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Shippers benefit from marketplaces since they have access to a vast network of carriers and a simple way to receive bids. In addition, the carriers are all completely vetted and, in some marketplaces, evaluated based on service because the marketplace is managed.
FREMONT, CA: To manage supply chains, people, and communications, the logistics sector has relied on a core, fairly consistent set of processes and technologies for decades. As much as freight has changed in the last decade, many of its operations still rely on analog solutions, from phone conversations and emails to good old pen and paper.
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The fact that a multi-trillion-dollar industry is built on the backs of basically obsolete methods is alarming. The truth is that logistics has many moving pieces, and though these methods are proven and tested, they are gradually losing their relevance in an industry that expects efficiency. As a result, companies are quickly implementing new technologies and operational methods to improve the efficiency of their supply chains.
The Integrated Freight Marketplace
Algorithms and digital platforms have largely supplanted phone calls and email chains in recent years. Waiting hours for a call or an email confirmation is a waste of time, resources, and money. Therefore, more and more logistics experts seek solutions to automate rote operations while also establishing a more consistent communication stream throughout the supply chain.
As the widespread Coronavirus disease (COVID-19) interruptions and the most recent Suez Canal crisis have demonstrated, being able to respond to delays in real-time is not only convenient but essential in modern logistics. Digital marketplaces are aiding both data exchange and transactions. It is easier to connect shippers and suppliers more directly and in real-time by consolidating parties onto a single platform.
What Is A Managed Marketplace?
Managed marketplaces are online platforms that connect shippers and carriers on a live, interactive platform while also providing the operational support of a typical brokerage. Marketplaces make it possible to:
This eliminates the need for carriers to make many phone calls to fill their trucks or obtain information on a specific cargo. It can also assist them in reducing empty mileage and increasing overall efficiency.
Shippers benefit from marketplaces since they have access to a vast network of carriers and a simple way to receive bids. In addition, the carriers are all completely vetted and, in some marketplaces, evaluated based on service because the marketplace is managed. This means shippers can benefit from a large number of carriers available on a standard load board while also having the assurance of a more carefully nurtured pool of drivers.
Transportation Management Systems (TMS) and managed markets have increasingly incorporated integrations. Many firms can now integrate these new technologies and capabilities into their existing TMS and portals rather than learning how to use a new platform. Users benefit from a shorter learning curve and faster acceptance when advancements are integrated into pre-existing platforms. This means spending less time learning how to use something and more time doing so.
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