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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!

Kuebix TMS Fall Seasonal Products

Seasonal Flavors Like Pumpkin Spice Add Complexity to Supply Chains Before the Holidays

October is almost here and with it comes seasonal favorites such as apple cider, candy corn and pumpkin spice. With every brand that tries to stay on this theme comes additional supply chain complexities. The chaos of keeping up with consumer demand is already heating up despite holiday season still being a month away!

Data from Grubhub shows the three most popular months for pumpkin and pumpkin-spice-flavored dishes are October, November and September, respectively. Other flavors such as apple cinnamon, pear and maple grow in popularity around this time as well. The five states with the highest number of pumpkin-related orders are California, Oregon, Washington, Ohio and Utah.

While the most common forms of pumpkin treats are baked goods like cakes and cookies, nonconventional businesses are getting in the spirit as well. Spam launched its own Pumpkin Spice Spam this year and sold out within seven hours. Last year Buffalo Wild Wings offered customers a limited-edition pumpkin ale sauce to accompany their infamous chicken wings.

The most challenging part of pre-holiday season is making sure that inventory is in the right place at the right time. Companies who struggle with this face out-of-stocks and missed chances for sales. It can be difficult to predict which seasonal products will resonate with consumers and drive business. It’s important to be able to move product efficiently and minimize operational delays.

Visibility throughout the supply chain also allows shippers to provide accurate and real-time information to retailers and customers alike. Retailers will have accurate information about when they will be restocking and consumers will know when they can expect to receive their product. This additional information allows retailers to provide better customer service and leaves pre-holiday shoppers more satisfied.

Implementing technology into supply chains creates a smoother shipping process for all involved and provides complete visibility throughout the supply chain. Transportation management systems (TMS) eliminate operational inefficiencies while providing benefits to all parties. Customers, suppliers and carriers can collaborate on a singular platform with real-time tracking information and side-by-side rate comparisons to save time and money. This is especially important as retailers and distributors gear up for the busy holiday season and start introducing seasonal favorites like pumpkin spice flavors to store shelves!

Kuebix TMS Transportation Tariff Changes

Tariffs and Trucking: Where Do We Stand?

Both the United States and China are implementing new tariffs involving steep tax increases that are complicating the traditionally codependent economic relationship. All cargo ships coming in from China currently pay a 25% tariff upon entering the U.S., resulting in price increases that make consumers hesitant to buy. Similarly, cargo ships from the U.S. entering China pay anywhere from 5% to 20%. As a result, the number of shipments being transported via the ocean is decreasing, diminishing the amount of freight the U.S. is receiving and the demand for trucks to continue to move product along the supply chain.

A new wave of tariffs is going into effect on September 1, 2019, putting a 10% tariff on nearly every Chinese import not already subject to import duties. The list of imports includes some $300 billion worth of Chinese goods and is being implemented with the goal of balancing trade between the United States and China.

Effects on the Trucking Industry

Shipments from China are typically received on the West Coast and primarily fuel the need for trucks in cities including Los Angeles, Oakland, Long Beach and Seattle. However, shipments from China are being sold at a much slower pace as a result of recent price rises. In response, the U.S. is acquiring less cargo from China to accommodate the shift in demand. The trucking companies relying on their business around these port cities are feeling this change the hardest, as fewer imports mean fewer truckers needed.

Potential for Growth 

While the West Coast is facing a decrease in business opportunities for truckers, the East Coast is experiencing the opposite. Ports in New York, New Jersey and the Carolinas are experiencing an increase in imports from Europe and Asia. This increase in business along the East Coast presents a potential opportunity for trucking companies to do more business, just in a different area than what they initially planned for. Even though trade between the U.S. and China has slowed down, it is unlikely to ever come to a complete halt and is likely to still be a source of income for many in the trucking industry for years to come. 

Adjusting to Change

As the number of imports and exports rapidly change in response to the implementation of new tariffs, it is extremely important for companies to manage their transportation processes. Integrating technology like Kuebix TMS in place of traditionally manual processes can help establish visibility through the entire supply chain and offer better control over such rapidly evolving operations.

Gartner Supply Chain Executive Conference 2019 - Kuebix TMS

Join Kuebix at the Gartner Supply Chain Executive Conference 2019

The team from Kuebix will be exhibiting and speaking this year at the Gartner Supply Chain Executive Conference 2019! This conference is the world’s most important gathering of supply chain leaders and promises to be a great event. The Gartner Supply Chain Executive Conference takes place May 13 – 16 at the JW Marriott Phoenix Desert Ridge Resort & Spa in Phoenix, Arizona.

Kuebix will be showcasing our transportation management system (TMS) and doing demos at our booth. Our technology is the industry’s fastest-growing TMS with over 16,000 companies within the Kuebix shipping community already. If you’re planning to attend the conference, we’d love to schedule a demonstration at our booth. Click here to request a meeting through this link.

Dan Clark, Kuebix Founder and President, will also be speaking at the conference. Dan’s session, Community Powered TMS: Driving Profits for Shippers and Carriers, will teach attendees how a cloud-based transportation management system can be the foundation of a vast shipping community where shippers and carriers realize new levels of efficiency and savings.

Dan’s speaking session will begin at 5:15 PM on Wednesday, May 15 and take place in the Grand Saguaro Foyer at the JW Marriot. We hope to see you there!

About the Gartner Supply Chain Executive Conference 2019

Gartner Supply Chain Executive Conference 2019 is the world’s most important gathering of supply chain leaders. Disruptions large and small confront today’s supply chains on a daily basis. At this year’s conference, chief supply chain officers and their leadership teams focus on how to recognize the impacts of disruptions and create transformational strategies that empower the organization to exceed performance expectations.

Kuebix - Magic Quadrant for TMS

Kuebix Advances Position in 2019 Magic Quadrant for Transportation Management Systems

It’s a known fact that technology is helping companies around the world speed up their supply chains. According to Gartner research*, “The challenges in transportation around scarce capacity, higher costs and more demanding customers are increasing the need for technology.”

Making the decision to implement any new piece of technology can be a large commitment though. That’s why it’s essential that companies thoroughly understand the different transportation management system (TMS) options before they commit to what could be a lengthy and expensive implementation process if they don’t choose wisely.

Luckily, Gartner, Inc. provides the unbiased insight into the TMS marketplace that business leaders need. Each year, Gartner releases the Magic Quadrant for Transportation Management Systems*. This analysis covers all major players in the TMS marketplace and highlights their varying strengths and cautions. Some TMS’s positively advance their position and others descend.

Kuebix is proud to have advanced its position in this year’s Magic Quadrant for TMS and be recognized for its ability to execute.

“Over 16,000 companies have joined the Kuebix shipping community, recognizing that we are providing an easy to use, fast-to-implement, enterprise-class TMS that delivers the lowest total cost of ownership in the industry,” commented Dan Clark, Kuebix Founder and President. “We believe that Kuebix’s advancement in the 2019 Magic Quadrant for Transportation Management Systems is due to our unprecedented market growth, product innovation, and commitment to the success of each and every one of our customers.”

Shippers in any industry with freight to ship can leverage Gartner’s research to help them determine which TMS will provide them the best tools and service to improve their supply chains. They can also view first-hand reviews by real customers on Gartner Peer Insights. Read reviews about Kuebix such as “Core product exceeded expectations as did integration team” and “Implementation was very collaborative and they presented real solutions.”

To learn more about today’s TMS marketplace, download a complimentary copy of the 2019 Magic Quadrant for Transportation Management Systems.

*Gartner, Magic Quadrant for Transportation Management Systems, Bart De Muynck, Brock Johns, Oscar Sanchez Duran, 27 March 2019

Gartner Disclaimer

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

TMS Options Proliferate, But Not for All

This is the second in a three-part series that tracks the evolution of the TMS from the late 1990s to today. In last week’s piece I discussed the emergence of the TMS. Next week I’ll discuss the future.

When we last left transportation management systems (TMS), the high price and staff requirements of the early systems had created two groups of freight shippers, the haves, which could afford the high expense of on-prem big-box systems, and a far larger group of have-nots.

The needs of shippers struggling to replace manual processes with automation, drove widespread developments of new products, services and third parties. Most of these used different approaches for addressing the huge need for efficiency in supply chains. Meanwhile, the maturity of cloud computing was driving changes across industries and was just beginning to gain traction in logistics.

The lineup of options for shippers looking to improve their logistics operations included on-site system vendors, services from 3rd party logistics providers, and a shallow pool of companies looking to leverage the software-as-as-service model and approach to locating system intelligence.

Word from Above

But what lead to cold sweats for shippers was all the best practice and success stories that the tech trades and even the business media were running. They featured pioneering companies that had implemented a solution to cure their shipping ills and were said to be on the leading edge of technology use for business gain.

That started the deluge of direct questions from C-level executives.

Are we checking out TMSs? Is this something for us? Can we save money? Why haven’t we done this? C-level execs started believing that their companies could quickly turn their freight shipping into a profit center from a cost center.

It didn’t matter that the price for a TMS was too high or that many of the options covered one aspect of shipping but not many others.

TMS Affordability?

You’d think for sure that a growing group of TMS options would benefit all shippers desperately seeking freight intelligence. The reality was that TMSs were still not accessible to most businesses in the U.S. The have-nots could find affordable freight handling options, but that meant paying a third party to handle their freight shipping function.

For most, price as in the TCO, was the single largest impediment to implementing a system that would enable logistics professionals to truly manage their freight transportation. Isn’t it ironic that the sticker price of TMS options and alternative is what was keeping the have-nots from cutting costs and generating new revenue?

Clear Forecast

With the maturity of the cloud, it became clear that locating a TMS software product on a platform in the network  and sold as-a-(monthly)-service would break down the many barriers to implementation that so many businesses of all sizes were up against.

This opportunity sure got the attention of shippers who had all but given up on an on-site TMS and wanted something that was both flexible in architecture and easier to cost justify to their bosses.

An Easier Sell

Many enterprise freight shippers moved from controlled freight chaos to the cloud and found that advances in platform technology and automation from TMS software made for easier installation and a faster return on investment.

But while a growing mass of businesses were putting cloud-based TMSs to the test – and turning a cost center to a profit center, SMBs, which I believe make up over 90% of all U.S. businesses, still couldn’t justify a TMS spend. Some outsourced their operations to 3PLs. Others were stuck with their inefficient status quo.

Believe me, whether you’re a kid or a shipping professional nothing’s worse than watching someone else get, enjoy (and profit from), something great that you can’t have.

In the final installment of this three-part series, I’ll explain how important changes in the evolution of the TMS will define the future of freight shipping. Thanks for staying tuned!

 

 

 

 

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