NEWS: Sleek Technologies (OTS) named finalist in 2021 SaaS Awards (Best SaaS product for Shipping). 
As the technology revolution has taken hold, AI and data science have become indispensable tools for freight procurement and logistics management businesses when it comes to boosting their efficiency and revenue. Yet, while many “old school” procurement and logistics processes have been overhauled using modern computing tools, one process continues to be stuck in yesteryear: freight tendering!
Much like in many business verticals, understanding supply and demand in logistics is pivotal to making sound, profitable decisions. Unfortunately, thanks to the data gaps and other hurdles that exist in the logistics space today, understanding supply and demand in freight procurement is incredibly tough to nail down. But this doesn’t have to be the case. Here are a few ways to crack the supply and demand code:
Although data continues to help proliferate the supply chain, making companies more agile and boosting revenue, there’s one critical area that has lagged behind: logistics. Shippers use data to measure when products are picked up and dropped off and where a shipment is along a given route. But this data only tells half the story, which means logistics managers are missing key insights in order to drive efficiency across freight procurement operations.
Freight procurement and logistics professionals are increasingly relying on data to drive their business decisions today. However, given these spaces are traditionally slow-moving when it comes to adopting technology, organizations within these fields find themselves at varying levels of maturity when assessing their data infrastructure. Yet, whether you are a company that is already well-versed in integrating data into business intelligence decisions or a company just starting to get a data infrastructure in place, data interchange is one of the foremost data-related challenges throughout freight procurement and the broader logistics space. Luckily, however, advanced computing such as artificial intelligence (AI) and machine learning (ML), along with other sophisticated data science tools, are helping shippers become much more agile.
The impact that cost of goods sold (COGS) has on a company’s bottom line cannot be understated. Yet, for all of the attention that businesses dedicate to traditional COGS elements such as manufacturing, materials, and labor costs, one key area is constantly overlooked when it comes to COGS planning, strategy, and execution -- transportation.
Have you ever experienced a diagonal or horizontal crack in your home’s foundation? If so, you know leaving these cracks unattended will lead to bigger problems and costly repairs. If a shipper's freight procurement process is static and stymied by lack of capacity, then the shipper has cracks in its foundation too. Unfortunately, if left unattended, the shipper runs the risk of:
The freight market continues to carve out new records, and last week is no exception. Tender rejections remained above 25%, which is no surprise because it’s been there for months. And reefer is even higher at 50% rejection. All that said, the big surprise is that DAT reported contract rates ($2.76 per mile) higher than spot ($2.62 per mile).
AI (artificial intelligence) is one of the hottest topics in technology circles today. And although AI may be generating a ton of headlines in verticals such as retail, healthcare, and consumer tech, it is also playing a huge role in reshaping transportation and logistics.
If you’re a food, beverage, cosmetics or pharma manufacturer, and require temperature controls, chances are you’re struggling to move freight. Reefer tender rejection continues to hover around 50%, up from 10% this same time last year. Think about this for a moment… 50% rejection means one out of every two tendered reefer loads are passed on. To complicate matters, produce season is right around the corner so chances are the situation will get worse before it gets better.
Originally posted on FreightWaves
Newly released U.S. Coast Guard video offers visceral proof of just how extreme the congestion has become at the ports of Los Angeles and Long Beach. The new view from above reveals a vast armada of container ships scattered at anchor across California’s San Pedro Bay.