Summer is nearly here, bringing with it the hopes for vacations, spending time with family, and business growth. Now, the freight market has been in turmoil for months, but there is hope on the horizon, something which will also precipitate a stronger demand for strategic managed transportation partnerships.
Data shared by TheTrucker.com asserted, “the Institute for Supply Management’s Manufacturing Index posted a positive number for the first time in 17 months. Increased manufacturing bodes well for freight markets as manufacturers look to ship their products. Additionally, the production component of the Index showed strength, as did new orders. Imports factor into the numbers, too, and March imports were strong.” Let’s take a closer look at how this rebound could impact shippers and how working with a transportation management as a service (TMaaS) provider can help.
The reasons for poor transportation management strategies
There are three general reasons for a failure of a transportation management strategy, including outdated people, tech, and processes, poor use of any of those three, or not enabling scalability through them. It’s complex, so let’s break down the problems into the three core groups.
Problems with outdated technology
- Inadequate Data Processing - The system's slow data processing speed hampers real-time decision-making, crucial during periods of growth in the trucking industry.
- Lack of Integration - Without the ability to integrate with modern tracking technologies, such as how a shipper’s API integrates with the IL2000 TMS, the company suffers from poor shipment visibility and inaccurate delivery estimates.
- Rigid System Design - Older systems often lack the flexibility needed to adopt new functionalities or integrate with newer technologies, such as IoT devices that track shipment conditions in real time, vital for maintaining visibility across your supply chain.
Impact of poor data utilization
- Inventory Mismanagement - Ineffective data analysis prevents the company from adjusting replenishment to secure not just the best rate but the right rate on every shipment.
- Lost Sales Opportunities - Without predictive analytics, the company fails to anticipate customer demands, missing out on potential sales.
- Customer Dissatisfaction - The inability to meet delivery expectations during high-activity periods damages customer trust and satisfaction.
Inability to scale
- Operational Inefficiencies - As demand increases, the existing non-scalable system struggles to manage the load, leading to delayed shipments and increased transit times.
- Inability to Adapt - The system cannot adjust to sudden spikes in order volume, resulting in delayed deliveries to downstream fulfillment centers, which further strains the logistics operations.
Effective TMaaS offers a single solution with advanced functionalities
Working with a TMaaS provides an efficient solution with its capability to handle real-time data processing, offer predictive analytics for demand forecasting, and scale according to logistical needs. TMaaS enables businesses to adapt their shipping strategies dynamically, ensuring efficient handling of every load and timely delivery. But it’s not necessarily a technology stand-alone solution. Instead, it’s the unity between the TMaaS, the vendor, and how you use it that makes all the difference.
Rather than seeing shipments fail to arrive on time, you get to enjoy the fruits of your labor and maintain cost control despite market change. That’s what it’s like having someone else responsible for your freight under management (FUM), and you get to reap the rewards of a streamlined, successful, and strategic supply chain.
IL2000’s team serves as an extension of your logistics procurement and management team. We’re here proactively managing operations behind the scenes, intervening when necessary, and keeping you in the loop with mission-critical updates.
See how transportation management as a service can benefit your supply chain with IL2000
There will always be some new issue or risk on the horizon in logistics. The world of freight management as a service is relatively new, but the idea of putting your trust in the hands of a third party is not.
Working with a managed transportation provider, someone who offers a true approach to transportation management as a service, helps your team to extend that circle of trust. And the best part is that the trust only grows with time, regardless of seasonality in freight or changing demands. It’s the ultimate win-win-win-win-win-win for anyone in the game of the supply chain. So, are you ready to start winning by partnering up with the right team in your corner, or are you complacent with getting subpar service??
Speak with an IL2000 transportation management account manager to learn more today.