest easy knowing that the people who truly make Transplace what it is are all still in place and will continue to deliver the exceptional service that they have come to expect.

Ongoing, we will work together as one Transplace and as a cohesive, purposeful team, with an extreme focus on our customers, our people and our shareholders. We will challenge ourselves to improve in all facets of our business through metrics, measurements and our continuous improvement tools, so that we can add value each and every day to both our business and that of our customers. We will strive to anticipate and act upon problems before they happen, leveraging the collective information and expertise across the entire enterprise for a truly differentiated customer experience.

I am excited and honored to further support our mission to thrill our customers, and the entire Transplace team will continue to work toward delivering innovative logistics solutions and outstanding service today and into the future.

The post Letter from the CEO: Executive Team Changes, Future Success and Putting the Customer First appeared first on Uber Freight.

By: Frank McGuigan, President & Chief Operating Officer, Transplace

No one can argue that the rise of ecommerce and omni-channel fulfillment has dramatically impacted the supply chain in recent years. Once consumers were shown what was possible in the world of online retailing and home delivery, their behavior – and expectations – began to change. This shift forced retailers to change how they did business, worked with suppliers and served their customers. Now consumers can compare products from multiple manufacturers and/or retailers in order to find best product at the best price – all from the comfort of their own home – and then have it delivered within days or even hours.

While this trend isn’t new, retailers and manufacturers are still evolving their supply chains to keep pace with customer demand and gain a competitive advantage. So where is the industry heading? All signs point to the rise of direct to consumer (DTC) shipping.

The Rise of DTC

Increased focus on ecommerce, along with trying to compete with the likes of Amazon and Wayfair, has created intense market competition in retail. Retailers responded by increasing the spectrum of product (and value-added services) available to consumers, and faster delivery speeds. This caused retailers to place even greater demands on their suppliers, and increasing pressure on the supply chain.

Manufacturers and CPG companies have found new, improved ways to optimize their networks and evolve their supply chains to meet the rising demands of their retail customers. And for some, the evolution didn’t stop there. Today, more and more manufacturers and CPG companies are looking to sell direct to consumers instead of only going through retailers or resellers, as they have traditionally done.

DTC isn’t new. For years, consumers have had bottles of water or dog food delivered each month to their homes. What’s evolving is that consumers are going further down the SKU stream to have more shipped to their houses – both regularly and on-demand. And the development of new channels in recent years make the opportunity for DTC even greater than ever.

The question is: how will this impact retailers and manufacturers?

Transforming the Retail Supply Chain

IDC Manufacturing Insights predicts that “by the end of 2020, 50% of all manufacturing supply chains will have the capability to enable direct-to-consumption shipments and home delivery.” ¹ While the true extent to which DTC will be adopted is still unclear, what is clear is that retailers and manufacturers will both need to continue to evolve.

Consumer purchases made direct from manufacturers will be syphoned off of the normal retail supply chain channel, creating the need for a new delivery channel to replace the necessary infrastructure previously provided by retailers. Manufacturers and CPG companies looking to employ (and scale) DTC will have to start thinking about inventory holding locations that can service customers directly without a retailer (and its network) or find another channel to ultimately service that end user, such as Amazon or Wayfair. Additionally, companies will have to take the order management and customer service component into consideration, as companies that have traditionally sent large shipments to retailer customers will evolve to take on sending smaller packages to individual consumers.

The rise of DTC will transform the retail supply chain, so just as retailers made changes in response to the rise of ecommerce, they will need to explore strategies to adapt to changing supplier behavior. For some, this could be opening up new channels using their established network or remodeling their stores to enhance the customer experience and encourage foot traffic.

Consumers Are Driving Changes to the Supply Chain

The “Amazon effect” is real, and it’s being driven by consumers. From books and clothes to groceries and refrigerators, almost anything can (and is) being ordered online. And we’ve likely only scratched the surface of what’s possible.

DTC has just begun to pick up steam, so we haven’t found the bottom yet, but we’re starting to see some definition. We can expect delivery speeds to become faster, a greater number of products will become available and white glove services offered, but I also anticipate that within the next 3-5 years we’ll start to find clearer lines of engagement on what is “ecommerce” versus “retail.” For example, will there be continued widespread adoption of online purchases of groceries, or will people still be willing to go to a brick-and-mortar store in order to see and feel their food before buying it?

In the meantime, the market will continue shifting and building its supply chains to better support new channels and find new ways to service customers. While not every manufacturer is built to support DTC and will continue to only go through a retailer or reseller, it’s clear that companies are exploring every option and thinking long-term. And even those companies that don’t sell directly to consumers will still need to refine (or completely transform) their supply operations to meet changing demands of their retail customers and, ultimately, the end consumer.

Supporting a multi-channel delivery model requires an agile supply chain and exceptional supply chain planning and execution processes and technology to make it work. It also requires comprehensive connectivity with all business partners – from suppliers to manufacturers and distributors, retailers, transportation companies and delivery fleets. As manufacturers and retailers evolve their supply chains to address changing customer demands, it’s critical for them to make sure they have the proper processes, technology and logistics partners to deliver the velocity, visibility, predictability and control they need.

¹http://www.supplychainquarterly.com/news/20161223-going-direct-manufacturers-set-their-sights-on-direct-to-consumer-delivery/

The post The Evolution of the Direct-to-Consumer Supply Chain appeared first on Uber Freight.