Optimizing your logistics can make all the difference in your business’s bottom line. However, to fully understand your logistics processes you need to look at your logistics analytics.

To start, you’ll need access to the right technology. One such piece of technology is a transportation management system (TMS). A TMS is an excellent investment and according to Logistics Management Magazine, has been shown to reduce transportation costs by up to 30 percent.

Not interested in reading? Find out these priceless tips on improving your logistics processes.

To get the most out of a TMS and your logistics, you’ve got to know what you should be watching. All the data a TMS provides can be overwhelming and the possibilities of what you could analyze are endless. Ultimately, sifting through that data can be complex and time-consuming. So, to make things easier for you, our Team of TMS experts found the top 5 reports you should be running so you can see your best return on investment (ROI).

TOP 5 LOGISTICS REPORTS YOU NEED

• Freight Accruals
• Cost Allocation
• Carrier Scorecard
• Least Cost Carriers
• Power Lanes

Getting the data you need for a good overview of your logistics processes doesn’t need to be complicated. These reports should give you a broad view of logistics analytics to help you reach your KPIs.

Freight Accruals

Freight accruals is a report used to keep track of the costs associated with transporting your goods to a customer. These costs begin accruing from the moment the goods deliver, and they get discharged once a freight invoice is paid.

Tracking freight accruals allows your company to calculate your true net revenue at any given time. As a result, you’ll gain a better insight into any outstanding balances accumulated during a specific timeframe, whenever you may need it.

Cost Allocation

A cost allocation report breaks down your freight charges by a mile, pound, or SKU.

For any multi-stop loads, or loads made up of many POs, freight charges can be allocated to each order based on the percentage of distance, weight, or quantity the individual order contributed to the whole. Therefore, tracking your cost allocations will give your company a better look into the true cost of transporting your goods. You can then use this report to identify your most costly SKUs or lanes.

Carrier Scorecard

Carrier scorecard reporting helps you track a carrier’s performance. This will show data such as tender acceptance, on-time pickups, and on-time deliveries.

A carrier scorecard report can help you find which carriers are meeting your transportation needs and which are causing extra work. For example, carriers who bid low on a request-for-proposal (RFP), proceed to decline tenders, or provide poor service can cost your company. Without knowing how your selected motor carriers are doing, you could be facing thousands of dollars in extra expenses or, worse yet, lose customers.

By tracking your carriers’ performance, you can reevaluate your routing guide by selecting more reliable carriers on trouble lanes, improving both your costs and customer service. Additionally, this can help you set solid KPIs with your relationship carriers so you can better communicate your needs.

Least Cost Carriers

Least cost carrier reporting helps you identify loads where the carrier with the lowest cost didn’t haul the freight, the reason why, and the extra freight charges that occurred as a result.

This logistics report can help your company identify potential problem areas, resolve the underlying issues, and prevent unnecessary expenses from occurring in the future. If you’re looking to cut freight costs, this report clarifies where your missed opportunities are located.

Since cost isn’t the only factor when selecting a carrier, this report can also help you identify carriers that get repeatedly passed over despite offering lower rates. Therefore, these carriers provide you with the opportunity to work with them on a service-level agreement before you award business solely based on cost.

Power Lanes

Power lane reporting identifies new lanes and provides a benchmark for negotiating contracted rates with carriers.

You can identify a new lane as an origin-destination pairing that occurs a set number of times. Once a new lane is identified, the spot market rates paid to move that lane get broken down by load, mileage, pound, and more. This helps you have a point of reference when negotiating rates with carriers.

Identifying power lanes will help you secure fixed rates and better predict future freight costs.

Note: Most transportation management software products have the ability to run the five reports listed above. If you’re missing out on these exclusive reports, or you’re interested in a TMS for your supply chain, request a special demo with our logistics experts, who can help assess your needs!

MAKE LOGISTICS ANALYTICS MEANINGFUL

The logistics part of your business is complex and dynamic. There are lots of moving parts with many potential bottlenecks, so it’s important the metrics you report on are meaningful.

The right logistics analytics will help you measure performance, optimize routes, and streamline functions. Without the proper data, your business growth will be stagnant. There’s no way to know what needs to be changed if you don’t have visibility.

Additionally, unfound inefficiencies can impact your customer service and carrier relationships and can lead to lost sales and higher costs. Having the right logistics analytics can be one of your most powerful tools and make a big difference in your everyday business activities.

START LEVERAGING YOUR LOGISTICS ANALYTICS

According to research, 93 percent of shippers believe logistics analytics are critical to making intelligent decisions. And 71 percent believe that data improves quality and performance. Yet, too many businesses continue to use manual, time-consuming processes to analyze their logistics.

Take advantage of logistics technology and innovative logistics analytics so you can find actionable insights with the right reporting. And if you need help with your logistics analytics, we can help.

Start hitting that easy button because a TMS with Trinity can make tracking your logistics data a breeze. Not only do we understand everyone’s needs are different and offer customized solutions, but you also have the option of as much or little support from our superusers as you want.

And if you’re looking for expert advice based on your logistics analytics, Trinity offers Quarterly Business Reviews so we can help you find efficiencies.

So what are you waiting for? Let’s get connected and see how we can optimize your processes.

We often will hear from a Freight Agency on how their business has become stagnant while partnered with either small or start-up brokerages. This could be for several reasons. For one, no business will grow unless the main driving force – which is YOU – is 100 percent committed to its success.

In fact, many of the single-person Freight Agents we have seen with great success in the past five years have a focused passion that affords them no “Plan B”. They are so determined to make their small freight agency work that they don’t even consider failure as a potential option. Having that hunger is essential but finding a partner to support your growth is vital. When considering who that partner should be, it’s important to consider several things, such as;

WILL CARRIER PARTNERS EVEN TAKE MY FREIGHT?

The days of only being a point A to point B truckload-only Freight Agency are fading. Customers have unique shipping challenges that need unique shipping solutions. Therefore, it’s important to ensure your Freight Agency’s partner has a vast network of carrier partners.

As important, is their reputation among the carrier community. It must be strong enough to foster relationships that promote carriers consistently working with them versus having to always rely on “one and done” carriers. Find out how often carriers seek repeat business with the partner company you’re considering. If it happens a third of the time or less, that could be a warning sign that carriers may give your company a shot, but the relationship doesn’t progress for whatever reason.

WHAT OPERATIONAL SUPPORT IS AVAILABLE TO MY FREIGHT AGENCY BUSINESS?

Typically, most Freight Agents are well-versed in truckload operations as that is where most get their start in the industry. But shipping customers have needs that don’t just require a full truckload of a product being moved.

Does your partner company have a strong relationship with less-than-truckload (LTL) carriers that will provide competitive service and rates? Will you have a team of experts to assist you with those non-traditional freight moves, like expedited, drayage, or international? What about a shipper customer with more complex needs, like a transportation management system to help manage their business?

As you look to grow with your shipper customers, the last thing you want to do is tell that customer, “Sorry, we can’t support that type of move.”

WHAT ONGOING EDUCATION IS AVAILABLE TO ME?

People that are successful in any business typically have a thirst for knowledge. It’s not just about learning something new, it’s also about refining and sharpening the saw on things they have known for years. Does the company you’re looking to partner with offer education and training sessions to assist in that endeavor?

And if so, are they just focused on mode education? Or operational or technical education? What about things that are not directly tied to the day-to-day but are important – like succession planning? Find out how the company you consider partnering with will support your Freight Agency and you as a person.

HOW INVOLVED WILL I NEED TO BE IN NON-REVENUE GENERATING ACTIVITIES?

The sale does not end when the shipment delivers. That sale needs to continue all the way through the administrative support side of the freight transaction. But how much of your time will that gobble up?

If the partner company you’re considering indicates they will do those things on your behalf, what are their processes for those support measures? It’s great when they help get a carrier set up, but at the speed at which the freight industry moves, you know how valuable minutes are, let alone hours of waiting.

And not just normal processes, but not every shipping customer or freight move fits neatly in a box. So how will those needs be met when exceptions occur? Let’s face it, giving a partner company a percentage of the gross margin, you make on a shipment should absolutely come with a clear picture of how they will support your Freight Agency, your shipping customers, and those relationship carriers you have worked hard with to gain their trust.

Ask those tough questions about what happens when this occurs or how quickly a dispute or special need be managed. Remember, the company you partner with needs to be an extension of you and the freight agency you have created.

CHOOSE TRINITY LOGISTICS FOR YOUR FREIGHT AGENCY

We realize you have a choice in who you’d like as your freight agency’s partner. However, Trinity Logistics can help your business grow and remain successful regardless of your freight agency size.

Trinity Logistics has over 30 years of experience aiding in the success of our Authorized Freight Agent offices, as well as offering many extras for our Authorized Agent network. So, if you’re looking for a long-term partnership that is supportive of your growth and offers you continued education to stay competitive, we’re more than happy to get connected.

If you’d like to talk more about how Trinity can support your journey in growing a successful business, feel free to contact our Agent Team by phone at 800-846-3400 x 1908 or click the button below.

Managing transportation costs is a top challenge for shippers, while another challenge that goes in hand is sourcing consistent and reliable capacity. Here enters the contract and spot markets. Which one is best? Which has better shipping freight rates?

Some believe the spot market is the way for shippers to save money and stay on top of capacity, while others think it’s contract. Choosing to use spot rates versus contract rates can be one of the biggest decisions for a logistics manager. Understanding their differences and when is best to use them will help give your business success. So, let’s dive into each of these markets so you can better determine your business’s strategy.

WHAT ARE SPOT RATES? WHAT IS THE SPOT MARKET?

Spot freight rates are short-term transactional quotes for moving freight. These shipping freight rates are the price a transportation provider offers a shipper for a one-time quote to move their product from origin to destination. They reflect the real-time balance of supply and demand in logistics and the truckload market.

The quote is based on the value of the equipment needed at the moment of settlement. What determines the value of that equipment? Well, whether there is an excess or shortage of that exact equipment in the market and the lane at that time. Because market conditions directly affect spot rates, they are dynamic and can change day to day, even hour to hour. This is because the freight market can be more complex than simple supply and demand.

Thus, an increase in supply will lower spot rate prices if not accompanied by increased demand. And an increase in demand will raise spot rate prices unless accompanied by increased supply.

How to Track Rates in the Spot Market

You can keep track of the spot market through several industry websites and freight load boards to give you an inclination of what’s happening in the spot market. Some resources we like to follow are DAT and FREIGHTWAVES. 

We even push out a monthly update to keep you in the loop of rates and other happenings in logistics. You can find our latest Freight Market Update on our YouTube channel.

It’s crucial to stay on top of the spot market should you find the need to use it. Even if you decide to use contract freight, it’s good to keep a pulse on it as contract rates are affected by the spot market. The higher spot rates are, the higher contract rates are too.

Who is the Spot Market Best for?

Many carriers, shippers, and third-party logistics (3PL) companies turn to the spot market for competitive rates. No matter how big or small, every shipper will move some of their freight on the spot market at some point. The spot market is great for when you might have a one-off shipment outside your usual shipping lanes. It’s good for shippers who don’t have enough regular volume for contracts or those who need more capacity than they contracted out. Or even those specialty shipments or non-standard load requirements.

Spot Market Pros/Cons

HOW TO GET YOUR BEST SHIPPING FREIGHT RATE ON THE SPOT MARKET

Provide Accurate, Detailed Shipment Information

Though you can get a spot quote with as little as the origin and destination zip codes, pick-up date, and equipment type, it’s best to have ALL shipment information ready. Excluding any critical information may have you unexpectedly paying for it later. The more precise information you have, the more accurate your spot rate quote will be, so you won’t have any surprise added charges.

Information you should have for your best quote:

• Origin city or zip code

• Destination city or zip code

• If your shipment requires EXACT pick-up and delivery appointments, make sure to communicate your appointments times

• Pickup date

• Equipment type (i.e., dry van, refrigerated, flatbed, RGN, etc.)

• Commodity type

• Product weight

• Any special requirements or non-standard requirements

• Examples of special/non-standard requirements are live load or unload, “no-touch” by the driver, drop trailer, hazardous materials, multi-stop, driver assist, floor-loaded, more than two hours of loading/unloading, and equipment age restrictions.

Provide Ample Lead Time

Shippers will request spot quotes anywhere from a week in advance to the day of. Most will request them one to two business days before their shipping date. The more time you can give before your shipping date, the better, as spot rates tend to increase as the pickup date approaches.

Giving yourself a few extra days to secure pricing and capacity will usually work in your favor and lead to less expensive freight rates. This is because there will be more carriers available versus trying to find one on your shipment day.

Don’t Wait Too Long to Confirm a Good Spot Rate Quote

Spot market rates are volatile and quickly change over short periods of time. Therefore, the quote you received yesterday may be different today. So, when you find a rate that works for your shipment, don’t wait to confirm it. Instead, lock it in ASAP for confirmed pricing and capacity. Once agreed on a rate, a reliable provider will rarely change it UNLESS an important piece of information about your shipment changes.

Set Appointments During Regular Business Hours

There is usually more capacity available during regular business hours. As incredibly hard-working as they are, drivers still like to be home on holidays, weekends, or nights when possible.

If your appointments need to be precise, make sure to include that information in your quote request so your quote can be accurate. But, if you can be flexible with your times, setting appointment windows instead of strict appointment times can open you up to more capacity. For example, drivers have to manage their strict Hours of Service so a flexible appointment window can help them better plan their day.

Spot Market Technology

Many providers offer digital freight platforms and give you access to free instant freight quotes. This can be a great way to stay on top of current pricing without sending a lot of emails to different providers. Good freight providers will have logistics experts on call should you have questions or need more help. But having the ability to get quotes on demand can add time back into your day.

Be Mindful of Carrier Selection

While cost is important when choosing your transportation provider, make sure you consider several other factors into consideration. You should consider their experience, efficiency, and service. While a cheap quote is great, it can sometimes result in a missed pick-up, hidden accessorial, or even a damaged product. All this could end up costing your business more.

When shopping the spot market, shop around and get quotes from a few different providers. Once you have a few quotes, evaluate the rates while considering your shipment requirements and ask yourself a few questions about your potential provider:

• Will this provider meet my service requirements?
• Are they easy to do business with?
• Can I use their tech tools to operate more efficiently?
• If something goes wrong, can I trust them to fix it?

WHAT ARE CONTRACT RATES? WHAT IS THE CONTRACT MARKET?

A contract rate is a rate quoted by a transportation provider to a shipper for a set lane and its freight characteristics over a set period of time. Contract rates can also be known as primary rates, bid rates, committed or dedicated rates. In short, they are a long-term, stable pricing agreement between shippers and transportation providers.

The contract market is highly dependent on the spot market. Typically, the three to six months of spot market activity leading up to an RFP will influence contract rates.

Contract agreements are great for both shippers and transportation providers as the shipper gains committed capacity while the transportation provider gains fixed rates and dedicated freight volume. Everybody wins.

How Contract Agreements are Set

Contracted agreements or Requests For Proposals (RFP) can be set as mini bids (monthly), quarterly, bi-annually, or annually. However, since the contract market and its rates are based on the fluctuating spot market, it’s rare to see a contracted agreement set for more than a year to stay in tune with the market.

Contract agreements are set during the bidding process, aka the RFP. The shipper will take the RFP and send it to a network of transportation providers and those providers will reply with their quotes. At the end of the bid process, the shipper will award lanes to specific providers based on their rate, service, capacity, and any other considerations.

CONTRACT RATE PROS/cons

HOW TO GET YOUR BEST SHIPPING FREIGHT RATE ON THE CONTRACT MARKET

Any shipper has the opportunity to host a bid. There’s no set minimum shipment requirement. So, no matter how large or small you are, you can take advantage of an RFP.

Just like getting quotes for the spot market, the contract market requires detailed information to get your best rates. The more information you can tell your potential providers, the more reliable rates and capacity you’ll be able to get offered. Information that should be included in your bid:

• Commodity type(s)

• Weight per load

• Cargo value

• Estimated shipping volume for each lane

• Time frame of RFP contract

• Origin and destination zip for each lane

• Shipment frequency for each lane

• Any performance requirements

• Any special load requirements/accessorials

• Fuel surcharges

• Keep in mind that fuel surcharges account for around 30 percent of a carrier’s operating expenses, and as we all know, fuel costs can fluctuate dramatically.

• It’s important to establish your own fuel surcharge matrix for each potential diesel price and communicate that with your providers before conducting a bid. This will help you get consistent and accurate rates.

What Happens When a Contract is Broken?

Sometimes, contracts will get broken. For both shippers and carriers, breaking a contract may result in fines. Most likely when a carrier breaks a contract, they will end up with a dissatisfied customer and disqualification from future bid opportunities. While shippers will face a damaged carrier relationship, less reliable capacity, and most likely, higher rates on the next bid.

Technology Needed for RFPs

While the practice of RFPs sounds great, what’s the catch? For an RFP to work effectively, shippers need to be organized in their execution and collection of information. No matter your size, every shipper needs a way to track and store their supply chain data and procurement information. It helps to have one central location to keep all your freight volumes, provider names, and awarded lanes.

Some smaller shippers will use tools like Microsoft Excel, Google Docs, or even their providers’ technology platforms to manage their RFP data.

But if you’re a larger shipper, those tools can be overkill. Instead, 90 percent of shippers use digital platforms, often transportation management systems (TMS) to manage their procurement information. A TMS can help take the complexity out of RFPs and take your process from a few hours to a few minutes. It allows you to enter your contract information quickly, select the transportation providers you want quotes from, and click send. It will also help you have one location to easily view bids and communication around your loads, keeping you from overwhelming clutter.

Regardless of which workflow you decide for your business, it’s crucial to have a well-documented record on hand to easily reference.

WHAT’S BEST FOR ME?

Usually, no shipper runs all their freight through the contract market alone. As there are positives to each market and it can be hard to predict all volume, most shippers work to have a strategic blend of both spot and contract rates. What works best for your business will depend on the current state of the freight market, your freight, and your provider relationships.

Some questions to ask yourself when determining what market will work best for you are:

• Are my freight lanes affected by peak capacity demands during the year?
  • If you answered yes, the contract market, especially during those times of tight capacity, may be best for you.

• Am I willing to take on the risk of price fluctuations?
  • If you answered yes, you might want to look at the spot market first.

• Does the contract price include a capacity guarantee throughout the year, without a general rate increase (GRI)?
  • If you answered yes, the contract market may be best for you.

If you have determined that your volume is sporadic and not consistent, the spot market may be best for you, but it doesn’t mean that you can’t work with a carrier contractually. You can still build an approved carrier list with strong relationships even if you have to use the spot market on every shipment.

If you decide contracted freight is best for your company, keep an eye on spot market indexes and position your RFP bidding based on the freight cycle when possible. By moving your RFPs to when the market is at its lowest levels, you’ll gain your best rates.

Some shippers budget for 70 percent contracted and 30 percent spot or 50-50. No matter your balance, the freight market is always changing and so should your strategy. Keep a pulse on the market and your business needs so you can always find what’s best for your company.

NEED HELP WITH YOUR STRATEGY FOR COMPETITIVE SHIPPING FREIGHT RATES?

A shipper’s decision in balancing the use of contract versus spot rates can be difficult. Finding a good strategy for competitive shipping freight rates can be a lot of trial and error.

If you’re having challenges deciding when to use each market, Trinity Logistics can help. We have the technology and expertise you need to simplify your logistics management and offer support. Our Team Member experts are here to help you with your logistics strategy, including offering Quarterly Business Reviews and Freight Market Updates, so you can keep a pulse on industry trends and your company’s growth.

With cold chain logistics, every product that you deal with has very specific temperature requirements that you need to adhere to. These products are ending up on tables across the entire country, so you want to make your product arrives precisely the way it needs to be so it’s safe for human consumption. Because of this, cold chain logistics can be challenging to manage, and finding reliable providers can be frustrating. There are many moving parts of the cold chain that can be hard to follow and track. It would undoubtedly be helpful to find one provider that could offer you end-to-end cold chain management, from production to delivery. And that’s what we’re here to talk about today. Burris Logistics and Trinity Logistics working together could be the solutions you’ve been looking for to simplify your cold chain management. Keep reading to find out how we work better together to serve your complete cold chain.

BURRIS LOGISTICS CAPABILITIES

Let’s start with Burris Logistics. What do they offer that can enable cold chain shippers and their businesses to thrive in the face of its complexities?

Quick Background

Burris Logistics has been around for 96 years. The company started as a produce hauler from southern Delmarva to Philadelphia. They quickly grew and expanded into the frozen food business and found their purpose as a driven food logistics provider. Today, they own 14 cold storage sites up and down the east coast and out into Midwest. Burris Logistics currently has a family of brands including Burris PRW Plus, Honor Foods, and Trinity Logistics.

TRINITY LOGISTICS CAPABILITIES

Quick Background

Trinity Logistics has been around for over 40 years. The company was started by the Banning family in Cambridge, Maryland. Throughout the years, the company grew and expanded as a non-asset-based third-party logistics company (3PL) and was acquired by Burris in 2019. The two companies saw similarities in company culture and future goals, deciding to unite for greater opportunities and offer more supply chain solutions for our customers.

Burris + Trinity = Better TogetherURRIS

What’s great for Trinity being part of the Burris Logistics family of brands is being able to offer more help to Burris customers. Trinity’s support helps Burris better assist some of the existing freight business they have for customers either coming back into their buildings or going to other places.

The addition of Trinity also offers Burris customers a wider variety of options in modes and technology, or even help outside of the cold chain. Trinity is very experienced in heavy haul moves or more complicated hazardous moves for the chemical industry. So, no matter the size of your company or freight, we have a solution for you. But, we’re here to talk about the cold chain, so let’s focus on refrigerated and frozen freight.

HOW WE CAN SERVE YOUR COLD CHAIN BETTER TOGETHER

Experience in Cold Chain

For many reasons, Burris Logistics and Trinity work well together for cold chain shippers. First off is our combined years of experience. There are certain things in cold chain you can only learn from the experience of working with temperature-controlled shipments. For example, things like picking and loading fresh produce, understanding what those temperatures are and what they need to be for storage and transit, and keeping track of those temperatures. Or understanding how to move ice cream from the West Coast and knowing that you can’t go over the mountains; that you must travel around them so as not to cause shrinkage. By having years of experience and understanding of those complex situations and small details that make or break a cold chain shipment, you can trust your temperature-controlled freight is handled safely and correctly with Burris and Trinity.

Technology

Between both Burris and Trinity, we have incredible logistics technology available, but what differentiates us from others is that we keep in mind that logistics is still a “people” business. Technology will always be a tool for our Teams to use and bring logistics solutions to other people who need them. Therefore, we try to stay away from technology just for technology’s sake and make sure what we use and offer is always a valuable solution.

Communication

Because of our years of experience, we are well-versed and experienced in many different situations. We know when and how to pivot quickly and keep business moving forward. When issues arise, we work until they are resolved and keep open communication every step of the way. Having a solid relationship with experts like Burris and Trinity will prove to be your largest asset no matter what supply chain bottlenecks you may face

Flexible, Customized Solutions

Because our two businesses offer many options while keeping business People-Centric, it means you can find a solution that’s customized for your growing business and needs and your solution can be flexible. We know the cold chain and solutions aren’t static, they are ever-changing, so you need a provider that can keep up. By working with Burris and Trinity, you’ll never have to worry about changing up your logistics plan as we’re readily equipped to accommodate any changes you may need. In addition, we can help you stay flexible as one sole provider instead of working with several.

Visibility and End-to-End Cold Chain Management

As the cold chain sector continues to grow, there’s been a growing demand for efficiency and visibility throughout the supply chain. Companies don’t like to be left in the dark when it comes to the logistics of their temperature-controlled freight. Working with Burris and Trinity can not only give you a wide range of technology to gain visibility and provide you with all the logistics services you may need, thus making your cold chain efficient and transparent. We’ll provide you with dedicated, knowledgeable experts, increased productivity and workflows, and reduced complexity by working with Burris Logistics and their family of brands instead of several different providers.

HAVE YOUR COLD CHAIN LOGISTICS TAKEN CARE OF, END-TO-END

Between Trinity and Burris, we have a substantial Team with a lot of experience in cold chain and knowledge about its potential pitfalls. As a result, we’ve created processes and different services so that we get it right the first time, every time we handle a cold chain shipment.

You can find value in our combined companies’ sizes and services offered. Cold chain logistics can be complicated and trying to do it all alone can be frustrating. That’s why we’re here to help you simplify it. You can count on Burris Logistics and Trinity to serve and support your cold chain all the way from production to delivery, and every step between.

Using transportation management software (TMS) is a powerful way to gain control and visibility over your supply chain. But trying to decide which transportation management provider to use can be overwhelming. There are so many different software platforms available and providers that offer transportation management software. How can you choose the best software and provider for you?

When starting your search for a transportation management provider, there are several questions you should ask yourself: 

• Do I want a cloud-based TMS or otherwise? 
• What capabilities do I want from the TMS? 
• Do I want a Managed Services option? 
• Am I looking for more help than just technology when it comes to my logistics? 
• Most importantly, do I want to buy the software outright or outsource it?

BREAKING DOWN THE TWO TYPES OF TRANSPORTATION MANAGEMENT PROVIDERS

On a high level, there are two different types of companies that offer TMS products. There are software companies whose sole purpose is to develop and sell TMS software. Then there are third-party logistics (3PL) companies that offer TMS software as one element of the many other logistics and transportation services they provide. 

There are differences and advantages to working with each kind of transportation management provider. Particularly, sourcing your TMS through a 3PL provider can have some major benefits, especially for small- to medium-sized businesses.

In the past, implementing a TMS was usually out of reach if your company was not of a certain size. However, advances in transportation management software have made it an option for more companies than ever.  

For this reason, deploying a TMS can be a new experience for small- to mid-sized companies. And working directly with a software provider can be intimidating if that’s the case. Additionally, logistics may not be a core focus for smaller companies, so they might need an extra hand in determining their best solution.

TRANSPORTATION MANAGEMENT SOFTWARE COMPANIES

The transportation management software of today is nothing like it was years ago. However, implementing a TMS will often make it the new backbone of your supply chain. And if you’re looking to purchase software outright versus outsourcing with a 3PL, you’ll soon realize that not all transportation management software companies offer the same thing. 

When shopping around for your own transportation management software, you’ll want to look for these capabilities:

• Rating and contract management
  • This will help you with managing freight rates, sourcing, contract management, and bid RFP tools.
• Order planning
  • This will help you with routing, optimizing your delivery processes, integrating your delivery data, and getting a granular view of all transportation stages.
• Optimization
  • This will help you by offering more comprehensive load-building tools so you can identify opportunities to reduce costs, whether through consolidation, multi-stops, zone skipping, pool distribution, or other methods.
• Load Tendering
  • This helps you by automating tendering, managing your carriers, and helping turn quotes into loads.
• Tracking
  • Simple enough, this helps you by giving you end-to-end, real-time visibility.
• Reporting
  • This gives you more insightful data into your processes, so you can review expenses, carrier performance, and more to find what’s working and what’s not.
• Financials
  • This helps you by helping automate financial operations.

According to Intek, these are some of the top transportation management software providers:

3GTMS

BLUEJAY

CLOUD LOGISTICS

DESCARTES

JDA

KUEBIX

MANHATTAN

MERCURY GATE

ORACLE

SAP

TMC

TMW

TRANSPLACE

A TMS ALONE MAY NOT BE WORTH IT

Just like buying QuickBooks doesn’t automatically make you an accountant or purchasing Adobe Creative Suite doesn’t make you a graphic designer, purchasing a TMS outright doesn’t automatically make you an expert in how to use it. 

To start seeing the benefits of transportation management software, you’ll need a team of experts to use it. You’re going to need to build out a team of transportation management software specialists who can expertly use, read, and pull reporting from your new TMS. Unfortunately, the amount of expertise and support needed can be difficult to find, establish, and maintain. 

This is where you might find a greater benefit to using a transportation management software provider who does more than sell TMS software.

MAKING A CASE FOR A 3PL PROVIDER

You might think 3PL companies only handle arranging freight, but they offer so much more and can be an ideal transportation management provider.

Transportation Management Software

A 3PL can be an excellent option for a transportation management provider. Not only do you gain access to their TMS technology, you know that they will know the software inside and out as most make use of it themselves. You’ll have access to experts who know how to make use of all the tools and reporting. Additionally, many offer Managed Services with their transportation management software, meaning you could have a team of TMS specialists ready to help you from Day 1. No worries over finding, training, and retaining your own in-house team.

Access to Their Relationships

Outside of their transportation management software, you’ll also gain access to a 3PL’s relationships. This includes their carrier, vendor, and technology relationships. So, whether you need them or not, it’s still good to know that should the time come when you need some extra help, you have a 3PL on your side to support you through their built industry connections.

Expertise

Often, 3PLs have seen it all. They’ve most likely worked with many different companies, freight, and complicated situations. They’ve faced supply chain disruption, tight turnaround times, and transportation inefficiencies. Having a logistics expert like a 3PL on your side can be an exponentially significant benefit. It can be near impossible to source the type of knowledge and consultative expertise a 3PL has without directly working with one. 

Customizable Solutions

Generally, a 3PL will work with your team to deploy a system that specifically meets your needs, while a software company is more likely to offer an “out of the box” solution. That’s perfectly fine if you know exactly what you are looking for. But for smaller companies with less logistics experience, it can be overwhelming. A 3PL can help fill the knowledge gaps and ensure your investment is valuable and will have ROI.

This difference can also have an impact on the cost of implementation. Software companies tend to consider a customized solution as more work for their implementation team, which translates into person-hours, and into higher implementation fees for your company. On the other hand, an experienced 3PL can guide you through the process and advise the best options for your company, and that’s not considered an additional service. Again, this may not be required for companies with very experienced and knowledgeable logistics departments – especially if they have implemented a TMS before – but it’s extremely valuable for businesses that may be doing this for the first time.

TRINITY LOGISTICS COULD BE THE TRANSPORTATION MANAGEMENT PROVIDER FOR YOU

Trinity Logistics is an excellent example of a 3PL that offers a TMS to its customers while also offering many other services.

At Trinity, we understand everyone’s needs are different, which is why we offer a highly configurable system. To start, we offer you three main options in transportation management software:

• Software-as-a-Service (Saas)
  • Looking just for transportation management software? Through this option, you’ll get the tech, support, and account management. 
• A managed TMS
  • Looking for a TMS and some additional support? Through this option, you’ll get TMS technology and operational support to offload your day-to-day processes.
• An Integrated outsource TMS
  • Want to fully outsource your transportation management? This option gives you the TMS plus a fully outsourced logistics team with an integrated partnership.

If none of those three options fit your business’s needs, we can further customize a solution for you, so you get exactly what you’re looking for. No matter your unique needs, you’ll gain access to our best-in-class technology backed by superusers with logistics expertise. And through our People-Centric service, you’ll gain valuable insight, support, and knowledge for your company’s logistics management. 

NOT LOOKING FOR A FULL TRANSPORTATION MANAGEMENT SOFTWARE EXPERIENCE?

We understand committing to a transportation management provider is a big change. That’s why we also offer you Trinity’s Customer Portal, exclusively for shippers working with Trinity. There’s no commitment or additional charges and you’ll get to experience a sample of our TMS technology. Through the Customer Portal, you can track your Trinity shipments, request quotes, and view and pay your invoices online – all in one place.

Author: Christine Morris

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

MANUAL PROCESS: TOO MUCH TYPING 

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

TMS SOLUTION 

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

MANUAL PROCESS: QUOTE MANAGEMENT 

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

TMS SOLUTION 

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

MANUAL PROCESS: DOCUMENT MANAGEMENT 

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

TMS SOLUTION 

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

MANUAL PROCESS: FINDING AN AVAILABLE QUALIFIED CARRIER 

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

TMS SOLUTION 

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

MANUAL PROCESS: SHIPMENT DELAYS/TRACKING/TRACING 

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

TMS SOLUTION  

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

MANUAL PROCESS: REPORTING 

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

TMS SOLUTION 

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

READY TO ELIMINATE MANUAL PROCESSES FROM YOUR LOGISTICS? 

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

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

Author: Christine Morris

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.

LOOKING 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?

Looking 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.

AUTHOR: 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? 

Not 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.