Of 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

Download this whitepaper for your ultimate guide to TMS, and how it can help you grow revenue, manage costs, mitigate risk, and gain efficiencies.

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.

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.

Picture what it was to be a 3PL (third-party logistics company) 30 years ago. Filing cabinets were full of paper documents. Fax machines, handwritten documents, and corded phones were the way of communication. There were no navigational systems, only paper maps.

Thanks to advancements in technology, 3PLs can function without filing cabinets. Now documents can be saved to the cloud and sent in seconds through email. Very few documents are handwritten and employees are highly mobile with the ability to work in office, on the road, or even from home. As great as that all is, even more technology is needed for a 3PL to compete in today’s market.

Technology Improves the Customer Experience

Reducing paper use, being mobile, and wireless, is not enough to keep a 3PL competitive. Customers are looking for more visibility, while carriers are looking for easier and quicker processes to book shipments. There are still many manual processes that are able to be automated with technology, offering a better customer experience. Technology such as digital freight matching and artificial intelligence are some examples of what is now available to 3PLs.

Trinity Logistics looks for ways to improve efficiencies and serve greater support to our customers, carriers, and independent Agents through technology. Over the past few years, we’ve been able to grow our technology and offer our industry audiences many improvements with their experiences.

Trinity Stays on Top of Technology

Trinity’s Technology Team is always growing as we look for ways to stand out and provide excellent service as a modern day 3PL. We have a team of our own software engineers who keep our business applications up-to-date with newer technology.

Are you ready to read about the technology we can offer to support your business?

Tracking and Tracing Options

Trinity offers our customers and carriers their choice of tracking and tracing applications. Currently, we offer FourKites, Trucker Tools, and Macropoint. A carrier downloads one of the apps, giving Trinity the ability to keep track the shipment and offer real-time visibility to our customer. This also helps reduce the check-in calls to the carrier, allowing them to focus on reaching their destination safely.

Quick and Easy Carrier Setups

We have a Carrier Relations Team to ensure Trinity connects with fully vetted and qualified carriers. We have taken what used to be a two hour process down to an average of 20 minutes thanks to integration with My Carrier Packet (MCP). Instead of printed paper packets that had to be filled out, scanned, and emailed or faxed in, My Carrier Packet gives the potential carrier the capability to fill out information online through their website. Thanks to MCP and our Software Engineering Team, the packets and insurance are seamlessly integrated with our Transportation Management System (TMS), making carrier set-ups a breeze.

Up-To-Date Systems

As stated earlier, our Software Engineering Team works hard to continue improving our systems. Our TMS was updated which made our carrier module more user friendly and offered the capability of housing more vital information, making it easy to link up to services like My Carrier Packet. The new carrier module also offered our Team Members a capacity and history tool to help continue building relationships with carriers who have hauled with us before.

Managed Transportation Technology Solutions

Geared toward our shippers, we offer Transportation Management Systems (TMS). A TMS gives you more visibility into your supply chain, reduces your costs, and improves performance. Choosing to house all your transportation management needs in one place and having access to a Team of logistics experts through Trinity’s Managed Services can help increase efficiencies.

Banyan for LTL

Instead of manual processes you can utilize our easy-to-use system to manage your LTL (less-than-truckload) shipments fast and more efficiently. When choosing to work with Trinity for your LTL shipments, you get the use of Banyan Technology at no extra cost to you. You are trained and given a login and password and gain exclusive access to Banyan’s Live Lane Specials and Ground Freight Pricing.

With one of Trinity’s guiding values being continuous improvement, we look for new ways to improve and better serve our industry audiences. Right now, as you are reading this article, our Technology Team is working to improve your experience. Don’t just choose to work with a company that arranges the shipment of your freight; choose to work with a company that serves you the data you need and the experience you deserve.

AUTHOR: Christine Griffith

These days consumers are searching for food items in stores that come from all across the world. To keep products fresh, on shelves, and at peak quality, there needs to be good communication among food and beverage supply chain partners.

Food & Beverage Challenges

Unlike other industries, the food and beverage industry face unique challenges with their shipping, such as;

• Deliveries needed before expiration dates
• items needing temperature-control,
• and items needing extra-careful handling

These are just some obstacles you have to face when shipping food products. These challenges closely connect the food manufacturing industry with logistics and transportation partners.

Shipping temperature-sensitive items? Check our our Temperature Shipping Guide. 

Logistics & Transportation Partners

With freight transportation, communication begins right from the start. Not all freight travels the same, so setting expectations is the best way to get started. Additionally, having a partner who understands the challenges of shipping your products will prove to be beneficial. Due to this, many food and beverage companies choose to outsource their logistics with a third-party logistics company (3PL).

3PLs have experience quickly solving complex freight solutions every day. You can feel relief when working with a 3PL to arrange your freight transportation. 3PLs have a vetted carrier network with experience in transporting food products and many modes to offer you shipping solutions. You can gain the use of their cutting-edge technology to track your freight.

Sometimes you can experience trouble with communication when outsourcing work to a third party. But you can feel confident when choosing to work with Trinity Logistics. You are kept in the know thanks to the communication processes and technology we have in place.

How Trinity Communicates

When you choose Trinity Logistics, you will work with an Account Representative you can trust as your daily point of contact. They quickly communicate your shipping options, the carrier(s) selected, and provide any solutions to problems that may arise throughout your shipment.

You get to choose from several options for tracing on your shipment, including FourKites, MacroPoint, or Trucker Tools. Your Account Representative keeps an open line of communication with access to our portal, emails, or phone calls to give you real-time visibility of your shipment’s whereabouts and estimated delivery time. You are never left in the dark and unsure of where your product is.

Just as a lack of communication can be a problem, in certain cases so can over-communication. Through the use of these applications, we can relieve the calling, emailing, and texting our carriers. This keeps them safe and focused on the goal at hand: delivering your product on time.

Sometimes you need solutions to problems outside of the typical 9-5 workday. No need to worry. You have access to Trinity’s 24/7 Team to accommodate your needs at any time of the day or night.

All Around Communication

If you are looking for an all-around solution to your problem of communication in your supply chain, a transportation management system (TMS) could be your answer. A TMS can help act as a communication hub for all partners in your supply chain. You can gain end-to-end visibility by working in one place, rather than across various sources. Looking to learn more about a TMS and its functions? Download our Guide to Transportation Management Systems.

All relationships need open communication to work well. That is no different for supply chain partners in food and beverage. Each partner in the supply chain should keep in communication as needed to provide full visibility and keep everyone in the loop. This can prevent damaged product, recalls, extra costs, and frustration. You don’t need to worry about communication issues when choosing Trinity Logistics as a partner in your supply chain. We are more than just a 3PL for shipping, but a 3PL for data and communication.

AUTHOR: Christine Griffith

When you think of an airship, your first thought may be the infamous Hindenburg and its fiery disaster in 1937. Maybe you think of the Goodyear Blimp or the hot air balloon from the Wizard of Oz. Whatever your mind is first drawn to, you may not have known that airships actually pre-date all other aircraft types. The first airship was a hot air balloon launched more than 200 years ago in 1783. The drawback? There was no way to steer the lighter-than-air aircraft. Soon after, inventors began designing ways to propel and control these types of inventions. Pierre Jullien, Jules Henri Giffard, the Wright Brothers, Charles Renard, and Arthur C. Krebs, all contributed to the development of air transportation and the leaps and bounds the mode has seen. Even though these airships have been around longer than most aircraft, they’re beginning to make their way into the logistics industry. That’s the focus of this installment of our “Shaping the Future” blog series.

The Global Airship Race

The United States-based Lockheed Martin , United Kingdom’s Hybrid Air Vehicles, and French aerospace company, Flying Whales, are just a few competitors in the global airship race, all with current deals in progress.
Flying Whales has developed a 500-foot airship (twice as long as a Boeing 747 for perspective) designed to lift lumber from deep woodland. This cargo airship has a rigid structure with pockets of helium and is powered by a small diesel or electric engine that requires minimal power. To top it off, the Flying Whale will be able to lift an industry-leading 60 tons! The French company plans to open up public stock offerings in 2021, when the model is anticipated to make its first flight.
Lockheed Martin is a step ahead of Flying Whales. More than ten years ago, the security and aerospace company flight tested its airship prototype P-791. The full-scale hybrid airship, that will be able to carry 20 tons of cargo, is expected in 2019. With this new aircraft, Lockheed Martin is heavily highlighting its large cargo capacity, low fuel consumption relative to other forms of air transportation, and faster speed than land or sea alternatives.

Cost and environmental impacts

While the initial cost for creation of cargo airships may be high, the long-term economic and environmental benefits soar. The fuel needs of airships versus airliners are dramatically different. For example, a Boeing 737 burns the same amount of fuel moving from the airport terminal to the runway as an Airlander 10 does on a three-day flight. Additionally, Lockheed Martin’s P-791 burns less than one-tenth the fuel of a helicopter per ton. These cargo airships are structured with pockets of helium and small engines that require minimal gas power. This means that there would be less impact on air quality since the airships burn less fuel than a normal aircraft.
Additionally, airships don’t need runway infrastructure since they can pretty much take off and land on any surface and anywhere, including water. With more than two-thirds of the world’s land area not having direct access to roads or runways, this not only makes airships workable in remote locations without airports, but can also eliminate the need for the intermodal transfers – truck-to-ship-to-truck, etc. – which are the norm in logistics operations.

Carrying Cargo

Air cargo aircrafts can carry heavy weights, however they normally tend to carry bulky but low-weight items such as perishable foods and flowers, so only a small portion of the weight capacity is utilized. Airships, however, have very large internal volumes for cargo storage, making them suitable for the transport of bigger or bulkier items like construction equipment or vehicles.
Finally, it’s worth highlighting Amazon’s airborne fulfillment center (AFC) that “may be an airship” and from which drones could be dispatched to make deliveries to purchasers. While Amazon’s plans are still in the works for these flying warehouses, the mention of airships does indicate a brighter future for these helium filled vessels in the sky. Even though there isn’t a specific timeline for the AFC’s, we are certainly expecting to see more movement with cargo airships within the next few years.

Trinity Logistics has joined other transportation industry giants by partnering with the Blockchain in Transport Alliance (BiTA), a recently formed group to ensure the standardization of blockchain technology in logistics.

BiTA is a forum for promotion, education, and encouragement to develop and adopt blockchain applications in the trucking, transportation, and logistics industry. These resources will help those in the industry interested in leading the evolution through the efficiencies offered in blockchain technology.

Trinity recognizes blockchain’s significance as a disruptive technology, with the potential to transform the future of logistics with a new system for arranging and tracking freight services.

“We are very excited to see the initiative that has been taken to form this alliance so that industry leaders can move forward with blockchain technology in a cohesive way. So often the transportation industry is reactive to policy changes and technological advancements. This is a great opportunity for all of us to shape the industries future with this game-changing technology,” said Sarah Ruffcorn, Chief Operations Officer of Trinity Logistics.

By joining BiTA, Trinity will remain at the forefront of developments in blockchain technology and collaborate with others in the industry. BiTA’s forum will provide the latest education on how the technology or government regulations could impact Trinity’s carriers, shippers, and technology platforms.

Trinity Logistics joins over 750 companies that have applied for membership with BiTA. The alliance’s first blockchain standards in freight will be developed and published in 2018, addressing smart contracts, freight payment, asset maintenance and ownership history, transparency and chain of custody freight, and more.

If you search for the latest in autonomous trucks, you’ll find headlines like “Driverless Vehicles and the End of the Trucker,” “Will Technology Make Truck Drivers Obsolete in 10 Years?,” and “Robots could replace 1.7 million American Truckers in the next decade.” You’ll also find articles titled “Driverless trucks will be (mostly) great,” “Automation won’t wipe out all of the jobs in the trucking industry,” and “Saying that Autonomous cars will kill millions of jobs by 2025 is crap.”

So, what is it? Is the threat of autonomous trucks as major as it sounds to the trucking industry? We’ve weighed some of the latest big thoughts on the topic for you to decide.

End of the Road: Will Automation Put an End to the American Trucker? by The Guardian

The number of Americans who drive heavy trucks, taxis, buses, and delivery vehicles surpasses 3.5 million. In this article by The Guardian, many of those drivers believe that autonomous technology could threaten their livelihood, but not in the near future.

Google, Uber, and Tesla are among the more than 260 companies working to develop their own forms of autonomous vehicles. These vehicles would either eliminate driver jobs or downgrade them to co-pilots.

Many agencies quoted 10 years before autonomous trucks are fully operational in the industry. Most drivers don’t see their jobs changing anytime soon. Drivers interviewed by The Guardian said people, in general, are not ready for autonomous trucks, combined with the lack of current infrastructure to support them widespread.

Since 2014, at least 41 states and Washington D.C. have considered legislation regarding autonomous vehicles, with 21 states actually passing legislation.

Robots Could Replace 1.7 Million American Truckers in the Next Decade by LA Times

Analysts and industry experts cited in this article agree that autonomous truck technology could replace drivers within a decade.

Federal agencies insist that autonomous trucks will save lives, and autonomous vehicle makers promise that the cost of travel and transporting goods will be lowered in the process as well.

This article includes quotes from several lecturers about autonomous vehicles’ and other automation’s impact on the work force.

Jerry Kaplan, a Stanford lecturer, said, “We are going to see a wave and an acceleration in automation, and it will affect job markets.”

James Bensen, a lecturer at the Boston University School of Law was quoted saying, “The people whose skills become obsolete are low-wage workers, and to the extent that it’s difficult for them to acquire new skills, it affects inequality.”

Will Technology Make Truck Drivers Obsolete in 10 Years? by Forbes

This article, from 2015, cites a report “On the road towards the autonomous truck” done by consulting company Roland Berger. According to the report’s analysts, the final stage of fully autonomous vehicles would begin in 2025 onward where the “driver is practically no longer required.”

Safety and cost are again named as two major factors why autonomous truck technology would replace or reduce truck drivers. Adaptive cruise-control and other vehicle-to-vehicle and vehicle-to-infrastructure communication will decrease human error. Less fuel consumption, lower cost for driver wages, and platooning would also save costs.

Driverless Trucks Will Be (Mostly) Great by Bloomberg

While the idea of self-driving trucks hitting the roads within the next decade seems daunting, this article points out that trucks with some degree of automation are already present in ore mines and hauling freight.

The Editors of Bloomberg who penned this article believes that automation won’t cut jobs, but will instead lead to faster employment growth as the combination of human and robot labor improves productivity. Writers believe trucking jobs wouldn’t disappear but would morph into tech and logistics jobs that would require different skills, but offer better pay and working conditions.

Truckers Do a lot of Stuff Besides Driving that Automated Vehicles Don’t by Quartz

According to Quartz, driving a truck is the most common occupation in 29 states. About 40% of people in the trucking industry aren’t even driving a truck at all.

According to Quartz, driving a truck is the most common occupation in 29 states. About 40% of people in the trucking industry aren’t even driving a truck at all.

Joseph Kane, a senior research analyst at the Brookings Institute was cited in the article.

“Many truck drivers and many support workers, mechanics and other administrative workers, they will continue to play an enormous role in this industry,” said Kane.

In a report by Joseph Kane and Adie Tomer titled “Automated trucking’s rapid rise overlooks the need for skilled labor,” the authors pointed out that many of the nation’s truck drivers aren’t just sitting behind the wheel on auto drive. Drivers are necessary to inspect freight, fix their equipment, unload and deliver freight, among other tasks.

The authors of this article believe automation won’t wipe out all of the jobs in the trucking industry because there will still be plenty of jobs that a human can do that a robot cannot.

Saying that Autonomous Cars Will Kill Millions of Jobs By 2025 Is Crap by Jalopnik

This article author’s opinion on autonomous cars and trucks is apparent by the title alone.

There’s no denial that autonomous vehicles are coming. It’s the idea that driverless vehicles will eliminate millions of jobs within the next decade that the author is calling “crap.”

The author, Michael Ballaban, is quote “boldly dismissing” the prediction that autonomous cars will change our world in a decade, calling that notion “hooey.”

The article’s main points include that just because autonomous trucks and cars are available to the general public by 2025, doesn’t mean that every person will own one or find one to be the best fit for them at the time.

“There are massive upfront costs associated with replacing entire fleets, upfront costs that large business like trucking companies and large bus buyers like cities don’t exactly like.”

These articles laid out many of the facts behind the race to automation, researched timeline estimations for the rollout, and reasonings on both sides of the coin. Beyond the facts, there are many opinions (some more strongly worded than others) about whether autonomous trucks will really replace driver jobs, especially within the decade as many industry experts suggest.

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If you grew up or are familiar with the Jetsons, some of the show’s concepts may have seemed a little “far out.” In all actuality, jet packs, flying cars, help around the house from a friendly robot or two, drones, holograms, smartwatches and more have all become a part of our reality and the future of logistics as we know it.

As a matter of fact, tests have been done using drones and robots (unmanned trucks like Otto) to deliver freight. While it’s not a part of our day to day operations just yet, these ideas are definitely within reach.

In our Shaping the Future blog series, we’ve talked about Autonomous Trucks and drones for delivery, but what exactly does the Future of Logistics look like?

We’ve poked around to see what some of the experts think, and gathered it here in one place.

Autonomous Fleets…of all kinds

One of Forbes’ main technology predictions for the future of the supply chain is autonomous fleets of all shapes and sizes.

Beyond autonomous trucks, Forbes believes anything from autonomous cranes, ships, truck platooning and more would begin to dominate the supply chain.

As with anything, the idea of switching to more autonomous equipment in logistics would increase efficiencies, but the argument remains that with efficiency comes a significant impact on jobs.

There’s an App for that

People are always on the go. If you run a business, you know you have to optimize your website for mobile users, you can expect to receive chats from people via cell phone, and people are finding your advertisements on the go.

Another major prediction, also from Forbes, is that truck brokerages should also step on the electronic train, creating e-brokerage platforms accessible on the go from a mobile app.

These mobile-based programs would fall into the category of the “Uberization of freight” idea. Basically, this means people could book trucks and space on trucks through a mobile device, much like you can buy a seat in a car through ride-sharing apps like Uber and Lyft.

This idea has already popped up in the logistics scene, but it’s not widespread at this time, primarily because of risks and intricacies of shipping freight. It’s not as simple as booking a ride from point A to point B.

TMS of the Future

Transportation Management Systems are already providing increased visibility and technology to catapult businesses into the future of their freight management. These systems could become more like our beloved iPhones and Echoes in the future.

Flash Global believes voice prompting and commands for supply chain processes will improve the user-friendliness and efficiencies of TMS and Warehouse Management Systems.

“Logistica, show me the shipments for today.” (Okay, so the name may need some more work.”

Fueling Change in Logistics

Third-Party Logistics companies are already turning to intermodal transport and other modes to reduce their carbon footprint, but other battery-powered options may emerge in the future.

According to Scarbrough International, some companies are trying to develop battery-operated technology to replace, or greatly reduce, the use of gas and oil as fuels for cargo ships.

The Norwegian company Kongsberg also recently announced that a new all-electric and autonomous cargo ship will begin operation in 2018. The company plans to use the vessel to replace the work of 100 diesel trucks between its Porsgrunn plant to ports in Brevik and Larvik, Norway.

You can’t forget the solar and wind power movement. Homes across America now have solar panels, and homeowners are being paid to house giant windmills on their properties.

There is such thing as a solar-powered boat, but let’s just say they’re built more for leisure than freight delivery purposes.

Solar energy may not be the sole source of the future of cargo ships, but it could pop up as a way to reduce the amount of fuel used in larger ones.

Business Insider says wind power may find its way back to the sea. Finnish firm Norsepower created spinning “rotor sails” that would power an oil tanker for Global shipping firm Maersk. This idea first came out around 1924 but didn’t have enough wind beneath its sails.

3D Printing in Logistics

3D printing is definitely cool. It’s actually been around a lot longer than it has been mainstream.

The first 3D printer was invented by Charles Hull in March of 1983. Now 3D printers can be used for medical devices, more affordable prosthetics, to build houses, and produce food.

It’s only fitting that 3D printers would enter the field of logistics.

IndustryWeek put together this infographic about why 3PLs will need to have some knowledge in the realm of 3D printing.

While it won’t necessarily be tied in directly to our day to day activities, 3D print centers may begin to spring up, increasing last-mile shipping because goods could be printed based on demand area.

There could also be a need for more “digital” warehouses to store goods that could be 3D printed only when needed.

Hyper-Local Supply Chains

Also potentially increasing last-mile delivery is the idea of hyper-local supply chains.

More distribution centers for goods available for purchase online could improve delivery time for goods to within the day – possibly even within the hour.

Same goes for food and grocery delivery, which we talked about in our recent blog.

Shaping the Future: What Does it Look Like?

We could go on and on for days, sparking many conversations and debates about what will actually happen in the next 10, 15, 20 years in logistics, so we decided to just stop at 5 things that could become a reality.

After all, it’s a dog eat dog world, and some technologies just don’t take off like we thought they would. (Remember when QR codes were going to be the future of advertising?)

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A little over 15 years ago, Armstrong and Associates found 46 percent of Fortune 500 companies use 3PL (third-party logistics) companies to help with their freight arrangement. In May 2017, that number nearly doubled to 90 percent.

The study found that companies that use 3PLs do so to control their costs and improve the efficiency of their supply chain, while some larger companies rely mostly on 3PLs to handle their complete day-to-day freight management.

Why are more successful companies turning to 3PLs? It’s a growing market, turning away from the transactional relationships of the past and building “meaningful partnerships,” according to the 21st Annual Third-Party Logistics Study.

Of course, the overall economy has a major impact on the logistics market, so we’ll take a look at the contributing economic factors, the growth in logistics, and the role 3PLs play that have the biggest companies in the United States relying on them for all of their logistics needs.

Growing Logistics Market

Saving time, saving money, and avoiding headaches are top reasons to turn to a third-party logistics company. The cost reductions achieved by using a 3PL are expected to be a major market driver for 2017 to 2021, based on a report from Radiant Insights. The logistics market overall is projected to grow at an annual rate of 6.5 percent per year during this time frame.

The American Trucking Association’s Trucking Activity Report sees growth continuing in freight and trucking through 2026. The report shows 28.6 percent increase in freight tonnage and a 74.5 percent increase in revenues to $1.52 trillion by 2026.

New orders for trucks dipped slightly in May, but research groups say overall, the outlook for the market is positive. Class 8 orders were down 30 percent from April, but were still 18 percent higher than May 2016.

Stifel analyst Michael Baudendistel wrote in a letter to investors that the firm believes the dip in Class 8 orders should be interpreted as a step back from unsustainable levels and believe there will be a strong growth period from 2019-2020.

Autonomous trucks are also expected to take the nation’s roads by storm within five years, according to the Transportation Research Board. This of course after the autonomous truck Otto went on a 120-mile beer run sans driver at the wheel in Colorado in October 2016.

Increases in technology and efficiency in the transportation world could have a major impact on delivery times and capacity.

Current Economy

While the Logistics industry has plenty of growth in its forecast, the U.S. economy is sending mixed signals.

Overall, the United States’ industrial production rose one percent in April 2017, the largest expansion in more than three years.

The U.S. unemployment rate hit its lowest level in 16 years, down to 4.3 percent. There were 138,000 jobs added in May, slightly down from April. While the number of jobs added was still lower than predicted, there were significant gains in sectors like mining, which added nearly 50,000 jobs.

At the Federal Reserve’s last interest rate meeting, there was a 67 percent chance of a rate hike occurring in June. If this is the case, it would be the third rate high in the last seven months, after a period of several years with few hike rate increases by the Fed.

Consumer spending stayed steady in May, at a $104 daily spending average, similar to the $107 average in April, according to Gallup. This is the fourth month in a row that self-reporting through Gallup averaged $100 or more.

Consumer confidence is down for the second month, but is up 19 percent from last year and according to Forbes, people are spending their money online, at value retailers, and on beauty products.

Role of 3PL

Third-party logistics companies are growing in popularity for a multitude of reasons: they can save time by increasing efficiency, providing visibility to freight spend, handle all logistics operations as a one-stop shop, and can service virtually any industry, and many operate in all 50 states and across the globe.

In the 21st annual 3PL Study, 93 percent of shippers surveyed said that improved, data-driven decision-making is essential to the future success of supply chain activities and processes. Of the 3PLS in the study, 98 percent reported that as well.

In the day to day world of freight arrangement, shippers can spend hours manually entering data and coordinating shipping with different carriers. Working with a 3PL cuts down on the amount of time spent on these daily operations, but can also provide services well beyond the input of data!

From staying ahead of potential impacts on the industry to in-depth account reviews, to cutting and managing costs, to fully outsourcing logistics operations with account management offered through a Transportation Management System, a 3PL can offer tremendous visibility to clients.

In the 21st Annual Third-Party Logistics study, 86 percent of shippers said that using 3PLs has improved their customer service, and 73 percent said 3PLs offer new and innovative ways to improve logistics effectiveness.

New demands from consumers and shippers will continue to evolve the logistics industry, making offerings more robust to better serve the industry.

Why Wait, Join the 90 Percent

We’ll take care of the nitty gritty of freight arrangement to get your shipments from point A to point B so you can focus on your core business. If you need anything from an emergency storage solution to a full warehouse operation, we can set you up with our warehouse providers. Have an emergency shipment that needs to leave ASAP? Don’t stress about finding a truck – we’ll do that part for you. Want to fully outsource your logistics operations with our Integrated Outsourcing TMS? You got it.

Join the 90 percent of top companies that rely on 3PLs to guide them through the complex world of logistics! Send us any one of your shipments and we’ll give you a no-hassle quote, from a real person, every time.

While it’s still far-fetched, the idea of ordering something online and having it delivered to your doorstep within an hour is closer to reality than it ever has been before. E-commerce giant Amazon and parcel shipping company UPS are both working on drove delivery services, with both companies testing out the airborne delivery bots this year. What’s happening behind the scenes to make this ultra-convenient small parcel delivery service a reality? That’s the focus of this next installment of our “Shaping the Future” blog series.

Drone Delivery: Convenience for Customers and Drivers

Amazon Founder Jeff Bezos first let the public know about the idea of using drones for delivery in December 2013 on “60 Minutes.” Since then, the company has faced roadblock after roadblock from the Federal Aviation Administration but continues to push forward with hopes of deploying small packages to the homes of its customers not only the same day but within the hour, if possible.

Where would these drones “hang out” until go time? According to Digital Trends, Amazon revealed its plan for an airborne fulfillment center; essentially a warehouse suspended from a blimp that would double as a takeoff and landing zone for its Prime Air drones.

According to USA Today, UPS tested its truck-launched drone delivery system in Lithia, Fla. in February 2017. Their system is a little different than Amazon’s and is aimed to help make rural deliveries more efficient for its drivers. Essentially, the drone travels along with the UPS truck and works in a “triangle pattern” of deliveries. While the delivery driver makes one delivery in the bottom left of the triangle, the autonomous drone can fly ahead to a location at the top of the “triangle.” The delivery driver then travels to the next destination, the bottom right of the “triangle,” and the autonomous drone meets back up, landing safely on the top of the truck.

In early February of this year, another package delivery giant, FedEx, announced a different route in their foreseeable future. According to MIT Technology Review, FedEx Chief Information Officer Rob Carter said autonomous vehicles make more sense than Unmanned Aerial Vehicles (UAV) when it comes to automated deliveries.

Testing for all Situations

In a perfect world, drone delivery would be simple. A controlled environment where a customer places an order, the package leaves the fulfillment center, goes for a nice smooth trip, and then lands on the customer’s front porch in pretty packaging.

Obviously, it’s not a perfect world, and there are unforeseen circumstances that can get in the way. Unfortunately, there hasn’t been a lot of drone delivery testing in the United States because of Federal Aviation Administration rules. While Amazon and UPS are testing their new delivery methods, some of the locations remain unknown.

This week, Amazon took their testing a bit further, according to Business Insider, testing to see how a drone would respond to a potential “protective pup” at a delivery destination. According to IBTimes, the tests do not involve real dogs, but simulate how a drone would react to a “canine trying to protect its territory.”

Drones in Logistics

There’s a lot of talk on the topic of drones, especially in last-mile logistics, some saying its far-fetched and others standing behind the use of drones in order fulfillment. No matter how you spin it, the reality of the unmanned craft delivering goods to customers becomes more and more within reach.

In recent news, a start-up company called Natilus wants to use the drone delivery approach as an alternative to air or ocean shipping. Currently ocean freight can involve weeks of transit time, and the air alternative option can be fairly costly. According to Supply Chain Digest, Nautilis plans to test a concept drone this summer, making a trip between Los Angeles and Hawaii in about 30 hours this summer.

Still, the major roadblock for drones in logistics continues to be regulations set in place by the FAA. There are also some questions up in the air about the safety of packages being delivered via drone, and if the packages themselves would be brought right to the customer’s front door, or if they would be dropped via parachute, in parcel delivery. Nautilis believes government regulations would require its drones to take off and land on the water.

To read the latest drone regulations, visit the FAA’s website here.

Timeline

At this time, Amazon and UPS are not giving specific timelines for when their drones would be making actual customer deliveries. Nautilis says it plans to have a 200-foot drone that would undergo testing and certification by the year 2020.

As a third-party logistics (3PL) company, we welcome and embrace change in technology. We will continue to use our relationships with our carrier network to provide the best shipping arrangement services. We hope you’re enjoying our “Shaping the Future” blog series. Thank you for reading!