How to Guarantee You Always Pay a Fair Truckload Price

The one thing all truckload shippers want to know, in order to deliver goods on time while paying a fair market price, is who are the most efficient and cost-effective carriers for each load. Unfortunately, shippers find it hard to answer this burning question because there are massive data gaps due to a lack of data transparency. For example, shippers who still rely on brokers to haul freight, never know what the truck is paid. They can only assume that the broker is taking some % markup. This makes it difficult to know what the true truckload market cost is at that moment in time so proper optimizations can be made. Technology startups have entered the marketplace to close these data gaps and help shippers make informed real-time decisions. For example, AI-powered automation software dynamically finds and vets compliant carriers, and then has carriers bid directly on the load. Shippers gain full visibility on what the truck wants to get paid to help level-set pricing across the entire carrier network while strengthening service levels. Advanced freight procurement data, with 100% data transparency, makes it possible to know which carriers to keep, add or drop so the shipper is always in the know and can rest assured they are paying the right price. Gone are the days where logistics teams spend hours trying to source a compliant carrier, or where important decisions are made based on gut and intuition. With today’s unprecedented disruption, shippers need dynamic, real-time tools that support quick pivots especially as freight market conditions fluctuate. Implementing software, especially technology that seamlessly plugs directly into existing platforms, provides an...

How Continuous Improvement Mindset Has Supercharged Freight Procurement

In today's rapidly changing business environment, organizations are looking for ways to stay competitive and maintain their edge. One crucial area that can significantly impact the bottom line is freight procurement. By embracing a continuous improvement mindset, shippers can supercharge their transportation efforts, reduce truckload cost, and strengthen customer service/ satisfaction. This blog will explore the reasons why continuous improvement is essential in the world of freight procurement and how it can lead to tangible benefits. Freight Procurement Has Remained Unchallenged and Therefore Unchanged Before we dive in, it is important for continuous improvement professionals to understand that the freight procurement process has remained unchallenged, and therefore unchanged due to a lack of technological advancements, and a lack of data transparency amongst third-party logistics partners [3PLs]. It is also important to understand the freight procurement process step-by-step. A typical freight procurement process involves selecting and contracting carriers to transport goods from one location to another at the best cost, service quality, and reliability. The process from start to finish is a long one. Massive amounts of time and energy are expelled at every step, especially when done manually. Steps include, but are not limited to:  Defining shipment requirements. Finding carriers. Requesting pricing or tender.   Analyzing quotes. Negotiating rates and terms. Awarding loads.  Preparing shipping documentation.  Monitoring and tracking shipments.  Inspecting and verifying shipments.  Evaluating carrier performance. How Continuous Improvement Benefits Freight Procurement  When the freight procurement process is fully optimized, shippers receive many benefits. Streamlined Processes and Operational Efficiency: A continuous improvement mindset encourages shippers to continuously review and optimize critical supply chain processes to eliminate inefficiencies, redundancies, and bottlenecks....

Q2 Freight Market Update & How Innovative Shippers Have Prepared!

As the Q2 freight market update states, supply (# of carriers) will continue to surpass demand (# of loads). That said, there are plausible scenarios that could help balance supply and demand, tightening market conditions, sooner than anticipated.  Possible Q2 freight market fluctuation The freight market is similar to the stock market. Supply (# of carriers) and demand (# of loads) determine truckload cost. The balance between supply and demand can change at any moment due to a variety of factors, including but not limited to the economy and seasonality.  For Q2, higher fuel cost and inflation, increased regulation, and overcapacity will continue to push smaller, owner-operator carriers out of business. As trucks idle, supply will decrease because there will be fewer trucks available to move goods. At the same time, demand can increase due to increased seasonal production spikes in produce and building/construction.  As noted above, when the balance between supply and demand changes, so should truckload pricing.  How Shippers Can Proactively Prepare for Marketing Fluctuation When there’s excess supply (carriers) and rates fall, trucking companies exit the market. When rates rise, new trucking companies enter the market until carrier saturation occurs and rates fall back down again. It’s a vicious cycle. “The key for shippers is to find ways to dynamically stay on top of freight market twists and to pivot quickly with little notice. Remaining static is not sustainable because freight supply and demand always changes,” said Oleg Yanchyk, Sleek Technologies CIO. Forward-thinking shippers have replaced legacy freight procurement processes, such as RFPs, brokers, and spot quoting with AI-powered software so there are no delays when reacting...

Top Tips To Quickly Fill Gaps When Transportation Teams Are Burned Out.

Transportation teams are burned out! Studies have revealed that over 15% of transport and logistics workers are contemplating leaving their job due to excessive stress. Why? Most teams have heavy lifts, are understaffed, and lack the proper tools to successfully perform their job. Specifically, they need c-suite acknowledgment, actionable data, and smart technology to achieve their goal which is to deliver goods on time, at a fair market price.  US Domestic Truckload Supply Chain Teams Feel Like They’re Running On Treadmills And Getting Nowhere.  Truth said, there are not enough hours in the day for transportation/ logistics managers to deal with day-to-day requirements, fire drills, and strategic initiatives. They have many tasks including, but not limited to, transportation planning, procurement, dispatching, routing, tracking, and invoicing. Freight procurement alone is a full-time job. Hours are spent finding and then vetting new carriers for safety and compliance. After a carrier has been approved, more time and energy are spent onboarding the new carrier. As more carriers are added to the network, there are more vendor relationships that need to be juggled and managed.  “US Domestic Truckload Supply Chain teams have a heavy lift and are short-handed,” said Michael Paul, VP of Sleek Technologies Sales. “Week after week, shippers tell me they're trying to juggle a number of activities that leaves them feeling like they're on a treadmill and not getting anywhere. They are so focused on annual bids, dealing with fire drills, and being short-staffed that they feel like they don't have time to look at innovative solutions.” Unfortunately, these problems are compounded when the team is down a resource due to...