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Technology is Changing Warehouse Operations

Now that vaccine distribution has become more widespread and restrictions throughout the country are being lifted, businesses that made the decision to operate remotely are reopening office buildings. However, many companies have realized that their employees don’t need to be in the office to complete daily tasks. Some are having employees return to the office full-time, others are taking a hybrid approach and many are closing offices altogether.

Hybrid business models are a combination of what many companies had before the pandemic and the remote work that employees have become used to. By creating a combination of the two, businesses can ensure there’s enough space for everyone in their buildings and ease employees back into commuting to the office.

Of course, a remote or hybrid business model is not feasible for all parts of the supply chain. Warehouses require an extensive amount of organization and management that is traditionally manual. This made the past year especially difficult for companies dealing with an increase in demand and a limited amount of on-premise staff. However, recent developments in technology are making it possible for logistics professionals to effectively manage warehouses from home.

Technology’s Evolving Role in Warehouses

While warehouses are still a ways away from being completely autonomous, aspects of their daily operations can be handled remotely. The creation of RFID tags has played a big part in reducing the number of people needed to be physically present in the warehouse. Supply chain and operations managers have been able to gather data and insights, often in real-time, about warehouses even if they aren’t physically there for a while. Recent advancements in technology are making it possible for some grounding operations within the warehouse or at the loading dock to be done remotely. Here are a few examples of companies working to create this technology:

Zebra Technologies

Zebra Technologies’ SmartPack Trailer uses video and 3D sensing with analytics to collect information about trailers being loaded and unloaded at a dock. Logistics professionals can optimize tasks in real-time, take detailed records of each of their shipments and use data to generate actionable analytics. 

Phantom Auto

Founded in 2018, Phantom Auto has been working on warehouse technology that allows professionals to work remotely. Autonomous forklifts and other vehicles work well in a controlled environment, but the movement and unpredictability in actual warehouses makes them too difficult to apply. Phantom Auto has created a system that allows logistics professionals to control forklifts, yard trucks or other vehicles remotely.

Their technology branches off into two different types – the remote control of one specific vehicle and the remote control of multiple autonomous vehicles at once. In the first case, the driver operates a single vehicle remotely – it is exactly like they are driving around the warehouse without actually being there. Since autonomous vehicles operate independently, warehouse employees can remotely supervise more than one at a time. The vehicle does most of the work, they just have to step in and help if it gets stuck or bumps into something. The vehicles involved in both of these methods have video and two-way audio so that remote drivers can see and hear other employees in the warehouse to make the experience even more like physically being there.

Logistics automation has become especially important this past year. The demand for technology with advanced capabilities has grown as companies look for ways to overcome spikes in order volume without having to search for additional workers. Mobile robots and other supply chain technologies have helped boost output and efficiency in these scenarios. It will be interesting to see how these advanced technologies continue to evolve and positively impact supply chains!

How Community Load Match Helps Shippers Secure Capacity

Making sure that you are getting the best rate for your freight in an environment that demands fast shipping and detailed communication with customers is not an easy task. Shippers are struggling to keep operational costs down while improving efficiencies throughout their supply chains. Kuebix’s Community Load Match solves these problems and more by providing Kuebix shippers with a new, valuable source of truckload capacity and meeting them where their needs are.

CONDUCT A REQUEST FOR PROPOSAL (RFP) TO SOURCE NEGOTIATED RATES

Conducting a request for proposal (RFP) requires a lot of time and effort from shippers who are already struggling to manage their growing carrier networks manually. Kuebix uses Community Load Match to take on the responsibility of conducting an RFP for its shippers. This opportunity isn’t limited to full RFPs – they can be quarterly or even smaller if necessary. Kuebix handles assembling the RFP itself and communicates the shipper’s needs and goals to incumbent and prospective carriers. Shippers receive the results of the RFP and carrier recommendations to empower them to select the best provider possible for their freight. 

SECURE CAPACITY IN REGULARLY SHIPPED LANES OR PROJECTS

Kuebix shippers can leverage complimentary lane analysis services to secure capacity in their regularly shipped lanes. Kuebix leverages Community Load Match to facilitate the direct relationship between shippers and carriers with empty capacity to fill for increased efficiency. Consistently securing capacity in preferred lanes makes it easier for shippers to identify rate changes and areas with potential for improvement.

FIND THE BEST RATE FOR ONE-OFF SHIPMENTS ON THE SPOT MARKET

Shippers looking to find the best rate for a one-off shipment can use Community Load Match to quickly and easily receive spot rates from a vast network of carriers. Kuebix users can compare rates from their connected carriers against rates from Kuebix’s vast network of Community Carriers to ensure they are making the best informed decision. Receiving, booking and managing truckload shipments on the same system makes it easy for users to supplement existing capacity with reliable alternatives. Shippers that leverage Kuebix TMS and Community Load Match can retain control by choosing the best provider for every truckload shipment.

Regardless of company size, Kuebix is committed to having a viable solution for every shipper. With Community Load Match, Kuebix shippers can easily discover alternate sources of truckload capacity to drive down costs while improving their operational efficiencies!

Overcoming Challenges in the Supply Chain with Technology

The first half of this year has been filled with a number of challenges and new opportunities for supply chains. The pandemic has changed the volume and pace at which consumers are purchasing products. As a result, logistics professionals have been identifying ways they can pick up the pace of their operations without sacrificing quality. Technology has been at the forefront of possible solutions. 

Here are some challenges to keep an eye on as we head into the remainder of 2021: 

Challenges

Changing Consumer Demand

Consumer preferences and priorities have changed significantly this year. Shoppers are looking to make practical purchases with a fair price tag. While the occasional splurge isn’t out of the question, consumers need to feel like the product is genuinely worth it. Online reviews are especially important when it comes time to make a purchase decision. Detailed videos of product overviews and opinions from people who actually own and use the product are available online in a number of forms, making them easy to watch.

Faster Delivery Pace

Nearly all companies are sensitive to the speed of their final mile delivery process. Consumers have grown to expect a quick turnaround after placing an order online. Access to detailed tracking information with real-time status updates is also important. Quick deliveries and accurate status information that’s available to customers is essential.

Supply Chain Strength

Both of the challenges described above feed into the need for a strong supply chain with seamless operations. In order to keep up with heightened expectations, higher order volumes and faster shipping requirements, supply chains must work efficiently while maintaining quality. With so many moving parts involved, improving supply chain operations can be difficult.

Leveraging Technology to Overcome Obstacles

Luckily, there is a technology platform with the ability to answer these challenges and more. A transportation management system (TMS) makes it possible for shippers to save time and money while improving operational efficiencies. By implementing Kuebix TMS into their logistics operation, shippers can ensure their supply chains are running as smoothly as possible. Kuebix TMS is cloud-based and can scale to accommodate the size of any growing business. Users can leverage the rate comparison feature to view their options side by side and make the best informed decision. Detailed reports and dashboards help users take a closer look at their business and identify areas with potential for improvement. Kuebix TMS users can seamlessly integrate with Trimble Visibility to access real-time tracking information down to the SKU level and actionable analytics. 

New challenges and trends will always exist in the supply chain. It’s up to logistics professionals to respond in a way that not only helps them adapt, but accelerates their growth into the future. The best way to do this is by implementing a TMS into your supply chain!

The Future of Shopping for Groceries

This past year has brought on a number of changes regarding the “typical” way of doing things. One of the biggest changes has been how we shop for groceries. Grabbing a shopping cart and filling it with fresh produce, fruits and vegetables has been the way the world buys food for a long time. However, the pandemic has made consumers uncomfortable with this method as it can be time consuming and involve crowds. Grocers have taken this opportunity to explore automation and online shopping within their stores.

The Rise of Online Grocery Orders

While some grocery stores had rolled out online shopping programs prior to the pandemic, they drastically increased in popularity as a result. Shoppers can fill their carts online, pay and either pick up their purchases or have them delivered. For many shoppers, reducing or completely eliminating their time spent in grocery stores is worth any additional cost. According to industry data, the adoption rate for online grocery shopping has exploded. Consumers who use this method once or twice are 80% likely to come back and place another order.

The demand for online grocery shopping is beginning to outweigh the number of employees available to support the initiative by assembling orders. As a result, popular grocery stores like Walmart, Kroger and Albertsons are starting to invest in high-tech solutions involving robots packaging these orders for them. Some stores already have robots walking through aisles and taking inventory data. 

Make Way for Fully Automated Grocery Stores

Robots able to package online orders are just the beginning of automation in grocery stores. Urbx is a startup company that’s planning on building a grocery story with an automated fulfillment system called Urbx Market. Construction of its first location in Boston will be finished by the end of 2022. Instead of containing product aisles and a service department, Urbx Market will have ordering kiosks for customers to use and robots that deliver orders within minutes. 

Consumers value an in-store shopping experience because they are able to see, smell and even touch products before purchasing. However, the pandemic has changed things and quick fulfillment with limited contact has become more important. This change in mindset made way for entirely automated grocery stores like Urbx Market. Shoppers will be able to select, purchase and receive their quality products faster than ever before. Thanks to the elimination of costly, manual processes, these quality products will be available at consistently low prices. 

The implementation of advanced technology in grocery stores is just beginning. Robots have already started improving operational efficiencies and will expand as more brands invest. With one of the first fully automated grocery stores set to open its doors at the end of next year, it’s safe to say that the future of shopping for groceries is on the fast track for change!

How Plant-Based Protein is Shaking Up the Food Industry

When most people think of plant-based proteins they picture products like tofu and veggie burgers. However, the plant-based foods industry has started to move towards products that look and taste like meat without any animals involved. These new options are being advertised as a healthy and sustainable alternative for those who choose not to consume meat in addition to those who do.

Plant-based versions of burgers, sausage patties and chicken nuggets created to taste like the real thing are starting to appear in most grocery stores. More recently, they have started to gain traction and appear on the menus of popular restaurants and fast food chains. Technomic Ignite menu data predicts that plant-based proteins will grow 35% on menus by the end of 2022. Their rise in popularity can be credited to a change in consumer perspective. Plant-based proteins are largely recognized as an alternative for vegetarians, vegans and other lifestyles that choose not to consume meat or animal products. While this still holds true, growing sustainability concerns have consumers outside of these lifestyles picking plant-based options off of the menu. Meat consumption is a major contributor to environmental damage and consumers are in search of another option that tastes just as good. Companies like Beyond Meat and Impossible Foods are working to provide a solution.

McDonald’s recently announced its three-year deal with Beyond Meat, making them the “preferred supplier” for the meatless burger in the McPlant. The two companies plan on exploring and co-developing other plant-based items like chicken, pork and eggs. Beyond Meat also has partnerships with PepsiCo and Yum! Brands, the parent company of KFC, Pizza Hut and Taco Bell.

Tesco, a grocery and general merchandise retailer based in the U.K., pledged to increase its sale of plant-based proteins and meat alternatives by 300% by 2025. To reach their goal, Tesco plans to make these products more available, affordable and visible to shoppers who visit their stores. Tesco will also be working directly with their suppliers to bring new plant-based innovations to customers.

What this Means for Supply Chains

The popularity of plant-based proteins and other alternatives have disrupted the global meat industry in a way that traditional burger companies did not expect. Before plant-based options became popular, burgers made of meat did not have a competitor.  As demand launches meat-free alternatives out of grocery stores and into restaurants all over the country, plant based proteins and their supply chains have their work cut out for them.

As the plant-based protein industry continues to expand and create new products, companies will need to rely on their supply chains to keep things running smoothly!

 

The Future of Drones in the Supply Chain

Logistics industry innovators are always looking to create solutions that will cut costs and improve operational efficiencies. One application of technology that’s becoming increasingly popular within supply chains is drones. While drones are commonly applied in warehouses to help with inventory management, their purpose is starting to extend further down the supply chain to final mile delivery.

To ensure delivery drones are used safely, The Federal Aviation Administration (FAA) has released a set of rules regarding remote identification and flying over people. These rules require drones to be remotely identifiable and give smaller drones permission to fly directly over people during the day. Remote identification, also known as a “digital license plate,” can be scanned to check the drone’s control station location and make the identification process easier for law enforcement. These regulations are the first step in making sure that an increase in drone presence is comfortable and safe for everyone involved.

The details of delivery operations involving drones varies between companies. The FAA gave Amazon permission to use drones to deliver packages under five pounds starting last September. Verizon and UPS have also started using drones. Companies that implement delivery drones into their operation are looking to help drivers save time and fuel by leveraging drones to deliver small packages to hard-to-reach locations. Most companies are starting to roll out drone initiatives in rural areas as regulations for more populated areas are still needed. 

Additionally, the technology behind all types of drones is still being developed. Last week’s Consumer Electronics Show (CES) unveiled several drones with new technology that will accelerate drone usage even further. Sony released a sneak peek of their Airpeak drone which features an obstacle avoidance system and a first-person view (FPV) for the pilot. Autel Robotics showcased their EVO Dragonfish and EVO 2 RTK series. The EVO Dragonfish is designed to fly for longer and tolerate harsher wind conditions while carrying up to 3.3 pounds of product. The EVO 2 RTK series leverages the latest technology to make tracking and flying drones to a specific location even more precise. 

How Drones Can Help Supply Chains

Drones are a way to cut back on costs associated with final mile delivery. It can be costly to reach certain rural areas with low delivery rates. Drones remove the need for large trucks to make the journey many miles off-route to residences. While the initial implementation cost is high, delivery drones make up for it quickly with significant fuel and time savings. Truck drivers can focus on larger packages along their route and reduce the number of necessary stops. With consumer expectations continually increasing, an efficient delivery process is extremely important. 

While delivery drones are still in the beginning stages of implementation, it will be interesting to see how common they become and what efficiencies they bring to supply chains!

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The Supply Chain’s Critical Role in Successful Covid-19 Vaccine Distribution

The creation of a Covid-19 vaccine has been on the top of everyone’s mind since the illness first began to spread. A November Gallup poll revealed that 58% of Americans would get a Covid-19 vaccine. Leading pharmaceutical companies Moderna and Pfizer have created vaccines with efficacy rates of more than 90% that will be ready for distribution by the end of the year. Now that trustworthy vaccines are in production, there’s one problem that remains – distribution. 

Transporting vaccines is more complicated than loading them into a truck and driving. Moderna’s vaccine requires a temperature of -20° for long-term freezing but can be stored for up to one month in a regular refrigerator. On the other hand, Pfizer’s vaccine needs a temperature of -70°C for long-term freezing and can last in a regular refrigerator for five days at most. Both variations must be sealed in sterile containers before leaving the production facility.

Pfizer and Moderna’s vaccines require two shots given weeks apart to the person being vaccinated, making the logistics even more complicated. Hardware companies responsible for producing glass vials, syringes and needles started ramping up production over the summer to prepare for the inevitable creation of a vaccine. U.S. Government officials are working directly with McKesson, a medical supply company, to assemble vaccination kits and make distributing and administering the vaccine easier. 

The infographic below highlights some of the major challenges supply chains are facing on top of determining how to distribute the vaccine.

With people across the globe wanting a dose of either vaccine as soon as possible, the pressure is on for supply chains. Both Moderna and Pfizer need reliable temperature-controlled trucks to transport their vaccines. Even the smallest deviation from the required temperature can render an entire truckload of vaccine doses ineffective. Securing a large fleet of specialized trucks is a challenge in itself and transporting substantial quantities of either vaccine requires supply chains to move quickly.

It’s equally as important that those responsible for distributing the vaccine have access to tracking information. Distributors need to be sure the doses they’re administering stayed within temperature and time regulations before reaching their final destination. Many hospitals and other healthcare facilities have already expressed concern that they don’t have enough ultracold storage capacity to act as a distribution center. Rushing any part of this fragile supply chain can compromise the quality of doses the entire world is depending on. 

In order to successfully transport and distribute doses of Covid-19 vaccines, stakeholders will need to  leverage the most advanced supply chain technologies on the market today. The latest applications of technology will improve collaboration and visibility within logistics operations to help both Moderna and Pfizer produce and distribute their vaccines.

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The Turkey Day Supply Chain in 2020

The holiday season during Covid-19 means smaller gatherings and changes to long-standing traditions for many families. Healthcare professionals are recommending everyone stays home and stays safe for Thanksgiving this year. Regardless of any changes in plans, there’s one thing that will be at the center of most families’ tables – turkey.

A grand total of 46 million turkeys are eaten for Thanksgiving every year. Research has shown that the average cost of this year’s Thanksgiving dinner is the lowest it’s been since 2015. Turkey prices are 7% lower than they were last year at $19.39 for a 16-pound bird, equating to $1.21 per pound. A Thanksgiving meal for 10 people including classic dishes like turkey, stuffing and pumpkin pie costs about $46.90, which is 4% less than last year.

Lower prices can be attributed to the fact that a significant number of people are staying home and cooking their own meals because of the pandemic. More people buying ingredients involved in signature Thanksgiving dishes is good news for many companies, but those who handle turkeys are in a unique predicament.

The “ideal” Thanksgiving turkey typically weighs between 28 to 30 pounds. Distributors were used to operating under the assumption that the best turkeys were the biggest ones. For many families, this rang true. However, as this year’s gatherings downsize, so does the weight of the ideal turkey. The majority of Thanksgiving shoppers are in search of smaller turkeys, making them seemingly impossible to find. 

The entire supply chain is affected as consumers, butchers, meat suppliers, grocers and chefs are left scrambling to secure smaller birds. Some consumers don’t mind cooking a larger turkey because it means plenty of leftovers for sandwiches the next day. To accommodate smaller gatherings that aren’t interested in leftovers, butchers are breaking down large birds and selling parts individually or in smaller bundles. 

Households who don’t want to cook their own turkey regardless of its size are turning to restaurants. To capitalize on the change of pace for this year’s celebrations, restaurants are offering traditional meals that can be ordered in advance for individuals or small households. Those who either don’t want to cook or are unable to cook can still enjoy the classic Thanksgiving meal they know and love in the comfort of their own home.

The circumstances around this year’s Thanksgiving are unusual, but there are still plenty of options in terms of securing the perfect turkey. The key to making sure your table is filled with all the classics is planning ahead. Shop for popular ingredients early and don’t leave anything for the last minute! Place an order for a turkey as soon as you confirm how many people will be at your dinner table and remember it’s never a bad idea to have leftovers!

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Trends in the Supply Chain and Their Impact on the Transportation Management System Market

This year has reminded everyone to expect the unexpected – even in the supply chain which is one of the most unflappable industries out there! Covid-19 has disrupted the logistics operations of companies throughout the U.S. Technology is rapidly advancing as new tools and integrations become available and consumer shopping habits have been directly affected in the process. In order to overcome these and many other challenges, companies can leverage the latest supply chain technology and find mutually beneficial opportunities with one another as part of connected logistics networks. Understanding the state of the industry and how it relates to the TMS market is the first step any company trying to ‘weather the storm’ must understand.

We believe Gartner’s recently published research titled Gartner Research: Macro Trends Affecting the Transportation Management System Market offers insight regarding current trends that are influencing the buying process for transportation management systems (TMS) and is a great place for any potential technology user to start with. It’s important that logistics professionals understand these trends as it will empower them to make better informed decisions when selecting technology for their supply chain. 

 

Leverage this report to:

  • •   Evaluate key factors such as usability, ease of implementation, and carrier networks
  • •   Understand important trends shaping the TMS industry
  • •   Identify TMS vendors that bring innovation to a changing marketplace

 

One of the major trends affecting the buying process for transportation management systems is the constant maturing of technology. As technology advances, consumer expectations heighten. Think of it like the “Amazon Effect.” Now that the world knows 2-day shipping is possible, everyone starts to expect this from every retailer, not just Amazon. Factors like user experience and implementation times are becoming more important. TMS providers have to work harder to meet these expectations, but it’s up to the potential buyer to determine whether they will be up and running quickly enough to generate rapid ROI. Additionally, if the TMS doesn’t provide a user-friendly user interface (UI), it doesn’t matter how many bells and whistles the technology has if teams won’t adopt it into their everyday operations.

Nearly all transportation management systems on the market today are cloud-based, even those legacy systems with their main capabilities based in hardware are trying to play catch up. Solutions that are cloud-based make it easier for users to store data and regularly update software. As more digital networks and platforms arise in the transportation industry, providers continue to expand their capabilities and work together to create partnerships and integrations.

Technology is constantly evolving and as a result, shippers are thinking ahead before investing in a TMS. Decision making is no longer focused solely on the software’s current features but rather a combination of its current functionality and efforts to expand partnerships and capabilities. Shippers want a transportation management system that will be able to grow alongside their needs and take on new challenges in an uncertain market.

These trends and their impact on the market are important for shipping companies planning to grow their business in 2021. Understanding the effects of Covid-19, a changing technology landscape and consumer expectations will help any company make the best decisions for their supply chains in the face of uncertainty.

Gartner, Macro Trends Affecting the Transportation Management System Market, 17 September 2020, Bart De Muynck, Brock Johns, Carly West, Oscar Sanchez Duran

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Back to School Looks Different for Supply Chains This Year

Fall is approaching and with it comes back to school season. However, Covid-19 has left the 2020-2021 academic year looking different than previous ones. School districts throughout the U.S. are deciding between in-person, online or a mix of the two instruction styles for their students. Many of the country’s major K-12 schooling systems including Los Angeles, San Diego and Chicago have chosen to move forward with a remote learning environment. With so many districts expected to follow their lead, companies manufacturing products considered essential for a successful online learning experience are scrambling to keep up with heightened demand. 

Preparing for the unpredictability of the school year has proven itself costly. According to the National Retail Federation, back-to-school spending will increase by 26% in comparison to last year. Families with children attending K-12 plan to spend an average $789.49 per family, while college students and their families expect to spend an average $1,09.20 per family. Additionally, 55% of families expressed that they’d be shopping online for back-to-school items rather than in person.

The most essential back-to-school item every student needs for online learning is a laptop. Three of the world’s biggest computer companies, Lenovo, HP, and Dell, have reported a shortage of nearly five million laptops. Schools purchasing electronics in bulk for students started to experience shipment delays in the spring. Setbacks worsened as the pandemic continued to spread. A combination of increased demand and supply chain disruptions caused by Covid-19 have made it challenging for these companies to prepare themselves for back to school season.

Accessories like wireless headphones, microphones and monitors are also experiencing an increase in consumer demand. Many students have traded in their concerns about the first day of school outfits for ones about the proper desk setup and gadgets to have the best video call possible. 

Adjusting to New Shopping Patterns

Manufacturers, distributors and retailers of electronics and other office products have their work cut out for them this fall. Products that may have previously been considered optional on back-to-school shopping lists are a necessity for those starting their school year at home. Clothing stores dependent on students shopping for their first day of school outfits are trying to stay on trend and produce more loungewear. 

A successful supply chain must be able to adapt to changes regardless of how unexpected they are. The best way to stay on top of things is to leverage technology like Kuebix TMS. With Kuebix TMS, users have visibility throughout their transportation supply chains and can adapt to last minute changes by leveraging the built-in truckload spot market, Kuebix Community Load Match

Being aware of details regarding shipment location and order information helps companies stay prepared. Users are able to automate manual processes and allocate the time saved to more sensitive areas of their supply chains and improve customer service. Detailed reports and analytics serve as feedback for companies by helping them identify potential opportunities for improvements and strengths. A transportation management system strengthens logistics operations as a whole, making it easier for companies to handle any fluctuations in demand the school year brings!

What is a Transportation Management System TMS?

What is a Transportation Management System (TMS)?

The term ‘Transportation Management System’ or TMS has become more common in the supply chain industry as companies turn to technology to stay competitive in a changing marketplace. Technology has revolutionized everything from how we watch TV, to how we buy our groceries, and even how we meet each other. It’s unsurprising, therefore, that a key component of the American economy (the movement of goods, materials and other freight) would eventually turn to technology to keep pace. Transportation management systems are the logical next step. Now, companies of all sizes are researching transportation management systems to learn more about how technology can save them money, streamline logistics operations and improve customer satisfaction.

But What Exactly is A Transportation Management System or TMS?

Definition – According to Gartner, an analyst firm providing companies with insight, advice and tools to evaluate technology:

“A TMS (transportation management system) is used to plan freight movements, do freight rating and shopping across all modes, select the appropriate route and carrier, and manage freight bills and payments.”

Simply put, a TMS is a system that companies can use to digitally manage their freight operations instead of calling and emailing internal and external partners. Transportation management systems often sit between a company’s ERP system and a warehouse management system (WMS) and connect the two for increased supply chain efficiency. Orders flowing between these systems create continuity and speed up the time from customer order to final delivery.

At their core, most transportation management systems have rating, booking and tracking functionality. Others have advanced reporting and dashboards, freight pay and audit, and other modular features that can be added as needed. Transportation management systems come in all shapes and sizes, so it can be difficult to know where to start. Here are some of the potential benefits companies can gain by implementing a TMS:

  •      •     Save money and grow your bottom-line
  •      •     Save time and repurpose labor to value-added projects instead of “firefighting”
  •      •     Improve customer satisfaction
  •      •     Get insight into your operations to make strategic changes
  •      •     Simplify collaboration with supply chain stakeholders
  •      •     Grow your business!

Step-by-Step Guide on What You Need to Know About Transportation Management Systems (TMS)

Types of Transportation Management Software – Transportation management systems have been around since the 1980s, but they’ve come a long way from the clunky, monolithic machines of the past. Now there are many varieties which cater to companies from every industry and of any size. Some TMSs focus on small – to – medium-sized businesses (SMB) and only offer very basic functionality including rating and booking. Many TMSs that cater to a smaller market don’t offer customization or advanced features like reporting and analytics or integrations. Instead, they focus on being low total cost to own (TCO).

Other TMSs focus on the high end of the market and cater to enterprise-size companies. These TMSs often only have a few customers and their price-points make it nearly impossible for smaller companies to benefit from them. According to Adrian Gonzalez, President of Adelante SCM, “In the case of shippers, large enterprises (over $1 billion in revenues) were the early adopters of transportation management systems (TMS), due in large part to the high cost of buying and implementing on-premise applications (typically over $1 million).”

Kuebix IntegrationsEnterprise-class TMSs usually offer advanced functionality like integrations, freight pay and audit, order and route optimization, and many other features. Unfortunately, most of these legacy systems come as a complete (and pricey) set, leaving companies who don’t need certain features with a bill for the technology they won’t use.

The solution to this is to find a TMS that will expand and contract along-side your business so that you always have the features you need and aren’t paying for the ones you don’t. It’s important to realize that not all companies operate in the same way, and a scalable transportation management does just that. Transportation management systems like Kuebix TMS are built to serve companies of all sizes and needs.

Kuebix Free Shipper was the industry’s first truly free TMS and has removed all barriers to entry to SMB customers looking for rating, booking and tracking functionality. Companies looking for financial management, advanced analytics and other premium features can upgrade to Kuebix Business Pro and Kuebix Enterprise and then seamlessly add additional features.

What’s the Difference Between Cloud-based / SaaS, and On-Premise TMS?

Besides being geared toward specific audiences, transportation management systems are housed and accessed in two different ways. The traditional way which many early adopters of transportation technology used was on-premise software.

On-premise software is installed and run directly on local computers. This requires a representative from the TMS provider to physically install the TMS “on-premise” at the user’s headquarters so that the company can gain access to it. This can cause difficulties whenever a problem arises or a new version needs to be updated, not to mention the customer’s inability to take their TMS on the road with them.

Cloud-based, software-as-a-service (SaaS) TMS are becoming strongly preferred over on-premise software. They are much more agile and easier to install, maintain, and upgrade, leading to a faster return on investment (ROI) and less hassle.Cloud-based platforms create an opportunity for next-level collaboration across supply chains. With software that is housed on the “cloud” (online), users can access it from anywhere, even from mobile devices, and aren’t constrained to “the four walls” of their office building.

Most cloud-based transportation management systems are sold as software-as-a-service (SaaS). This means that users subscribe to the technology on a monthly or annual basis instead of purchasing the technology outright. Not only is this more cost-effective, it also means that users are always on the most recent version of the software.

What is the Core Functionality of a Transportation Management System (TMS)?

As mentioned above, most transportation management systems provide these three core features:

  1. Rating: Any logistics professional with a TMS can easily find rates for their customers’ orders and book those orders for delivery.
  2. Booking: Instead of needing to call individual carriers or visit each carrier’s website, the user can simply access the TMS to see all of their negotiated rates laid out side-by-side. Picking the rate with the best price and service level is both faster and easier!
  3. Tracking: Transportation management systems provide detailed tracking information on shipments all the way from the warehouse to their final destination.

Together, these features unlock potential for improved operational efficiencies and increased visibility throughout the supply chain.

Common Transportation Management System (TMS) Upgrades

Though most TMSs provide the standard rating, booking and tracking, other more advanced TMSs also offer additional features. These can sometimes be added on in a modular fashion so that the user only pays for what they need, or may come as a package deal with the TMS. Here are some of the common capabilities of more advanced transportation management systems:

  •      •     Freight Pay and Audit – This feature helps companies automatically audit each carrier invoice. TMSs like Kuebix indicate which bills are within the predetermined threshold and can be paid and calls-out others which do not fall within the limit. This makes it much faster for financial teams to pay carriers and helps them avoid overpaying on accident.
  •      •     Order Integrations – An integration between the TMS and an ERP or a financial system like NetSuite, Microsoft Dynamics, or QuickBooks can vastly improve the speed and accuracy of booking. Order information flows directly from the ERP system and automatically populates within the TMS so that users never need to re-key information. This eliminates user-error which can lead to endless firefighting and incorrect deliveries.
  •      •     Order and Route Optimization – Some TMSs offer load and route consolidation and optimization through algorithms within their technology. The system can suggest the most efficient and cost-effective method of shipping a group of orders and the user can book the load quickly and easily.
  •      •     Reports and Dashboards – Analytics are a major draw for many companies interested in improving their logistics processes. Actionable reports and dashboards let users understand every detail of their freight spend and make strategic decisions on the basis of data. They can be used to evaluate carrier KPIs, total freight spend by item, and to provide insight to leadership.

Order and Route Optimization Infographic What is a Transportation Management System TMS?

How Can a Transportation Management System (TMS) Software Save Me Money on Freight Spend?

Compare Rates: Transportation management systems let users automatically access all their negotiated carrier rates side-by-side for easy viewing and comparing. TMS users save time by no longer switching between individual carrier websites but instead have all their tariff information contained in one, user-friendly screen. Often, logistics professionals don’t have time to check the rate with every carrier, so inevitably end up missing out on quality rates. With a TMS users can choose the most attractive rate out of all their carriers for each shipment, saving them money on every load.

Pay Bills Correctly: Invoice audit is another way many companies use a TMS to save on total freight spend. Often, accidental or incorrect charges can be added to a shipment. Things like lift-gate fees and incorrect detention charges can increase the final amount on an invoice. These miscellaneous accessorial fees are easy to overlook when manually auditing invoices and are often even intentionally ignored because they waste too much time to rectify. These fees add up quickly, however, so having a system to automatically audit every carrier invoice can save huge amounts each year.

Understand Freight Spend: With a TMS that isn’t tied to a certain carrier or 3PL, users can access all of their rates side-by-side in an unbiased way. And with the addition or reports and analytics, users know exactly how well each carrier is performing on each lane. With this knowledge and understanding of the market rate, TMS users are positioned to negotiate for better rates and service levels with their partner carriers. This saves money overall and helps to improve relationships and customer service all at once.

Gain Visibility: Shippers leveraging a TMS like Kuebix also gain benefits from improved visibility to their supply chain operations.  All stakeholders can use the common platform to plan their moves, receive alerts to changes as they occur, see every status update made, and make real-time adjustments to keep the supply chain moving smoothly and the customer happy. By sharing a single common system, suppliers can plan inventory levels more effectively to offer better customer service. Carriers can move shipments in and out more efficiently, making their operations more cost effective and the customer can improve the management of their inbound operations and warehouse.

Optimization: For companies with large or complex supply chains, features like order and route optimization can also save significant money. This is because manually building the perfect load is a challenge, and more often than not too time-consuming to bother with. There are countless factors a logistics professional needs to take into consideration such as delivery date, location, class, weight and size. Weighing all of these factors without the help of technology usually results in missed opportunities and wasted resources. Instead of pouring through spreadsheets and manually grouping orders onto a single truck, Load Builders and Optimizers can be leveraged to help logistics teams build and optimize the perfect load every time to save significant money.

Click here to see how one company saved $2.2 million dollars in cost-avoidance within one year by leveraging a TMS!

Will a TMS Save Me Time?

Many people are concerned that a TMS won’t actually save them time because they’ve been doing their job for years and know how to do it like the back of their hand. While “tribal” knowledge and relationships gained over a career aren’t easily replaced, a TMS can speed up even the most seasoned logistics professional. Instead of managing an inbox and voicemail of hundreds of loads, every load and stop on a route is tracked in one place. Spreadsheets are no longer required to transfer order information back and forth and users can spend more of their valuable time working on strategic projects instead of troubleshooting errors.

Many transportation management systems can be implemented within a matter of days or weeks. The cloud-based nature of the platform makes online updates and troubleshooting significantly easier for users. Simplified installation and upkeep leads to significant and long-term time and money savings.

From shippers with only a few loads a week to enterprises with hundreds of complex orders to sort through each day, leveraging technology can save countless hours. ERP integrations to automatically flow order information back and forth between systems not only improves accuracy but also makes the process of rating and booking much faster. Auditing and optimization features remove previously tedious processes and result in a faster speed from order to delivery. A few minutes saved per order adds up quickly no matter what size company is doing the shipping.

Inmod Furniture Case Study

Not all transportation management systems (TMS’s) are created equal. Make sure to be aware of these common TMS challenges and if you’re thinking of implementing a TMS within your organization:

  •      •     Not every TMS supports all modes of transportation

What to ask: Ask the TMS provider what modes of transportation they do support and whether support is included in all of their purchase levels. Find out if they support full truckload (FTL), less-than-load (LTL), ground freight, air, intermodal, and ocean.

  •      •     The technology wasn’t built on the cloud

What to ask: Find out whether the technology is/ has always been housed on the cloud. If it hasn’t been, make sure that customer reviews reflect the provider’s ability to support a cloud-based technology. Many legacy transportation management systems have not had smooth transitions to a SaaS cloud-based model.

  •      •     Biased in favor of one carrier or 3PL

What to ask: Ask whether the technology is owned by a carrier or 3PL. If it is, determine whether you will be able to add all of your negotiated carrier rates to be viewed side-by-side in the technology. Many TMSs owned by a carrier or 3PL have preferred rates which could detract from your savings. Remember, a TMS should give you an agnostic way to find the best carrier rates.

  •      •     Bad customer reviews

What to ask: Ask to see some customer references before deciding on a TMS. If the TMS provider cannot show you any customer case studies or videos, that should be a red flag. Check out technology review sites like Capterra and Gartner Peer Insights for unbiased reviews from real customers.

TMS’s Can Be Integrated with Users’ ERP Systems

Most transportation management systems (TMS) have several out of the box ERP integrations but can also customize an integration for any ERP system capable of sending and consuming data. Shippers can seamlessly integrate with some of the most popular ERP systems including NetSuite, Sage 100 and Microsoft Dynamics.

ERP integrations are commonly added to a TMS like Kuebix to increase efficiencies for shippers and drive cost savings. These integrations allow information like product and order details to flow automatically from an ERP or ordering system directly into TMS software and vice versa. This means that users don’t need to waste their time rekeying data between different systems and removes the risk of human error.

So, what is a Transportation Management System?

A TMS is a tool that any size company can use to improve the efficiency of their shipping processes. TMSs like Kuebix TMS help companies capitalize on supply chain opportunities through visibility, control and the use of predictive analytics. Kuebix TMS allows all supply chain stakeholders to collaborate on a single platform. Actionable analytics and detailed tracking information help to improve customer service. And since Kuebix is built on the latest cloud technology, it can be implemented quickly so that any company can begin seeing rapid ROI.

In conclusion, to learn about Kuebix TMS visit here.

Loadsmart and Kuebix Blog Image

Loadsmart Provides Instant Truckload Spot Quotes in Kuebix

Kuebix and Loadsmart just announced that every shipper in Kuebix can now receive real-time Loadsmart spot quotes on truckload shipments. The collaboration builds upon Kuebix’s current API integration with Loadsmart’s digital freight platform with an API integration that automatically provides live Loadsmart freight rates to any Kuebix user looking for a truckload spot quote.

“At Loadsmart, we are really proud of our work with Kuebix and the value we deliver to our joint customers,” said Casey Monahan, Director of SME at Loadsmart. “Combining a best in class TMS with instantly bookable spot quotes is a game-changer that reduces phone calls and lag time, allowing customers to book the best price instantly and track it all in real time 24/7. With a deep collaboration at many levels, a strong understanding of our customers, and a long term strategy, we not only provide the value clients want, but the exceptional service they need.”

When a Kuebix user searches for a truckload spot rate in Community Load Match, a real-time Loadsmart rate will appear that can be immediately booked and managed in the Kuebix TMS. The addition of instantly bookable Loadsmart rates further enhances Community Load Match’s current contract and spot rate capabilities. Community Load Match’s rapidly growing carrier community from Trimble’s network of 1.3 million commercial trucks offers access to contract rates for shippers with regular lanes. For small- to medium-size businesses (SMBs) and shippers with occasional spot requirements, Community Load Match provides competitive spot rates when shippers don’t have the volume to set up contract rates. For carriers, Community Load Match’s spot opportunities help to balance lanes, offset empty miles and reposition assets.

“Growing our strategic collaboration with Loadsmart makes our community even stronger,” said Peter Coumounduros, General Manager Load Match Group, Kuebix. “Our goal is to remove the friction from finding and securing trucks. We are extremely pleased to have Loadsmart’s real-time spot quotes available to all shippers in Community Load Match, as this new capability makes the sourcing process even more efficient.”

To help companies manage their supply chains efficiently in today’s market environment, Kuebix is offering shippers 60 free days of its award-winning Kuebix Business Pro TMS. With Kuebix Business Pro, logistics teams can collaborate remotely across multiple locations, source spot and leverage actionable reports and analytics for improved strategic shipping decisions.

Read the original release here: https://www.globenewswire.com/news-release/2020/06/30/2055376/0/en/Loadsmart-Provides-Instant-Truckload-Spot-Quotes-in-Kuebix.html

Dan Clark Kuebix

Kuebix VP of Product Innovation & Strategy Recognized as Supply Chain Pro to Know

Kuebix’s VP of Product Innovation and Strategy, Dan Clark, has been selected as a 2020 Supply Chain Executive Pros to Know by Supply & Demand Chain Executive magazine. Dan was chosen for his extensive knowledge of the logistics industry developed from over 20 years of hands-on experience, combined with his remarkable expertise in creating supply chain efficiencies via SaaS technology.

Dan Clark is a logistics industry innovator. He possesses extensive experience gained from years of working with leading freight carriers and multibillion-dollar companies with highly sophisticated supply chains. Dan continues to deliver on his original vision of using best-of-breed cloud technologies to create an innovative and intelligent transportation system that returns control and visibility to freight shippers at companies of all sizes.

“Dan’s vision enables transparency between all logistics stakeholders resulting in unprecedented collaboration and efficiencies,” says Dave Lemont, VP and General Manager of Kuebix. “By using a TMS for the masses, companies can manage their supply chains efficiently while leveraging a digital freight marketplace that delivers access to much-needed capacity.”

The Pros to Know Awards recognize supply chain executives, and manufacturing and non-manufacturing enterprises, that are leading initiatives to help prepare their companies’ supply chains for the significant challenges of today’s business climate. This year’s list includes more than 200 individuals from software firms and service providers, consultancies or academia, who helped their supply chain clients or the supply chain community at large prepare to meet these challenges.

“The supply chain profession is the most exciting it’s ever been. With cutting-edge technologies designed to help the industry run smoother, easier and safer, coupled with professionals leading the charge for change, innovation and sustainability, it’s an exciting time to be in the supply chain industry,” says Marina Mayer, editor-in-chief of Supply & Demand Chain Executive. “These Pros to Know are the best of the best in their industry, and I look forward to seeing how they continue to revolutionize today’s—and tomorrow’s—supply chains.”

Kuebix’s innovative platform allows shippers, carriers and intermediaries to leverage the same powerful TMS platform. Shippers gain complete access to available capacity and competitive pricing, while brokers are exposed to new business opportunities and gain superior asset utilization. This unprecedented level of collaboration enables new levels of visibility and efficiency for all logistics stakeholders.

Kuebix Gartner Magic Quadrant Challenger 2020

Kuebix Positioned as a Challenger in the Latest Gartner Magic Quadrant for Transportation Management Systems

Kuebix, a leading transportation management system (TMS) provider and creator of one of North America’s largest connected shipping communities, has been recognized as a Challenger in Gartner’s 2020 Magic Quadrant for Transportation Management Systems. Kuebix is a Trimble Company.

“Our velocity in the marketplace continues with 24,000 customers and growing as a result of our superior user experience, rapid implementations, and innovative technology,” said Dan Clark, Vice President of Product Innovation & Strategy at Kuebix. “We are excited to be recognized as a Challenger and believe that Kuebix’s positioning in the Challengers Quadrant validates our leadership, vision, and ability to continuously deliver value to our customers.”

Kuebix TMS can be implemented more quickly than more traditional monolithic software. Kuebix is a modular cloud-based solution that allows small to medium-sized companies up to the largest enterprises to select features and integrations to configure the ideal TMS for their business. In January 2020, Kuebix was acquired by Trimble, bringing Trimble’s network of 1.3 million commercial trucks together with Kuebix’s extensive shipping community, which will create unprecedented opportunities for freight demand-capacity matching and other efficiencies.

“Combining Kuebix’s innovative TMS and growing shipping community with Trimble’s strength and scale will allow us to accelerate the innovation we are delivering to the marketplace,” said James Langley, Senior Vice President, Trimble Transportation. “This combination also positions us to provide maximum transportation efficiency to all of our customers.”

According to the Gartner research, “By 2022, spend on TMS applications will be $1.94 billion, accounting for 31% of the $6.2 billion supply chain execution (SCE) market. This growth will be driven by the replacement of on-premises software with SaaS applications.”

To learn more about today’s TMS marketplace, download a complimentary copy of the 2020 Magic Quadrant for Transportation Management Systems.


Source: Gartner, Magic Quadrant for Transportation Management Systems, Bart De Muynck, Brock Johns, Oscar Sanchez Duran, 25 March 2020.

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.

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