On Demand Trucking - Kuebix

Status of On-Demand Trucking

The U.S. transportation market is quickly ramping up technology-enhanced options to move products, goods and people in an effort to keep up with demand. Consumers are accustomed to free two-day shipping and detailed tracking information to follow their package every step of the way. Any business looking to fulfill these requirements should anticipate the need to outperform their traditional operations. On-demand trucking is a viable solution to meet all of these needs. Trucking companies can use it to find additional product that needs to be moved in the area to eliminate wasteful empty backhaul and businesses can deliver their products faster. It’s a win for everyone involved!

What’s driving the growth of U.S. on-demand trucking?

It’s no wonder there’s such a big demand for on-demand trucking. The tight U.S. job market, changing import/export levels and new technology have all combined to speed the shift to on-demand trucking:

  • •Capacity crunch. In recent years, lack of trucks and a scarcity of drivers-for-hire have combined with high freight demand to severely restrict U.S. trucking capacity/availability.
  • •Electronic logging devices (ELDs). Federally mandated ELDs closely scrutinize and monitor drivers to be sure they follow hours of service (HOS) laws, which can impact driver productivity.
  • •Rising spot and contract rates. Trucking rates continue to rise while capacity remains tight, driving some shippers to move portions of their freight to intermodal transportation or “rail.”
  • •Trucking apps. New apps are taking center stage: Uber Freight’s app operates much like its ride-sharing service. Both Convoy and Amazon have apps that target on-demand freight, as well, matching trucking companies with shippers who have freight that needs to move. This “at-your-fingertips” flexibility means shippers have flexible options for meeting their trucking needs; carriers can choose higher- and faster-paying freight.
  • •Rising interest rates. Higher rates mean higher costs for transporting goods, so shippers are best served by choosing their best transportation options.

How does on-demand trucking work?

On-demand trucking has a bright future for freight and transportation management and load matching:

  • •Provides a broad network of real-time carriers. This is not the old days of contracting with carriers to lock in capacity months or even years in advance: The capacity just isn’t there. On-demand trucking apps and spot markets let shippers connect with thousands of independent “owner-operator” drivers with empty truck space to sell.
  • •Leverages technology to handle settlements. Real-time freight visibility is important, of course, but it’s just as important to ensure driver certification and timely, accurate freight pick-up and delivery and settlement processing. Having a transportation management system (TMS) connect directly to the asset (driver) through a platform that provides access to drivers and ensures drivers’ certification and compliance–as well as manages the settlement through an Uber-like payment configuration–can be a great way to simplify and streamline your business.
  • •Focuses on getting shippers normal or “specialized” capacity on a transactional basis. Unlike dealing with large, asset-based carriers, the Uberization of freight means shippers can connect with drivers who offer capacity and even specialized freight treatment—like refrigeration–on back-hauls, making it a win-win for shippers and carriers.

On-demand trucking offers shippers a proven and flexible way of conducting their business, with real-time visibility over truck assets and a simpler way to access settlement, liability and other functions via a single interface. Read how recent innovations in web service technology mean shippers can get direct carrier rates, POD and BOL images, online shipment scheduling, and real-time status updates from all carriers on one platform to optimize shipment, financial and customer relationship management and ensure better freight intelligence.

 

10 Keywords Logistics Professionals Should Keep an Eye on in 2020

The start of a new year means that it’s time to realign priorities and set new goals. This doesn’t mean you have to start from scratch! There are plenty of topics and information from 2019 that are important to carry over into 2020. Below are a few keywords that are sure to make headlines this year:

1. Network-based Communities

A network-based community is a group of people interacting through their network-based platform. Network-based platforms are formally defined as a piece of technology or software that connects its users to create mutually beneficial opportunities for all involved.

2. Artificial Intelligence (AI)

Often referred to as AI, artificial intelligence is gradually becoming more common in the transportation industry. Artificial intelligence is the development of computers that allows them to perform tasks that traditionally call for human intelligence.

3. Virtual Reality (VR)

Virtual reality (VR) is an artificial environment a user experiences through sensory experiences created by a computer. The user’s actions alter what happens within the environment. In addition to its popularity in video games, virtual reality (VR) has begun to extend beyond the realm of entertainment. Many trucking companies use VR-based training programs for new hires.

4. Predictive Analytics

Predictive analytics extends beyond a traditional view of operations. It refers to the process of using data, statistical algorithms, and machine learning techniques to provide the most accurate projection of a company’s future performance possible. Predictive analytics uncovers patterns and relationships within data that create room for growth and improvement within supply chains.

5. Autonomous Vehicles

An autonomous vehicle is one that can direct itself without human conduction. While many don’t realize it, autonomous vehicles are already making deliveries in some parts of the country and are projected to be a significant part of the transportation industry!

6. Digital Supply Chain

The term “digital supply chain” refers to a supply chain dependent on capabilities provided by the internet to operate. Digital supply chains are always on and hyper-collaborative with carriers, suppliers and shippers on a singular network.

7. Transportation Management System (TMS)

A transportation management system (TMS) is the key to staying competitive in a continuously evolving marketplace. It is a system that companies can use to digitally manage their freight operations and eliminate traditional processes like calling and emailing partners.

8. Customer Experience

As consumer expectations continue to rise, their experience as customers become more and more important. Customer experience refers to the customer’s thoughts, feelings and perceptions regarding the employees, channels, systems and products of the company they are interacting with. Satisfaction with delivery is a big part of customers’ overall experience.

9. Sustainability

Growing environmental concerns mean that sustainability should be on every company’s mind. Those who are considered to have sustainable operations often utilize a TMS to transition into greener, more eco-friendly habits. Users are able to optimize truck routes and reduce supply chain waste – All while helping the environment!

10. Amazon Effect

It’s no secret that Amazon is dominating the retail industry. Amazon’s free, 2-day shipping guarantee to its Prime members has become an industry standard. The “Amazon effect” refers to customers demanding Amazon-like services such as fast shipping and visibility throughout the supply chain.

 

Kuebix Predictive Analytics TMS

What is Predictive Analytics and How is it Used in Supply Chain Operations?

You may be familiar with the term predictive analytics – but have you ever stopped to ask yourself what it really means for your supply chain? Analytics help companies streamline process efficiencies and make sure important trends aren’t overlooked. Regardless of the industry your company is operating in, predictive analytics can help your company interpret their current performance to help them better understand and predict their future. 

Breaking it Down – Defining Predictive Analytics

Predictive analytics is formally defined as “the use of data, statistical algorithms and machine learning techniques to identify the likelihood of future outcomes based on historical data.” It extends beyond analysis of current operations and provides the best possible projection of what a company’s performance will look like in the future. Businesses who utilize predictive analytics can uncover patterns and relationships in their structured and unstructured data. 

The MHI Industry report revealed that the number of supply chain professionals using predictive analytics has grown 76% from 2017 to 2019. Earlier implementations of predictive analytics focused on inventory management to help reduce cycle times and improve customer service. Over the past couple of years, the concept of predictive analytics has evolved and can now be applied across industries including healthcare and transportation planning.

Companies utilizing the Internet of Things (IoT) are already taking steps towards collecting the data needed for predictive analytics. Whether they realize it or not, the data they’re collecting can fuel their efforts towards projecting and improving the future of their supply chains. For example, a company utilizing predictive analytics in their supply chain can view historical data about on time delivery (OTD) to make better decisions about who they book with in the future. 

Harnessing the Power of Predictive Analytics in Supply Chains

If you’re like many shippers, this type of advanced technology might seem outside of your grasp. With the help of a transportation management system with built-in predictive analytics functionality, however, any shipper can leverage this futuristic tech. TMSs can provide predictive analytics to give you the immediate intelligence you need to make better logistics decisions every day. 

Whether it’s holding your carriers accountable through carrier scorecards, managing your yards and docks more efficiently, or simply ensuring that you are paying the lowest rates for the best service, predictive analytics gives you the information you need to make decisions that will be real game-changers for your business.

 

Kuebix Transportation Management

Why is Transportation Management Important?

Before transportation management systems (TMSs) came into the picture, nearly all logistics processes were done on paper. Shippers spent countless hours calling and emailing internal and external partners just to ship their freight. Transportation management technology changed all of that.

The first TMSs were housed on-premise and did speed up shipping processes. However, since these pieces of technology resided solely within the “four-walls” of the company, they presented many challenges. These included difficulty updating to the latest version and integrating with other platforms. These issues inspired the creation of cloud-based transportation management systems. Cloud-based transportation management systems allow users to connect with internal and external partners and applications much more easily and offer scalability impossible with on-premise software. This modern version of a traditional TMS also offers a quick start-up, low usage costs and greater flexibility.

Many members of the industry often wonder why transportation management is important and why it continues to evolve. The truth is technology is changing every industry and transportation and supply chain are no exception. Many businesses feel that their current operations are working just fine. That doesn’t mean they aren’t missing opportunities for time and money savings, collaboration with other industry members and an increase in customer service quality. Ignoring the significance of transportation management and all it has to offer means missing out on opportunities and the rapid return-on-investment competitors who have adopted a cloud-based TMS are already experiencing. So, what are the reasons transportation management is important?

Benefits of a Transportation Management System (TMS)

Save Time and Do More Without Adding to Labor Costs

The implementation of a TMS keeps companies from wasting a significant amount of time on mundane and repetitive paperwork. Technology speeds up the performance of necessary tasks and allows companies to delegate time to other aspects of the business, allowing them to do more without driving up costs.

Reduce Human Error and Streamline Operations

Time spent comparing carrier rates and booking shipments is significantly reduced through the use of a TMS. Options are displayed on a single screen to make comparison and final decision making faster and easier. Users that integrate their ERP with their TMS eliminate the concern of human error occurring when re-keying orders.

Improve Visibility and Customer Satisfaction with Better Information to Communicate

Transportation management systems provide users with real-time tracking and order information. Companies are equipped with detailed and accurate information to pass onto customers, providing visibility across the supply chain and improving their customer service.

Aggregate Your Shipping Data in One Place to Easily Analyze for Strategic Decision-Making

Shipping data funneled into actionable reports and dashboards allow users to understand every detail of their freight spend. Companies can make strategic decisions based on data provided to further improve their operational efficiencies. They can also be used to evaluate carrier KPIs and total freight spend by item.

Improve Your Company’s Bottom Line

Utilizing a TMS drives down expenses through improving the timeliness and accuracy of operations across the board. Logistics teams can save significantly on total freight spend by always comparing rates to select the best one for every shipment. Companies who implement a cloud-based TMS have increased visibility throughout their supply chain, opportunities for communication and collaboration with carriers and customers, and significant time and money savings.

How Do I Know What Kind of TMS Software is Right for Me?

To determine which kind of transportation management system (TMS) suits your company best it’s important to think about how many shipments you’re making each month and how many locations you have. By answering a few simple questions, Kuebix can provide your company with a personalized recommendation to help answer this question.

Kuebix TMS Holiday Hiring Trend

Retailers and Carriers are Increasing Labor Ahead of the Holiday Shopping Season

Fall is here and retailers are already preparing to get in the holiday spirit! Many businesses announced their seasonal hiring plans before summer ended. A recent Indeed holiday hiring survey indicates that holiday job searches per million job seekers rose by 11% in comparison to last year. The unemployment rate is holding steady at an unusually low 3.7%, so it should come as no surprise that retailers such as Kohl’s, Famous Footwear and Bath & Body Works are scrambling to fill open positions pre-holiday season.

Deloitte’s annual holiday retail projections anticipates that e-commerce sales revenue will fall between $144 billion and $149, an increase from last year’s $126.4 billion spent online. Total retail sales are expected to land somewhere between 4.5% and 5.0% for the period (up from 2018’s 3.1%). The combination of open full-time positions and an increase in money spent makes it critical that seasonal employees are hired before the first holiday hits.

Retailers aren’t the only ones gearing up for holiday season. Both FedEx and UPS have made announcements regarding seasonal hires. FedEx plans on adding 55,000 workers to its already expansive staff of 450,000. Majority of workers added will contribute to the FedEx Ground network.  UPS is set to hire 100,000 seasonal workers to combat the holiday shipping rush. They’re expecting daily package deliveries to nearly double compared to their average 20 million per day. Long-term positions with UPS aren’t out of the question – 35% of people hired for seasonal jobs over the last 3 years have been made permanent employees.

Companies everywhere are struggling to identify the best method to successfully navigate the incoming holiday season. An easy solution to reduce operational inefficiencies is implementing a cloud-based transportation management system (TMS). Through utilizing a cloud-based TMS, companies can lower usage costs, have greater flexibility and experience a rapid return-on-investment (ROI). A cloud-based TMS gives all businesses complete supply chain visibility, saving them time and helping them provide better customer service.

A cloud-based TMS connects users with other shippers, carriers, brokers, freight marketplaces and 3PLs in the network. Users can streamline manual processes and manage all of their shipping functions within a single system. This simplified process creates opportunity for users to earn more while saving time.

No matter how you approach it, pre-holiday season is here and shoppers are ready!

Digital Supply Chain Kuebix

Digital Supply Chains are Becoming the Industry Norm

In the Material Handling Institute’s (MHI) 2018 annual survey on next generation supply chains, 80 percent of the respondents “believe that the digital supply chain will be the predominate model within the next five years—with just 16% saying it’s happening today.” The report describes digital supply chains as “information ecosystems in which a connected and carefully coordinated set of movements and actions must be tracked at every level in order to maximize efficiency and meet customer demands for increased flexibility, visibility and transparency.

Sounds like the foundation of the ecosystem should be a transportation management system – one that allows users to track and trace all movements of freight through all parts of the supply chain, providing SKU-level visibility from the supplier to the end customer.

The digital supply chain has several distinctive characteristics:

  •      •     It is always on – 24/7/365. Because supply chains are global, they must operate around the clock.
  •      •     It’s hyper-collaborative with carriers, suppliers and shippers connected to a robust network where everyone can communicate and collaborate with everyone else on the network, coordinating loads for continuous moves, consolidation and more.
  •      •     A digital supply chain focuses on customer service to better meet the exponential increase of e-commerce orders with faster delivery times and Amazon-like experiences.
  •      •     It’s driven by predictive analytics that utilize real-time data feeds from across the enterprise, producing deep insights for better decision making.
  •      •     It can adapt and grow alongside a business by adding modular features, such as dock scheduling to keep trucks moving while eliminating wait times.
  •      •     It can respond quickly to disruptions so as to mitigate risk due to sudden weather changes, socio-economic issues and other challenges.
  •      •     The digital supply chain reduces fuel and energy consumption which minimizes environmental impact and benefits sustainability initiatives.

The digital supply chain includes a number of innovations that will disrupt the status quo and give competitive advantage to participants. These technologies include: robotics, predictive analytics, Internet of Things, sensors and automatic ID, inventory and network optimization tools, artificial intelligence, driverless vehicles and drones, wearable and mobile technology, cloud computing, blockchain and 3D printing. All of these innovations can work together to create operational efficiencies and competitive advantages.

A digital supply chain is a connected ecosystem that orchestrates activities end-to-end, bringing visibility, risk mitigation, cost reductions and greater efficiencies that contribute to shareholder value. The technology for a digital supply chain starts with a transportation management system like
Kuebix TMS that supplies the digital connections, collaboration and coordination needed to maximize efficiencies and innovation.

Don’t get left behind, waiting to see what others are doing. Your digital transformation can begin today with rapid on-boarding and implementation of Kuebix TMS.