Over the last 18 months, the trucking industry has faced uneven supply and demand, congested ports, rising costs, a global pandemic, labor shortages, and a boom in online consumer spending. As a result, demand for truck capacity and rates remain elevated. What’s one thing straining capacity and raising rates? Dock delays and detention. Dock delays and detention not only affect truck drivers but shippers as well. In this blog, we’ll dive into what truck detention is, why it happens, how it impacts truck drivers and shippers, and how shippers can help reduce dock delays and detention.

WAITING, WAITING, WAITING…

According to a recent Trucker Tools whitepaper, wait times at shipper and receiver locations have increased compared to a year ago. As a result, delays at docks and detention ranked as the number one challenge carries currently face. While loading dock wait times have plagued the industry for years, recent woes have worsened them.

Nearly 60 percent of those surveyed reported waiting for longer than two hours on each load. This is in line with data collected by a DAT solutions survey showing that 63 percent of drivers say they spend more than three hours waiting when loading and unloading. Freightwaves also collected data on driver wait times. In June, average wait times were around the two-hour mark but are now showing past two and a half hours.

At the same time, 79 percent of those surveyed in the Trucker Tools whitepaper say that they never or rarely receive detention pay when they wait for more than two hours. Half of those surveyed reported receiving detention pay only if negotiated in advance. Of those surveyed, 65 percent responded that detention pay has not increased or otherwise improved in the last year.

WHAT IS TRUCK DETENTION?

Truck detention can be one of the most irritating things drivers have to deal with. When a driver arrives at a pickup or delivery location, there’s a built-in “free time” period in which the driver will wait while the truck is getting loaded or unloaded. This “free time” is what people consider to be a reasonable expectation for the time it should take the shipper to load the trailer or the receiver to unload it. This “free time” varies from carrier to carrier, but a good baseline for most is two hours. Anything over two hours is extra and considered truck detention. Once a truck driver has had to wait over their “free time” limit, they will often charge truck detention fees.

The carrier company decides detention fee amounts and the shipper or receiver handles payment of it. Generally, truck drivers will ask anywhere from $25 – $100 per hour to cover this extra waiting time. Most motor carriers will have a clause in their contract with the shipper or broker stating their detention fees. The purpose of truck detention pay is to compensate the driver or carrier when the shipper or receiver holds them up. You’ll find that truck detention is more common with full truckload shipments than with less-than-truckload (LTL).

WHY/HOW DOES TRUCK DETENTION HAPPEN?

There are so many factors that can cause truck detention to happen. In most cases, the driver is set back and not loaded on time by the shipper/receiver.

Truck detention is not for when the truck driver’s delay is on their own terms. This includes if their truck broke down, congested traffic, or being delayed by another pickup or delivery appointment. While some delays are not the shipper’s fault, American Transportation Research Institute (ATRI) found that customer inefficiencies were a major contributing factor to detention.

A lack of organization or lax attitudes on docks tends to create the problem of dock delays; shipments could not be ready to go, or the dockworkers may not be in as much of a rush as the truck driver. Additionally, warehouses may not be well organized to get the shipments ready in time.

As of late, there are also other factors to consider, such as the labor shortage. There could be a limited amount of dock workers or overworked workers, which doesn’t help the situation.

According to Business Insider, nearly 10 percent of all truckers recently said they’ve had to wait six hours or more. In addition, one in five drivers said that preloaded trucks weren’t ready by the time of their appointment, that products weren’t ready, or were still being manufactured. Delays were also attributed to shippers and receivers that overbooked appointments, booked more trucks than they had space to accommodate, or didn’t have the equipment to load and unload the trucks.

HOW TRUCK DETENTION IMPACTS…

Truck Drivers

Truck drivers say that waiting at warehouses for shipments is one of the most aggravating parts of their jobs.

Detention impacts the profits of carriers and uses up their valuable driving hours under Hours Of Service regulations. According to a survey by ATRI, 83 percent of truckers run out of available hours due to detention. In addition, according to a whitepaper by J.B. Hunt, of the 11 hours drivers have available to drive during a shift, an average of only 6.5 hours are spent on the road while the rest is wasted on detention.

A study by the Department of Transportation (DOT) found that because of detention alone, drivers lose an estimated $1.1 billion to $1.3 billion every year. In addition, the Inspector General’s audit report estimate that driver detention decreases U.S. truckers’ annual earnings by $1,281 to $1,534 or three to three point six percent of a driver’s annual income.

It also affects safety. According to the data from the FMCSA, in 2015, 415,000 crashes occurred involving large trucks. Detention time increases the risk of crashes by using up drivers’ available waking hours, contributing to fatigue while driving. The FMCSA report states that detention increases the likelihood of truck crashes involving fatalities or significant injuries.

Since truck detention delays drivers, it eats into their legal hours of service and causes further delays. Once a truck driver experiences a delay at one location, a snowball effect happens. The driver becomes delayed or misses their next appointment, causing even more possible detention, delays in supply chains, and most of all, lost pay. This can significantly eat into their pay.

Speaking of pay, according to a DAT survey, only three percent of drivers said they receive detention pay for at least 90 percent of their detention claims to shippers. Often, truckers are afraid to ask for detention pay. A study found that 20 percent of truck drivers who work for smaller companies don’t ask for detention pay to “remain competitive and maintain good relationships” with customers. Moreover, when carriers do receive detention fees, some don’t always pass along the money to the driver for their lost time and wages.

On top of not always being paid, a detention fee does not fully make up the cost of the driver’s stationary truck and lost time.

Truck drivers say that detention underlies a larger problem in the industry: a lack of respect for truck drivers. Every day, thousands of drivers arrive at their destination only to find no loading docks or crews available to unload the freight. In addition, there’s often no place to park while they wait. As a result, they end up searching for any place safe enough to park nearby. Some may find a rest area or truck stop, but those can fill quickly.

Other drivers aren’t so lucky and end up driving for extended periods searching for a place to park, ending up forced to park in less than desirable locations. This puts the driver in danger and overwhelms local infrastructure. An example of this is the overwhelmed Los Angeles port causing neighborhood streets to be clogged by trucks hauling or waiting to haul shipping containers.

Besides these scenarios, detention can also hurt a carrier’s business reputation with shippers.

Shippers

It’s crucial to note the impact of dock delays and truck detention goes beyond drivers and carriers. Detention reduces the amount of capacity that is available, making it a huge problem for supply chains.

It also impacts shippers financially. Detention fees come unplanned and cut into your profit. Detention fees can add up to hundreds of dollars per truck every day, which adds up to hundreds of thousands of dollars per year.

Regular detention affects your reputation. A survey showed that 77 percent of carriers are more selective in who they are willing to work with. Additionally, 80 percent of carriers stated there are facilities that they will absolutely not work with. According to an ELD survey, 43 percent of carriers say that the number of shippers/receivers they refuse to go to has increased since the ELD mandate was implemented. As a result, they can see better data on who consistently causes detention. Carriers state they also tend to avoid shippers with strict appointment times and don’t offer delivery windows.

Not all carriers will wait for you. Only 17 percent of carriers said they would wait as long as it takes to be loaded. The majority said they would only wait up to four hours before pulling their drivers from the shipment.

The effects of poor dock scheduling and detention can add up and result in more issues in your supply chain. This can include late deliveries, poor customer service, potential perishing of cold-chain products, loss of shipper of choice status, freight refusal by carriers, and higher freight rates. In addition, detention and delays hurt supply chain performance, carrier relationships, and impact labor costs. You can also face chargebacks from your customers who are unhappy about not receiving goods by the agreed-upon delivery date.

Considering the current market, shippers cannot afford carriers to blacklist them due to detention.

HOW TO MINIMIZE DETENTION AND DOCK DELAYS

Sometimes, delays are unavoidable, but it might shock you that your procedures could make you more vulnerable to delays. Effective dock scheduling and end-to-end visibility are critical to controlling costs and delays. In a report by Logistics Management, approximately 40 percent of an organization’s total freight spend is inbound freight costs. These costs come from poor dock scheduling, increased delays, detention fees, and other unexpected issues.

For shippers to reduce delays and detention fees, they need to understand how better dock scheduling can reduce risk and benefit them. Efficient dock scheduling amounts to better processes throughout your supply chain. This means more vendors, carriers, and customers will want to work with you.

There are many great ways to reduce or cut detention at your docks.

Staggered Appointment Times

One shipper told Uber Freight that they could save as much as $300 from detention per load just by staggering their pickup times.

Extended Facility Hours

Like staggered appointment times, adding more hours of operation can decrease congestion and lower detention for truckers. Having more time means you can space out appointments, and wait times decrease. Adding weekend and/or evening hours can go a long way.

Mode Specific Dock Doors

Having doors dedicated to different modes can help to keep things running smoothly. High-velocity doors and LTL doors can help ease congestion for drivers.

Adding More Dock Doors

Though not workable for everyone, adding more dock doors or moving to a warehouse with more dock doors, can accommodate more appointments and lower wait times.

Have Better Dock Awareness/Improved Dock Scheduling

Make sure your dockworkers have the product ready before scheduling the appointment. Furthermore, you can encourage them to have the process done in two hours or less to avoid detention.

Make sure to space out your appointments so that your workers have enough time to load/unload the truck. Overscheduling is a huge cause of detention. Improving your dock scheduling lowers your risk of delays for drivers.

Using Technology

Forward-thinking shippers are using technology to reduce detention time.

Web-based dock appointment scheduling solutions enable shippers, carriers, and consignees to collaborate on dock scheduling. By distributing the responsibility among everyone, organizations will be able to proactively keep wait times at a minimum.

Carriers can avoid frustrating detention time and shippers can manage inventory more efficiently. Technology can give you greater visibility into inbound shipments. Besides reducing detention, you can also better manage inventory levels, increase warehouse efficiency, and reduce congestion by limiting idling in the yard.

Hiring More Labor

While this might be tougher to secure right now, it’s often cheaper to bring in extra workers than it is to pay detention fees. Unready freight is one of the major causes of detention. When there is more labor on-site, orders can be prepped and loaded quicker.

Staggering Your Labor

By staggering your labor hours, you can ensure loading and unloading can continue during lunch hours rather than the entire staff breaking all at once.

Drop and Hook Programs

If possible, with space, drop and hook programs are the easiest way to avoid detentions. What is a drop-and-hook program? This allows the driver to drop the trailer, hook an empty trailer, and head on their way. Often the shipper can use the dropped trailer for storage as a courtesy. Yet, shippers and carriers must work together to ensure that these trailer pools don’t expand and sap the fleet. In addition, drop and hook don’t work for live freight. When it works well, drivers wait less, and both shippers and the trucking company are more profitable.

Communication

Make sure to share your yard map with the truck driver so they know where to go and who to contact if there are any issues. Also, be sure to communicate with your warehouse that the truck must be loaded within a given timeline, such as two hours or less.

Improved Operations

It all comes down to improved planning, more visibility, and optimized labor. Smart shippers are looking at data to prevent overscheduling, maintain staff and equipment, and address problems.

Hold Regular Business Reviews with Your Logistics Providers

It’s critical that shippers and their logistics providers discuss performance regularly. It will help you identify key problem areas and introduce potential changes to help reduce driver wait times and fees and keep your supply chain efficient. In a whitepaper by J.B. Hunt, it was estimated that eliminating even 30 minutes of wait time would give a driver an extra hour on the road. This would be equal to 50 more miles per day or 12,500 miles per year. These carrier savings translate to increased supply chain efficiency, less risk of road accidents, and improved operational performance.

When asked about detention solutions from carriers, they’ve responded that customers who were organized, used technology, maintained scheduled appointments, or had as-needed extended hours, significantly reduced delays.

LET’S DO BETTER

Delays are the worst-case scenario for today’s supply chain professionals. Each delay amounts to a potential setback further down the supply chain. We’ve had plenty to deal with that has been out of our control, but truck detention is one that we have more control over.

Shippers need to take steps to reduce their impact by improving dock scheduling and operations to ensure a positive and timely, customer experience. And in the competitive market we’re in, drivers get to select who they want to run for. Don’t be one that gains a reputation for dock delays.

If outsourcing your logistics, make sure to work with a provider who can help be a resource for more than arranging your freight shipments. At Trinity, we’re your logistics consults, too. We make sure to take the time to have educated conversations about your logistics and operations, to help you reduce delays and have a more efficient supply chain.

We offer many technology options like our tracking and tracing options that can keep tabs on your truck and freight, as well as a transportation management system (TMS) to give you insight into valuable data. If you choose to work with our Managed Service Team, we offer you quarterly reviews with our experts so you can take a deep dive into your data for improvements.

Truck detention and dock delays remain a problem for many, but it doesn’t have to stay that way. Take charge of your dock operations today and find an improved supply chain.

Author: Christine Morris

Trinity Logistics is proud to announce its earned recognition as a Top Workplace for Women by Women In Trucking (WIT) for a third year. Every year, the Women In Trucking association looks for companies with a culture that supports gender diversity, flexibility in hours, competitive compensation, quality benefits, training, and continued education opportunities, career advancement, and other factors. Trinity is proud to be a company that’s known for its culture, where women can experience career growth and excellence. 

Trinity Team Members are offered flexibility in hours, quality benefits for their families, many continued education opportunities to help support career growth, and a company culture that is positive and family-friendly. 

To date, 54 percent of Trinity’s Team Members are women and 23 percent of those women hold a management or leadership role, including our current President, Sarah Ruffcorn.

“Whenever I’m asked to describe my career with Trinity, I always think of the word opportunity,” said Jennifer Hoffman, Director of Agent Services. “This company has provided an opportunity for growth beyond my wildest imagination. By awarding achievement and being truly understanding and compassionate, our leadership team encourages growth from all Team Members, regardless of gender. I’ve seen it and benefited from the mindset in so many ways. Because of this, as a woman at Trinity, it could be easy to momentarily forget that this type of equal opportunity isn’t the norm in some industries or companies. I am forever grateful for the work I get to be a part of with this company – not just in the day-to-day movement of freight – but in the overall showcasing of a consistently successful company that’s equal in its promotion and celebration of diversity and inclusion among team members!”

“Trinity Logistics supports individuals who have servant leadership attributes regardless of their gender,” said Amanda Lloyd, Director of Sales in Delaware. “During my tenure at Trinity, I’ve always felt that my voice is heard and my opinions are valued throughout our entire organization.” 

One of Trinity’s strongest attributes is our company culture. We’re proud of our efforts to be diverse and offer everyone an opportunity to grow their career here, no matter their gender.  

Learn more about Trinity’s People-Centric culture and see what job openings we have currently available.

The Covid-19 pandemic triggered a storm of demand for goods that seems like it will never end. The overwhelming demand plus all the disruptions faced equals no chances for supply chains to catch up. As a result, capacity remains tight, and freight rates continue to increase. With logistics experts estimating that high freight rates will rema­­in through 2022, maybe even 2023, now is not the time to stress over transportation costs. Instead, it would be beneficial if you focused on gaining capacity to keep your goods moving, customer service to keep your buyers satisfied and loyal, and good communication from your transportation providers to stay ahead of any issues.

FREIGHT MARKET OUTLOOK

Freight rates have jumped 26.6 percent year-over-year (YOY), being the sharpest increase seen since February 2006, based on the latest figures from Cass Information Systems. In August 2021, truckload volumes surged, and freight rates hit new highs according to a DAT Freight & Analytics report. However, with the holiday season right around the corner, things may get worse before they get better. Shippers could be facing their most challenging peak season yet. 

FOCUS ON WHAT YOU CAN CONTROL NOW

While it seems we will be facing these supply chain challenges for a while, and freight rates remain out of your control, there are things you can still focus on.

FINDING CAPACITY

Due to the over-demand of freight, load boards don’t move shipments the way they once did. Strong relationships will get you the coverage you need, better pricing options, and often better service. If building a large enough network for you seems daunting, you can always partner with a third-party logistics company (3PL), whose primary role is their relationships among shippers and carriers. 

An excellent way to build strong relationships among carriers is by looking at what you can offer them to make their job easier. For one, being cognizant of driver hours and keeping them from sitting too long goes a long way. Drivers want to make the most of their time and keep moving as that’s how they earn their salary. Driver detention is a top concern for truckers finds a 2020 Workhound survey. The more you control your docks and how freight moves through them in a way that respects drivers’ time, the more carriers will want to work with you, gaining you capacity and negotiation in the price. 

Another option is to be more flexible. Instead of giving specific dock times to load and unload, provide windows of time. Or be flexible with your pickup day. This kind of flexibility helps carriers better plan their routes and schedules. The ability to exercise flexibility could be the difference among your competitors, making your shipment easier to cover. 

Simply put, take care of your truck drivers. It sounds simple enough but can be an effort that often gets overlooked. Make sure your facility is appealing to your carriers. Offer clean restrooms and waiting areas, have WiFi available, and offer enough parking. Make it easy and accessible for truck drivers to be able to enter your facility quickly and efficiently. 

In the current environment, carriers have the opportunity to be selective about who they work with, so it’s important to build a good reputation and have strong relationships.

COMMUNICATION

Communication can be a dying art form with all the new technology and easily accessible data that it offers. Yet, in difficult times like these, communication can be something that gives your company a competitive edge. Effective logistics communication is needed now more than ever. It’s a vital aspect of successful businesses, and it helps build trust and strong relationships. 

Communicating both good and bad news will help build trust with your providers and customers, as even when the bad news is shared, you can prove that you can weather through anything. And working with a provider that communicates, in the same manner, can help your business go far. 

Lags in communication can cause a cascade of problems in your supply chain, so make sure you have the right tools and technology to communicate timely and effectively. Another huge aspect of communication (and data) is making sure that your internal communications are safe. Logistics can deal with sensitive information at times, so make sure you select secure technology to protect your company’s (and customer’s) data and information.

CUSTOMER SERVICE

Today, it only takes is a simple Google search for a customer to find a new provider. Unfortunately, one negative customer review can cause a missed opportunity.

When things like delays and bottlenecks are out of your hands, great customer service will keep your current customers and gain you new ones. While you can’t increase the speed limit for trucks hauling freight or reduce the wait times at the overwhelmed ports, you can still impact your customer’s experience through your service.

Customer service has become one of the biggest differentiators for companies.

One way to keep your customer service high is noting the previous section in keeping open and transparent communication. Keeping your customers in the loop of everything not only builds trust but shows that you care. Having quick communication is also a factor in good customer service. As shown in a recent report, almost half of the respondents surveyed that it takes an hour to four hours to respond to a new customer inquiry. Imagine if you were faster than that and the kind of impression it would make on your new customers. 

Another way to improve customer service is by being transparent and honest. Honesty builds trust. Even if you don’t know the answer to a question, stating that you will do everything it takes to find the right answer or a solution to a problem leaves an impact.

Lastly, never stop learning and finding ways to improve your customer service. Again, it builds trust, strong relationships, and shows that you care. Having exceptional customer service is not only a great way to keep your current customers, but those loyal customers will often become your best advocates, generating referrals. 

You hear about companies that provide excellent customer service and those companies that don’t. While this supply chain chaos won’t last forever, your reputation will so make sure yours is good, if not great. 

FIND A LOGISTICS PROVIDER YOU CAN TRUST

One thing you can do that will help you with all the above is find a logistics provider who can offer you all the above. Working with a good 3PL will offer you an extensive carrier network for the capacity you’re looking for, communicate effectively and consistently, and help you improve your customer service concerning your logistics. Even better, an expert 3PL will keep an eye on the market and help you pick up on early warning signs on disruptions or delays, finding ways to help you prepare for potential constraints. Your provider should treat your shipments and freight as their own and offer you alternative solutions when needed. They should be dedicated and not stop until they can help resolve any challenges you face.

Here at Trinity, our Team Members are true experts in logistics. We do more than arrange your freight. When working with Trinity, we become your logistics partners in your business and our only goal is to help YOU succeed and grow. We’ll help streamline your logistics procedures and give you insight into the freight market.

“Under the current market circumstances, it is imperative that shippers are partnering with the most efficient and organized transportation providers possible,” says Mo Shearer, Senior Sales Executive at Trinity Logistics. “The days of logistics being perceived as an after-thought or “necessary evil” with regards to managing a proficient supply chain are in the rear-view mirror.  The amount of freight, coupled with the continuous demands for capacity, are making transportation one of the key components of an overall business strategy to keep an organization in the black.  The more investment, both financial and intellectual, the better postured a company will be for long-term success.”

Our Team works very hard to follow through on our efforts. When issues arise, we work until they are resolved and keep open communication every step of the way. 

The freight market is tough right now and always susceptible to quick changes and challenges. No matter the market, having a solid relationship with experts like Trinity will prove to be your largest asset. 

When given the chance to prove our People-Centric service, you’ll soon find that our communication and service levels set the bar high. Hear from one of our customers, Primary Flow Signal. Their logistics manager, Mike Choquette says, 

“Primary Flow Signal began working with Trinity because our products were too large to ship via LTL and we needed help arranging flatbed and hotshot shipments. What we really love about working with Trinity is that all we need to do is send one email to Lyn with our needs and she quickly responds. When needing a freight quote, Lyn gets right on it and responds in a timely fashion, whereas other providers will take up to two to three days to get back to us. With Lyn, we never have to follow up or wonder what’s going on because she consistently communicates and takes care of everything. It’s been such a pleasure working with Lyn at Trinity Logistics. She’s very reliable, no matter how tricky a shipment can be or if any issues get in the way, Lyn is on top of communicating every step of the way. She is phenomenal at getting things done and keeping us updated on all of our shipments.”

Our people and excellent service are what makes our company stand out. Start building your relationship with Trinity Logistics today and begin seeing the Trinity difference in your logistics. 

Author: Christine Morris

Trinity Logistics takes pride in being a leading name among independent Freight Agents. We have many benefits to offer through our Freight Agent Program, but the one we’d like to talk about today is education. Continuous Improvement is engrained in our culture, so we ensure all Trinity Team Members receive educational opportunities, and this includes our Freight Agent network.

WHY CONTINUED EDUCATION IS IMPORTANT IN A FREIGHT AGENT PROGRAM

There are many reasons why continued education is vital to your success. When you look at the most successful people in the world, they know and understand that we never stop learning. Additionally, the logistics industry constantly changes; it is never stagnant. New regulations take place or newer technology makes waves. Continued education is needed for you to stay current with the latest developments, skills, technologies, and more. Continuing your education is the best way for you to stay ahead of your competition. Many other careers need continued education and Freight Agents are no different.

WHAT EDUCATIONAL OPPORTUNITIES DOES TRINITY’S FREIGHT AGENT PROGRAM OFFER?

CONTINUED EDUCATION OPPORTUNITIES

Trinity has an in-house Education Team that provides you with many opportunities to continue your education and training on business strategy, industries, modes, sales, and other skill sets you may need. There are virtual classes held every month, giving you opportunities to increase your sales skills and introduce you to any new Trinity technology. Most importantly, we offer our Freight Agents the same opportunities as our Team Members. In addition, there are many virtual courses offered outside of our monthly classes through our learning management platform. These courses can be taken in your own time and cover an array of topics such as leadership, cybersecurity, and customer service.

TECHNOLOGY TRAINING

Through Trinity’s Freight Agent Program, we provide you with the technology resources you need to be successful while offering you support every step of the way. When it comes to technology, we make sure to maintain a competitive edge in the market, giving you, your customers, and carriers access to best-in-class applications. We also have an entire team of in-house software engineers who work hard to make our processes easy and data accessible.

We never want to leave you feeling lost or confused, which is why our Freight Agent program Provides you with thorough training on current and upcoming technology. Through communication from our Agent Support Team, you’ll consistently be updated on any changes, big or small. Should you need any extra help with learning any technology, you’ll have your Agent Support Team available for any training and support.

INDUSTRY NEWS AND RESOURCES

Trinity’s Freight Agent Program keeps you up to date on what’s going on in the freight market and other related industries. As a Freight Agent with Trinity, you’ll receive an email every day with Daily Industry news you might want to know. In addition, each month, through Trinity’s Freightwaves’ Sonar account and other resources, we curate a Freight Market Update in our blog. You’ll also receive a monthly Agent Support newsletter giving you insight into any Trinity news.

ONE-ON-ONE SUPPORT

Trinity has a Team dedicated to the support of our Freight Agents. Support Team Members will work with you to learn about your goals, offer suggestions, encourage you, and help you stay on track. Think you might need a little more help? We encourage spending one-on-one time through direct planning support and accountability reviews with our Agent Support leadership team members at Trinity. They have experience working with office structures of all sizes and can help dissect your business to get you closer to your goal numbers. They’ll be available to help recommend any educational opportunities and assist you with any of Trinity’s technology. You’ll never fall behind or feel unsure with the help of your own Support Team!

ANNUAL AGENT CONFERENCE

As a Freight Agent with Trinity, you’ll also be able to attend our annual Agent Conference. This year’s conference will be an all-day event held virtually on November 18th, 2021. You and your office are invited to hear from many speakers throughout the day, including members of our own Trinity leadership, sales directors, our Platinum Agents, and other industry professionals. In years past, we’ve had external speakers such as transportation economist Noel Perry and Transportation Intermediary Association’s Vice President of Government Affairs, Chris Burroughs.

This conference also includes workshops on the sales process and operations process for you to take part in and hone your skills and understanding. You’ll find technology and business resources available and even have chances to win some prizes!

PEOPLE MAKE THE DIFFERENCE

We can boast all day about the educational opportunities and benefits that Trinity’s Freight Agent Program offers you. But what really makes Trinity’s freight agent program different than others are the people behind it. It’s their commitment and dedication they have in helping you grow to be as successful as you want to be.

We realize you have a choice in who you’d like to partner with in your business. However, if what you’re looking for is a long-term partnership that is supportive of your growth, offers you continued education to remain competitive, and most of all, is made up of a Team of people who are passionate, dedicated, and striving for excellence, then Trinity Logistics may be the Freight Agent Program for you.

Take the first step today and get connected with Trinity’s Agent Recruiting!

No one likes spending their valuable time working on manual tasks that take forever. Streamlining operations with automation is the dream for every business, yet many companies still rely on spreadsheets and manual interactions. One way to drastically reduce your manual processes is by implementing a transportation management system (TMS). Many companies use a TMS for their logistics management, like e-commerce companies, retail businesses, manufacturers, and distributors. By adopting a TMS, you’ll be able to eliminate manual processes and focus more of your team on revenue-generating tasks. Read on to learn how a TMS can help you make the most of your time by automating your manual processes.   

MANUAL PROCESS: TOO MUCH TYPING 

Even if you already have a TMS, you might still be doing more work than necessary if your software doesn’t have integration capabilities for order entry. You might be stuck typing each order into your enterprise resource planning system (ERP), as well as your TMS. And if you don’t have a TMS, you certainly are spending way more time doing data entry than you should. 

TMS SOLUTION 

If you’re currently using an ERP, you should make sure the TMS you’re working with can interface with your system, allowing order information to transfer automatically. This prevents the need for dual entry and gives you and your team more time to focus on revenue-generating tasks. 

MANUAL PROCESS: QUOTE MANAGEMENT 

Shopping for shipping rates can be time-consuming if you have to look through each of your carrier’s rates on a lane, and that’s if they offer contracted rates. If not, emails and phone calls to every available carrier might be necessary for even just a single lane. And even after all that, are you sure you’ve selected the best carrier for the best rate? If you work with several different shipments, it can be time-consuming to be on the phone or going through emails asking for rates from carriers in your network. Trying to manually keep track of all those quotes can take you away from more important aspects of your business.  

TMS SOLUTION 

Quickly compare contracted rates or submit instant spot quote requests to multiple carriers at once with a best-in-class TMS. The carrier quotes are automatically filtered into the system by the lowest cost carrier for easy comparison instead of piling up your inbox. 

MANUAL PROCESS: DOCUMENT MANAGEMENT 

Manually managing documents or paperwork is monotonous and outdated. Everything from manually completing the documents to organizing and filing takes a significant amount of time. Not to mention the process of searching for the documents you need later. According to a report by CMS Wire, 36 percent of an employee’s day is spent looking for documents, with information going unfound up to 44 percent of the time. Going by those statistics, you could be spending almost three hours of your day searching for lost documents.  

TMS SOLUTION 

Managing large volumes of loads is timely, and in business, how you spend your time is critical. Sifting through filing cabinets or folders is not an effective use of your time. By using a TMS, all of your documentation is managed, stored, and shared digitally. Not only does this keep your information more secure, but it makes organizing and accessing your documents easier. Using a TMS is the easiest way to manage all of your documents while saving you hours of time every day. 

MANUAL PROCESS: FINDING AN AVAILABLE QUALIFIED CARRIER 

Calling or emailing carriers to see if they can not only accept your load but have the expertise to haul it can get quite time-consuming, especially if you’ve got hundreds of loads to cover. And even more so if you’re working with many kinds of freight. Because not every shipment is the same, the same carrier probably shouldn’t handle them all. Finding carriers best suited for your shipment needs is tough. In the midst of your workday, it’s easy to forget which carriers you’ve talked to already or those you’ve missed. This can translate to a long list of uncovered loads at the end of the day. 

TMS SOLUTION 

Say goodbye to the dozens of phone calls and emails previously used to secure carriers on your loads. With a TMS, you can send a load tender to your preferred carrier, allowing them to accept it electronically. If they reject the tender or don’t respond promptly, the load automatically goes to the next carrier on your list based on cost, performance, or other parameters defined by your company. 

MANUAL PROCESS: SHIPMENT DELAYS/TRACKING/TRACING 

Without using technology, you often won’t know about a shipment delay until your unsatisfied customer calls you. If you’re tracking your shipments, you’re usually doing this manually through emails or phone calls to find out where your freight is, which can be time-consuming and frustrating. While it can be common for several different shipments to be in transit on different company trucks and located all over, tracking can be a challenge. Without a TMS, a lot of time is spent manually tracking shipments and trying to get ahead of delays.  

TMS SOLUTION  

Spend less time tracking your loads and more time filling your orders with a TMS. Carriers will have the ability to provide their own status updates on each of your loads either manually or automatically, allowing you to easily manage your shipments and know in real-time whether there is a delay or not. When asked what features they were looking for in the aforementioned survey, 25 percent of shippers said they needed shipment tracking.  

MANUAL PROCESS: REPORTING 

Reports can be a pain to produce manually since they require merging multiple spreadsheets or pulling information from different sources. This is often done in Excel, which has no way of validating if the reports are accurate. It’s also almost impossible to track carrier performance since it’s hard to see if loads were delivered on time and who shipped which load, all on one spreadsheet. Without proper reporting, how can you really know which carrier had the best performance, what your freight costs were on specific lanes, or which carrier was cheapest the past year? 

TMS SOLUTION 

Forget spending precious time compiling reports from multiple spreadsheets. A TMS will give you the ability to generate all your transportation reports on demand. Do note that not every TMS can generate the reporting you may need, but a best-in-class TMS can offer you advanced reporting to go into specific logistics metrics. From gauging your monthly freight spend to rating your carriers’ performance, you can easily access it if you need it. Need it on a regular basis? With Trinity’s TMS, you can schedule reports to be run daily, weekly, or monthly and even have them automatically emailed to recipients on a distribution list. 

READY TO ELIMINATE MANUAL PROCESSES FROM YOUR LOGISTICS? 

With the ability to eliminate multiple manual processes, it’s easy to see why a TMS allows you to focus your time and attention on more important things, like widening your profit margin. 

If you’re ready to make the move to automation to improve your logistics, we’re here to help. Our combination of experienced account management and best-in-class TMS technology offers you a customized solution to help you achieve your unique supply chain goals. Whether you’re looking for Saas, a Managed TMS, a fully integrated Outsource, or something in between, we’ll work with you to design a solution that’s unique to your business. Gain control, cut costs, improve performance, and most importantly, eliminate those manual processes! 

Author: Christine Morris

This year has continued to be very demanding for our nation’s truck drivers. Supply chains continue to be hit with challenge after challenge. From the height of the pandemic to meeting the current increased demand, truck drivers have had to keep moving forward now more than ever. 

With that in mind, Trinity Logistics takes honoring our nation’s truck drivers very seriously and was proud to celebrate National Truck Driver Appreciation Week with a truck payment drawing. Just like last year, Trinity held a drawing for truck drivers, offering 10 winners a cash prize towards their truck payment. But this year, the prizes were bigger. In 2020, winners were awarded cash prizes up to $750, but this time, 10 winners received cash prizes up to double that amount of $1,500. Additionally, Trinity partnered with Truckers Against Trafficking (TAT) and Red Classic Maintenance Services to grow this year’s drawing and share TAT’s important message. When drivers entered the drawing, if they were already certified with TAT, they earned two entries into the drawing instead of one. Through the partnership of Red Classic, Trinity was also able to give away preventative maintenance services valued up to $450 to three additional winners.

Listen to our podcast interview with Laura Cyrus from Truckers Against Trafficking.

Listen to our podcast interview with Michael of Red Classic.

“During the COVID-19 pandemic, professional truck drivers took on a heroic role by delivering the essential goods to our country,” says Bradley Palmer, Director of Carrier Development and Pricing at Trinity. “The sacrifices that professional drivers made to help carry the nation through the pandemic must never be understated. To deliver for American families, drivers put their own health, and the health of their families on the line. Their dedication to assure our standard of living is deserving of our praise, recognition, and appreciation every week of the year. This is the week that we make sure they hear it.”

Laura Cyrus of Truckers Against Trafficking says, “TAT has always believed that professional truck drivers, through their sheer numbers, extensive travels and the nature of their job, are crucial to keeping America moving and in a fantastic position to be the eyes and ears of our nation’s highway systems. We rely on the proud men and women of the trucking industry to engage in bystander intervention and speak up if they see evidence of potential trafficking throughout the course of their everyday jobs. The industry has always proven to rise to the occasion. With over 1.2 million people trained with TAT materials and over 1300 victims identified in the US alone, by truck drivers, we know that American truck drivers are making an impact. The pandemic has only increased vulnerabilities for those already on the margins and at risk of being exploited by traffickers, so the efforts of the trucking industry to help combat human trafficking are more important than ever. We are excited to be working with Trinity Logistics to help get the word out about this important work and hopefully motivate more drivers to join the fight. Thank you for being out there on the frontlines, every day!”

It can be challenging for you to decide the best way to transport your products. Fewer decisions are bigger than deciding whether to operate a private fleet or outsource. On the surface, private fleets appear to be the better option, but you must recognize and understand all that goes into running your own transportation. Some companies believe operating a private fleet gives them more control over the business and operating costs. In contrast, others find that outsourcing their transportation gives them better insight into the market while reducing costs and creating efficiencies. So, which is better? Private fleets or outsourced logistics?

PRIVATE FLEETS OR OUTSOURCED LOGISTICS?

Well-known household names like PepsiCo, Sysco Walmart, and Tyson Foods all run successful private fleets. According to FleetSeek.com, a database of trucking operations, 344,657 private fleets are operating in the U.S. compared to 169,498 for-hire carriers and 203,068 independent owner-operators. So what drives companies to choose a private fleet or outsourcing?  

The idea of having your own private fleet to deliver your goods is alluring. On the one hand, you can retain complete control over your supply chain by operating a private fleet. But this can come with staggering costs and resources spent. The time and costs of managing a fleet may not be worthwhile for some companies. On the other hand, it can be difficult for those running and operating their own fleets, especially if it’s not their core focus. While the pandemic has had a small hand in encouraging companies to move away from managing their own private fleets, many of the real motivating factors are the plain challenges that come with operating your own logistics and transportation.

PRIVATE FLEET CHALLENGES

Running your own fleet is a very asset-heavy business on its own. It requires a lot of capital investment in tractors and trailers along with other costs of technology, maintenance, insurance, driver pay, and more. Drivers are in short supply already, so finding a backup for sick drivers or losing drivers puts private fleets at the risk of losing capacity. Motor carrier insurance costs have been on the rise as well. Where a large trucking company could spread increased costs across a range of equipment and business segments, a small private fleet does not have that flexibility.

DRIVER RECRUITMENT AND RETENTION

Driver recruitment is one operation of running a private fleet that you have to consider. Finding talent behind the wheel is an even more significant challenge lately with the driver shortage and driver-related issues are a current top concern of private fleets. According to the American Trucking Associations, the driver shortage hit 60,800 at the end of 2018. Current trends point to the shortage growing to over 160,000 drivers by 2028. In addition, a recent ATRI analysis of census data on employment sectors shows that the trucking industry has the lowest percentage of young entrants and the highest percentage of aging workforce entrants.

In a recent survey by the National Private Truck Council (NPTC), more than a third of all challenges private fleets face are driver-related, like aging drivers and their retirement, recruiting, turnover, hiring, and retention. With the ever-surging freight demand and a growing labor shortage, private fleets must work even harder to recruit and retain drivers. In addition, private fleets must fight with for-hire carriers over drivers as they are working even harder to attract drivers from fleets with more money, better equipment, and better routes for more home time.

COSTS

Many companies want to operate private fleets to manage their transportation costs; however, many more costs go into a private fleet. First, there are the upfront capital expenses, which can be expensive when starting out. You also have to consider fuel, insurance, driver pay and benefits, licenses, certifications, permits, technology like ELDs or software applications, training, and drug testing. There are also unanticipated costs to plan for, like liability costs for any accidents or claims. According to a study by the FMCSA in 2006, the cost to a company for a non-fatal injury crash averaged $195,258, while the average cost of a fatal crash was $3,604,518. In addition, costs for private fleets are rising with the increasing costs of fuel, insurance, and equipment maintenance as new and used trucks deal with material shortages.

CAPACITY

Many companies want a private fleet to have easy access to the capacity to haul their freight. However, having just the right amount of available equipment and drivers is tough to decide. Often you’ll find that you either have too much equipment sitting when you’re slow or too little to cover orders when demand is high, leaving you to use the spot market to cover shipments that need to go out. There are always ebbs and flows to business. Even when planned there will be times when equipment is underutilized or there won’t be enough.

TIME SPENT ON TRANSPORTATION

One drawback to operating your own fleet is the time you must put into it. You have to arrange the shipments, make sure you have drivers, cover backhauls or find coverage when you don’t have enough capacity of your own, maintain regulations, insurance, and more. The constant monitoring and configuring of your own transportation demand a lot of time – time that could instead be used for revenue-generating tasks.

PRIVATE FLEET BENEFITS

There are many benefits to running your own private fleet, such as;

KEEPING CONTROL

If keeping control over your transportation is something you need then operating a private fleet is for you. By choosing not to outsource your transportation, you’ll have complete control over your supply chain. You’ll know that you always have capacity available, even when the market is challenging. You won’t have to spend time searching for available carriers or negotiating rates, and you’ll keep control over service levels since you’ll have company drivers and equipment readily available.

CUSTOMER SERVICE

In the previously mentioned NPTC survey, more than 92 percent of respondents said that customer service was the main reason they had a private fleet. Other factors included flexibility, reliability, dependability, and a desire to put their employees in front of customers. With these factors in consideration, some companies view their fleet as a core competency.

SAFETY

Safety performance is another benefit to private fleet operators. According to the Department of Transportation’s (DOT) crash data, drivers in private fleets have shown to be three times safer than the overall trucking industry.

FLEXIBILITY

Additionally, you’ll have scheduling flexibility. Rather than depending on a for-hire carrier to pick up and schedule shipments, private fleet operators set the schedule themselves, giving you more control over on-time deliveries.

BRAND AWARENESS

Lastly, there’s the marketing aspect to consider. Private fleet trailers essentially act as “rolling billboards” for your company.

OUTSOURCING BENEFITS

In the 2019 Third Party Logistics survey by Korn Ferry, 63 percent of shippers said that overall, shippers are increasing their use of outsourced logistics. Taking into account the pros and cons of a private fleet, it seems some companies find that outsourcing their transportation suits their needs better. There are many benefits to outsourcing your logistics, such as;

FEWER COSTS

In comparison to private fleet costs, there are very few costs to consider when outsourcing. You don’t have to worry about the cost for the labor of drivers, their insurance, their certifications, driver recruiting, vehicle maintenance, fuel costs, and more. The only actual cost you have to worry about is the cost of having your freight transported.

MORE TIME

Since you won’t have to worry about the many time-consuming tasks of your own fleet, you’ll have more time to focus on your business versus your transportation. In addition, your employees will focus on revenue-generating tasks instead of all that comes with managing transportation.

CAPACITY

Even though private fleets come with some on-demand capacity, when outsourcing your logistics to a third-party logistics provider (3PL), you can be assured that you’ll have access to capacity that you wouldn’t have otherwise. 3PLs take care of all the relationship-building, growing a larger network than you could manage, and take care of covering your shipments for you. There’s no worry about finding available carriers or making sure you have available drivers and equipment. It is all taken care of for you.

OUTSOURCING CHALLENGES

Even though there are many benefits to choosing to outsource your transportation needs, there can be some challenges that come with it.

LOSS OF CONTROL

Some people aren’t fans of losing control. When choosing to outsource, you will lose some control of your provider selection, customer service, and rates paid on shipments. Sounds scary, right? That’s why if you’re choosing to outsource, make sure you find a reputable provider that you can communicate your wants and needs. Find one that will keep an open line of communication with you as your relationship grows so that you fully trust them and be okay with letting go.

LOSS OF VISIBILITY

This solely depends on the provider that you choose to work with and what they offer. Find a good provider with technology applications or processes in place to keep you informed. You may even find a provider that has options to give you more visibility than you would have otherwise.

MANAGING THE RELATIONSHIP

Time and effort must be invested when developing good working relationships. Your chosen providers must share an understanding of your strategy and provide you with innovative solutions to give you a competitive advantage. It may take time to be in alignment.

TECHNOLOGY INTEGRATION

If choosing to outsource and make use of a provider’s technology, your IT teams must integrate applications and systems. Make sure your IT teams are capable of doing so and that your provider will provide assistance in the integration.

PRIVATE FLEET OR OUTSOURCING OPTIONS

Companies that don’t want to manage their own fleet have a couple of options when it comes to outsourcing. For one, there are dedicated services. This is an option if you already have a private fleet of your own. Essentially, you convert your private fleet to a transportation company so that they now belong to the transportation company but remain dedicated to serving you first and foremost. Some transportation companies may even let you keep your branding on the truck. This is a nice way to have more control but less responsibility. 

Another option is outsourcing to a 3PL completely. They will take complete control and responsibility for your logistics management. You’ll still have access to capacity, reduced costs, and excellent customer service; however, you’ll lose the benefit of your brand on trucks. This option allows you to COMPLETELY focus on your core business.

Looking to have the best of both worlds? There is certainly nothing holding you back from having a mix of a private fleet and outsourcing. Some companies, like Giant Eagle Supermarket, prioritize their private fleet but also use outside carriers for less critical shipments. As a result, they’ve found an advantage to mixing both services.

FIND WHAT WORKS FOR YOU

Regardless of the choice you make, getting your product to customers has never been more challenging. The driver challenge continues to be a problem, capacity remains tight, and freight rates remain high. Though we may be partial to outsourcing, you should look to find a solution that works best for your company.

Be sure to ask yourself these questions when deciding whether private fleets or outsourced logistics is best for your company:

• Are my transportation needs complex?
• Do my shipments require the coordination of multiple stops, complex routes, or specialty shipments?
• Is my organization struggling to hire and retain drivers?
• Do we own more trucks than needed on a regular basis?
• Would managing my own fleet take valuable time away from employees or money from revenue?

If outsourcing some or all of your transportation seems like a good solution, consider Trinity Logistics as your provider. With over 40 years in business and Burris Logistics as our parent company, we consider ourselves experts in logistics, especially in more complex or specialty shipments.

We can help you with capacity through our extensive network of carrier relationships available. We have best-in-class technology available to meet your needs and help you with your business’s growth. We work with several modes and through our People-Centric approach, offer you guidance on when and what solutions you should use. You’ll find that when choosing Trinity Logistics as your provider, when given the chance to prove our commitment to great service and communication, we set the bar high.

Author: Christine Morris

If you’re thinking about expanding your supply chain into shipping to and from Mexico, you’re not alone. Business between the U.S. and Mexico is booming. Currently, Mexico is the U.S.’s second largest trading partner, after China. The U.S. is Mexico’s largest trading partner, with 80 percent of Mexican exports going to the United States. Since the North American Free Trade Agreement Implementation Act (NAFTA) in 1994, U.S. exports to Mexico have risen 517 percent and Mexican exports to the US have grown a huge 797 percent!

Customs Classification

Any goods to enter or leave Mexico is subject to a customs classifications. When shipping to and from Mexico, you’ll have to classify your goods based on the function you’re goods will have either in Mexico or abroad.

If you’re looking to export your finished goods into Mexico for sale or consumption – this is called “definite” importation. Alternatively, maybe you’d like to temporarily ship raw goods into Mexico to be assembled into a final product which will be imported back into the US – this is called “IMMEX” importation, and it allows you to avoid being taxed on the imported goods, since they are not staying in Mexico permanently. On the other hand, perhaps you’re importing materials from Mexico in order to manufacture your products here in the US. No matter the situation, compared to shipping domestically, there are a lot more factors you’ll need to consider when arranging the transportation of your goods.

Shipping to and from Mexico

When you ship a truckload of freight within the United States, it’s a pretty simple process, even though it may not feel like it sometimes! In general, your freight is only loaded and unloaded once with the same truck driver and trailer bringing your goods from door to door and you don’t need to involve any third parties, besides the carrier or freight broker. However, when you’re shipping to and from Mexico, it’s a little different.

In its journey from country to country,  a different carrier will be delivering your freight than the original carrier who picked it up. Depending on whether you select “door-to-door” or “door-to-border” service, your freight may be loaded and unloaded multiple times onto different trailers. The services of a customs broker and freight forwarder will be required to assist with customs clearance. If you elect to use a third party-logistics company (3PL) for the arrangement of your shipments, many of these details can be taken care of for you, although you can choose to elect a customs broker or freight forwarder of your choosing if you’d prefer and if the freight is being delivered to you. The provider responsible for making these third-party arrangements depends on which direction you are shipping.

Shipping TO Mexico

To break it down a little more simply, here’s a run-down of the process when you’re shipping TO Mexico (exporting):

1.  A U.S. carrier will haul your freight to the border and deliver it to the designated freight forwarder that has been selected/hired by the Mexican consignee (the recipient of your goods.)
2. The freight forwarder receives your shipment, inspects the cargo, reviews all the documents, and prepares the shipment to make entry into Mexico on behalf of the Mexican customs broker who is servicing your shipment.
3. The Mexican customs broker will formally file the Mexican customs entry on behalf of the Mexican consignee.
4. Now it’s time for your freight to cross the border! A third party drayage company will haul your shipment over the border, through customs, and then deliver it to the selected Mexican carrier’s facility.
5. Finally, the Mexican carrier hauls your freight inland to its final destination in Mexico, the consignee.

Shipping FROM Mexico to the U.S.

Because it’s a little different going the other direction, here’s how it goes down when you’re shipping from Mexico to the U.S. (importing):

1. A Mexican carrier hauls your freight to the border city.
2. A Mexican customs broker formally files the Mexican customs export entry on behalf of the Mexican shipper so that the goods can legally leave the country.
3. Then, a licensed U.S. customs broker clears the shipment and files the U.S. customs entry so that the shipment may enter the U.S. on behalf of the U.S. importer of record (the consignee).
4. A third party drayage company will haul your shipment over the border, through U.S. customs, and deliver the shipment to the chosen U.S. carrier’s facility.
5. The U.S. carrier hauls the freight inland to the final destination.

INSURANCE LIABILITY

There’s one other important thing to note. The insurance liability for freight moving into Mexico is very different from the insurance liability in the U.S. All U.S. carriers offering door-to-door service have limited or no liability coverage for shipments once they cross the border into Mexico. It’s important to arrange additional cargo insurance for the Mexican portion of the journey, which you can usually arrange either through your logistics service provider or through the customs broker.

SHIPPING TO AND FROM MEXICO WITH TRINITY LOGISTICS

If you’ve never shipped to or from Mexico before, learning the process to do so can be a little confusing or overwhelming at times. However, through having offices in bordering cities, Team Members fluent in Spanish, and years of experience in shipping to and from Mexico , Trinity Logistics is your ideal partner to help you with this process and assist you with any of your Mexico shipping endeavors.

Shipping freight is often a large and crucial part of a company. To make a profit, you need to get your customers the right product at the right time, and for the best cost. If not managed properly, your transportation can cost you substantial money. With costs rising recently, it’s easy to see why the challenge for many companies has been to reduce their transportation costs. Are you taking the proper steps to do so?

WHY COSTS ARE RISING

Before we jump into how to reduce your transportation costs, it’s essential to understand what factors are causing them to rise. 

CUSTOMER EXPECTATIONS CONTINUE TO INCREASE

Consumers’ demand for faster delivery times is affecting everything from food and more. It’s forcing shippers to try to keep up to retain their customers. The so-called “Amazon effect” is alive and well as the world of e-commerce and faster shipping times grows. 

HIGHER DEMAND

As noted, e-commerce was growing steadily before, but the pandemic only accelerated it. Consumers are ordering and demanding more, delivered right to their doors. Demand is far exceeding supply, and this trend is expected to continue through the rest of 2021. 

TIGHTER CAPACITY

With such overwhelming demand, there are not enough drivers or labor to keep up. These shortages are impacting every mode of transportation, causing delays, and raising rates higher. 

RISING COSTS FOR DRIVERS

Drivers are also experiencing rising costs. Fuel prices have been increasing, and tolls have risen; truck costs and insurance prices have gone up. All these costs roll over to their trucking rates. 

STEPS TO REDUCE TRANSPORTATION COSTS

There are several ways to reduce transportation costs while also improving your logistics.

CUT YOUR MANUAL PROCESSES

Chances are, you’ve been doing things the same way for so long, you don’t even recognize there’s a better way to do them. We’ve all been there, and while change can be challenging, noticing you have room for improvement is the first step towards growth.

Automating your manual processes will help reduce your transportation costs. With automation, you’ll streamline your operations, allowing for better management while creating and improving your efficiencies. As a result, you’ll end up saving time and becoming available for your more important tasks.

USE ANALYTICS TO IMPROVE OPERATIONS

Reviewing historical records and analyzing trends can help uncover any slow processes and extra costs. For example, you may discover that one carrier consistently adds accessorial charges while another compatible carrier does not.

TRY DIFFERENT MODES OF TRANSPORTATION

Trying different modes of transportation could help you offset your costs. Shipping freight by sea could be less expensive than by air. Intermodal transportation is another option that you may not have considered. Shipping intermodal is usually less expensive than trucking. Even using a combination of the two could reduce your cost. Keep an eye on the transportation costs for different modes and don’t be afraid to make the switch. Being more flexible with your freight shipping could give you some financial benefits. 

SEE IF YOU CAN CONSOLIDATE

Are you making the most of every truck moving your freight? Your shipment planning team should analyze current and future orders to build your shipments in the most cost-effective manner possible. Less-than-truckload (LTL) shipments are cost-effective for smaller weights. Yet, consolidating your shipments into one full truckload could have you seeing savings. With consolidation, there will be fewer trips, meaning you’ll see lower rates on one bulk shipment versus many small ones. 

BID MORE OFTEN 

To offset tight capacity and rising shipping costs, shippers should go out to bid for new transportation contracts more than annually. This allows you to find the best rates and avoid potential disruptions from transportation shortages.

GAIN CONTROL OF YOUR VENDOR-ROUTED OR CUSTOMER-ROUTED SHIPMENTS 

Depending on your customer, sometimes you have your hands tied when it comes to logistics. For example, you may be required to use their specific providers as a condition of doing business with them. However, there are instances where you may be able to gain control of these opportunities for savings. Don’t you wonder about the potential for savings if you controlled this section of your business? 

By leveraging ALL of your volume, you could qualify for some decent savings with LTL and truckload providers. Additionally, you’ll gain control of your shipments, which equals control of the quality of the provider, saving you money by retaining happy returning customers. You can better measure service performance and rates to ensure your best interests are being cared for when the ball is in your court.

INCREASE VISIBILITY 

Without visibility, costs can begin to sneak in like stealth monsters that eat away at your bottom line. True visibility is using a best-in-class TMS that enables you to see all your transportation network. You can track and manage control over your products, see service disruptions or shipment delays in real-time, find optimized routes, and work with the best carriers. You’ll not only reduce your costs but increase your service levels and improve your relationships with all stakeholders. 

PREPARE AHEAD

The more time you have before your shipment gives you more options in carrier selections and the chance to find a decent rate. Or look into another mode, as mentioned earlier. It also gives your provider more time to prepare themselves and let you know of any upcoming circumstances that may increase your logistics costs, giving you more time to consider making any changes. It also helps you alleviate delays and missed deadlines. 

CONSIDER WAREHOUSING SERVICES

If you do a lot of shipping to and from the same lane, especially if it’s over a long distance, it may be a good idea to warehouse your goods closer to your customers so you can reduce those long-haul transportation costs. 

BECOME A SHIPPER OF CHOICE

It’s never a bad thing to be a shipper of choice. Carriers are in the position of choosing which shippers they want to work with. Those shippers who provide better experiences for them can not only reap the benefits of better rates but higher service levels and fewer claims. To become a shipper that carriers will want to work with, it’s important that you run efficient and friendly dock operations, reduce driver wait times, provide comfortable breakroom and restroom accommodations, and pay your carriers quickly. 

GET DATA-DRIVEN INSIGHTS

Data has quickly become one of the world’s most valuable resources. With a best-in-class TMS and proper reporting that you can analyze, you’ll be able to better manage disruptions, reduce downtimes, and effectively plan and budget your logistics spend. By using data analytics, you’ll be able to recognize which carriers are the most likely to have the capacity and ensure proper rates for shipments. 

CONSIDER OUTSOURCING

In business, any activity that isn’t directly tied to securing more business deflects attention away from your goal of making a profit. That means the hours you can spend sourcing transportation providers and managing your logistics are not considered a profitable way to spend your time. By outsourcing your logistics and partnering with a third-party logistics company (3PL), like Trinity Logistics, you gain back all those hours to focus on what you do best – make a profit! 

According to the 2020 Annual Third-party Logistics Study, 67 percent of shippers stated that using a 3PL contributed to reducing their overall logistics cost, while 83 percent said using a 3PL has improved their service. By utilizing Trinity Logistics, you won’t have to worry about any of the steps above because we’ll take care of them for you.

We’re listed as a Top 100 3PL by Inbound Logistics, and through our People-Centric service, we can help you find one or more customized solutions to meet your business needs. The first step to finding out exactly how we can help you reduce your transportation costs and improve your service is by having that initial conversation. 

Will you choose to take that step today? 

Updated September 16, 2021 by Christine Morris.

Staying up-to-speed in leading technology requires time and investments. With all the current and upcoming logistics technology, it can be confusing for shippers to identify what will have the best impact to stay competitive now and in the future. 

HOW LOGISTICS TECHNOLOGY CAN HELP

Businesses today have never been in so much need of change and upgrade with their technology. Their list of challenges to overcome is never-ending. They have retailers demanding more visibility. Then there’s the struggle of finding capacity, managing costs, meeting service requirements, creating a more resilient operation, and more.

There are several current and emerging technologies available to help to address many supply chain problems. There’s a lot to go through, so let’s dive in and see how logistics technology can help.

…WITH CAPACITY

The ability to match a carriers’ network to a shippers’ network is very important. At the end of the day, you still need to match a driver and truck with an available shipment. Available logistics technology can help make that happen, but there still needs to be more adoption of it for it to be more effective.

…..WITH RISK MANAGEMENT

One thing the pandemic taught us is the importance of risk management and resilience. Mitigating your risk comes down to using technology to make better decisions faster by using better data. You must use a network of data to measure yourself against the current market and your peers.

…WITH PRODUCTIVITY AND COST MANAGEMENT

Shippers have an ongoing need to improve productivity and cost management. Technology can help you create win-win opportunities to match loads to available capacity. Or get more committed capacity and good on-time service at a reasonable cost. Logistics technology can help you be more productive while better managing your costs.

…WITH CARRIER SELECTION

Carrier selection can be time-intensive. The process of calculating the best combination of rates and lanes for a particular shipment can be lengthy. Logistics technology automates the carrier selection process, reducing your time spent. It allows you to select the best carrier for every shipment in real-time based on the cost and service level. Technology also helps with carrier vetting through digital applications and API feeds. 

…WITH SHIPPING UPDATES IN REAL-TIME

Most customers and shippers now expect real-time tracking. Technology allows shipment data like tracking and more to your customer in real-time using methods like APIs or geofencing. The days of frustrating phone calls to chase down freight locations are now history.

…WITH IMPROVED ROUTING

Load planning and driver routing can impact your logistics costs. Companies that have complicated delivery patterns can’t really be sure their network is optimized no matter how much time and money they use to plan without technology. Technology can do in seconds what it would take a human hours to do and do it accurately every time. This comes as a major benefit when developing routes incorporates several factors, like rates, delivery windows, and more.

…WITH REDUCED PAPERWORK

Logistics has always handled a lot of paperwork and data. For shippers, it can be easy to become bogged down in all the manual processes that they are responsible for. Not to mention, a single error can cause problems up and down the supply chain. Technology allows you to cut down on errors and time, freeing you to concentrate on more productive tasks. It also allows for easier storage, giving quick access to anyone who needs it.

….WITH GREATER TRANSPARENCY

Thanks to technology, the supply chain is more transparent than ever. Your customer’s expectations and needs have increased to include transparency. Logistics technology enables your customers to receive instant answers to their queries and delivery status. This feature has gone from a nice extra into a necessity for you to stay competitive.

…WITH EFFICIENCY AND FASTER PROCESSES

Technology has led the way to supply chains becoming faster and more efficient. Through warehouse and transportation management systems, businesses can quickly pull data, track resources, and reduced stock with real-time reporting. Through full visibility across your supply chain, potential errors, risks, and opportunities are seen, allowing your business greater efficiency.

…WITH COMMUNICATION

Good communication creates improved business. Technology has made this possible by changing the supply chain for the better. The software enables teams to input data that is accessible for all stakeholders. Technology also allows better insight data, allowing your company to better forecast and communicate your requirements. An increase in your communication also allows for a stronger relationship between you and your stakeholders. 

…WITH HAPPIER CUSTOMERS

The ultimate consequence of the benefits outlined above is happier customers. More efficient logistics operations mean that your freight gets out of the warehouse and to your customer faster. Through centralized storage plus real-time tracking removes any uncertainty for your customers. Technology increases transparency and communication between all stakeholders. 

TECHNOLOGY TRENDS TO WATCH

The logistics industry has perhaps the most to gain from new technologies. In recent years, we’ve seen a massive advancement in areas like artificial and augmented intelligence, advanced analytics, and automation. These advancements also bring new expectations, forcing companies to adapt or fall behind. There’s also more pressure coming from customers demanding their products come faster and cheaper than before. 

Here are the top logistics technology trends your company should be keeping an eye on and consider implementing.

ARTIFICIAL AND AUGMENTED INTELLIGENCE

The logistics industry has started using artificial intelligence in their transportation and more. AI has been making a huge difference in logistics through applications like warehouse automation and predictive optimization. According to research, using AI in logistics can increase companies’ gain by more than 50 percent a year. 

There’s also augmented intelligence. Augmented intelligence combines human intelligence with AI automated processes. According to Gartner, augmented intelligence is its way to create $2.9 trillion of business value. This would lead to an increase of $6.2 billion hours of worker productivity globally by the end of this year. Augmented intelligence is expected to be used more to allow businesses to do their jobs quicker while reducing mistakes and allowing for cost savings. 

DIGITAL TWINS

Digital twins may be one of the most exciting logistics technology trends to keep an eye on. As many know, products are never the same as their models. Modeling currently doesn’t consider how parts wear out and need replacing, how fatigue accumulates, or how owners make changes to suit their needs. Digital Twins technology changes this once and for all. 

Digital Twins allows you to engage with the digital model of a physical object like we would with their physical counterparts. The potential uses for this in logistics are vast. Digital Twins could collect product and packaging data to identify potential weaknesses and recurring trends to improve future operations in shipments. Warehouses could use it to create accurate 3D models of their centers, experimenting with the layout or the introduction of new equipment to the impact with no risk. Logistics hubs can create Digital Twins and use those to test out different scenarios to increase efficiency. 

REAL-TIME SUPPLY CHAIN VISIBILITY

Supply chain visibility is no longer an extra benefit for companies to have. It’s now needed and is taking another step forward – becoming real-time. 

Real-time data is more in demand by customers and carriers than ever. New startups are creating technology that promotes a quick response to change by allowing companies to use real-time data. This data can include things like traffic patterns, weather, or road and port conditions. Companies that make use of an integrated supply chain are reporting to be 20 percent more efficient than those without.

IOT SENSOR TECHNOLOGY

You can’t mention visibility without bringing up the Internet of Things (IoT) Sensor technology. By using connected IoT devices on parcels, it allows warehouses to track inventory or shipped freight. Container management that’s powered by IoT can be made easier with real-time monitoring. You’ll see increased fuel efficiency, preventative maintenance, and container operations more proactive versus reactive.

BLOCKCHAIN

Blockchain is an open ledger of transactions distributed among computers in each network. Since everyone has access to the shared blockchain, there is complete transparency. This also makes it impossible for users to hack into. It also makes it easier for different carriers or shippers to share data. Before a company can completely adopt blockchain, there are a few steps required. First, companies need to digitize, standardize, and cleanse their data. Then companies must form an ecosystem of partners to operate in a shared, permissionless blockchain environment.

Blockchain has grown to be a big buzzword as one of the most overhyped logistics technology trends. That’s because it depends on its market development and on the partners using it. Blockchain’s concept has also been difficult for the public to grasp. Despite its strong potential both in and outside of logistics, there’s been a lack of real development. 

Yet, there are some pilot projects and small-scale operations in effect to keep watch of. UPS and Warren Buffet’s BNSF Railway recently joined the Blockchain in Transport Alliance. 

DATA STANDARDS AND ADVANCED ANALYTICS

Data in logistics has always been isolated. Companies store their data in whatever way they deem fit. This leads to a fragmented system, allowing inefficiency, and making it difficult to digitize operations. 

One of the biggest logistics technology trends points out that isolated data will not be an option if you want to keep up with changing times. The Digital Container Shipping Association (DCSA), created in 2019 recently set new data standards in container shipping. Their mission is to create common information technology standards for digitalization and interoperability to make the shipping sector more efficient for both customers and shipping lines. 

Other logistics fields still have work to do to solve data inconsistencies. There are many young startups focused on creating predictive and advanced analytics platforms as a solution. When data becomes standardized and digitized across the industry, all companies will benefit. Logistics data is essential for planning future deliveries and understanding what goods the market needs. 

GROWING NEWCOMERS

New technology isn’t the only one shaping the future of logistics. There are also new business models and industry players. Without a need for a rich asset background, these startups tend to focus on the asset-light parts of the supply chain. Since they have more flexibility, they can offer quicker pricing and quotes. 

An example of this is Uber which launched Uber Freight in the U.S. in 2017, now expanding into Europe and Canada. There’s also Amazon expanding its expertise in warehousing and transportation. They’ve already made plenty of headway with Prime Air, the electric drone service it’s building, to fly up to 15 miles and deliver packages under five pounds, to customers in less than 30 minutes. It’s also recently reported that the company has been importing new Amazon-branded intermodal containers. 

SUSTAINABILITY POWERED BY TECHNOLOGY

Sustainability is a trend across all industries. More people are choosing companies that have an eco-friendly reputation. Companies are investing more in reducing emissions. As a result, ecological technology is beginning to influence logistics. For example, last-mile delivery is very time and energy-consuming. It presents many opportunities for a fresh approach. To lessen its environmental impact, companies leverage technologies like electric vehicles or AI-based software to calculate a route with low emissions.

AUTONOMOUS VEHICLES

Autonomous vehicles are still in the early stages. Even so, it’s a huge, discussed technology. A few short years ago, they were more unreal, but many companies are investing in them. Self-driving trucks could be efficient in operating busy roads to predict and analyze traffic. They could also help ease some of the driver shortage and capacity.

WAREHOUSE ROBOTICS

Warehouse operations have undergone a significant shift recently.

Technology has been progressively integrated and the trend looks to continue. According to the Global Customer Report of 2019, there has been an 18 percent YOY increase in the testing of warehouse robotics. Robotic technology comes in various forms, like wearable technology, driverless vehicles, or multifunctional robots. No matter the form, it can improve the efficiency and speed of warehouse processes. Industry trends focus on the automatization of manual work. The goal is to make routine work cheaper and more comfortable for their business. It’s also used to improve monitoring, receiving, and dispatching products in the warehouse.

CURRENT TECHNOLOGIES YOU SHOULD LOOK INTO

TRANSPORTATION MANAGEMENT SYSTEMS (TMS)

A cloud-based TMS provides you with real-time visibility of your transportation, data insights, dashboards, reporting, and analytics. TMS technology may not be new, but its technology that continues to improve and offer a lot of insight into your logistics. Through real-time data insights, TMS technology can help you reduce risks and spot opportunities for cost savings through efficiencies. In an ARC survey, respondents indicated freight savings of 8 percent through the adoption of a TMS.

ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING

Artificial Intelligence (AI) and Machine Learning (ML) support inventory, demand forecasting, scheduling, and predictive analytics. Tasks that could take people days or weeks are reduced to minutes. Through automation, you can save time and increase efficiencies in your supply chain. The level of automation can be semi-automated, completely automated, or a mix of both. 

SHIPMENT TRACKING SYSTEMS

Years ago, customers would book shipments, receive an estimated delivery date, and then be left waiting. Now software allows customers to access tracking on their shipment 24/7. User experience is enhanced, and time and money are saved. Here at Trinity, we currently use FourKites, MacroPoint, and Trucker Tools for our shipment tracking. 

INTERET OF THINGS (IoT) AND RADIO FREQUENCY IDENTIFICATION (RFID)

Many devices made have built-in WIFI capabilities or sensors. The easy access to WIFI and the internet connects everyone to everything, which is why it’s called the Internet of Things. The adoption of IoT is on the rise. It opens many opportunities in the supply chain, like reducing costs and delays. Sensors can be placed into trucks, cargo ships, trains, on parcels, or more. They can also connect to an alarm system or have a dispatcher that monitors and tracks. One example would be temperature monitoring for temperature-controlled products. IoT isn’t new technology, but it continues to impact and grow in logistics. 

RFID technology is a popular way a company can track inventory. A tag or sensor gets placed on a product, and radio waves are sent out. Data then gets received and processed by the company. RFID tags are like barcodes, but the superior speed of delivered information and data processing is more appealing. 

AUTONOMOUS TRUCKS AND DRONES

Autonomous cars are already a reality with trucks not too far behind. Companies like Embark and Uber have already used autonomous trucks, and Tesla will be releasing their electric truck soon. Even though the trucks are not completely driverless yet, it’s a huge step in this breakthrough technology. As mentioned prior, Amazon will be using electric drones soon through Amazon Prime Air. The drone deliveries are still a few years out, but the idea of an even quicker delivery is appealing.

FIND TECHNOLOGY THAT WORKS FOR YOU

With so much available and upcoming in logistics technology, shippers should partner with experts who can offer customized solutions. Be sure their technology is not only flexible but that they stay on top of technology trends. Adopting technology in your business can provide you with more visibility, connectivity, advanced analytics, and more. Technology can help you enable better collaboration with your stakeholders and offer greater efficiency across your entire supply chain. 

Here at Trinity, we understand technology can make or break your supply chain. This is why we continue to stay ahead of cutting-edge tech and make sure to have the best technology applications available to you. Additionally, by working with Trinity, you’ll not only have the data and applications you need but the experienced tech and logistics professionals ready to serve you.

To find out more about what best-in-class technology applications you gain with Trinity, 

To learn more about Trinity’s TMS and Managed Services through a free supply chain analysis, request a consultation. 

Author: Christine Morris