January 2020 continued to ring in historic numbers for freight volumes and tender rejections. Volume was recorded at 40% greater year-over-year, and average tender rejection remained above 20%. To provide context, January rejects were 3X higher than 2020, and 4X higher than 2019. “Carriers are waiting to see if something better comes up, slowing down the process and increasing the cost,” said Mike Edwards, Sleek Technologies VP Sales. “Some shippers are struggling to move goods because contracted carriers are only accepting 50%-60%”.
So when your primary, secondary and tertiary carriers reject, what do you do? This is about when you get the call from ops telling you goods need to move at any cost to avoid bottlenecks. Or even worse, you get a call from customer success saying a sales order has arrived late and now a tier one customer is hot! So at this point you must turn to brokers and deal with the nagging headaches of unresponsiveness, rate hikes, and/or poor service. Unfortunately, you’re at a major disadvantage because there are no other options. As other processes within the supply chain have evolved, the systematic process of procuring freight hasn’t changed for decades. Until now!
Shippers are achieving 95.5% OTD, and generating savings up to 20% with Sleek Technologies OTS solution, even during extreme market volatility. Sleek has reinvented freight procurement, turning it from static to dynamic. OTS software dynamically opens a large universe of asset-based truckload capacity, and empowers shippers to avoid costly, non-transparent brokers.
So if your primary carriers are passing on loads, and you’re relying more and more on brokers, you really need to evaluate your freight procurement process. “The old, traditional way to procure freight is no longer optimal”, said Jaimie Kowalski, Sleek Technologies VP Marketing. “It wasn’t set up to manage today’s market volatility, so shippers need to find new improved ways to source freight.” To learn more, join our live webinar, on 3/9/21, featuring supply chain experts from 101 Solutions as we discuss how freight capacity impacts the supply chain. We’ll also explain how OTS software is helping shippers overcome new challenges.
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