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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.

 

Kuebix TMS Cyber Monday Black Friday Statistics

Did Black Friday/Cyber Monday Tax Your Logistics Operation?

 

This year’s Thanksgiving, Black Friday and Cyber Monday retail sales broke records. According to Shopify, over 25.5 million consumers made a purchase from a Shopify merchant on Black Friday, Cyber Monday, or in between. Shoppers spent an average of $83.05 per order and focused heavily on makeup, mobile phone accessories and jackets. Cell phones dominated the holiday shopping season with 69% of sales made on phones or tablets.

Black Friday and Cyber Monday sales reached over $2.9 billion, a huge success in comparison to last year’s $1.8 billion. It’s estimated that at the peak of the shopping frenzy, shoppers were spending over $1.5 million per minute!

The Aftermath

Now that orders have been placed, they must be delivered. As a shipper, you should ask yourself the following questions:

  • • Can your logistics operation keep up with the velocity of orders speeding through your e-commerce engine?
  • • Will you have to pay expedited freight charges to make sure customers get their orders on-time?
  • • Can you quickly find capacity with your contracted carriers to stay ahead of demand?
  • • Can you easily contract with carriers for any mode to book a load?
  • • Can you effortlessly compare your contracted rates to the spot market to find a better rate?
  • • Once the holiday rush is all over, can you look historically at shipment data to find areas for improvement?

With Kuebix’s transportation management system (TMS), shippers can do all of the above – and more!

Kuebix Shipper is a free TMS that allows shippers of any size to rate, book and track shipments via LTL, TL and Parcel – all in about the time it takes to purchase an airline flight online. Join our online global community of shippers to help match demand with capacity during this busy holiday season.

Kuebix Business Pro is a full-service TMS for multiple users with advanced analytics and carrier scorecards, freight bill audit and pay, claims management and integrations with other solutions. Using Kuebix Business Pro during the busy holiday season allows you to uncover rate exceptions and discrepancies for added savings; integrate your order management system for streamlined transport planning; and leverage analytics to reduce freight spend.

Kuebix Enterprise is a configurable TMS that offers advanced applications to meet your logistics operation’s needs. Managed services provide shippers partnerships with Kuebix freight experts to uncover even greater efficiencies and savings, with full-tracking and visibility of your freight from the dock to your customer’s doorstep.

 

 

 

By choosing the right TMS, retailers can keep up with the exponential growth of their e-commerce operations during this holiday season and beyond!

 

How a Transportation Management System (TMS) Can Benefit a Business of Any Size

A Transportation Management System (TMS) helps companies streamline their logistics processes so that they are as efficient and connected as possible. Instead of manually managing logistics operations over the phone and email, companies can use technology to save money, reduce processing time, scale operations and improve accuracy. At their core, TMSs help companies rate, book and track shipments. Additional functionality like reports and dashboards, integrations, yard management, financial management and spot services can be added to increase the value companies realize from their TMS.

Many organizations incorrectly believe that TMSs are only for large, enterprise organizations. This notion may have been true once when the time and monetary expense limited the implementation of technology to only the largest companies. Now, however, technology has advanced and companies like Kuebix have democratized the booking for freight with plans for every size company.

According to Inbound Logistics magazine, “most Tier 1 shippers – those that spend $100 million+ annually on freight – already use TMS solutions.” These companies say that a TMS contributes to critical business drivers, such as complexity, scale, customer experience and freight cost savings.*

Smaller firms still use manual approaches to manage their freight, relying on in-house expertise using spreadsheets, fax, phone and email, often resulting in excess admin time, errors and duplicated efforts.

However, with globalization and the growth of e-commerce opening up new markets and reaching customers around the world, the time has come for smaller firms to take advantage of TMS solutions that can bring better customer service, lower freight spend, improve performance and more.

To get up and running quickly, small to medium-sized businesses can adopt cloud-based TMS solutions – getting rates, booking and tracking shipments and communicating with carriers and shippers in real-time – all on a single platform. Because of the cloud, these systems offer a much lower total cost of ownership, are simpler to implement and require no internal IT support.

 

Using a TMS, compared to manual approaches, can help your business to:

• Optimize and consolidate shipments

• Improve service levels, giving customers a great first impression

Save on freight costs

• Lower admin costs and reduce errors

• Access a large carrier pool

• Address all shipping options and modes, all on one platform

• Monitor shipments in real-time

• Quickly evaluate carrier performance through historical reports

• Increase visibility into what is happening within your transport operations

• Communicate shipment status to customers

• Get much-needed carrier capacity in a tightened market

 

What if you need more functionality? Choose a TMS that is flexible enough to grow as your business grows, allowing you to add features in a modular fashion as needed. Kuebix TMS lets you begin rating, booking and managing your LTL, TL, parcel, rail, ocean and air freight in minutes. For more complex supply chains, Kuebix can be configured with Premier Applications and Integrations to meet the needs of even the largest enterprise.

Check out our free Kuebix Shipper TMS for unlimited rating, calculating freight cost, booking, and tracking!

*Primary Research in Evaluating the Business Case and Approval Process for Supply Chain Execution Systems Acquisition – Jim Hendrickson, Professor, Fisher College of Business, The Ohio State University.

hurricane supply chain kuebix

Preparing Your Supply Chains for Hurricane Season

If you live or work anywhere along the eastern seaboard of the United States, you know the panicked feeling when you hear on the news that a major hurricane is approaching. Even if you believe that the hurricane won’t hit your town, hurricanes are unpredictable by nature. Grocery stores run low on stock as people rush in to purchase as much water, food and emergency products to prepare for the damage as they can. So what happens to companies with freight to ship and customers to supply? Businesses in hurricane-prone areas and those that ship to those areas are at risk of lost revenue and major damage if they don’t take the proper precautions ahead of a storm.

How are Businesses Affected?

In the logistics industry, it is safe to say that every aspect of the business, especially transportation and shipping, is highly affected by a hurricane. Category 3, 4 and 5 hurricanes are catastrophic and can wipe out houses, buildings, and infrastructure like highways and local roads which are needed for shipping. Ports are especially affected since they are right on the coast where the majority of a hurricane’s power will break. Major flooding, debris and downed wires make it next to impossible for businesses to be able to move shipments in and out of certain areas that were affected.

When Category 4 Hurricane Florence hit the east coast on September 18, 2018, many roads and rail connections were affected which remained shut down even after the impact. This eventually resulted in a halt of shipments and deliveries being made on time, or at all. Grocery store shelves remained unstocked, bottled water was hard to come by and other necessary emergency products were only slowly supplied to those most in need of them.

Businesses in areas that are at risk of hurricanes must prepare in advance for the possibility of a natural disaster. This is the best way to fully recover from the impact and supply their customers during and immediately following the storm.

What Can Businesses Do to Prepare Their Supply Chains for a Hurricane?

With any business in the path of a hurricane, preparedness is key. Companies in the past have lost market share due to their lack of preparation and failure to completely recover after a natural disaster. According to the Federal Emergency Management Agency, about 40% of companies are not able to return back to normal operations following the impact of a disaster.

However, there are a number of ways that businesses can prepare for impact. A few ideas to protect your supply chain include:

  • • Identifying if you are in an area at-risk of dangerous weather impacts. While this may seem easy and obvious, many businesses surprisingly fail to keep that in mind when deciding on the best location to operate their business. Simply knowing that your business can be in danger of hurricanes is an easy gateway to finding the right tools to prepare and recover.
  • • Gaining complete visibility to your supply chain operations. If you have total visibility over your supply chain operations, your company will be best-positioned to react to a hurricane or other natural disaster. Knowing where your shipments are, being able to quickly rate and book with the best carriers and being able to track orders in real-time will give you an edge when a wrong decision can result in them never arriving. Companies can gain this level of visibility by implementing transportation management technology ahead of time.
  • • Have an insurance plan. Not only can insurance provide protection against loss, it can save a lot of money that would have to be paid to restore damages. Flood insurance may be a great option, or even a requirement, for businesses located in high-risk areas.
  • • Have reliable back-up partners. Having back-up partners can be very helpful because companies are able to move product via drop trailer to locations that are outside of harm’s way when a hurricane is approaching. There is a possibility that availability can be limited, so it’s crucial to have these conversations with your partners far in advance. Truckload spot markets like Kuebix Community Load Match give shippers an easy path to find and book reliable spot volume quickly.
  • • Learning from the past can prevent problems in the future. Data and analytics can help businesses keep track of their supply chain operations (how well or poorly they performed) during a storm. Being able to see what shipped, when, how long it took and for what cost helps businesses strategically plan for the next time a hurricane hits.

 What Happens in the Aftermath of a Storm?

In the case of extreme devastation, helping families and people in need is a top priority. While supply chain managers need to make sure their employees are all safe and well, they also need to work for a speedy recovery of their business. According to the Olin Business School, redundancy and operational flexibility are important processes of dealing with the aftermath of a natural disaster.

Since these disasters are frequently unpredictable, it is better to be safe than sorry and have a back-up plan to conquer the difficulties that the disaster can cause. With hurricane season upon us, remember to stay informed of weather events, leverage technology to retain visibility to your supply chain and have back-up plans in place ahead of time. With these tools, your company will be able to weather the storm!

kuebix 10 reasons to get a tms

10 Reasons Every Shipper Should Get a Transportation Management System (TMS)

Transportation management systems (TMS) are becoming more widely adopted throughout the industry as these systems become cheaper (or free like Kuebix Free Shipper) and easier to use and implement. But some companies are still on the fence about whether to manage their logistics operations the old-fashioned way with phone calls and spreadsheets or to leverage technology to help streamline the process.

According to Bart De Muynck, Gartner’s research vice president, transportation technology, “Last year was a great year for TMS. In fact, in 2018 we saw investments go up across the entire supply chain technology spectrum.”¹

Companies are implementing TMSs at record numbers to achieve many different benefits. Here are 10 ways getting a TMS can help your business:

Everything in one place

By using a TMS, companies can manage their entire transportation operations all from a single place. This means they can rate, book, track and interact with their orders no matter whether they’re full truckload, LTL, parcel, air, intermodal or ocean. It also means that they don’t need to bounce between different carrier websites to rate shop.

Lower freight costs

Transportation management systems almost always help to lower overall freight costs for companies. By being able to rate shop within a single screen, logistics professionals can choose the least expensive option at the service type they need every time. It also means that companies have easier access to more carriers, creating beneficial competition and providing more options.

Reduce manual entry

With a TMS, especially one that is integrated with an ERP or ordering system, manual entry is greatly reduced. Information like PRO numbers, pallet weights, and destinations can be automatically populated to reduce human error. And instead of making notes on stickies or disjointed spreadsheets, all the order and route information is in one place, meaning reliable information can be transferred between stakeholders.

Optimize routing and load consolidation

With many TMS systems, you can build more efficient loads and routes with the help of an optimizer. Optimization tools allow the user to specify different parameters for the load and then suggest or even build the optimal load and route for easy tendering. Users can even view the route on a map to have a visual of where the order is planned so that they can make changes as necessary.

Get meaningful analytics

Since all of a company’s logistics information will pass through the TMS, that data can be transformed into actionable reports and dashboards. With a TMS companies can see freight cost per item right down to the SKU level to make strategic changes that impact their bottom line. They can also see things like carrier KPIs, real-time tracking data and vendor scorecards. These reports and dashboards help logistics professionals stay on top of key metrics affecting their company’s profits.

Gain visibility

With real-time tracking and analytics, you can provide your customers with the visibility to their orders that they expect. You can even add features like Dock Scheduler, RFID and ELD integrations, and Gate Check to make it easy to tell exactly where each truck is on the route.

Make paperwork easier

Transportation management systems make the little paperwork that is still necessary way easier. BOLs, PODs and other paperwork can be printed directly out of the system to make processing easy, efficient, and most importantly correct every time. This not only puts time back into the day, but it also speeds up pickup/drop-off times when drivers have accurate information with them.

Scalability

With a TMS, a company is free to grow or change their business without having to worry about how they will handle their transportation operations. When new facilities or more products are added to the business, the TMS will scale right along-side it. TMSs with modular features offer companies extra customizability. For example, if the company begins to sell products online, they can add an e-commerce integration to improve shipping options for their customers.

Meet rising customer expectations

Speaking of e-commerce, the growth in popularity of online shopping is changing customer expectations and making shipping more difficult for supply chains. Companies need to get orders to their destinations faster, cheaper, and with complete visibility. With a TMS, all three of these things are made possible and companies can provide exceptional customer service while meeting rising customer expectations.

Integrate external processes

Another benefit many companies take advantage of once they implement a TMS is to integrate it with their other systems. As mentioned above, some choose to integrate with their e-commerce platforms or their ERP and ordering systems. These and other integrations help to smooth processes across different teams and departments to help keep the flow of information clean and consistent, not to mention speed up the entire operation and improve overall visibility.

All-in-all, there are plenty of reasons a company should consider implementing a TMS to manage its transportation operations. These span from cost to time savings and improve data accuracy and visibility. As put by Logistics Management in their 2019 Transportation Management Systems (TMS) Market Update, “As the true workhorses of the supply chain management software cluster, transportation management systems (TMS) have become the “must have” for companies that—working under the pressures of e-commerce and omni-channel—need to move beyond clipboards, spreadsheets, and phone calls to manage their increasingly sophisticated transportation networks.”

¹Logistics Management Magazine

king consumer kuebix

Want to be like Amazon? Treat Your Customers Like Kings.

While many companies consider Amazon to be the ultimate competitor, Amazon didn’t become the trillion-dollar retail and distribution behemoth it is today by focusing on what its competition was doing. Instead, it focused on exciting and delighting its customers.

Remember, Amazon started out selling books. Bookstores were its main competition. Amazon did not aspire to beat bookstores at their own game. Instead, Amazon created an entirely new game.

In a talk at the Economic Club of Washington back in September, Amazon founder Jeff Bezos told his audience, “The number 1 thing that has made us successful by far is obsessive-compulsive focus on the customer as opposed to obsession over the competitor.”

In fact, customer obsession is the very first of Amazon’s 14 Leadership Principles: “Leaders start with the customer and work backward. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers.”

It’s this unrelenting drive to address customer needs that’s made Amazon “the everything store.”  From day one, Amazon observed its customers, asked for their input, anticipated their wants and needs, and treated them with complete trust and respect. Amazon has been able to build –and scale – its legendary customer service by paying attention to customer behavior and delivering on promises so well that it changed the meaning and importance of “customer expectations.”

Amazon makes their customers “king.” They’ve proven the validity of this strategy by lapping up 50 percent of US e-commerce sales in 2018, per TechCrunch.

Nowadays, customers demand Amazon-like services, a trend known as “the Amazon effect.” Customers want to know where their orders are when they will arrive, and if there is a delay. Amazon does all that – and your business can too with the help of technology. To be able to meet customer needs, Amazon uses technologies to track and optimize shipments, giving visibility to customers so they know what is happening to their orders all along the supply chain.

To make customers king, businesses need to offer a technology-driven experience that gives visibility into transportation processes from order entry to proof of delivery. Shippers use TMS like Kuebix to find scarce capacity, analyze freight rates and secure transportation. Businesses can compare carrier rates side-by-side and choose the best rate that the shipment demands, ensuring quick and efficient deliveries to their customers. They can also provide their customers with real-time tracking and a level of visibility that can only be gained with technology.

product recalls kuebix

The 10 Biggest Product Recalls of All Time

Product recalls are a common occurrence in many industries. This is especially true for food and beverage, automotive manufacturing and pharmaceuticals where the products could directly endanger their purchasers if something is defective.

Recently, there was a nationwide recall on romaine lettuce that had social media in a frenzy and kept salad off of dinner plates all across the country. Adam Bros. Farming, Inc. in Santa Barbara County recalled several types of lettuce harvested November 27-30, 2018 due to being potentially contaminated with E. coli, a dangerous bacterial infection. Even the CDC issued alerts warning consumers now to buy romaine lettuce for several weeks.

Though this recall was dramatic and large in scale, it paled in comparison to some of the other product recalls over the last few decades. Here’s a look at the biggest product recalls of all time, starting with the 1982 Tylenol recall which resulted in 7 deaths.

The 10 biggest product recalls

Rank Recall Cost (as of March 2018)
10 Tylenol $100M
9 Peanut Corp. of America $1B
8 Toyota Floor Mats $3.2B
7 Pfizer’s Bextra $3.3B
6 General Motors Ignition Switches $4.1B
5 Samsung Galaxy Note 7 $5.3B
4 Firestone Tires and Ford $5.6B
3 Merck’s Vioxx $8.9B
2 Volkswagen Diesel Engines $18.3B
1 Takata Air Bags $24B (and counting)

Source: Kiplinger

Product recalls are generally a nightmare to manage and supply chain departments take most of the brunt. In order to ensure the public’s safety, mitigate the cost of the recall and get operations flowing normally again, supply chain professionals need to react quickly. To guarantee the best chance for a “successful” recall, logistics professionals need to be able to track and trace their orders down to the SKU level.

Being able to see where the affected product started, its journey through the supply chain, and where it eventually ended up is crucial. Companies with this level of visibility can identify the customers who received the recalled product and alert them without having to send a blanket message to the entire industry. This can save time and reduce the waste of recalling product that isn’t contaminated or defected.

Any time orders are consolidated or the product is touched is a risk to lose visibility. Transportation management systems (TMS) can be leveraged to retain visibility to orders down to the SKU level in real time. This means that companies with an ongoing recall can pinpoint the areas needing immediate attention and act quickly to minimize the negative impact. Establishing a method to track and trace orders is the best preventative method supply chains can take to prepare for potential recalls.

Importance of Visibility - Kuebix Supply Chain

The Power of Supply Chain Visibility for Complicated Supply Chains

Shipping some types of product, like fragile or hazardous goods, isn’t quite like shipping anything else. There are special considerations to take into account like product compatibility, axle weight distribution and unconventional loading equipment. The driver might need to be specially certified as well, since the product being shipped requires special care. For shippers transporting these types of goods, being able to view the status of their orders through every step of the supply chain is necessary to avoid accidents and understand performance.

What exactly is supply chain visibility?

Supply chain visibility is the ability to view every cog of the supply chain as moves are being planned, alerts are sent, and real-time adjustments are made. This keeps supply chain operations running smoothly and customer satisfaction high. The backbone of visibility is a cloud-based collaboration portal that can be shared by the customer, the supplier and carrier partners. This single platform will be used as a dynamic record of truth for the changes that need to occur across the supply chain to keep the delivery of goods moving efficiently. Visibility and collaboration go hand-in-hand and result in improved efficiencies across the supply chain.

How can visibility help improve my supply chain?

Collaborate with suppliers to plan labor and deliveries more efficiently – Before product can leave the distribution center, it’s important that the supplier can view the full backlog of orders they need to fill. By employing a shared portal based in the cloud, suppliers and customers can collaborate to exchange order information. This provides the supplier the information they need to plan production and commit to promise dates so that the customer can plan their business. When shipping untraditional goods like bulk chemicals or fragile glass products, its especially important to know that the appropriate labor or assets are available for moving product. Without the right equipment, entire truckloads can be delayed or missed, causing repercussions all along the supply chain.

Collaborate with carriers to improve performance and customer service – Once the order has been booked, the carrier participates in the collaboration portal and begins to provide status updates on their delivery. Many carriers provide electronic notifications through various protocols including EDI or web services driven from GPS or ELDs. Electronic tracking provides visibility to the customer and supplier on the true status of their orders. By giving carriers a platform to house shipment information, suppliers and customers alike can always know where their goods are and when to expect them to arrive at the next destination. When discrepancies like damages or late deliveries arise, it becomes easy to track where in the supply chain the process broke down. Tracking orders down to the SKU level helps to weed out underperforming carriers and eliminates the time previously spent calling carriers asking the same question, “where’s my truck?

Getting supply chain visibility for complicated supply chains.

With complete supply chain visibility, shippers and suppliers can ensure their supply chains are running smoothly. For businesses shipping fragile or hazardous goods, it is especially important to be able to view each node of the supply chain to foresee potential risks and trace issues. Implementing a cloud-based platform to act as the “record of truth” encourages efficiencies when planning labor and deliveries while simultaneously improving customer satisfaction. To learn more about how supply chains can achieve visibility, download Kuebix’s ebook, Driving Supplier, Carrier and Customer Collaboration: The Power of Supply Chain Visibility.

Team process visibility

Driving Collaboration Through Visibility

According to Supply Chain Insights, supply chain visibility comes in as one of the top “elements of business pain in supply chain.” Why is visibility within the supply chain such a big challenge?

First, there are many players involved, from suppliers to producers, manufacturers, shippers, carriers and end customers. Next, add more complexities to the mix: globalization, customer expectations, volatile demand and mounting regulations. These factors create a messy and complicated environment for supply chain professionals trying to see what is happening up and down their entire network of stakeholders.

What is needed is end-to-end supply chain visibility.

To facilitate visibility, all stakeholders need to use a common platform that allows them 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.

What is this common platform?

It is a cloud-based collaborative portal, like that offered by Kuebix TMS, that can be accessed by all stakeholders from any device and from any location. This single platform serves as a dynamic record of truth for all the changes that occur across the supply chain, keeping the delivery of goods moving efficiently.

First, a purchase order is made.  Suppliers look at the portal and plan production and inventory schedules to meet customer demand. Suppliers will notify their customers through the collaboration portal which deliveries they can make on time and which need to be back-ordered due to low stock.

When suppliers commit to a promise date, customers can look at the portal to plan their business based on delivery dates. If the customer has chosen to pick up the order using their own carrier, the supplier can print shipping labels for those orders directly from the portal. Because every stakeholder is referencing the same information via a collaborative portal, they have immediate access to everything they need to make informed decisions and plan their supply chain.

Carriers can provide updates on the status of their deliveries through the collaboration portal as well. If carriers are using electronic logging devices (ELDs), customers and suppliers can visibly track the real-time status of their delivery. Dock scheduling solutions like Kuebix’s allow carriers to see open time slots and locations at the dock, empowering carriers to reserve an appropriate time for delivery so they are not left idling in the yard.

Part of the backbone of visibility and collaboration is a set of rules and procedures that suppliers and carriers need to follow. These procedures on yard, safety, consolidations, etc. promote proper supplier and carrier behavior and ensure the most efficient operation. Any violations which occur are shown in the portal, so all parties know the status of issues and can work together to address them. This provides a heightened level of visibility and accountability for all stakeholders.

Kuebix TMS provides supply chain professionals the visibility they need to maximize efficiencies, minimize costs and improve customer service. Working together via a collaboration portal is a win-win-win for suppliers, carriers and shippers.

Other inbound logistics management best practices to improve visibility can be found in The Art of the Inbound.

Kuebix SupplierMAX

The Recipe for an Unbeatable Inbound Freight Management Strategy

Managing inbound freight operations is an ongoing challenge for businesses with large numbers of suppliers. Companies are impacted by the inefficiencies, low levels of visibility and lack of standardization associated with the management of their inbound freight. These problems are exacerbated when companies lack comprehensive strategies for obtaining the lowest possible shipping and unloading costs or a plan to improve the behavior of their suppliers. A complete strategy for inbound freight management needs to encompass the following three aspects; visibility, collaboration and accountability.

Visibility  Although companies control their own destinies on the outbound side of the equation, that level of control dwindles when it comes to inbound freight. In the end, the receiving company does not have full planning and visibility for shipment arrivals and dock reservations. To optimize their inbound, stakeholders can benefit from better visibility of information (e.g., knowing what carrier is being used, exact timing of deliveries, how much manpower is in the DC to load/unload shipments, etc.), real-time data sharing and the knowledge that everyone is working toward a common goal.

Collaboration  By using a comprehensive inbound freight plan based on a collaborative ecosystem of shippers, suppliers and carriers, companies can effectively establish a dynamic rating and unloading allowance program. As companies work in partnership with their suppliers to determine the most cost-effective method to handle each shipment – customer pick-up (CPU) or vendor controlled (VDS), the goal should be to reduce overall shipping costs. By giving suppliers choices, they’ll be able to pick the most effective service and billing procedure. Convert inbound shipments from VDS to CPU shipments only when it’s feasible, and then establish preferred rates with a select group of carriers to handle those inbound shipments at the lowest possible cost and best service type. Use a standard routing guide to establish a set of mandatory carriers that will be used for all VDS and CPU shipments. This will enable LTL pricing improvements, superior service levels and maximize opportunities for LTL consolidation.

Accountability  While companies can’t always control what their suppliers do or the efficiency of suppliers’ systems, they can implement Vendor Inbound Compliance Standards (VICS) to help improve supplier behavior. A comprehensive set of compliance procedures will establish rules and processes that must be followed by suppliers when making deliveries. These accountability levels should also extend to the company’s own supply chain/logistics department and procurement group, both of which play a role in ensuring that products get quickly from their origin to the distribution center (DC). The goal? Improve supplier behavior so that their inefficiencies are not wasting time and money at the DC. It’s also important that a company’s inbound strategy includes leveraging detailed analytics to measure the results of the program and take action where necessary to improve service with suppliers and carriers.

By following this general recipe, companies can work with specialists in inbound freight to develop an unbeatable inbound freight management strategy. But knowing what to do and being able to do it effectively are two entirely different hurdles companies need to jump. It’s for that reason Kuebix has developed SupplierMAX, a program where companies can leverage Kuebix’s technology and logistics experts to manage all or a portion of their inbound freight program. SupplierMAX improves supplier behavior and increases the efficiency of warehouses and distribution centers by incorporating a series of comprehensive strategies to improve inbound operations. To learn more about this program, click HERE to read the SupplierMAX press release in full.

Gaining Supply Chain Visibility Doesn’t Have to be a Daunting Task

Supply chain visibility (SCV) is at the forefront of supply chain leaders’ minds in 2018. Today’s businesses need to know where their product is, when it is going to be delivered, and every detail regarding the contents of their freight. It’s also essential to provide this level of visibility to all the stakeholders in the supply chain. Silos between procurement, warehouse ops, finance and the customer cause breakdowns in the system, resulting in wasted time and lost revenue. Imagine connecting all the logistics professionals who are working to ship your freight from point A to point B on one seamless interface. Giving stakeholders access to the same actionable information in real-time sets them up for better communication and the ability to remove roadblocks.

For many companies working diligently to compete in the new landscape, the prospect of enhancing visibility to their supply chains is daunting. The expected time commitment and resources required to integrate legacy systems with a transportation management system (TMS) is often seen as too costly and inefficient; outweighing the benefits of such a system. These barriers to service are hindering many companies’ ability to gather data on their supply chains and compete at the high-level Amazon has made the industry standard.

Kuebix is revolutionizing logistics management with its intelligent TMS. By seamlessly connecting legacy ERP systems with Kuebix and bolstering the direct customer-carrier relationship, Kuebix enables shippers to see every node of their supply chains. Stakeholders can use one solution to view and manage their freight, saving time and breaking down silos. And depending on the scope of the integration needed, Kuebix TMS can be ready to use in a few weeks to a few months. This modular, scalable solution gives companies previously unable to cope with the commitment of old-fashioned TMS systems the ability to make data collected across the supply chain available to all users and gives them greater control and visibility into what is happening across their enterprises.

Supply chain visibility will be a weighty topic in 2018, as the industry acclimatizes itself to new levels of supply chain control. The question is no longer whether visibility is essential for shipping companies, but how long customers are willing to patronize suppliers without it. The competition will become fiercer and the bar continue to be pushed higher. Here are Kuebix we are excited to see how the demand for increased visibility will continue to evolve the supply chain.

How Food & Beverage Companies Can Optimize Their Inbound

Food and beverage businesses have complex supply chains with many unique characteristics: ever-changing customer tastes, tight margins on store shelves, fresh products that may spoil, expiration dates on products, and more. Getting the right volume of products at the right time, and at the right location, is no easy task. Visibility into and control of supply chain processes will allow food and beverage businesses to address these challenges while meeting business goals.

Frequently overlooked and often pushed to the bottom of a shipper’s supply chain agenda, good inbound freight management can help companies improve shipment visibility, save money, and enhance customer service—all of which add to the bottom line and boost profitability. Done right, inbound freight management does more than just help companies gain an understanding of where their shipments are in real time. It also enables better relationships with carriers and suppliers for consolidation efforts, establishes routing guides that lead to much better dock efficiency, and empowers strategies for continuous improvement initiatives.

Food and beverage companies get dozens of deliveries a day from different suppliers. These inbound shipments aren’t coordinated or consolidated, fostering inefficiencies from the excess number of deliveries. Little visibility into arrival times and frequent changes to inbound deliveries wreaks havoc at the dock and warehouse, which can make accessorial charges skyrocket and your inbound transport costs go off the charts.

Small to large food and beverage companies have found a TMS to be the perfect tool for addressing the many challenges that come with managing inbound freight. For example, one food retailer that operates over 200 stores across seven states had a couple hundred LTL deliveries per week, but by using Kuebix TMS, they were able to lower the number of deliveries to 20 or 30 per week by combining LTL deliveries into full truckload deliveries from the consolidation points. The typical cost for unloading a truck is $200, leading to approximately $34,000 in savings per week just on unloading costs!

Here are three steps you can take to start managing your inbound freight more effectively today:

1. Partner with your suppliers to lay out a plan of action. Determine the most cost-effective and efficient way to ship and unload your freight, and build a plan with your suppliers that benefits both parties. There is no “magic number” for a percentage of shipments that should be vendor-controlled vs. customer controlled. Give your suppliers a choice so that they can select the most effective service and billing procedure. Then, implement a standard routing guide for supplier compliance. This will establish a set of mandatory guidelines that will be used for all vendor-controlled (VDS) and customer pick-up (CPU) shipments. Supplier compliance programs reduce your cost of goods by making your carriers and warehouse more efficient. In the event your suppliers fail to comply, they will share in your cost through violations outlined in the routing guide.

2. Create strong alliances with your carriers. Consolidate inbound shipments to full truckload wherever possible to reduce freight and unloading costs. Reducing the number of individual LTL shipments will decrease the cost of freight, dramatically increasing the efficiency of your distribution center and significantly reducing unloading costs. Think how much more efficient your operations will be with fewer trucks and fewer deliveries. For example, unloading 10 to 14 different LTL shipments can be five times the cost of unloading a single truckload. The customer and the supplier can share all of these savings through the efficiency of consolidated shipments and drop trailer programs. By consolidating your LTL pool, you can simplify yard management and maximize consolidation opportunities. Select carriers that provide attractive rates and superior service and try to limit that set to two to four different carriers, whether the shipments are CPU or VDS. This will give each carrier enough business to ensure LTL consolidation does not affect service levels. Having a strong partnership with your carriers also opens up other opportunities for additional savings such as backhaul agreements with LTL carriers to consolidate freight to single truckload for pick up by your own fleet for the final mile.

3. Leverage technology to your advantage. Utilize a transportation management system (TMS) to maximize inbound freight management. For example, leverage your TMS to implement an allowance program for freight costs and unloading expenses with your suppliers. In most cases, allowances are negotiated once or twice a year, and rarely take into account fluctuating costs and carrier rates. Oftentimes, market rates rise above negotiated rates. Kuebix TMS enables the creation of dynamic rate allowances to ensure savings on both TL and LTL shipments by calculating the best possible real-time vendor allowances based on actual carrier rates as demand dictates. Additionally, a TMS will also automate tracking, scheduling and door assigned, which will directly reduce your labor spend. Finally, if you cannot measure something it is hard to improve it. An effective TMS will capture every relevant piece of data and return reports, dashboards and scorecards that allow you to analyze your inbound freight program and identify opportunities for increased efficiency.

Ultimately, good inbound freight management facilitated by technology helps shippers achieve cost and productivity goals that very often get overlooked in the logistics space. By taking a step back and gaining a better understanding of your current inbound environment—then working with suppliers and carriers to come up with a plan of action to improve it—you’ll be able to leverage all of the market’s capacity, get the best rates, and gain better visibility over your end-to-end supply chain.
To learn more about optimizing your inbound read “The Art of the Inbound”.

The ELD Mandate Adds to Truck Driver Shortage Woes

Did you know that many truck drivers have said that they would rather quit the industry than use an ELD device? In April of this year, Overdrive did a survey of its readers that showed 70% of truck drivers were opposed to the ELD mandate. The magazine goes on to speculate what the marketplace would look like without these truckers, “Assume the 71 percent of independents who say they’d quit actually do, and apply that to carriers in the for-hire population with one to five trucks. This would equate to an overall loss of about 260,000 trucks, according to data mined by RigDig Business Intelligence, Randall-Reilly Business Media’s equipment- and business-data analysis unit. That would remove more than 10 percent of the industry’s capacity. When the 71 percent is applied to carriers with up to 15 trucks, it leads to a capacity reduction of more than 27 percent, or about 709,000 trucks.”

The American Trucking Association (ATA) expects the driver shortage to grow to 239,000 by 2022, primarily due to retirement and increased driver demand. Combine this with the notion that many drivers will quit when the ELD mandate becomes live next month and the ATA has seen double digit gains in the annualized turnover rate for both small and large truckload fleets, jumping 16 percentage points to 90%, the highest it has been since Q4 2015. For smaller carriers with less than $30M annual revenues, the turnover rate grew by 19 percentage points to 85%, the highest since Q1 2016. This news cements the acceleration of the driver shortage, making it an ever-critical challenge to be solved.

At Kuebix, we believe that the best approach to solving the driver shortage is for shippers to implement a four-part plan that focuses on young age groups to ensure a steady flow of skilled and energized individuals that see the profession in a new light. The plan to mitigate the driver shortage includes:

· Embracing Robust Technology – As younger age groups spend lots of time online and with their smartphones, using mobile device apps to track vehicle location and to update the driving experience should be a key focus for shippers. Virtual reality is being used by many transportation companies to train drivers. This age group also seeks tech-savvy employers that continue to apply technology to address transportation management challenges in the form of social media and disruptive technology, along with pursuing startups that use advanced tech to drive their business forward.

· Recruiting the Recruited – Tackling the driver shortage by opening the profession up to those with actual truck driving experience who find it difficult to move from a trucker in the armed forces and/or driving chops in war zones is another way to increase the number of drivers. The most attractive aspects of recruiting the recruited is the fact that drivers from the services are already experienced, which should lighten the load substantially from a training and education standpoint.

· Tapping into the STEM pipeline – As the Science, Technology, Engineering and Math (STEM) curricula gains greater adoption from grade school on up, graduates learn problem-solving skills that can be used in transportation, along with other industries. By sponsoring STEM events, corporations can open the doors to their future workforce by showing students career paths to follow in the transportation industry.

· Recasting the Profession – Sitting back and waiting for the driver shortage to solve itself is not an aggressive enough solution that will end the issue quickly. The industry needs to get more determined, go on the offense and purse the above-mentioned opportunities. Think like the youth of today and reach them where they live, offer the tech they use, catch them at an early age and make sure they’re well aware that driving is much more than just steering a vehicle. Be at high school (and trade school) career fairs, be on campus just like college recruiters are and where members of the armed forces are concerned – be there for them when they need your support the most.

Plus, shippers need to be more creative and think of new ways to gain efficiencies and reduce costs. Technology like the Kuebix TMS can help by giving shippers high levels of visibility across their entire transportation networks—and connectivity among all partners. Cloud-based Transportation Management Systems (TMS) are helping companies connect in one place to less-than-truckload, truckload, and parcel carriers; receive real-time LTL quotes using direct carrier rates; and request and receive spot quotes using a single shipment management interface. Technology can help put a dent in the driver shortage challenge, while improving transportation operations – that’s a win-win for all parties involved.

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How to use Data to Build a Stronger Carrier Relationship

Strong partnerships between carriers and shippers are important for the most efficient and effective freight operation. When shippers and carriers work together as a team, respecting one another’s time and business objectives – a win-win partnership is created that leads to continuous improvement in logistics efficiency and customer service.

How can shippers and carriers improve their relationship? Shippers should provide accurate weight and size measurements of their freight, file claims quickly, not keep drivers waiting at their warehouse and fulfill promises of consistent loads. Carriers must negotiate fairly with shippers, adhere to routing guide compliance, pickup shipments on time, invoice shippers accurately and provide a consistent level of exceptional service.

How can this be done?

The answer is technology that can help manage the carrier and shipper relationship by capturing all transactional information and using this data to foster accountability. The Kuebix Transportation Management Systems (TMS) capture data across every shipping event to provide visibility into true levels of service and efficiency. The accurate and timely data from the TMS can be used to monitor and validate communications and interactions between shippers and carriers, but Kuebix takes this one step farther.

Kuebix Carrier Relationship Manager uses this information to deliver Freight Intelligence to easily analyze the performance of carriers in the form of carrier scorecards. Typical analysis can be performed on:

  • • Carrier rate benchmarking by lane
  • • Carrier responsiveness
  • • Load acceptance rate
  • • Claims percentage by shipment – how many damages occur and by which carrier
  • • Rate exception percent
  • • On-time performance
  • • Invoice and freight bill accuracy and solving inaccuracies
  • • Driver performance
  • • Reliability of equipment and processes
  • • Documentation – accuracy, availability, etc.

Leverage this feature to work with your carriers with a set of metrics and facts rather than anecdotes. Carriers will appreciate the fact-based approach to performance monitoring, resulting in stronger relationships and improved service levels.

Keep the logistics team more organized with all contact information, schedules and tasks kept in one location. The new functionality will relieve admin of countless hours of chasing paperwork and tracking communications, while keeping carriers accountable. Carriers will benefit from clearly defined goals, while shippers will benefit from improved performance and service levels.

Kuebix Carrier Relationship Manager is a new, standard feature of Kuebix Business Pro TMS, a full-service transportation management system that features unlimited shipment management, advanced analytics, carrier scorecards, financial management with freight rate invoice and claims control, and much more. Kuebix Business Pro is available for a free 14-day trial.

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