Biden Infrastructure Spending in 2022: What To Expect In Freight Procurement & Logistics

2021 was a big year for American infrastructure and after months of wrangling, Congress passed a massive $1 trillion Biden infrastructure bill. Now, with everything signed off, businesses and government organizations across the board are keeping their eyes peeled as the rubber meets the road and spending begins to roll out in 2022. This certainly includes freight procurement teams at manufacturers, retailers, and distributors across the US. This historic legislation will aim to provide massive facelifts across the nation’s infrastructure, with spending earmarked for everything from growing high-speed internet access to upgrading roads and bridges. And with many of these upgrades set to impact the supply chain in one way or the other, transportation insiders-- like Sleek Technologies-- are rightly paying close attention as projects unfold in the coming months. Here are a few things shippers should keep in mind in the short, medium, and long term. Construction Means Delays Construction is arguably the biggest term associated with any infrastructure bill. And fortunately in the short and medium-term that can only mean one thing: delays. Therefore, to cope with road disruptions, which can greatly impact on-time delivery (OTD), shippers will need to plan ahead by understanding if planned road construction will infiltrate routing guides. Shippers may also need to invest in advanced technology which will help forecast and adapt to real-time disruptions. Tech Grid Investment Enables Efficiency  Investments in grid enhancements will enable shippers to adopt more sophisticated technology. This means that shippers who have been slow to adopt advanced freight procurement technologies could be left behind by companies that have a progressive approach to innovation. Thus, it is important for shippers to...

Building an Actionable Data Foundation

With freight procurement undergoing a major digital transformation as a result of the COVID-19 pandemic, data innovation is going to be a big priority for the freight procurement industry this year. But before shippers can undertake their desired data overhaul they need to make sure that they have the proper infrastructure in place-- something which is easier said than done. Here are a few tips that shippers need to make sure they have in place in order to build successful data operations. Shift to the Cloud Thanks to its scalability and flexibility, the cloud has become an indispensable tool for business intelligence today. Thus, if shippers are going to hit the ground running and adopt sophisticated tools, they have to break away from on-premise and adopt a cloud infrastructure that enables them to build the agile data analysis engine they need. Integrate AI The freight procurement space is becoming more real-time each day, especially since the freight market continues to move fast. And to be able to make the best decisions possible, shippers need access to actionable data in real-time. Enter AI. Through AI, businesses can gain access to the immediate insights they need and eliminate massive amounts of wasted time that is associated with manual analysis. Rethink Top-Level Strategy It’s not just about what technologies shippers adopt, but also about how decisions are made. Shippers are now able to get a 360-degree view of their truckload operations, so they must embrace a more comprehensive style of decision-making. Siloing off different departments such as transportation is harmful because it doesn’t allow companies to get a comprehensive sense of their overall strategy....

PROCUREMENT’S TECHNOLOGY REVAMP JOURNEY

The freight procurement industry has been notorious for its habit of being slow to adopt new technology. But with the COVID-19 pandemic upending things, those in freight procurement have taken a more progressive stance in terms of technological experimentation and adoption. But what is underpinning this “technology revolution” and what are some of the attitudes within the industry that will help shape the space in 2022? AI and Automation  AI is completely changing the way shippers approach procurement. In fact, we recently uncovered that 97% of shippers said that automating a static freight procurement process has become a priority for their company, with nearly 70% specifying that it was a high priority. And if this mindset continues, don’t be surprised to see static freight tender processes-- that transportation teams have relied on for decades-- replaced with AI-driven automation technology that uncovers resilience, sustainability, and cost reduction opportunities for shippers. Real-Time Insights Even with this “technology revolution,” a surprising amount of companies still don’t have access to real-time data. 26% of shippers admit to not using it. Instead, they rely on market averages from DAT and Freightwaves, or historical data, to make important freight procurement decisions. As the world speeds up, shippers have become increasingly aware of the need to get real-time data if they are going to uncover better value and performance. Thus, sophisticated technology that uncovers actionable, real-time data and insights has gone from a “nice to have” to an “absolutely must-have.” Want more insights? Check out our 2022 State of Freight Procurement Report.