Carrier capacity fluctuations: What’s being done to help shippers?
Imagine you could see which carriers have empty capacity close by on your day of loading. Then without having to take any action, you could discover which ones belong to your designated carrier pool. It would be simple to invite those carriers to quote on your transport. And because accepting your conveniently located order would reduce their empty miles, those carriers would be able to lower their rates. So all in all, you would get more offers at an acceptable price and get rid of searching transports in open freight exchange platforms.
Where’s the catch? Shippers will have to wait at least until next year for this new, highly effective method of tackling the carrier capacity crisis.
New, highly effective method of tackling the crisis
Right now, Transporeon Group is trialing these capabilities with six customers, ranging from large manufacturers and suppliers to busy retailers. These shippers share the same challenge – they’re finding it increasingly difficult to secure carrier capacity at reasonable rates.
Our pilot initiatives are based on a new data-driven product called the Transporeon Connecting Load Agent (CLA). It is being tested on the cloud-based Transporeon platform where some 100,000 users in over 100 countries digitally connect and collaborate with 65,000 carriers worldwide. This network size and scale enable the CLA.
When a shipper tenders a transport order on the platform, the CLA conducts a real-time search for all carriers offloading assigned transports within a defined radius and time span of this new order. It compares the unloading date and location of the assigned transport with the loading date and location of the new order and, if there is a match, alerts the shipper to offer their order to the matched carrier.
Optimized speed-to-solution boosts savings
Our aim is to provide customers with increasing levels of automation, drawing on our unique reserves of relevant big data. Automation allows shippers to quickly identify suitable carriers in their carrier pool, receive bids, select a carrier, agree the price, and assign the transport – an optimized speed-to-solution that boosts overall cost savings for shippers.
As the pilot phase continues, Transporeon Group is enhancing and fine-tuning the CLA based on customer feedback and experience, and intends to develop functions that support carriers as well as shippers. Ultimately, we will roll out these new data-driven capabilities to all our European customers. Other markets may follow.
In addition to the ongoing driver shortage, Jan Rzehak, Director Business Consulting at Transporeon Group, identifies further reasons for recurring bottlenecks in available transport capacities and recommends pragmatic strategies to respond appropriately in changing market conditions. He also explores the advantages of consistent digitalization and explains the transformational journey to Transport Logistics 4.0. So please read the interview with Jan: Talking about the capacity shortage. How shippers can tackle the crisis by using efficient transport logistics solutions.