Report Titled “Steep Grade Ahead” Discloses Rate Increases, Healthy GDP and Driver Shortage Led to Capacity Crisis Requiring Innovative Solutions and Best Practices to Overcome
Philadelphia, PA—August 2, 2018—Transporeon Group Americas, a global provider of a cloud-based supply chain execution platform encompassing transportation management, carrier sourcing and dock scheduling, discusses the recent findings in the 29th Annual State of Logistics Report produced by A. T. Kearney in partnership with the Council of Supply Chain Management Professionals (CSCMP) and Penske Logistics. As U.S. shippers are experiencing a rise in their freight bills coupled with capacity shortages and other industry issues related to trade wars, economic growth and increased demand, Transporeon Group encourages shippers to continue to use technology and smarter practices to help address these issues.
“There are so many current and emerging challenges affecting the logistics landscape, and shippers of all sizes and across all industries are feeling pressure to keep costs in check, meet customer demands and achieve a competitive edge,” said Ed Moran, managing director and senior vice president of sales and marketing at Transporeon Group Americas. “With Transporeon’s innovative solutions for transportation procurement and shipment execution, transportation operations gain crucial visibility into the logistics portion of their supply chain, helping to uncover capacity and earn greater efficiencies.”
Transporeon Group addresses the many challenges in the 2018 CSCMP State of Logistics Report by reminding shippers that:
- More shipments with fewer trucks and drivers mean higher freight rates. Shippers can lower freight costs by using digital technology that provides economies of scale and buying power to secure capacity with high quality carriers at favorable rates.
- Continuing capacity shortages mean shippers must be very creative when working with carriers, with many aiming for a preferred shipper status by paying freight bills on time, scheduling shipments as far out as possible and reducing on-site wait times so that trucks stay on schedule.
- It's possible to gain insight into specific segments of the freight market by launching a Request for Information (RFI) prior to going to bid. Specialized e-sourcing solutions like Ticontract from Transporeon Group can help shippers raise very detailed qualifying questions to vet potential new carriers, or even re-qualify incumbents.
- Businesses are tying logistics operations to the bottom line. As freight rates increase, the C-suite is paying closer attention to the management of freight movement and the focus to keep costs down or lose profitability. Using best practices, coupled with access to a large community of carriers with whom shippers can build relationships, can help shippers gain capacity with carriers offering the right prices in the right lanes.
When shippers and carriers can consolidate LTL shipments into full truckload, costs can be greatly reduced. Transporeon Group provides access to a global community of over 65,000 carriers, all digitally connected to better collaborate and communicate to create optimal results, such as continuous moves, consolidated loads and more efficient backhauls.