The middle of summer only means one thing for many freight procurement teams: a reefer capacity crunch. And this year is particularly challenging given the extenuating circumstances surrounding the COVID pandemic, especially when rejection rates for refrigerated trucking have been hovering over 30% since May. Here are a few ways shippers can adapt to help keep goods moving while keeping shipping costs down.
With so many moving parts, finding the right freight procurement resources can be a painstaking process for shippers today. In fact, given how rapidly the freight market can change, finding value, insights, and quality services can be hard to find. With that, here are three important questions shippers should ask when looking for freight procurement resources.
Worth an estimated $62 billion in 2020, and set to grow at a 40.2% CAGR from 2021 to 2028, the AI industry is exploding. And with so many innovations taking place from healthcare to finance, thanks to AI and real-time data, it isn’t surprising to see that manufacturers, retailers and distributors are looking into how they too can leverage AI and data to improve upon supply chain processes. Now, AI has been getting a huge amount of buzz recently for things such as autonomous vehicles and other futuristic types of tech. And while these might be exciting use cases, there are tangible real world examples where AI and data is already being deployed to drive better results for shippers, specifically during the critical freight procurement process. Here are a few:
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.
Shippers have become accustomed to having more questions than answers when it comes to working with their broker market. However, arguably no area of the broker market is more confusing or opaque than costs and pricing.
Rife with hidden fees and unclear metrics, the broker market makes it virtually impossible for shippers trying to find out what the true cost of a load is. This is obviously not only infuriating but results in significant supply chain waste that can add up quickly.
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.