The logistics landscape is brimming with complexities and challenges, especially for large shippers who transport goods via full truckload (FTL). Their pain points are diverse and significant, with each capable of causing considerable disruptions in their operations. Therefore, understanding these pain points and how to overcome them is crucial to maintain a smooth and efficient supply chain.
FTL Challenges:
#1 Capacity: One of the major challenges is securing enough truck capacity to meet shipping needs, especially during peak seasons. The availability of trucks and drivers fluctuates based on numerous factors such as economic conditions, regulatory changes, and seasonal demands.
#2 Cost: The costs of FTL shipping is unpredictable. Fuel costs, labor costs, insurance, maintenance, regulatory compliance, and changes in supply and demand can all contribute to the total cost of transportation. And when shippers work with brokers, there is no visibility into what the broker makes versus what the truck is paid.
#3 Service: Delays can occur due to numerous reasons including mechanical failures, weather conditions, traffic, or other unforeseen events. These delays can affect the entire supply chain, leading to increased costs and unsatisfied customers.
#4 Compliance: Adhering to a myriad of transportation regulations can be a complex process. Regulations may differ based on the type of goods being transported, the regions they’re transported through, and they can change over time, creating a need for constant vigilance and adjustment.
#5 Sustainability: With increasing awareness of environmental issues, many shippers are seeking to reduce their carbon footprint. However, moving towards more sustainable practices can be challenging due to the nature of the trucking industry and existing infrastructure.
#6 Integration: While technology has the potential to alleviate many pain points in the shipping industry, the integration of new technologies can be challenging. Legacy systems, data silos, and resistance to change can all hinder the successful implementation of new solutions.
The FTL Solution:
The key solution– which solves all of these challenges– is autonomous procurement! When freight procurement is automated, in just a few minutes, AI helps shippers dynamically find, vet, and onboard compliant capacity at the right time, place, and price. Shippers have direct access to instantly transact with any truckload carrier in North America that meets their unique requirements. Shippers also reduce cost by 15%+ by eliminating hidden broker fees, improve on-time performance to +95%, reduce manual effort by 30%, and obtain real-time data to optimize their entire carrier network. And this advanced solution can be implemented in days!
For more information on autonomous procurement, click here.