Meet the Logistician!
Dean Corbolotti, VP, Managed Services How would you describe your current position to someone that doesn’t work in the transportation logistics industry? I lead a team of skilled professionals who operate much better if I stay out of the way! How did you end up working in logistics? I knew a guy who worked for ABF Freight in Dayton, OH and they were looking for someone to do data entry on the weekends so I did that to help pay for college. Was paid a whopping $10 an hour! Big bucks back in 1989. How many years have you worked in logistics? Doing the math that puts me around 35 years now. What are some of your favorite things about working in logistics? The diverse group of people that you meet is pretty amazing. I also love that it’s ever changing while staying the same. You are basically moving things from point A to B but the “how” has changed dramatically over the years. What surprises do you encounter? Something new seems to happen weekly that makes me say “wow that’s a new one”. Not sure how many fields can say that. Do you have any fun work stories you’d like to share? Most of these would have happened after work hours and are probably not suitable for mass consumption. Do you have a favorite saying? Borrowed this from my dad years ago: “Take the high road, there’s less traffic” What do you like to do in your spare time? I like to travel both domestically and internationally. I also enjoy a round of golf, some cooking, watching football (Go...
Meet the Logistician!
Meet Wally (Matthew Wall), Team Lead, Driver Engagement! How would you describe your current position to someone that doesn’t work in the transportation logistics industry? I manage a team that brings in carriers (individual truck drivers and larger trucking companies) to use our app to book freight that customers (shippers) tender over to us. How did you end up working in logistics? Well the job market wasn't really great when I graduated from college in 2008. I worked construction for a year and then I found a job application for a carrier sales position. I read up about the role and thought it was something I would be good at, so I applied and ultimately got the job after a couple of interviews. How many years have you worked in logistics? 11 What are some of your favorite things about working in logistics? No two days are ever the same. Each day brings you something that you haven't dealt with before. What surprises do you encounter? Too many to list! Do you have any fun work stories you’d like to share? I’ve had the great fortune of meeting a lot of truck drivers. They are some of the greatest people in the world. One driver brought me a full Thanksgiving turkey in 2020 when some of my family members got Covid and we had to cancel our Thanksgiving. Do you have a favorite saying? “Logistics is not an expense, it’s an investment.” What do you like to do in your spare time? Travel to different countries. I’ve been to over 50! What advice would you give your 21yr old self?...
Comprehension of the Vast, Stormy Supply Chain
Weather related logistics issues were rampant last month, and just like during the 2020 pandemic shut-downs, people across the entire country realized how far-reaching logistical problems can be. Empty shelves due to overbuying, but also lack of timely deliveries, hit the everyday consumer hardest right where they live, nationwide. Many were suddenly faced with the inconveniences or severe impacts that happen when any piece of the supply chain sees disaster. Consumers can easily imagine that trucks struggle to make it down roads, even the largest highways, in harsh enough conditions. They experience that as well and may even have the option of staying home. Truck drivers aren’t so fortunate. Ice and poor visibility can cause accidents, offroading, impasses, and full road closures preventing deliveries from reaching their destinations. And yet, that’s only a part of the equation. Loading dock workers may be unable to make it to their shifts or safely do their jobs. Equipment on trucks doesn’t always survive extreme conditions, and mechanics & truck parts are subject to the same delays and hazards. Furthermore, even if some branch of the logistical network is clear, materials and resources further up the supply chain may face adversity and delays, which sends problems down the line affecting more and more goods and services. Behind the scenes at logistics companies, the daily art of connecting the pieces doesn’t necessarily run the same either. According to Sleek’s Will Doyel, “Relationships, tender acceptances, and patience are tested, revealing the hidden challenges faced by both asset-based companies and 3PLs. Understanding the capacity crunch caused by weather-related issues is crucial for all stakeholders.” “Beyond snow and...
Insight on Shipper Challenges in the New Year
Shippers, who are responsible for transporting goods from one location to another, face various challenges in their operations. Three common challenges faced by shipper customers include: 1. Supply Chain Disruptions There are many different kinds of disruptions that can cause delays for shippers; - Natural disasters such as earthquakes, floods, and hurricanes, can lead to a disruption of transportation networks and closures of plants or distribution centers. - Logistical challenges such as port congestion, disruptions in shipping routes, and shortages of available carriers can lead to the flow of goods to slow down. - Unexpected market changes like changes in demand for goods and capacity of carriers can cause significant disruptions in the supply chain. 2. Rising Transportation Costs There are several factors that can contribute to the rising cost of transportation. Some of those include; - Fluctuations in fuel prices lead to increased operational costs for trucks. - Shortages of qualified truck drivers can drive up labor costs. High demand for drivers with a limited number of qualified drivers can result in increased wages. - Limited capacity in transportation modes, such as a shortage of available shipping containers or congestion at ports, can lead to increased costs. - Changes in transportation regulations, such as new safety requirements or environmental standards, can lead to additional compliance costs. 3. Capacity Constraints and Shortages Shippers may face challenges related to limited capacity in transportation networks. This can be due to a shortage of available carriers, congestion at ports, or restrictions on certain routes. Capacity constraints can lead to delays in shipments and increased competition for available resources. To overcome these hurdles, shippers...Double Brokering Avoidance – Tips from an expert
Double Brokering by definition is when the original intermediary that has been tendered a shipment turns and tenders the shipment to a trucking company that they think is going to haul the load on their equipment. Without knowledge of the original provider or the customer they in turn tender that shipment to another trucking company who will ultimately move the load. Transparency is the key component here, because it is the lack of transparency that makes it double brokering versus co brokering. It is estimated that approximately $100 million dollars a year of the estimated $700 billion trucking industry is subject to Double Brokering. Communication This is pretty straight forward in the brokering world, but I strongly believe an open line of communication is the key to preventing double brokering issues. A strong line of communication and a good relationship with the carrier you contracted the load with is extremely important. A couple ways to prevent double brokering is by sending that extra email to the carrier about correct driver information or asking for the BOL after they get loaded. Also communication with the customers and or shipping locations about who is checking in and delivering the freight is another length you can go to prevent potential double brokering. Investigate the Carrier Carrier compliance websites such as Carrier411 and Truckstop.com are two examples of websites where you can vet the carrier and see a quick background on any specific carrier. You can look at some key factors such as insurance (do they have the right levels?), freight guard reports (any unethical practices reported?), and time they have been in service...
The Data Challenge
As a shipper, you’re generating and capturing a ton of data around your transportation and freight, such as costs around loads, carrier OTD/OTP, lane history, and more. You may also subscribe to 3rd party data sources like DAT or Freightwaves. Some of this data is useful for RFPs, whether you’re doing those annually or more frequently. But that’s a lot of data to collect, store, and sift through if you’re just using it for (admittedly important!) seasonal contract negotiations. You also likely have a lot of other data that is underutilized or totally unused. Many (but certainly not all) shippers employ data analysts to process all of this data and produce actionable insights. Some TMS and ERP systems have some good analytic capabilities built-in. You may have a stand-alone analytics platform to aggregate data and help with this. Are you really using these solutions to their full capabilities, though? Are you looking at your data just in the bubble of what’s happening with your freight, or are you looking more broadly to see how you’re doing relative to the market? Without a person or a product dedicated to analyzing your data, you’re likely missing out on some valuable insights. How are you deciding which carriers to keep in your network, what rates need to change (and how much they need to change), and other critical transportation decisions? Are these data-based decisions, or are they based on history/experience/rules-of-thumb? As Mike talked about in a blog post last month a lot of shippers fail to segment their providers to and may unnecessarily be rewarding carrier who don’t truly qualify to be considering...
5 Tips on How to Strengthen Your Company’s Customer Service
Strengthening your company’s customer service is essential for building and maintaining a reliable customer base. Even if you believe your customer service skills are already strong, there's always an opportunity for enhancement. Here, we offer five tips to elevate your skills to the next level. These tips include: hiring/training the right people, empowering your employees, reflective listening, establishing customer service policies, and feedback/continuous improvement. Hiring and Training the Right People To start things on the right track, you should be hiring employees that have a positive outlook and are eager to learn. Studies show that employees who have a positive attitude are more likely to have long term success. Not only will that employee have personal success, but their attitude will motivate others in the workplace. Now that you have hired the right people, you need to set a comprehensive training program. This program should include product knowledge, how to communicate with customers, and conflict resolution. An employee needs a deep understanding of what your company is either selling or providing in order to communicate effectively. They also need to know how you would like them to communicate, ie should they be emailing or picking up the phone? An employee also needs to be trained on how to resolve certain issues that may arise in the workplace. Empowering Your Employees Let your customer service representatives have the opportunity to make decisions on their own. They should be able to resolve issues without any unnecessary escalation. This will lead to a faster response to the customer and then a quicker resolution. Also, make sure to keep motivating your customer service...
Navigating the Logistics Landscape: Why Reducing Variability is Key to Long Term Success
Removing variability from transportation management is critical in ensuring the overall efficiency, cost-effectiveness, and reliability of the logistics operations. By doing so, it can yield several benefits: Cost Efficiency: Constant changes can lead to unpredicted costs, which can negatively impact a company's bottom line. By reducing variability, a company can better predict and control its transportation spend. Improved Service: Variability can lead to delays or disruptions that affect customer service. Consistency in operations helps maintain service levels and customer satisfaction. Risk Management: A stable transportation process is less likely to encounter unforeseen issues or crises, thereby reducing the risk associated with the business. Performance Measurement and Improvement: It's easier to measure performance and implement improvements in a stable, less variable environment. By reducing variability, companies can more accurately assesstheir performance and identify areas for improvement. So how does a logistics organization reduce as much cost variability as possible? It really comes down to their overall approach when dealing with their carrier partners and how the procurement process is carried out. In times of extreme volatility, whether it’s in an oversold or undersold market, one's approach makes all the difference. Securing the lowest possible rate should be considered a short term strategy because low prices only benefit the shipper in the short term and may result in larger variability in the long run. Shippers need to be asking themselves several questions when potentially adding additional providers to their carrier network based solely on a lower rate structure. Does the provider have a proven track record in the markets they bid on? Can the provider seamlessly integrate with the TMS or are...