HVAC contractors and plumbers continue to face supply chain woes like material shortages and rising costs. 

Battling these issues is making it tougher for HVAC contractors and plumbers to meet their customer’s demands in the short term and perhaps even longer. Here’s what HVAC contractors and plumbers can do to rise above. 

WORK WITH MANY SUPPLIERS 

If current suppliers can’t meet your needs, then it’s a good time to explore other ones. Many suppliers are ready to strike up new relationships and may be willing to be more flexible with contracts. Shopping with multiple suppliers will not only gain you access to more resources but can offer you more varied pricing options to consider. 

CONSIDER ALTERNATIVE MATERIALS 

It might be worth checking into other materials as they may be easier to get your hands on. Considering other brands of materials or equipment can keep your projects from staying stagnant. 

COMMUNICATION IS KING 

In difficult times like these, communication can be something that gives your company a competitive edge. Not only is it a vital aspect of a successful business, but it helps build trust and long-lasting relationships. While no one likes delivering bad news about backorders or delays, keeping your customers informed will go far, as they’ll appreciate your honesty and transparency. 

IMPROVING CUSTOMER SERVICE 

While material shortages and delays are out of your hands, great customer service will keep your current customers and help you gain new ones. In addition, extra attention to customer service can help address any frustrations among your customers. While these challenges may not last forever, your reputation will, so make sure yours remains good, if not great. 

PRE-ORDER MATERIALS AND EQUIPMENT 

Many HVAC contractors and plumbers often only order the materials and equipment as needed. Instead, plan and stock up on the materials you most often use for your projects. This way, you’ll have what you need ready instead of waiting for materials to deliver. 

CONSIDER MODE DIVERSIFICATION 

Trying different modes of transportation could help you offset your increased costs. Keep an eye on transportation costs across the different modes available. Being more flexible with your freight shipping can give you some financial benefits. 

INVEST IN TECHNOLOGY 

Logistics technology, like a transportation management system (TMS), has tools available to help you stay on top of your supply chain and plan efficiently. One example is helping you with your routing decisions by matching your freight with the best carriers, lanes, rates, and transit service. It will also enable you to better track and manage any service disruptions or shipment delays in real-time, thus increasing your service levels and improving your customer relationships. 

THINK ABOUT ONSHORING 

Onshoring is a strategy that HVAC contractors and plumbers can use to mitigate supply chain woes and improve competitiveness. Onshoring strategy can ensure resilience in your supply chain and give your company a competitive edge. 

Onshoring refers to the overall practice of moving manufacturing operations from foreign soil back to the United States or outsourcing to domestic contract manufacturers rather than overseas. An example of onshoring would be having operations moved to Mexico versus China.

Onshoring allows your supply chain shorter travel times since materials and products are much closer than if they were overseas. This not only keeps your projects moving that much quicker but reduces your transportation costs. Additionally, you’ll also have the benefit of being greener due to less fuel being used. 

CONSIDER OUTSOURCING YOUR LOGISTICS 

According to the 2020 Annual Third-Party Logistics Study, 67 percent of shippers stating using a 3PL contributed to reducing their logistics cost, while 83 percent said it improved their service. By outsourcing to a 3PL, like Trinity Logistics, you won’t have to spend hours worrying about your logistics and get the help you may need to be more flexible with your shipping options. 

“In this market where it’s difficult to meet demand and project deadlines due to material and product shortages, it may not be the best option to send it via LTL as you may save a few dollars on the front end but pay for it with extended estimated transit times, and the possibility of the parts being damaged as they go from terminal to terminal throughout transit. Working with a 3PL, like Trinity Logistics, can bring you other possibilities on how to move your freight efficiently, such as dedicated full truck options, expedited (straight trucks/sprinter vans), partial, and hot shot options to keep your freight moving to arrive on time so you can achieve your project deadlines.”

– Michael Whitaker, Business Development Representative at Trinity Logistics 

If you’re looking for a reliable 3PL provider to help with your HVAC supply chain, consider Trinity Logistics. With Trinity, you gain a Team of experts to help optimize your supply chain, help arrange shipping using other modes, and end-to-end visibility through our available technology.

DISCOVER TRINITY LOGISTICS

Optimized load planning is fundamental to improving your service and revenue.

Could your company be wasting money on a logistics strategy that doesn’t work? Efficient load planning is more critical than ever and a key performance area for any supply chain. Ideally, you want to be able to move your product to your customers while maintaining desired service levels in the most efficient way. Logistics optimization strategies such as improving your load planning processes can be an effective way to reduce freight costs by as much as 10 to 40 percent.

While this sounds great, load planning can be a very manual and time-consuming process. A transportation management system (TMS), specifically one that includes a freight optimization tool, is one way to analyze and take your load planning process from hours of manual work to minutes through automation and technology.

Start saving time and get your free supply chain analysis with Trinity Logistics.

COMMON LOAD PLANNING TMS MISCONCEPTIONS

Before we dive into how a TMS can help you with your load planning, perhaps you’ve thought of one of these common misconceptions.

A TMS Optimizes on Its Own

First off, not all TMS platforms are the same. Some may not even offer load planning tools. It’s also important to see what kind of support is offered, as having an expert available can help provide you with more insight than the software alone.

The Optimized Load Plan Will Be Perfect Every Time

Technology is a great tool to make your logistics processes more efficient. The word to remember here is “tool”. Even a TMS with a freight optimization tool can overlook certain opportunities for freight consolidation, so it’s important to always treat your transportation technology as an aid to your load planning process and not as a full replacement for it.  

BENEFITS OF OPTIMIZED LOAD PLANNING

HOW A TMS HELPS OPTIMIZE YOUR LOAD PLANNING

A TMS is a powerful tool for optimizing your load planning. A TMS provides you visibility into your entire logistics process. This allows you to monitor performance and create efficient plans. It helps you with your forecasting and planning so you can find cost-saving options. A TMS can help give you a clearer picture of your entire freight network by housing all your transportation information in one system.

Now, there is a lot of transportation management software out there. To gain the most benefit for your load planning process, you’ll want to make sure you select one with a freight optimization tool.

New to transportation management software? Download our FREE Guide to Transportation Management Software.

WHY WOULD I NEED A FREIGHT OPTIMIZATION TOOL?

Anyone who has gone through the process of figuring out how to reduce shipping costs for each of their loads knows how much of a pain it can truly be. The process starts with tracking down all your open shipments, deciding what loads should be moved together, and then building, rating, and tendering those loads manually. For those who have not implemented a TMS, this is usually done with paper and pencil or an Excel spreadsheet.

Many factors go into optimizing shipments, including the number of pallets and weight of each shipment (taking trailer size into consideration), delivery availability for locations, and special services needed.

Perhaps one of the most important dynamics of building a shipment is delivery deadlines. It’s imperative to take note of whether a truck can deliver to single or multiple locations and arrive on time, factoring in the drivers’ hours of service (HOS) and loading and unloading times.

In sum, it’s a like a complex jigsaw puzzle made up of your freight, and trying to figure it out alone can be difficult.

Learn how Trinity's TMS helped Pompeian increase efficiency and reduce costs.

HOW CAN A FREIGHT OPTIMIZATION TOOL HELP ME?

The freight optimization tool in a TMS will take your list of open shipments and consolidate them into loads based on the criteria specified by you. The software’s criteria encompass ship and delivery date flexibility, maximum weight per shipment, the maximum number of pieces, the number of picks and drops, driver hours, and more.

You’re also able to choose which carriers you want to include for consideration. Once these parameters are set and the optimizer has been run, you also have the capability to auto-create loads in the TMS based on the optimizer’s results.

The optimizer tool accomplishes in minutes what usually takes a person hours to calculate and configure, with the likelihood of saving money in the meantime. The top benefits here translate to both time and money saved. Gone are the days of sitting at your desk for hours with a calculator and a headache.

In summary, our TMS (and other similar products) allow you to enter all your shipments, whether it’s 20 or 1000, and will automatically calculate the most efficient way to route your shipments by combining smaller shipments into multi-drop truckloads, keeping other shipments separate, and configuring the way it all gets routed across the country. The results of the freight optimization tool include the reported cost savings and a detailed report of the loads proposed.

START OPTIMIZING YOUR LOAD PLANNING WITH TRINITY’S TMS

Logistics optimization never ends. It is a continuous process only limited by your time, technology, and commitment to improvement. And ensuring your company has access to a best-in-class TMS is the key to starting that process and finding efficiencies.

Discover how Trinity’s TMS, including its freight optimization tool, can improve your logistics processes, like load planning, helping you offer better customer service and reduce costs while increasing revenue.

SIGN UP FOR A FREE SUPPLY CHAIN ANALYSIS AND TMS DEMO

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).

Get started with a demo of Trinity's TMS

TOP 5 LOGISTICS REPORTS YOU NEED

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

Image of Freight accruals report (sample)
Freight accruals can give you insight to your transportation costs in your logistics analytics.
Image of Freight accruals report (details) - carrier breakdown

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

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Carrier scorecard can give you insight to your carrier’s performance in your logistics analytics.

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

Image of Lest cost carriers report (sample)
Least cost carriers can give help you identify potential problem areas in your logistics analytics.

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.

I'm ready for a clearer insight into my logistics analytics.

The chemical industry serves as support for many other industries, like agriculture, automotive, construction, and pharmaceuticals. According to an American Chemistry Council report, 96 percent of all manufactured goods trace back to chemical manufacturers. Chemical manufacturers often process raw materials into refined products used in other industries or within the chemical industry. However, raw materials costs have been rising recently, along with additional operating costs in the chemical industry.  

As chemical manufacturers face increased expenses, many find it more challenging to remain profitable. How can chemical manufacturers better manage their operating costs? In this blog, we’ll take a walk through what chemical manufacturers are currently facing and how they can better manage their operating expenses.  

Rising Raw Material Costs 

Raw materials costs have been rising in recent years. Part of the cause for increased prices is because they’ve gotten scarcer as the demand has risen for them. For example, raw agricultural materials have increased 117 percent since 2000, rubber has seen an increase of 359 percent, and steel is up 167 percent.  

Crude oil, which many chemical companies use for energy and other materials, is up 250 percent since 2000. Crude oil prices are the most important ones to watch because it affects so many different markets. For example, many basic ingredients originate in the oil and gas fields and then travel through a global supply chain to make materials like plastics, packaging, fertilizers, lubricants, paints, and much more. Additionally, higher energy costs mean higher operating costs for the chemical industry.  

Logistics Operating Costs in the Chemical Industry 

The strength of long, global supply chains continue to be tested. From the start of the Covid-19 pandemic to battling intense weather and labor shortages, prices for logistics operating costs in the chemical industry have skyrocketed. Chemical supply chains have had their weaknesses exposed, from their dependence upon the volatile oil and gas sector to their global shipping networks. It’s caused additional cost as many of the materials needed to operate are out of stock due to shipping congestion and backlogs. According to a survey done by the National Association of Chemical Distributors, 85 percent of chemical industry distributors reported at least one imported item out of stock. 

How to Better Manage Operating Costs in the Chemical Industry 

Interestingly enough, skyrocketing logistics costs are beginning to outweigh other operating expenses for chemical manufacturers. Finding better management and control in your logistics may be the thing to keep your chemical company cost competitive. As a result, a growing trend among chemical manufacturers is turning to outside help for their logistics. Many chemical companies find that using a third-party logistics company (3PL) makes a lot of sense. It helps them free up resources to focus on other aspects of their business. Here are some ways working with a 3PL can help you manage your operating costs.  

Find the Right Carrier – In Less Time 

We all know the stress and workload of finding a carrier to move your freight, especially for chemical manufacturers who need carriers that know how to handle their products safely. Capacity can be limited when looking for a hazmat certified, or tanker endorsed carrier for a decent shipping rate. Outsourcing your transportation is one solution to that problem.  

3PLs will take over the responsibilities of finding and vetting qualified carriers. A 3PL should make sure carriers have the proper credentials, insurance, and experience for your freight. Take control of your time and let someone else take on the workload so you can gain time for the rest of your business.  

Do you need help arranging your shipments? Gain access to our carrier network.

Create Efficiency With A 3PL’s Technology 

Working with a 3PL also offers you access to their technology services, like shipment tracking, automated workflows, and detailed reporting. By replacing your manual processes with logistics technology, you’ll find more visibility into your supply chain. And that visibility can help you find efficiencies to help you manage your operating costs. While the technology itself can be an extra cost alone, most 3PLs offer you technology applications along with freight arrangements. Additionally, you’ll have experts you can rely on to help you navigate those applications.  

Transportation Management Systems 

Click Here to Download our whitepaper on Guide to Transportation Management System.

All chemical companies are focusing on streamlining their operations, whether they choose to outsource their logistics or not. Many companies are turning to transportation management systems (TMS) to optimize their transportation networks. 

A TMS can help your business gain visibility into your supply chain, create new efficiencies, and automate your manual workload, so you can better manage operating costs.  

When using a 3PL, you often have options to choose how you want to integrate your TMS. Trinity Logistics offers you customer integration and a specialist to work with you every step of the way. No matter what option you choose, you gain the visibility and automation you’re looking.  

Control Your Logistics Costs 

In business and life, there are certain aspects that you can manage and control. As a chemical manufacturer, you must manage those costs that you can control and plan for those variances in costs for those you cannot. Logistics is one operating cost you can manage when you choose to partner with a 3PL.  

And you don’t have to look too far to find one. Trinity Logistics is well-versed in the chemical industry and understands your complicated market. Our Team of experts is here to help you find the quality carrier you need while offering technology to help you create efficiencies. We can help you gain control over your logistics costs, so you can make room for those other unknowns.  

If you’re ready to get a handle on your operating costs in the chemical industry, let’s get connected.  

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Author: Christine Morris

You’ve finally decided it’s time to get some help with your logistics. You’ve heard about third-party logistics (3PL) companies and the services they offer having many benefits to those who use them. According to a report by Ibisworld, there are over 20,000 3PL companies in the U.S. alone. 

When looking to choose the right 3PL for your company, it all comes down to what you’re looking for. Whether you’re looking for one with advanced technology, great customer service, an extensive carrier relationship network, or perhaps an expert in your commodity, there’s sure to be one that makes sense for your business. 

Choosing the right 3PL is essential to ensure your company gets exactly what it needs for its logistics. With so many different 3PL companies out there, we wanted to offer you some information so you can choose the right one for your needs. In this blog, we take some of our competitors and compare them, as well as ourselves, so you can see how they differ. 

First Steps

First things first, to find the right 3PL for your company, here are some steps you can follow to ensure you choose the right partner:

Logistics Companies Comparison

We chose some well-known 3PLs to analyze for our comparison, including C.H. Robinson, XPO Logistics, Redwood Logistics, and ourselves. We’ll compare the different companies’ backgrounds, technology, and company culture to help you start your search for a 3PL provider. 

Background Information

One thing you should look into when researching 3PLs is their background. It’s important to find out some basic information about your potential provider, such as how long they have been in business, the number of locations they have, and their company’s mission.

C.H. Robinson 

XPO Logistics

Redwood Logistics

Trinity Logistics

Technology

Technology is a key aspect of the success of your logistics companies. Many 3PL companies provide different technology perks to help simplify your logistics processes. Let’s look at what these companies offer.

C.H. Robinson

C.H. Robinson offers technology applications for transportation management through their Global Transportation Management System (TMS), freight visibility, pricing, and analytics through Navisphere, planning through PO Management, and procurement through Procure IQ. They also offer carriers technology through their Navisphere Driver App. 

XPO Logistics

XPO Logistics offers a digital transportation platform designed to increase efficiency for their customer, called XPO Connect. This platform gives visibility into shipment status and helps streamline tasks through automation and digital sourcing of capacity. 

Redwood Logistics

Redwood offers their digital logistics platform called LPaaS. This stands for Logistics Platform as a Service and XPO make this the centerpiece of the company. This “open platform for digital solutions” highlights that LPaaS is the connection between logistics and technology to create a network that is efficient, cost-effective, and personalized for your logistics solutions.

Trinity Logistics

Trinity offers best-in-class technology for both shippers and carriers. Shippers can take advantage of Trinity’s Customer Portal to stay updated on their shipments, access or pay invoices online, or request new freight quotes easily. If looking for transportation management, shippers can find their own customized transportation management solution with Trinity, whether that be Integrated Outsourced, Managed, Software-as-a-Service (SaaS), or their own specific TMS solution. For less-than-truckload (LTL) shippers, there’s Banyan LTL to make shipping your LTL freight easier. 

Carriers have just as many technology options as shipper customers through the Carrier Portal, TriumphPay for quick and easy payments, and load booking features through DAT BookNow. 

Carriers and shippers can both take advantage of easy tracking technology options such as MacroPoint, Trucker Tools, and FourKites. 

Company Culture

One final aspect that you should learn about your potential 3PL company is its culture. You want to find a 3PL provider who aligns with your mission, as well as treats their employees right. We all know a happy employee equals great customer service!

C.H. Robinson

C.H. Robinson embraces their value through their E.D.G.E program; evolves constantly, delivers excellence, grows together, and embraces integrity. 

XPO Logistics

XPO’s values are inclusivity, safety, being entrepreneurial, being respectful, and being innovative.

Redwood Logistics

Redwood believes in environmental stewardship, social and workplace culture, and corporate governance. 

Trinity Logistics

At Trinity, culture revolves around a set of Guiding Values. Those are:

Teamwork: We listen. We collaborate. We solve. 

Integrity: We do the right thing!

Legacy: Our journey has a purpose.

Fun: Fun lives here!

Continuous Improvement: We aspire to reach our {untapped, full, greatest} potential.

Excellence: We challenge the status quo. 

Determination: We are persistent and unshakable in overcoming obstacles.

Leaders: We are all leaders committed to serving and empowering others.

Find What Works Best for YOU

Whether large or small, having many years of experience or few, or having multiple platforms of technology or just one, the best 3PL for your company is your decision alone. While we at Trinity would love to work with you, we know that the best relationships are built upon respect, equality, trust, and communication.

We hope this logistics company comparison helped you begin your research into your future 3PL provider. Make sure you find the right provider that aligns with your goals and will help you succeed. And if that provider happens to be us, we’re ready to provide you with our People-Centric Trinity Experience.

Request a Freight Quote with Trinity

By: Turner Lee

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: 

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:

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:

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. 

GET A FREE SUPPLY CHAIN ANALYSIS TO SEE WHAT SOLUTIONS WE HAVE FOR YOU

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.

START SHIPPING WITH TRINITY TO GAIN ACCESS

Author: Christine Morris

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

WAITING, WAITING, WAITING…

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

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

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

WHAT IS TRUCK DETENTION?

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

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

WHY/HOW DOES TRUCK DETENTION HAPPEN?

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

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

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

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

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

HOW TRUCK DETENTION IMPACTS…

Truck Drivers

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

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

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

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

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

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

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

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

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

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

Shippers

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

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

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

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

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

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

HOW TO MINIMIZE DETENTION AND DOCK DELAYS

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

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

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

Staggered Appointment Times

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

Extended Facility Hours

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

Mode Specific Dock Doors

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

Adding More Dock Doors

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

Have Better Dock Awareness/Improved Dock Scheduling

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

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

Using Technology

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

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

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

Hiring More Labor

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

Staggering Your Labor

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

Drop and Hook Programs

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

Communication

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

Improved Operations

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

Hold Regular Business Reviews with Your Logistics Providers

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

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

LET’S DO BETTER

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

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

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

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

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

REQUEST A FREIGHT QUOTE WITH TRINITY

Author: Christine Morris

I’m sure you’ve heard the term TMS before in logistics, but what does it stand for? The term TMS is short for Transportation Management System. The reason you’ve probably heard that term TMS is that it is the most common and effective way for shippers to manage their logistics in one place. This technology allows companies to manage their transportation in one place. Transportation Management software offers you a way to view insightful data, gain visibility, and better manage all the moving parts in the shipping process. While a TMS might seem daunting and expensive, it’s become an essential tool for businesses to be successful.  

Who uses Transportation Management Software? 

If you have a business in which you regularly need to ship, move, and receive goods on a regular basis then a TMS is a technology you should consider. Many companies use a TMS, such as manufacturers, distributors, e-commerce companies, retail businesses, and companies that provide logistics services (like us). A TMS is best suited for companies that spend more than $1 million in freight, use an array of transportation modes, have several locations, get a majority of your freight via the spot market, or manage most of your data through Excel spreadsheets.  

Why You Need Transportation Management Software 

Transportation management affects every part of your logistics process, from planning to procurement and more. It’s a large piece of the logistics puzzle. If you’re not using a TMS, what are those processes? Are you using programs like Excel and Outlook to manage your shipments? How do you gather and view data? How much visibility do you have into your logistics? Simply put, a TMS makes your transportation easier on you, enabling you to serve your customers better. To give you a better idea of how it helps, let’s look at the benefits.  

What are the Benefits of Transportation Management Software?  

There are so many benefits to using a TMS. Through a TMS, you can automate and optimize your processes, gain visibility into your logistics, and view valuable data.  

Automation 

A TMS allows your company to eliminate your manual transportation processes. A TMS offers you automation with your load planning and execution through its advanced algorithms. With this, it can optimize each shipment, allows freight tracking by using real-time updates, payment processes are simplifying and streamlining invoices are audited, and develops reports through its in-depth data collecting.  

Optimization 

A TMS is a perfect resource if you’re looking for your logistics to be more efficient and optimized. For one example, a TMS can analyze many batch shipments based on various sophisticated parameters and can determine the most cost-effective route plan for your shipment. A TMS can make recommendations for you on different factors like least-cost mode analysis, freight consolidation options, and continuous move opportunities. It can also account for many other factors, including your due dates, mileage, vehicle weight, stops during transit, and out-of-route parameters. The optimization engine of the TMS allows for dynamic, static, and closed-loop routing. 

Visibility 

Real-time visibility of your logistics data and activity are the primary value drivers for companies implementing a TMS.  A TMS can help you view data from internal systems, vendor systems, and get data that may not have been accessible before. Along with collecting data, visibility from a TMS allows your stakeholders access to update their part of a shipment and receive their own real-time. A TMS will essentially act as a virtual control tower for all your logistics updates and communications. Visibility has gone from being an optional benefit to a necessary one in logistics. Using a TMS can change visibility from being a challenge to a strength for your business. 

Reporting 

The reporting offered by a TMS is another huge value to companies. Access to data is becoming more of a necessity for supply chains, but it can be hard to gather it all. Most of the time it’s spread out among various platforms – e-mails, portals, and laptops. A TMS makes it easier for you to compile and view your data through reporting. A TMS has multiple options and breakdowns to give you the best analysis of your data. TMS reporting can provide you with insight into your freight volumes, lane analysis, freight spend, RFP analysis, and so many more. You can dive deep into your data, breaking it down further by load route, price, and even state-by-state to see your load count and total spend as well. A TMS can also give you monthly metric reports, world reports, and various graphs and breakdowns to help you interpret your data for better performance.  

What Does Trinity Logistics Offer in Transportation Management Software?  

There are many different routes you can take in acquiring transportation management software. Simply put, you can choose to purchase transportation management software directly through a vendor or work with a logistics provider, such as Trinity, that offers it as a cloud-based service.  

A Trinity, we understand everyone’s needs are different, which is why we offer a highly configurable system. We offer you three main options to start with: software as a service (Saas), a managed TMS, or an integrated outsource TMS. If none of those options quite fit what you need, we can further customize your solution so you get exactly what you’re looking for.   

No matter your specific needs, you’ll gain access to our best-in-class technology backed by superusers with logistics expertise. Through our People-Centric service, you’ll gain valuable insight and support in your logistics management.   

Looking to learn more about what TMS solutions Trinity can offer you?  

Get a free supply chain analysis to see what you need.  

Looking FOR TRANSPORTATION TECHNOLOGY BUT NOT A FULL TMS? 

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

Start shipping with us today to gain access.  

Wait, I Still Need More Information on Transportation Management Software..  

We have plenty more educational resources for you to learn about a TMS.   

Download our Guide on Transportation Management Systems. 
Check out Albaugh's Case Study to see how a TMS helped their company.

Author: Turner Lee

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

MANUAL PROCESS: TOO MUCH TYPING 

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

TMS SOLUTION 

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

MANUAL PROCESS: QUOTE MANAGEMENT 

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

TMS SOLUTION 

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

MANUAL PROCESS: DOCUMENT MANAGEMENT 

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

TMS SOLUTION 

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

MANUAL PROCESS: FINDING AN AVAILABLE QUALIFIED CARRIER 

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

TMS SOLUTION 

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

MANUAL PROCESS: SHIPMENT DELAYS/TRACKING/TRACING 

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

TMS SOLUTION  

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

MANUAL PROCESS: REPORTING 

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

TMS SOLUTION 

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

READY TO ELIMINATE MANUAL PROCESSES FROM YOUR LOGISTICS? 

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

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

I’m ready to eliminate manual processes with a TMS.

Author: Christine Morris

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

WHY COSTS ARE RISING

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

CUSTOMER EXPECTATIONS CONTINUE TO INCREASE

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

HIGHER DEMAND

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

TIGHTER CAPACITY

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

RISING COSTS FOR DRIVERS

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

STEPS TO REDUCE TRANSPORTATION COSTS

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

CUT YOUR MANUAL PROCESSES

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

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

USE ANALYTICS TO IMPROVE OPERATIONS

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

TRY DIFFERENT MODES OF TRANSPORTATION

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

SEE IF YOU CAN CONSOLIDATE

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

BID MORE OFTEN 

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

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

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

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

INCREASE VISIBILITY 

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

PREPARE AHEAD

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

CONSIDER WAREHOUSING SERVICES

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

BECOME A SHIPPER OF CHOICE

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

GET DATA-DRIVEN INSIGHTS

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

CONSIDER OUTSOURCING

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

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

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

Will you choose to take that step today? 

REQUEST A LOGISTICS MANAGEMENT CONSULTATION REQUEST A FREIGHT QUOTE

Updated September 16, 2021 by Christine Morris.