I ask this question to shippers a lot, and when I say a lot, I mean A LOT. The top five answers are on the board:
Transportation costs continue to rise making it difficult for shippers to effectively manage their transportation budgets. Did you know that the top 3 transportation metrics are related to carrier cost? They are: freight cost per unit shipped, outbound freight cost as a percentage of net sales, and inbound freight cost as a percentage of purchases. These carrier costs play a crucial role in total transportation spend. One of the quickest ways to reduce transportation spend is to select the most cost-efficient carriers.
Once again, supply and demand have impacted truckload rates. Simply put, there are not enough drivers on the road to move US goods to designated destinations. The carrier shortage has been fueled by COVID, and new drug and alcohol testing protocols, leading to a capacity crunch. Capacity is the tightest it has been since 2018. Truckload pricing continues to grow, and some analysts believe shippers will experience rate hikes as high as fifteen percent in 2021. In order to attract more drivers, increased wages will be needed which will fuel higher truckload pricing.
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
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!
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.”
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.
Overview
Sleek Technologies launched Sleek Match Engine back in October 2019 with a goal to simplify logistics by automatically matching drivers to loads. Match Engine, a proprietary machine-learning engine, leverages predictive algorithms, smart business rules, and a system of measures to gauge the likelihood of a specific driver to have an interest in a particular load. Match Engine overlays multiple internal and external data sources to find the perfect driver, which provides much-needed capacity, above average service levels, and shipper savings for our customers.
Over 3.5 million men and women haul goods across America. These professional truck drivers have extremely demanding jobs, which feed directly into the health of our economy. They drive both night and day to ensure goods arrive safely and on time. Sometimes they leave thier loved ones behind for multiple days at a time. Without these truck drivers, local commmunities across the nation would not receive the products they want and need!
Have you heard about Sleek OTS Plugin? Sleek OTS Plugin was designed to help our shipper customers navigate market fluctuation. OTS, Optimal Truckload Spend, places capacity, and freight cost control, in the hands of shippers. To learn more about OTS, read The Executive’s Guide to OTS, click here.