The field of Transportation is changing, and it essential for your company to adapt appropriately in order to manage its shipments as efficiently as possible. The increasing shortage of driver hours, due to increased regulations on truck drivers, has given carriers more power than ever before. Most companies now struggle with this supply and demand mismatch as it gives them little power. Carriers on the other hand can now be selective. They can essentially ship what they want to the location and for the price that they like.
In essence, carriers can decide whom they want to do business with with little to no detriment to their own business. The shortage of drivers has also increased rates and capacity shortages. The carriers have the ability to focus on their profits rather than business relationships, which in turn can favor their higher quality customers.
Given this current dynamic, it is important to leverage your company’s power to its fullest extent in order to find the best carrier for the best price. Intelligent transportation management is the best way to do this, especially if your company is small or medium in size. Your company’s transportation management strategy should be centered on the product you’re shipping and its required accommodations, while also aligning with the company’s desired levels of service and cost for its customers. Additionally, it is critical to ensure your logistics accountability and evaluate your transportation.
All of this can be overwhelming for smaller companies unless they invest the ample time and resources to stay on top of their shipments. They must find a way to be creative and succeed even with potentially limited visibility, poor quality of data, and little trading partner collaboration.
Now however, it is possible for your company to optimize its cost structures, carrier relationships, and increase their leverage with the use of TMS software.
TMS software can allow your company to view the carrier field from a far more macro level prior to pursuing a business relationship. By analyzing your entire end-to-end transportation network, you can greatly improve the overall efficiency of your company’s supply chain, thereby saving time and money. TMS software gives you this information, this information is power, and power is the ability to leverage your own rates and routes in your company’s favor.