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A Platform Approach to Matching Freight Demand with Capacity More Efficiently

Matching freight demand with capacity is becoming increasingly challenging, especially in today’s volatile environment. Carriers are rejecting up to a quarter of all contract loads, forcing more Shippers into the spot market. 

The solution to this imbalance is an investment in network-based transport management systems. New technologies make automated freight-matching possible for both Shippers and Carriers at a whole new scale. 

This original report includes survey responses from industry insiders and expert analysis from Adrian Gonzalez, President of Adelante SCM. 

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What happens when your primary carrier rejects your load tender and you exhaust your routing guide?

Automated processes break down, leading shippers and carriers to engage in manual and inefficient ways to match loads with capacity. The net result is higher costs, delayed shipments, and sub-optimal utilization of trucks and drivers. It also adds to the waste and inefficiencies that continue to plague the industry – for example, in the form of empty miles/journeys (15-30% empty) and increased CO2 emissions. 

Looking at the problem more broadly, therefore, especially in light of current market conditions, another question arises: Has the time come to transform the traditional transportation procurement process?

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Adrian Gonzalez is a trusted advisor and leading industry analyst with more than 20 years of research experience in transportation management, logistics outsourcing, global trade management, social media, and other supply chain and logistics topics.

In addition to launching Talking Logistics, Adrian is the founder and president of Adelante SCM, a peer-to-peer learning and networking community for supply chain and logistics executives and young professionals. He is also the founder of Indago, a market research service that brings together a community of supply chain and logistics practitioners who share practical knowledge and advice with each other while giving back to charitable causes.

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