Supply chain fragmentation and vulnerabilities have become apparent over the last two decades, and many shippers are investing in their supply chains in ways never before. Historically and in soft markets, shippers have pricing power over carriers and often placed transportation networks in operating backburners, but the awakenings caused by this pandemic are many. I made people take action.
Much of the stress in the supply chain results from a lack of workforce and infrastructure such as drivers, trailers, chassis and containers, but the more serious problem is the widespread lack of technology, lack of visibility and control. Makes it worse.
Here are three ways shippers can gain more control over their supply chain over the last 20 months.
Increased reliance on logistics providers
Shippers throughout the supply chain rely heavily on third-party logistics providers to ensure reliable capacity and timely delivery in the face of driver shortages.
Due to the high demand for household goods Appliance Distributor Almo has successfully migrated from LTL to truck load With the help of Optimus Prime’s flexible drop-and-hook service. Keith Granstrom, Director of Transportation Support, said of Optimus Prime:
Asset-based carriers like ENERGY Transportation have established themselves as end-to-end boutique providers for their customers, including freezing, dry vans, warehousing, cross-border delivery, and even consulting. Service is provided. CEO Shawn Girard told FreightWaves that he spends a lot of time consulting these days. “We can help our customers become more efficient, rather than simply increasing volume and getting more cargo. By doing so, we can build better relationships. ”
Soaring rates lead to investment in private fleets
Diversifying shipping partners to avoid delays and source capacity may not be enough.According to a recently released report National Private Truck CouncilThe protracted and tight capacity market is causing further expansion of the civilian fleet.
In 2020, retailer Dollar General moved 20% of its cargo to a private fleet, gaining more control and avoiding spikes in transportation costs. Similarly, Pitney Bowes increased the size of its private fleet by 42% year-on-year. Wal-Mart has incorporated this trend into sea shipping by using civilian freighters to avoid port bottlenecks.
Higher rates reduce the level of customer service, so it makes sense to increase investment in private fleets. However, private fleets are not affected by the face of carriers for employment. The report emphasizes that private fleet sales are 14.25%. 69% and 90% Each.
Overcome fragmentation with visibility technology
Port bottlenecks and lack of capacity make supply chain fragmentation more apparent and take advantage of the increased visibility of data provided by telematics systems connected to trailers, chassis, containers and material handling equipment. The number of people is increasing.
By working with telematics providers with a broad portfolio of solutions such as PowerFleet, shippers can gain actionable insights from bumpers to bumpers, forklifts to improve safety compliance and asset utilization, and ultimately. You can reduce inefficiencies and costs. Early 2021, Steelmaker Nucor Introduces PowerFleet Telematics It is mounted on lift trucks and instrument cranes to improve recording accuracy, safety and visibility. After all, even in 2020 alone Forklift-related accidents resulted in 7,290 non-fatal injuries, Causes workers to lose the median of 17 days of work.
Nathan Fraser, vice president and general manager of Nucor, said that by automatically sending critical safety and equipment information to a centralized platform, teams can be more responsive, secure and efficient. Said.
Throughout the trucking industry, more shippers are expecting the benefits of visibility technology, especially the ability to track cargo for real-time updates. Sensors that collect trillions of data points from the time the cargo leaves the warehouse to the time it arrives at the destination help shippers reduce risk, make informed decisions, and further satisfy end customers. I can. By 2023, real-time visibility solutions will be adopted by 50% of leading global companies, according to a Gartner report.
Trailer tracking technology not only provides real-time location, departure and arrival times, but also additional data points driven by sensors and cargo cameras that tell you if the trailer is loaded or empty and how much. Acts as a hub for.Recently, PowerFleet exhibited a patent-pending product Chassis monitoring system, LV-300 and LV-750, FreightWaves F3 Provides location, container on or off chassis status, and loaded or empty container status during virtual events. This kind of information helps fleets and shippers work together to speed up the supply chain.
Three ways shippers manage their supply chain
https://www.freightwaves.com/news/3-ways-shippers-are-gaining-control-of-their-supply-chains Three ways shippers manage their supply chain