Why I Left Freight Brokerage for Tech Start-Up!
Working as a successful freight broker, for over a decade, most of my days were spent wheeling and dealing over the phone or via email finding trucks to haul loads. My compensation was based on how much spread or margin I negotiated per load. The truth is, to be successful, most brokers focus on moving loads with the biggest margin. Oftentimes, different customers ship loads using the same lane multiple times per day. For example, many customers use Chicago to Memphis. Customer A is locked in at $2,000, while Customer B locks in at $1,000. As a broker, I know that carriers would accept Chicago to Memphis for $900. Therefore, my attention, like most brokers, would be focused on matching a carrier to Customer A’s load, which means more profit for my brokerage, and my own pocket! Customer A: pays $2,000 and carrier charges $900= $1,100 spread Customer B: pays $1,000; carrier charges $900= $100 spread Unfortunately, neither customer A nor B knows what the market demands which means they are either overpaying to haul the freight or in some cases under paying to haul freight which usually leads to horrible service levels. Without data transparency, shippers never know the true market cost or what carriers demand to haul loads. And this is exactly what brokers want to happen to remain profitable. Re-Inventing Freight Procurement But as supply chains began to embrace technological advancements, specifically AI and automation, I realized that machine learning could find, vet, and transact with carriers much faster than I ever could. That’s when it finally occurred to me that I could soon be out of...
How Has Technology Modernized Trucking?
We live in a world of fast-paced technological advancements, which have fundamentally shifted the way things are done. Most companies have embraced technology to streamline critical processes to help reduce COGs. For workers, technology has helped make job duties faster and easier to perform. Due to the increased level of disruption, innovation has had a significant imprint on the supply chain. The trucking industry has seen many recent advancements which have provided benefits for trucking companies, truck drivers, and shippers. Let's dive a little deeper. Improved safety: advanced safety features such as lane departure warnings, collision avoidance systems, and electronic stability control have reduced trucking accidents. Better Customer Service: GPS and telematics systems track trucks in real-time so everyone knows the exact location and status of trucks leading to improved efficiency, reduced downtime, and better customer service. More loads: AI-powered software dynamically matches shipper loads with compliant carriers who are notified via mobile app. With freight brokers eliminated, carriers bid directly on loads resulting in more money in the carrier’s pocket. Increased efficiency: ELDs have replaced paper logs, making it easier for drivers to comply with hours-of-service regulations. ELDs also provide more accurate data on driver behavior and performance, helping companies to improve safety and efficiency. Stronger Decision Making: collecting and analyzing data means stronger decisions related to operations, including driver behavior, fuel usage, and maintenance records to improve efficiency, reduce costs, and enhance safety. Greater connectivity: Wi-Fi allows drivers to communicate with families and colleagues and access important info while on the road. So no matter what company you work for, or what job you perform, chances are you...
Chances are your supply chain already supports DEI and you don’t even know it!
Although CSCO’s continue to deal with unprecedented disruption, many remain committed to diversity, equity, and inclusion [DEI] initiatives. In other words, prioritized efforts to make a more welcoming environment for employees, suppliers, and customers. The 2022 Gartner and Association for Supply Chain Management (ASCM) DEI survey found that 93% of the largest, global supply chain organizations have DEI goals, with a strong intent to support women and underrepresented races and ethnicities. Smaller to med-size shippers may not realize that their supply chain, specifically their transportation management efforts, may already support DEI. Big corporations include supplier or vendor diversity as part of their broader DEI efforts. A diverse supplier is a business that is at least 51% owned and operated by an individual or group that is underrepresented or underserved, such as small-business enterprises (SBEs), minority-owned enterprises (MBEs), woman-owned enterprises (WBEs), LGBQT, veterans, and proprietors with disabilities. Forward-thinking shippers have made a conscious effort to provide these diverse business partners equal opportunities within their supply chain. Why Supplier/Vendor Diversity Is Important "Aside from moral and ethical considerations, there are several benefits to launching supplier diversity programs," said Jaimie Kowalski, VP of Sleek Marketing. "An inclusive freight procurement strategy broadens the pool of carrier suppliers which promotes healthy competition, improving on-time delivery, and reducing transportation cost." When supply chains have more sourcing options, they become more resilient and agile which is a must in today’s uncertain times. One Tip To Uncover DEI Within Your Supply Chain If you are a manufacturer, retailer or distribution center you probably use carriers to haul freight. And if you use small to medium-sized carriers [with less...