I’m sure you’ve heard the term TMS before in logistics, but what does it stand for? The term TMS is short for Transportation Management System. The reason you’ve probably heard that term TMS is that it is the most common and effective way for shippers to manage their logistics in one place. This technology allows companies to manage their transportation in one place. Transportation Management software offers you a way to view insightful data, gain visibility, and better manage all the moving parts in the shipping process. While a TMS might seem daunting and expensive, it’s become an essential tool for businesses to be successful.
Who uses Transportation Management Software?
If you have a business in which you regularly need to ship, move, and receive goods on a regular basis then a TMS is a technology you should consider. Many companies use a TMS, such as manufacturers, distributors, e-commerce companies, retail businesses, and companies that provide logistics services (like us). A TMS is best suited for companies that spend more than $1 million in freight, use an array of transportation modes, have several locations, get a majority of your freight via the spot market, or manage most of your data through Excel spreadsheets.
Why You Need Transportation Management Software
Transportation management affects every part of your logistics process, from planning to procurement and more. It’s a large piece of the logistics puzzle. If you’re not using a TMS, what are those processes? Are you using programs like Excel and Outlook to manage your shipments? How do you gather and view data? How much visibility do you have into your logistics? Simply put, a TMS makes your transportation easier on you, enabling you to serve your customers better. To give you a better idea of how it helps, let’s look at the benefits.
What are the Benefits of Transportation Management Software?
There are so many benefits to using a TMS. Through a TMS, you can automate and optimize your processes, gain visibility into your logistics, and view valuable data.
Automation
A TMS allows your company to eliminate your manual transportation processes. A TMS offers you automation with your load planning and execution through its advanced algorithms. With this, it can optimize each shipment, allows freight tracking by using real-time updates, payment processes are simplifying and streamlining invoices are audited, and develops reports through its in-depth data collecting.
Optimization
A TMS is a perfect resource if you’re looking for your logistics to be more efficient and optimized. For one example, a TMS can analyze many batch shipments based on various sophisticated parameters and can determine the most cost-effective route plan for your shipment. A TMS can make recommendations for you on different factors like least-cost mode analysis, freight consolidation options, and continuous move opportunities. It can also account for many other factors, including your due dates, mileage, vehicle weight, stops during transit, and out-of-route parameters. The optimization engine of the TMS allows for dynamic, static, and closed-loop routing.
Visibility
Real-time visibility of your logistics data and activity are the primary value drivers for companies implementing a TMS. A TMS can help you view data from internal systems, vendor systems, and get data that may not have been accessible before. Along with collecting data, visibility from a TMS allows your stakeholders access to update their part of a shipment and receive their own real-time. A TMS will essentially act as a virtual control tower for all your logistics updates and communications. Visibility has gone from being an optional benefit to a necessary one in logistics. Using a TMS can change visibility from being a challenge to a strength for your business.
Reporting
The reporting offered by a TMS is another huge value to companies. Access to data is becoming more of a necessity for supply chains, but it can be hard to gather it all. Most of the time it’s spread out among various platforms – e-mails, portals, and laptops. A TMS makes it easier for you to compile and view your data through reporting. A TMS has multiple options and breakdowns to give you the best analysis of your data. TMS reporting can provide you with insight into your freight volumes, lane analysis, freight spend, RFP analysis, and so many more. You can dive deep into your data, breaking it down further by load route, price, and even state-by-state to see your load count and total spend as well. A TMS can also give you monthly metric reports, world reports, and various graphs and breakdowns to help you interpret your data for better performance.
What Does Trinity Logistics Offer in Transportation Management Software?
There are many different routes you can take in acquiring transportation management software. Simply put, you can choose to purchase transportation management software directly through a vendor or work with a logistics provider, such as Trinity, that offers it as a cloud-based service.
A Trinity, we understand everyone’s needs are different, which is why we offer a highly configurable system. We offer you three main options to start with: software as a service (Saas), a managed TMS, or an integrated outsource TMS. If none of those options quite fit what you need, we can further customize your solution so you get exactly what you’re looking for.
No matter your specific needs, you’ll gain access to our best-in-class technology backed by superusers with logistics expertise. Through our People-Centric service, you’ll gain valuable insight and support in your logistics management.
Looking to learn more about what TMS solutions Trinity can offer you?
Get a free supply chain analysis to see what you need.Looking FOR TRANSPORTATION TECHNOLOGY BUT NOT A FULL TMS?
We understand committing to a TMS is a big change, especially if you have no experience with one. That’s why we now offer you our Customer Portal, exclusively available for shippers working with Trinity. There’s no commitment or additional charges and you’ll get to experience a sample of our transportation technology. Track your shipments, request quotes, view and pay your invoices online – all in one place.
Start shipping with us today to gain access.Wait, I Still Need More Information on Transportation Management Software..
We have plenty more educational resources for you to learn about a TMS.
Download our Guide on Transportation Management Systems. Check out Albaugh's Case Study to see how a TMS helped their company.Author: Turner Lee
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!
I’m ready to eliminate manual processes with a TMS.Author: 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,
Click HereTo learn more about Trinity’s TMS and Managed Services through a free supply chain analysis, request a consultation.
Request A ConsultationAuthor: Christine Morris
What do semiconductors, plastics, furniture, chlorine, and more all have in common lately? They are near impossible to find. As disruption after disruption has interrupted supply chains, shortages are now messing with shipping and demand. Specifically, raw material and product shortages are affecting the chemical industry. With many other industries relying on the chemical industry, this is becoming a significant challenge to overcome.
MATERIAL AND PRODUCT SHORTAGES
Shortages in the chemical industry have worsened over the last quarter. According to a June survey of 84 National Association of Chemical Distributors, nearly 85 percent of distributors report at least one imported item as out-of-stock. This is a huge jump compared to only 47 percent found in March. Inventories in the chemical industry have begun increasing, but they have yet to reach their pre-pandemic levels. These shortages are not only hurting the chemical industries but the many industries that rely on them. One example is the shortage of citric acid, as it’s often used in vitamin or electrolyte drinks, even in soda. These material shortages mean tight supplies, high prices, and continued delivery delays.
Some recent materials and products that currently face shortages in relation to the chemical sector:
Semiconductors
Many manufacturers worldwide are having trouble securing supplies of semiconductors, delaying the production and delivery of goods, and increasing prices. Several factors are driving the crunch, which first affected the auto industry. The shortage is going from bad to worse, spreading from cars to consumer electronics. With the bulk of chip production concentrated in a handful of suppliers, analysts warn that the crunch is likely to last through the rest of 2021. Materials most vulnerable in semiconductor production include wet chemicals, solvents, photoresists, gases, and substrates. Several semiconductor process materials in the petroleum supply chain are also running short. Those materials include acetone, PGMEA, NMP, and IPA, and a few of several solvents.
Plastics
Yet another shortage complicating business is plastics. Food packaging, automotive components, clothing, medical and lab equipment, and countless other items rely on them. Since March 2020, a perfect storm of events has been putting severe strains on the supply of plastic raw materials, base plastics, and compounded plastics. This shortage has hit plastic product manufacturers very hard.
The demand for plastics continues to surge, especially for food packaging and automobile components plastics production. Plastics required by high purity chemical providers for packaging and wet processing equipment are experiencing raw material price increases due to availability issues.
Plastics make every kind of product imaginable — from food packaging, appliances, smartphones, and car parts to exercise equipment and roller skates. So with the ongoing surging demand for goods, it’s easy to see why these shortages are a big deal.
Chlorine
The swimming pool boom from the pandemic created a higher chlorine demand, thus contributing to a shortage. There was also a manufacturing lab fire in August of 2020 in Louisiana that only further aided the shortage.
Some pool supply stores have imposed quantity restrictions. In certain regions, prices for chlorine tablets have doubled from last year. The chlorine shortage is widespread, and it will likely worsen as homeowners use their swimming pools for the season.
Gas, Oil, Fuel
It’s not quite that there’s a huge shortage of crude oil or gasoline. Instead, it’s a shortage of tanker truck drivers who deliver it. According to the National Tank Truck Carriers, 20 to 25 percent of tank trucks in the fleet are parked due to the shortage of qualified drivers. The driver shortage has been an issue for a while, but the pandemic multiplied it.
Gas prices, which typically rise at the start of the summer as seasonal regulations take effect — requiring the more expensive “summer blend” of gasoline needed to combat smog — are also rising. The national average has surpassed $3 a gallon this summer and could get even higher if any hurricanes hit the Gulf Coast or if there are any other disruptions to supply, such as a refinery fire.
Other Raw Materials
As countries work to switch over to green energy, the demand for copper, lithium, nickel, cobalt, and other rare earth elements is soaring. And these raw materials are vulnerable to price volatility and shortages as limited access to known mineral deposits is another risk factor. Only three countries together control more than 75 percent of the global output of lithium, cobalt, and rare earth elements – the Democratic Republic of Congo, China, and Australia. Constraints on the supplies of their raw materials — especially polyethylene (PE), polypropylene (PP), and monoethylene (MEG) — are leading to factory shutdowns, sharp price increases, and production delays.
SHORTER SUPPLY + HIGHER DEMAND = HIGHER COSTS
Consumer spending rapidly grew because of the pandemic. Remote working and schooling created an increased demand for electronics. Higher demand came for food packaging and healthcare markets. Automotive production rebounded and surged beginning in the third quarter of 2020. All these and more are impacting the chemical industry.
These disruptions have undoubtedly led to rising prices. Echemi reported in late March that more than 20 chemical companies including BASF, DuPont, Dow, DSM, and LANXESS, have raised prices. These price hikes are largely due to difficulty in getting raw materials used to make products. And there’s less supply than there was a couple of months ago. As demand is rising relative to production, prices have increased for chemicals, like polypropylene, acetone, and other solvents.
…AND LOGISTICS DELAYS
Not only have shortages worsened since March, so have delays. NACD’s survey found that 82 percent of respondents are dealing with an average uptick in travel time for their shipment of 11 days or more. And these issues extend throughout the supply chain.
Containers and boats to ship products from overseas are in short supply. Products could be sitting in a factory overseas for months because they can’t get loaded onto a ship. Then you have the ports struggling with delays. Currently, you can look at live video outside of Los Angeles and you’ll see up to 30 boats driving around waiting to get an appointment because there are so many ships coming in. Ships are waiting longer to get in and once they do get in, there is a shortage of drayage drivers that only adds to the congestion.
A lack of truck drivers and warehouse workers has contributed to the delays as well. The driver shortage was an issue before COVID, but the recent labor shortage in warehouse workers has created a larger problem. Say you do have a truck available. But if you don’t have somebody in the warehouse to pull the goods out of the racks and load them on the truck, then that’s another issue causing delays.
Supply chain issues continue to hamper the whole of manufacturing. It’s hard to look at the global supply chain and not think, “everything that can go wrong has.” The impact of these issues continues to impact many industries downstream. On raw materials such as chemicals and plastics, inventories are unlikely to be rebuilt amid continuing strong demand. There’s simply not going to be a quick return of inventories.
WHAT YOU CAN DO DURING THESE TOUGH TIMES
Begin building a more resilient supply chain
Consider moving manufacturing operations closer to home. This can help reduce your transportation times from future delays or disruptions. Make plans now to be prepared for all potential disruptions. Disruptions to the supply chain are not new, but this current phase of repeat instances has been rougher than most.
Gain access to technology
Integrating technology into your supply chain has now become a necessity. Implementing technology like a transportation management system (TMS) will help all stakeholders maintain real-time communication and visibility. A TMS can help you optimize your routes and work with the best carriers, increasing your service levels and reducing any delays. It can provide you with data-driven insight so you can better manage current and future disruptions. And by using data analytics, you can recognize which carriers most likely have available capacity, reducing your time spent on transportation coverage. Gain insight into what’s happening across all markets, ensure proper rates for shipments, and keep more control over your budget and logistics costs with TMS technology.
Work with experts that keep a pulse on the market
An expert can help you pick up on early warning signs and help you prepare for potential constraints. They can also offer you alternative solutions when needed.
Here at Trinity, we are a Team of experts. We do more than arranging your freight. When working with Trinity, we become logistics partners in your business and aim to help you with your growth. We can help you streamline your logistics procedures and give you insight into the freight market. We keep a close eye on it and keep you educated to help you plan and forecast.
We also work very hard to follow through on what we say we are going to do. When issues arise, we work until they are resolved, keeping communication every step of the way. We have over 40 years of experience in logistics and industry challenges in supply chains is our day-to-day.
Industry experts and forecasters are saying this tough market is far from over. It may even look to extend into 2022. So don’t hesitate in asking for help. We’re here and ready to provide you with our People-Centric approach for you during this historical time in logistics.
REQUEST A QUOTEAuthor: Jennifer Braun
If you work in logistics, you’ve likely heard the term TMS before. TMS is the acronym of a transportation management system. A TMS is a software program that allows you to manage your entire supply chain, including your internal logistics department, suppliers, warehouses, carriers, vendors, etc. Having a TMS for your supply chain can help provide your company with greater visibility, better reporting, and improved performance through automating many manual processes. Many companies use a TMS for their logistics management, like e-commerce companies, retail businesses, manufacturers, distributors, even logistics service providers such as 3PLs (like us!). If you’re reading this article, more than likely you’re interested in a TMS but are hesitant. Let’s talk through some of those hesitancies and see if we can help resolve them.
TMS HESITANCY 1: I WANT TO KEEP CONTROL. I FEAR OF LOSING MY ROLE IN LOGISTICS MANAGEMENT.
Most fear losing control of their logistics operations or that it won’t be done correctly. However, a best-in-class TMS allows you to decide the amount of control you would like to have. You can opt for a TMS that integrates with your current system, using your own carriers and rates. Or if you want to be more “hands-off” you can outsource your TMS with a 3PL that provides software, account management, and use of their carrier relationships and rates. If you’re in between, you can have help with account management but still be involved and a mix of your own carriers and rates and your 3PL’s carriers.
Even with all those options, no matter your role in logistics management, a TMS isn’t going to do it all for you. Instead, technology like a TMS simply helps you do your job more efficiently by automating those very manual and time-consuming tasks that we do every day!
TMS HESITANCY 2: IT COSTS TOO MUCH
This is often a misconception. With software as a service (Saas) and a cloud-based or web-based TMS, sometimes there are no costly up-front investments. It also means you won’t have to worry about having software installed on company servers and continuously managing updates.
It really depends on your logistics needs and the solutions your provider can offer you. At Trinity, we offer technology solutions for companies of all sizes and with different levels of services. A TMS can often end up saving you money in the long term by helping you better manage your freight spend and performance.
TMS HESITANCY 3: MY BUSINESS IS TOO SMALL. WE DON’T WANT TO MAKE ANY CHANGES.
No business is too small! And even if you don’t want anything to change in your process, change is inevitable as it will happen in your industry and business. Will your business be ready for when that happens?
It’s vital to adopt technology, like a TMS, into your business before you grow too fast rather than waiting until while you are growing quickly. What you have in place may work for now, but when your business really starts growing, the cost and time to manage your workload will be growing too. Can your process handle that?
We all know change can come quickly and unexpectedly, causing disruptions in our processes.
A TMS can help you be better prepared and ready for any changes.
TMS HESITANCY 4: IT’S TOO COMPLICATED TO USE. WE TRIED IT BEFORE AND NO ONE WOULD USE IT.
Some TMS’s can be difficult to navigate and if there’s not a lot of support, you may abandon it. But a best-in-class TMS should be user-friendly and configurable to the needs of each individual user. You should also have access to a support system that can help you when needed.
There’s a big difference between purchasing software to use from a company and working with a 3PL that offers it as a solution. Considering a 3PL often uses their own TMS, they’ll know how to use it and help you. Quality TMS providers will work with you to make sure the TMS meshes well with your other systems.
ARE YOU EXPERIENCING ANY OF THESE CHALLENGES?
Struggling With Keeping Your Quotes Organized
If you work with several different shipments, it can be time-consuming and overwhelming to be on the phone or going from website to website asking for rates from carriers in your network. Contacting all those carriers for your different shipments and keeping track of those quotes can take you away from the other important aspects of your business.
Managing and Selecting the Best Carriers
We know that not all shipment is the same. Some shipments need temperature control, require special delivery services, or need to be handled with extreme care. Because of that, not all shipments are handled by the same carrier. There are carriers best suited to handle all your shipment needs. However, managing them all can be difficult.
Keeping Track of Your Shipments
As mentioned above, most often all your freight is not hauled by the same carrier. It can be common for several different shipments to be in transit aboard different company trucks all over the country/world. Because of this, freight tracking can be challenging. Without a TMS, there will have to be someone entering shipment numbers into forms on several different carrier sites.
Not Getting Insight into Your Logistics
Without proper reporting from a TMS, it can be hard to gather data to determine which carrier was the cheapest throughout this past year. Or analyze which carrier had the best performance. Or find out what your freight costs were on certain lanes.
Not all TMS’s may generate the reporting you need, but a best-in-class TMS can off you advanced reporting to go into specific logistics metrics. Without TMS technology to offer you data-driven insight into your business, can you really know how you are doing year after year?
STILL NOT READY TO COMMIT TO A TMS?
Say Hello to Trinity’s Customer Portal
We understand. Committing to a TMS can be a big change. We listened and heard you.
That’s why we now offer our Customer Portal for shippers working with Trinity. There’s no commitment, no additional charges, with a sample of TMS technology right at your fingertips.
Track your shipments, request quotes, view and pay invoices, or view and duplicate historical quotes. See how easy it is.
Start shipping with us today to gain access.
REQUEST A QUOTE I ALREADY SHIP WITH TRINITY, SIGN ME UPLOOKING FOR MORE?
Trinity’s Managed Transportation
We’re here and ready to help you with your logistics management. Our combination of experienced account management and best-in-class TMS technology offers you a customized solution to help achieve your unique supply chain goals. Through Trinity’s Managed Transportation, there’s no need to worry about an out-of-the-box solution that doesn’t fully meet your needs.
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 unique to your business, not the other way around. You’ll gain control, visibility, improved performance, reduce costs, and eliminate manual, time-consuming processes.
So, what do you have to lose?
GET MY FREE SUPPLY CHAIN ANALYSISLooking to learn more about Trinity’s unique TMS solutions? Schedule a risk-free live demo with Ryan O’Halloran to learn more about our customizable solutions.
SCHEDULE A RISK-FREE LIVE DEMOAUTHOR: CHRISTINE MORRIS
When was the last time you reviewed your logistics network and technology? If it’s been more than six months, then you’ve stumbled upon the right article. Now, you might be thinking, “I don’t feel like our process is necessarily broken. Is it really worth trying to fix it? Do I really need a transportation management system?” Yet, what if you could strategically reduce your overall spend while transforming your team from being reactive and task-oriented to proactive and customer-oriented. What kind of impact would that have on your company’s bottom line?
If your business;
- has a freight spend of $1M or more,
- utilizes a mix of transportation modes,
- has multiple locations that utilize their own mix of broker and asset providers,
- procures a majority of freight via the spot market, or
- manages most of your data via Excel spreadsheets;
Then keep reading as we’re going to take a look at some common areas of improvement you could see with a Managed Transportation approach.
You’ll learn how Trinity’s unique solutions focus on finding the right mix of people, process, and technology. Through this, we can help leverage your supply chain into a competitive advantage for your organization.
Let’s dive in.
PAIN POINT 1: LACK OF EFFICIENCY
Lack of efficiency in your business is a direct result of a decentralized and very manual approach. Programs like Outlook and Excel were just never intended to handle a freight spend of $1M or more. If your freight spend is $1M or more, you’re probably working with a couple of hundred orders a month, with who knows how many stakeholders to help micromanage quotes, tenders, tracking, and tracing of shipments.
How much time is being wasted across your organization with overwhelming manual processes?
Does this process save you any money when it comes to freight spend?
Do you know if you are utilizing the right carriers?
Would contract pricing cost you less than the spot market in the long run?
The bottom line is this is a reactive strategy focused on individuals’ tasks. To optimize your team and freight, you need a major shift towards being more proactive and customer-focused. This is where Trinity’s technology can help you. All of our Managed Transportation features a cloud-based TMS platform that creates a centralized freight command center, replacing your redundant manual processes with automation. Our TMS helps you manage the entire life cycle of an order and we can even integrate with your order management system to truly optimize your workflow. This means no more phone calls, typing out shipment details, or wondering where your freight is or when it’s going to deliver. Technology is one of the critical aspects of our solutions here at Trinity and also a major catalyst to transforming your supply chain.
PAIN POINT 2: PERFORMANCE
Efficiency isn’t just about getting faster; it’s about getting better. Finding and creating better team performance, better carrier performance, and ultimately improving your bottom-line company performance. So, is there room for improvement in these areas for you? Are your current strategies effective? Can they be measured? You may have answers to these questions that vary from location to location. You’ll usually find some of your distribution centers are better at procuring freight than others.
While a siloed strategy may have made sense for you at one point, companies grow and change. Considering change is a constant, a more wholistic approach will typically yield a better overall cost and carrier performance for you. This is what we consider to be the process part of our solutions. Data is a key driver for the strategy on this one.
On the surface level, it will appear that you simply are spreading your freight too thin across too many carriers or brokers. At Trinity, our Team of Logistics Consultants can quickly diagnose if you are leveraging your overall volumes to the best of your ability. Through strategic sourcing and customer-specific pricing, you can yield savings of six to ten percent, sometimes even more. It can also have a significant effect on improving on-time performance. Best of all, with Trinity’s Managed Transportation, you’ll always be able to track these metrics. You’ll be able to know exactly how your teams compare to the market and are able to adapt quickly when things change.
PAINT POINT 3: VISIBILITY
It’s hard to overstate the importance of real-time visibility in today’s supply chain. When a customer or sales rep asks for a delivery ETA or if the warehouse needs to know what trucks are scheduled to come in; that can all fall back on your outdated and manual processes. Things like picking up the phone, back and forth emails, creating and sharing spreadsheets, that’s just your day-to-day visibility. What about those overall performance metrics and being able to measure your team or your carriers? Unfortunately for many shippers, there can be too many roadblocks for effective communication and a lack of overall supply chain awareness.
However, with the right strategy and technology, visibility can shift from a challenge to a strength. Having access to a TMS takes over a lot of the heavy lifting for you, acting as a virtual control tower for all logistics updates and communication. With Trinity’s solutions, we included unlimited users who can access updates and data 24/7 via the cloud. We can even create push notifications where your team, your warehouse, and your customers can receive updates for their specific tasks automatically. For most shippers, real-time visibility has fully transitioned from an optional benefit to a business necessity – which is why Trinity brings all of this valuable information right to your fingertips.
PAIN POINT 4: BUSINESS INTELLIGENCE
Data has quickly become one of the world’s most valuable resources. In order to make effective decisions, proper data and analysis are needed, especially for logistics strategy or more enterprise-level decisions that reach far beyond the supply chain.
Now let’s say you do have access to good, tangible data. Even still, most likely your data is spread out among various laptops, email accounts, and carrier portals. Trying to compile complete and accurate information is difficult in itself this way, but the greater challenge is what can you do with this data?
That’s where working with Trinity comes in hand. We help compile and present a key analysis in a way that is easy for you to understand and collaborate on action steps for your company’s continuous improvement. Our customers are able to successfully leverage their data to lower costs, improve performance, and drive their company forward. There are many types of helpful reports you can expect to see such as carrier scorecards, customer profitability reports, to network analysis, and distribution projects.
From Surviving to Thriving
Whether or not your challenges have already been identified, through a Managed Transportation Discovery Call with our people-centric approach, you can learn how to take your business from surviving to thriving. Your consultation is free and the only thing you have to learn is how your business can operate more efficiently and strategically.
What do you have to lose?
Intrigued?
Request a consultationNot quite ready for a consultation but still interested in learning more about Trinity’s TMS? Register for a brief presentation specifically focused on our TMS.
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Chemical manufacturers collect and use a lot of data in their supply chain. They deal with data on their products, customers, transportation, storage, operations and more. Acquiring that data is not hard but managing and utilizing that information to be able to analyze your business is the challenge. Taking advantage of a Managed Services solution can assist in better managing and using your data in your chemical supply chain.
Managed Services
Managed Services is when you outsource your freight and logistics processes to a third-party logistics (3PL) provider, such as Trinity Logistics. You can find ways to manage your data in one place using a 3PL’s Transportation Management System (TMS). By better managing, using, and analyzing your data, an organization can reduce costs, improve margins, generate revenue, and make smarter business decisions. How does a TMS offer you all this?
Supply Chain Visibility
A TMS can provide visibility into your supply chain data in many ways. Best-in-class TMS’s, such as Trinity Logistics’, can provide better insight into your logistics processes.
Executives can combine this improved visibility with robust reporting to help guide their decision making. You can also provide system access to your outside supply chain members such as suppliers, carriers, and vendors. Each partner can better plan for their part, having the potential to reduce expensive production costs, limit excessive accessorial charges, and improve customer service.
Freight spend visibility has many benefits within itself. By analyzing freight spend by lane, companies can learn which of their lanes are not profitable based on transportation costs. Identifying company-wide shipment volumes and rates can provide you leverage when negotiating your carrier contracts.
Reporting & Analyzing
Not all TMS’s can generate the reporting you may need. Most generate basic reports that summarize your transportation information. Examples of basic reports include freight spend totals, shipment statuses, and shipment volume reports. But a best-in-class TMS can generate advanced reports that go into specific logistics metrics. Advanced reports can include accountability, analyzed freight spend, lane analysis, and carrier performance to name a few. The reports are dynamic, and you can filter, summarize, or graph information based on what you want to see.
The above-mentioned offers:
Accountability Reports
Accountability reports offer companies the opportunity to hold core members of their supply chain accountable for controlling costs. For example, with carriers you can view costs of carriers used, late fees accrued, any unnecessary detention charges and more.
Analyzed Freight Spend Reports
Analyzed freight spend reports allow a company to track their freight spend based on parameters. Having the ability to track it in this way ensures that potential causes of lost profits are identified and addressed right away.
Lane Analysis Reports
Analyze changes in rates by lane and predict trends in your freight costs with a lane analysis report. You can prepare for changes up front or try to prevent them altogether through carrier rate negotiations.
Carrier Performance Reports
Carrier performance reports can help you identify which carriers are best meeting your transportation needs.
Reports are an important tool to use to find areas of successes and setbacks. Once identified, companies can take advantage of this information by adjusting their practices. They can find ways to create more successes and overcome shown setbacks. Yet, most companies don’t have the technology needed to analyze their processes in such a manner. Money is often wasted on unknown and unnecessary expenses.
Quarterly Business Reviews
When choosing to work with Trinity’s Managed Services team, you gain a relationship with a specialist. Our Team analyzes, produces, and presents Quarterly Business Reviews (QBR), making it easier for you to digest your data. We help you understand what is working, what is not, and what can be done to further escalate your company’s growth.
The importance of data doesn’t revolve around how much data you have, but what you do with it. Managing and analyzing your data effectively is what will take your chemical company even farther. Take it from one of our largest chemical customers, Albaugh;
““We have had tremendous growth over the last 3-4 years. This would not have been possible without the level of service and expertise Trinity Logistics provides. They are a true strategic partner in a very dynamic environment.”
Click here to read our case study on how Managed Services helped Albaugh with their growth.
When you combine your data with our Managed Services solutions, you can,
- gain visibility into your supply chain,
- generate advanced reporting to look into specific metrics,
- analyze reports to create efficiencies, successes, and overcome setbacks,
- and see how your company can grow with our Quarterly Business Review presentations.
Do you want to see what you will find when you manage and analyze your data with Trinity Logistics?
Have you been wanting to up the ante with your customers by offering them the best services you can? Are you not wanting to add any extra fees for necessary technology? What kind of technology for freight agents does Trinity Logistics provide their network?
At Trinity Logistics, we provide our network of Authorized Agents with the use of our operating systems and other technology at no additional costs. These include access to DAT and Truckstop.com, LTL operating software with a pricing tool, and portals for your customers and carriers. Additionally, our Agent Support team provides training on our technology so that you know how to use it.
Continue reading to learn more about the technology our Authorized Agents have access to when joining our network.
Access to DAT and Truckstop.com
Having access to leading load boards is crucial to your success in this industry. DAT and Truckstop.com provide load boards that help you find trucks faster, price shipments, and open up capacity. Gaining full access to these boards comes with a heavy price for smaller agencies. When working with Trinity, you don’t have to pay a dime for them. Some of these systems offer load board access but also resources, like DAT’s BookNow feature and current industry information. With Trinity, you will receive access to operating systems that provide you with the data needed to keep your operations running smoothly.
Less-Than-Truckload Operating Software
Manual processes can be so time-consuming. Utilizing an easy-to-use system to manage your less-than-truckload (LTL) shipments can make those processes faster and more efficient. With Trinity, you’ll have free use of Banyan Technology for your LTL shipments. Your business will have the ability to compare and secure quotes, oversee the end-to-end movement of your customer’s freight, and exchange reporting information with your customer. You’ll gain exclusive access to Banyan’s Live Lane Specials, Ground Freight Pricing, and proper training to use the system.
Trinity can open up access to you within Banyan so you can completely self-service your LTL needs – from quoting to booking to tracking and documents. Banyan serves its customers through the most up-to-date technology.
Customer and Carrier Portals
We like to keep our customers and carriers connected and up-to-date on their services. Through the use of the Customer Portal, customers can track their loads, view and pay their invoices online, and request new rate quotes. In the Carrier Portal, view exclusive Trinity shipments not yet posted to external load boards, bid on loads, post their available equipment, and track their payment status.
If these tools weren’t already enticing, Trinity strives to provide best-in-class technology. We are always evaluating technologies so we can ensure that we are providing the best for our shippers, carriers, Team Members, and Authorized Agents. Recently, our Technology Team has been hard at work launching our new CRM. This new CRM will offer enhanced data, reporting, sales pipeline management, and full customer management tools while being easy to use.
Technology Training
Trinity provides our Authorized Agents with the resources needed to be successful while providing support every step of the way. Our Agent Support Team offers thorough training on current and upcoming technology, sales training and refreshers, and technology updates, all to ensure your success. Did we mention it’s all free?
Trinity Logistics takes pride in being a leading name in the Authorized Agent community. Yet, our success wouldn’t be possible without the relationships we have with our Authorized Agents.
Continuous improvement is one of Trinity’s guiding values. It is applied across all boards, including with commitment to our Authorized Agent Network. When it comes to technology, we ensure that we maintain a competitive edge and provide the tools needed for the success of our Agents.
Looking to become part of the Trinity Logistics Authorized Agent family?
Join our Freight Agent NetworkOf all industries, the food industry needs data and visibility in the supply chain readily available when it comes to their shipping. Many food products are perishable and need to deliver in a specific timeframe to be able to be used. Recalls and claims can cost a lot to a manufacturer, causing them to lose revenue. The technology to keep data easily accessible can also cost quite a bit. Yet, food manufacturers outsourcing to a 3PL can gain benefits outside of just having their shipments arranged.
Quality Food Products Delivered
No matter the type of food – raw, cold, frozen, canned, produce – it all has a sell-by date and a proper way to be handled. Your customers want the best-looking product with the longest shelf life available when delivered. Having visibility into your shipping offers you insight into your product’s quality and helps you keep your customers happy.
Shipping temperature-sensitive items? Check out our Temperature Shipping Guide.
FSMA & Recalls
The Food Safety Modernization Act (FSMA) and the rise of recalls add in extra pressure for the food industry to have visibility. If food is not handled safely, you can face criminal penalties. Additionally, no one wants to be faced with the adverse publicity and expense of a recall. According to a study by the Food Manufacturing Institute and Grocery Manufacturers Association, a company faced with a recall can expect an average of $10 million in direct costs, in addition to the damage to their brand and lost sales.
Visibility Is Important In The Food Industry
Visibility in the food supply chain is becoming something that is moving from the Wish List to the Required List. A shipment’s whereabouts are critical in determining actions that may be needed to provide the best customer service and make sure products are delivering intact and on time. Sophisticated brands are ditching their manual and time-consuming processes and replacing them with technology to operate more efficiently while gaining more visibility into their operations than before. With food safety always in mind for this industry, there is a big advantage for those with end-to-end visibility into their operations. But technology comes at a price.
Shippers need to work with strategic vendors who can provide them the technology tools needed for full visibility. They need to choose vendors who can put into place those tools and manage control when necessary to keep operations moving and to stay competitive in the market. To reduce costs and gain a helping hand, food manufacturers can choose to outsource to a 3PL for both their transportation needs and technology.
Technology 3PLs Offer
We all know that outsourcing to a 3PL reduces the stress and workload of finding a carrier to move your freight. 3PLs such as Trinity Logistics, take over the responsibilities of vetting the carriers they work with, making sure they have the proper credentials, insurance, and experience for your freight. But they also offer you access to their technology for all sorts of needs. Technology to track your shipment from pick up to delivery, automate workflows, engage in collaboration with supply chain partners, and more.
Transportation Management Systems
One such piece of technology offered is Transportation Management Systems or a TMS. A TMS can help your business gain visibility into your supply chain, create new efficiencies, and automate your manual workload, so you can focus on keeping your customers happy and the orders coming. When using a 3PL, such as Trinity Logistics, you often have options to choose in how you want to integrate your TMS. With Trinity, we offer you a choice of:
- Software as a Service (Saas)
- Managed Services
- Integrated TMS
You get to choose how integrated you want the technology to be with your data and get a specialist to work with you every step of the way. No matter what option you choose, you gain the visibility you are looking for in your supply chain.
What Are You Waiting For?
As a food manufacturer, you need to track your supply chain to stay efficient and safe. Gaining supply chain visibility with technology is needed to stay competitive in your industry and outsourcing to a 3PL can reduce expenses for that investment. Taking advantage of their technology offerings, such as a TMS, can provide you insight and improvements.
Trinity Logistics is well-versed in the food industry and understands your need for visibility. Our team of experts is here to help you manage your operations, offer you the data you want, and give you the choice of how you want to integrate that technology and receive that data.
Are you ready to see what visibility you are missing in your supply chain?
September 11, 2020 Update:
Trinity Logistics, Inc., is pleased to announce that until further notice, we will continue to keep our reduced Quick Pay fee of 1.5%, regularly at 2%. Trinity looks forward to continue to bring savings to our valued motor carriers during these unprecedented times.
May 11, 2020 Update:
Trinity Logistics, Inc., is pleased to announce that until September 1, 2020, we will be reducing our Quick Pay fee from 2% (just announced) to 1.5%. Trinity wishes to put more of your hard-earned money back into your pockets. We believe this rate without any additional fees (as normally charged by a factor company) is significantly less than your presently factored invoices (if your factored). You can work directly with the great folks at Triumph Pay to determine how you can remove your Trinity’s invoices from the current factored arrangement. Trinity is looking forward to bringing these savings to our valued motor carriers.
In the midst of this unprecedented time, we recognize the struggles that our dedicated carriers are faced with, which is why beginning May 26, 2020, Trinity Logistics will be permanently reducing our QuickPay fees and making the move to the TriumphPay platform. TriumphPay is a leading provider of carrier and vendor payment solutions. This will drive efficiencies for Trinity and offer a better payment experience to our carriers.
Trinity has been working alongside Triumph and their factoring division for years, as carriers have utilized their payment services.
“Jordan Graft has been our long-term contact at Triumph”, says Doug Potvin, CFO of Trinity Logistics. “One of our largest problems was tackling the amount of time spent on phone calls with our factors. I had recently seen Jordan at a FreightWaves conference and his presentation on TriumphPay. I called him up and asked him, how can we reduce our phone calls from Triumph Business Capital? Jordan, on a Friday, offered to come up the very next Monday and presented TriumphPay’s benefit to Trinity and our carriers. It was an easy decision to move forward with TriumphPay, especially with our existing relationship with Jordan.”
TriumphPay will be a benefit to Trinity by advancing our back-office support and driving efficiencies. By reducing our amount of calls from factors, it opens up our time to offer more customer service with each phone call. Our customer service team will have more time to call to follow up with our dedicated carriers to retrieve missing documentation in order to quickly resolve any billing issues to get the carriers paid on time.
Trinity Logistics, Inc., in light of the COVID-19 pandemic and the pressure it puts on to the supply chain, has made a conscious decision to improve and decrease the cost of our QuickPay Program. Trinity is reducing our QuickPay fee from 3 percent in 3 days and 2 percent in 10 days to 2 percent (1.5 percent until September 1, 2020) in 2 days once processed through TriumphPay. Trinity’s QuickPay program reduction will continue long after the supply chain returns to a degree normalcy. Since the TriumphPay platform is utilized by numerous brokers, this means carriers will have opportunity to not only manage payments from Trinity but from others. The TriumphPay portal is easy to use and offers carriers the option of uploading paperwork and updating their QuickPay terms with each broker at any time.
“We believe this partnership will be a major catalyst in digitizing and streamlining carrier payments,” said Jordan Graft, president of TriumphPay.
To learn more about TriumphPay
Interested in our other carrier benefits?