How to Find Trucking Capacity in Tight Market & Reduce Freight Costs

Co-op blog with our partners @MercuryGate As seasonality and disruption continue to redefine the capacity crisis, more companies turn to new technology, including digital freight matching, to streamline operations. Automation is rapidly becoming the cornerstone of technology-powered trucking capacity sourcing strategies. Shippers and l ogistics service providers (LSPs) need to know a few things about how connected systems can help reduce truckload freight costs and secure capacity in a tight market. 1. Users Realize Complete Cost Control The need to maintain control over freight management has never been more critical. Shippers and brokers need more certainty around cost control during times of disruption. In recent months, spot rates averaged 20-30% higher than in 2019. And market volatility continues. Thus, the only way to maintain productivity is to see and reduce all truck costs across all lanes and markets. Since carriers bid directly on loads, using dynamic rulesets to determine when to accept the bid, the process becomes autonomous and reduces costs. 2. Eliminating The Middleman Keeps Overhead In Check Another aspect of technology-driven benefits comes from using systems that eliminate the middleman or broker from the equation. Remember that even larger brokers may work with other brokers to source capacity. As more people get involved, profitability per load declines. Also, letting the system do the heavy lifting of finding and sourcing capacity further eliminates hidden margins that add to total truckload costs. It’s a win-win for both the shipper and the customer. 3. Dynamic, Carrier-Set Pricing Ensures Competitive Pricing In freight management, particularly sourcing trucking capacity, finding the best way forward means managing the balance of rates. But the rates for...

Bringing the 3 T’s Back Together: Transportation, Transparency & Trust

Seems there has always been a small undertone of mistrust within transportation and logistics. The year 2020, along with all of its challenges and uncertainty, has lifted trust to the foreground. For example, carriers have accused brokers-- whom they use to find and book loads-- of price gouging. Carriers are rejecting 1-4 loads nationally, disrupting contracted freight leaving many shippers wondering if long-term relationships are even worthwhile. Seems the days of accepting someone’s word is no longer enough. So what can be done to help close the gap, and build back trust? One important word comes to mind.... drum roll, please.... transparency! White Elephants  Simply put, the white elephant between carriers and brokers is the hidden spread the broker makes per load, which is not shared with the carrier, nor the shipper. In tight markets, a broker can generate spreads as high as 30%. Carriers are often left wondering if brokers are shaving too much off the top. One of the white elephants between shippers and carriers is understanding the true market cost to move a load. Brokers do not share the rate breakdown because they do not want the shipper to know how much they make. Another white elephant between shippers and contacted carriers is when acceptance rates begin to slide. When acceptance declines, the carrier could be taking advantage of rate hikes and shifting capacity from lower-priced contracted lanes to higher-priced “spot” lanes to accelerate revenue. Building Trust with Software "Market research shows that trust is a major pain point amongst transportation professionals," said Jaimie Kowalski Sleek Technologies VP Marketing. "Our flagship software, Optimal Transportation Spend (OTS), closes these gaps...

Disruptions Force Shippers to Evaluate How They Secure TL Services

2020 has undoubtedly added disruption to the supply chain. Shippers across the US are scrambling to overcome the unexpected swing in truckload capacity and pricing. The traditional way of procuring freight transportation, through static annual contracts, is no longer best practice especially with market unknowns looming in the backdrop. “Shippers are struggling today. Contracted carriers are not meeting commitments because inked deals are no longer attractive,” said Mike Nervick, Sleek Technologies CEO. “The industry has seen an increase in carriers breaking contracts.” According to a recent joc.com article, titled Shippers Rethinking Annual Trucking Procurement Cycles, in order for shippers to avoid costly rate hikes in annual contracts, they must conduct multiple mini-bids throughout the year. The idea of updating freight pricing more frequently makes sense, but managing multiple bids, even little ones, is manual, tedious, and a ton of work. There has to be a better way. Well, guess what? There is. What if we told you there was a new software solution that feeds directly into a shipper’s TMS, where freight rates are dynamically set “on-the-fly” by the carrier? Rates are not locked into a static contract or devised by some margin-hungry middleman. Let’s say that again… rates are dynamically set “on-the-fly” by the carrier based on the availability of over a million owner operators, and current supply and demand! Total game-changer, right? Right. Here’s how the software, named OTS, works. When a shipper seeks capacity but wants to maintain cost control, they set the desired lane rate. The load is added into OTS where carriers have direct access to bid. If a bid strikes at, or below, the desired lane rate the...

Edge 2020 Cliff Notes

Last week, the Council of Supply Chain Management Professionals (CSCMP) had their annual EDGE conference/ exhibit. Like many industry events, the conference was held in a virtual format. Our very own Dean Corbolotti, Sleek Technologies Operations Leader, attended CSCMP. Here are Dean’s cliff notes for those who missed the event. We all know, virtual conferences just don’t compare to the real thing. There’s nothing like meeting with peers and feeling the energy and excitement surrounding everything supply chain. According to Corbolotti, “CSCMP did an amazing job. Edge 2020 still offered many high-quality guest speakers, multiple educational tracks, and networking opportunities.” As one would expect, content swirled around the current pandemic and its massive impact on all things supply chain. Sessions focused on how the pandemic has forced shippers, both retail and manufacturing, to focus internally on process improvements to drive out waste. “The use of data and technology was a common theme throughout most educational tracks,” said Corbolotti. Another popular topic was how the pandemic has forced corporate America to work from home. Remote staff is something that many companies have shied away from in the past under the assumption that lack of on-site leadership, and accountability, would lead to productivity losses. Attendees believe companies who have remained productive will now consider remote staffing plans because of the high operating costs associated with leases/mortgages, office equipment, security, etc. Another topic was how companies are investing in different technologies, such as video conferencing and instant messaging, to help keep the lines of communication open amongst teams and customers as people work from home. "Sleek Technologies is a 100% remote company. It's...