Posts about Industry News

Technology is one of the hottest topics of conversation today in the freight procurement and logistics space, with AI, in particular, being one of the foremost areas of focus. Given how unstable and chaotic freight procurement has been over the last 24 months, shippers are desperately trying to adopt tools that turn static procedures dynamic and provide real-time insights and visibility to drive better performance, savings, and overall success. And AI-powered freight procurement automation software is proving to be a pivotal tool in helping to achieve these goals.

There seems to be a new costly trend amongst large shippers to deploy their own private fleets to help ease transportation bottlenecks. Sherman Williams just announced it would be using a private fleet of trucks and railcars to aid suppliers’ raw materials deliveries to boost production and inventory levels. 

No doubt, digitalization is the future of supply chains across the world. It’s no secret that transportation and logistics are slow to advance, and mired in manual processes. And the pandemic certainly put a glowing spotlight on the need to revisit digital transformation within the supply chain. A recent survey by Bain & Company with the World Economic Forum stated that supply chain resilience and sustainability have become priorities for many large businesses. To proactively manage future supply chain disruption, shippers need to be agile and resilient. In other words, they need to be capable of pivoting– to follow what the market demands– on a second’s notice. 

In order to effectively manage transportation efforts, especially as the freight market bounces up and down, shippers need insights to understand and accurately predict demand for truckload carriers. No doubt, 1st-party data is "king" because it is specific to the user's activities. But when 1st-party data is not available, shippers turn to 3rd-party data.

2022 has already proven to be one of the most chaotic years yet for freight procurement and the refrigerated season was set to be the same way. However, while many believe that capacity access will once again be an issue, the reality is that there is currently a confluence of factors that may actually free up capacity in certain sectors. In fact, in the last 3 weeks, the reefer load-to-truck ratio has decreased from 12:1 to 8:1 year-over-year. And based on the USDA forecast the reefer supply chain will see improved balance in 2022, and that will impact rates in the spot market. With that in mind, below are several key forecast updates from the USDA that are likely set to drastically change the way that the reefer market looks in 2022.

Due to the digital transformation push that stemmed from the COVID-19 pandemic, more freight procurement teams are using data than ever before. However, while many companies are boosting their efficiency and performance as a result of the data revolutions they have undertaken, many are still struggling to make the best use of all of this new data that they have at their fingertips. The good news is that many of these issues generally have easily addressable root causes.

Access to capacity has been an ongoing challenge for freight procurement professionals for the last 24 months. And due to the continued fallout from the 2021 supply chain crisis and the circumstances stemming from Russia’s invasion of Ukraine, any hopes that a more stable capacity market may appear in 2022 have quickly evaporated among the freight procurement industry. That said, there are still steps that freight procurement professionals can take to ensure they are navigating this historically frenetic and tight freight capacity market.

With news that gas prices have officially hit the highest national average since 2008, shippers and their freight procurement teams are focused on what this could mean for their operations-- and their transportation budgets. Already coping with a historic supply chain snarl-up, the energy price surge could hardly come at a worse time for freight procurement professionals. Here are a few reasons why.

Much like every business vertical, the Russia-Ukraine crisis is dominating conversations in logistics and freight procurement. A key cog in logistics operations, Ukraine represents 200 million tons of transit capacity. It's actually an important transit crossroad between Europe & Asia, which means any sort of disruption will have serious ramifications on not just the European supply chain, but the entire planet’s.

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.