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Whatever the next crisis, businesses ready to invest in new freight management technologies to strengthen their supply chains and abandon pen and paper will have a better chance of survival.
FREMONT, CA: To manage supply chains, people, and communications, the logistics sector has long relied on a core set of processes and technologies that are essentially consistent. 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. It's alarming that a multi-trillion dollar business relies on mainly obsolete methods. Logistics has many moving pieces, and while these methods are tried and true, they are gradually losing favor in an industry that expects efficiency.
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The number of substitutions is less than the replacements. Companies are quickly adopting new technology and operating approaches to improve supply chain efficiency.
The unified freight market
Algorithms and digital platforms have supplanted phone conversations and emails in recent years. In the end, it wastes time, resources, and money. More and more logistics workers are seeking solutions to automate repetitive tasks while improving supply chain communication.
As seen by the massive COVID-19 disruptions and the recent Suez Canal catastrophe, real-time response is not only convenient but vital for modern logistics.
Digital markets are facilitating data sharing and transactions. By combining parties on a single platform, shippers and providers can connect more directly and in real-time.
The managed marketplaces
They help shippers and carriers engage live and interactively while offering the operational assistance of a typical brokerage.
Marketplaces enable:
- Shippers find transportation for their goods
- Carriers filter loads from numerous sources
- Live pricing and capacity
- Customer-carrier matching
- Online help
Carriers no longer need to contact many times to fill their trucks or to inquire about a specific load. It can also eliminate empty mileage and increase efficiency.
Marketplaces allow shippers to access a vast network of carriers easily. This is because the carriers are vetted and, in some instances, evaluated based on service. Shippers can benefit from the number of carriers supplied on a standard load board while also benefiting from a more carefully cultivated pool of drivers.
Integrations are a prominent component of TMS and managed markets. Many firms may now integrate these new technologies and functionalities into their existing TMS and portals instead of learning a new platform.
Adding new features to current platforms reduces the learning curve and increases user acceptance. This means spending less time learning something and more time using it.
Visibility and tracking
Some platforms also provide real-time tracking, which is quite helpful for shippers. Drivers are relieved of the burden of reporting their locations and ETAs, while shippers can track their freight at any time. This is essential when transferring goods across borders.
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