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

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

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

PRIVATE FLEETS OR OUTSOURCED LOGISTICS?

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

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

private fleets or outsourced logistics

PRIVATE FLEET CHALLENGES

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

DRIVER RECRUITMENT AND RETENTION

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

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

COSTS

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

CAPACITY

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

TIME SPENT ON TRANSPORTATION

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

PRIVATE FLEET BENEFITS

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

KEEPING CONTROL

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

CUSTOMER SERVICE

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

SAFETY

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

FLEXIBILITY

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

BRAND AWARENESS

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

OUTSOURCING BENEFITS

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

FEWER COSTS

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

MORE TIME

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

CAPACITY

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

OUTSOURCING CHALLENGES

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

LOSS OF CONTROL

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

LOSS OF VISIBILITY

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

MANAGING THE RELATIONSHIP

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

TECHNOLOGY INTEGRATION

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

PRIVATE FLEET OR OUTSOURCING OPTIONS

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

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

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

FIND WHAT WORKS FOR YOU

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

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

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

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

Request A Quote

Author: Christine Morris

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

HOW LOGISTICS TECHNOLOGY CAN HELP

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

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

…WITH CAPACITY

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

…..WITH RISK MANAGEMENT

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

…WITH PRODUCTIVITY AND COST MANAGEMENT

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

…WITH CARRIER SELECTION

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

…WITH SHIPPING UPDATES IN REAL-TIME

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

…WITH IMPROVED ROUTING

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

…WITH REDUCED PAPERWORK

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

….WITH GREATER TRANSPARENCY

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

…WITH EFFICIENCY AND FASTER PROCESSES

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

…WITH COMMUNICATION

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

…WITH HAPPIER CUSTOMERS

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

TECHNOLOGY TRENDS TO WATCH

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

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

ARTIFICIAL AND AUGMENTED INTELLIGENCE

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

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

DIGITAL TWINS

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

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

REAL-TIME SUPPLY CHAIN VISIBILITY

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

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

IOT SENSOR TECHNOLOGY

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

BLOCKCHAIN

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

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

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

DATA STANDARDS AND ADVANCED ANALYTICS

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

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

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

GROWING NEWCOMERS

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

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

SUSTAINABILITY POWERED BY TECHNOLOGY

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

AUTONOMOUS VEHICLES

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

WAREHOUSE ROBOTICS

Warehouse operations have undergone a significant shift recently.

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

CURRENT TECHNOLOGIES YOU SHOULD LOOK INTO

TRANSPORTATION MANAGEMENT SYSTEMS (TMS)

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

ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING

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

SHIPMENT TRACKING SYSTEMS

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

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

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

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

AUTONOMOUS TRUCKS AND DRONES

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

FIND TECHNOLOGY THAT WORKS FOR YOU

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

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

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

Click Here

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

Request A Consultation

Author: Christine Morris

What do semiconductors, plastics, furniture, chlorine, and more all have in common lately? They are near impossible to find. As disruption after disruption has interrupted supply chains, shortages are now messing with shipping and demand. Specifically, raw material and product shortages are affecting the chemical industry. With many other industries relying on the chemical industry, this is becoming a significant challenge to overcome.

MATERIAL AND PRODUCT SHORTAGES

Shortages in the chemical industry have worsened over the last quarter. According to a June survey of 84 National Association of Chemical Distributors, nearly 85 percent of distributors report at least one imported item as out-of-stock. This is a huge jump compared to only 47 percent found in March. Inventories in the chemical industry have begun increasing, but they have yet to reach their pre-pandemic levels. These shortages are not only hurting the chemical industries but the many industries that rely on them. One example is the shortage of citric acid, as it’s often used in vitamin or electrolyte drinks, even in soda. These material shortages mean tight supplies, high prices, and continued delivery delays.

Some recent materials and products that currently face shortages in relation to the chemical sector:

Semiconductors

Many manufacturers worldwide are having trouble securing supplies of semiconductors, delaying the production and delivery of goods, and increasing prices. Several factors are driving the crunch, which first affected the auto industry. The shortage is going from bad to worse, spreading from cars to consumer electronics. With the bulk of chip production concentrated in a handful of suppliers, analysts warn that the crunch is likely to last through the rest of 2021. Materials most vulnerable in semiconductor production include wet chemicals, solvents, photoresists, gases, and substrates. Several semiconductor process materials in the petroleum supply chain are also running short. Those materials include acetone, PGMEA, NMP, and IPA, and a few of several solvents.

Plastics

Yet another shortage complicating business is plastics. Food packaging, automotive components, clothing, medical and lab equipment, and countless other items rely on them. Since March 2020, a perfect storm of events has been putting severe strains on the supply of plastic raw materials, base plastics, and compounded plastics. This shortage has hit plastic product manufacturers very hard. 

The demand for plastics continues to surge, especially for food packaging and automobile components plastics production. Plastics required by high purity chemical providers for packaging and wet processing equipment are experiencing raw material price increases due to availability issues.

Plastics make every kind of product imaginable — from food packaging, appliances, smartphones, and car parts to exercise equipment and roller skates. So with the ongoing surging demand for goods, it’s easy to see why these shortages are a big deal.

Chlorine

The swimming pool boom from the pandemic created a higher chlorine demand, thus contributing to a shortage. There was also a manufacturing lab fire in August of 2020 in Louisiana that only further aided the shortage. 

Some pool supply stores have imposed quantity restrictions. In certain regions, prices for chlorine tablets have doubled from last year. The chlorine shortage is widespread, and it will likely worsen as homeowners use their swimming pools for the season. 

Gas, Oil, Fuel

It’s not quite that there’s a huge shortage of crude oil or gasoline. Instead, it’s a shortage of tanker truck drivers who deliver it. According to the National Tank Truck Carriers, 20 to 25 percent of tank trucks in the fleet are parked due to the shortage of qualified drivers. The driver shortage has been an issue for a while, but the pandemic multiplied it. 

Gas prices, which typically rise at the start of the summer as seasonal regulations take effect — requiring the more expensive “summer blend” of gasoline needed to combat smog — are also rising. The national average has surpassed $3 a gallon this summer and could get even higher if any hurricanes hit the Gulf Coast or if there are any other disruptions to supply, such as a refinery fire. 

Other Raw Materials

As countries work to switch over to green energy, the demand for copper, lithium, nickel, cobalt, and other rare earth elements is soaring. And these raw materials are vulnerable to price volatility and shortages as limited access to known mineral deposits is another risk factor. Only three countries together control more than 75 percent of the global output of lithium, cobalt, and rare earth elements – the Democratic Republic of Congo, China, and Australia. Constraints on the supplies of their raw materials — especially polyethylene (PE), polypropylene (PP), and monoethylene (MEG) — are leading to factory shutdowns, sharp price increases, and production delays.

SHORTER SUPPLY + HIGHER DEMAND = HIGHER COSTS

Consumer spending rapidly grew because of the pandemic. Remote working and schooling created an increased demand for electronics. Higher demand came for food packaging and healthcare markets. Automotive production rebounded and surged beginning in the third quarter of 2020. All these and more are impacting the chemical industry.

These disruptions have undoubtedly led to rising prices. Echemi reported in late March that more than 20 chemical companies including BASF, DuPont, Dow, DSM, and LANXESS, have raised prices. These price hikes are largely due to difficulty in getting raw materials used to make products. And there’s less supply than there was a couple of months ago. As demand is rising relative to production, prices have increased for chemicals, like polypropylene, acetone, and other solvents. 

…AND LOGISTICS DELAYS

Not only have shortages worsened since March, so have delays. NACD’s survey found that 82 percent of respondents are dealing with an average uptick in travel time for their shipment of 11 days or more. And these issues extend throughout the supply chain. 

Containers and boats to ship products from overseas are in short supply. Products could be sitting in a factory overseas for months because they can’t get loaded onto a ship. Then you have the ports struggling with delays. Currently, you can look at live video outside of Los Angeles and you’ll see up to 30 boats driving around waiting to get an appointment because there are so many ships coming in. Ships are waiting longer to get in and once they do get in, there is a shortage of drayage drivers that only adds to the congestion. 

A lack of truck drivers and warehouse workers has contributed to the delays as well. The driver shortage was an issue before COVID, but the recent labor shortage in warehouse workers has created a larger problem. Say you do have a truck available. But if you don’t have somebody in the warehouse to pull the goods out of the racks and load them on the truck, then that’s another issue causing delays.

Supply chain issues continue to hamper the whole of manufacturing. It’s hard to look at the global supply chain and not think, “everything that can go wrong has.” The impact of these issues continues to impact many industries downstream. On raw materials such as chemicals and plastics, inventories are unlikely to be rebuilt amid continuing strong demand. There’s simply not going to be a quick return of inventories. 

WHAT YOU CAN DO DURING THESE TOUGH TIMES

Begin building a more resilient supply chain

Consider moving manufacturing operations closer to home. This can help reduce your transportation times from future delays or disruptions. Make plans now to be prepared for all potential disruptions. Disruptions to the supply chain are not new, but this current phase of repeat instances has been rougher than most.

Gain access to technology

Integrating technology into your supply chain has now become a necessity. Implementing technology like a transportation management system (TMS) will help all stakeholders maintain real-time communication and visibility. A TMS can help you optimize your routes and work with the best carriers, increasing your service levels and reducing any delays. It can provide you with data-driven insight so you can better manage current and future disruptions. And by using data analytics, you can recognize which carriers most likely have available capacity, reducing your time spent on transportation coverage. Gain insight into what’s happening across all markets, ensure proper rates for shipments, and keep more control over your budget and logistics costs with TMS technology.

Work with experts that keep a pulse on the market

An expert can help you pick up on early warning signs and help you prepare for potential constraints. They can also offer you alternative solutions when needed. 

Here at Trinity, we are a Team of experts. We do more than arranging your freight. When working with Trinity, we become logistics partners in your business and aim to help you with your growth. We can help you streamline your logistics procedures and give you insight into the freight market. We keep a close eye on it and keep you educated to help you plan and forecast. 

We also work very hard to follow through on what we say we are going to do. When issues arise, we work until they are resolved, keeping communication every step of the way. We have over 40 years of experience in logistics and industry challenges in supply chains is our day-to-day.

Industry experts and forecasters are saying this tough market is far from over. It may even look to extend into 2022. So don’t hesitate in asking for help. We’re here and ready to provide you with our People-Centric approach for you during this historical time in logistics.

REQUEST A QUOTE

Author: Jennifer Braun

If you work in logistics, you’ve likely heard the term TMS before. TMS is the acronym of a transportation management system. A TMS is a software program that allows you to manage your entire supply chain, including your internal logistics department, suppliers, warehouses, carriers, vendors, etc. Having a TMS for your supply chain can help provide your company with greater visibility, better reporting, and improved performance through automating many manual processes. Many companies use a TMS for their logistics management, like e-commerce companies, retail businesses, manufacturers, distributors, even logistics service providers such as 3PLs (like us!). If you’re reading this article, more than likely you’re interested in a TMS but are hesitant. Let’s talk through some of those hesitancies and see if we can help resolve them.

TMS HESITANCY 1:  I WANT TO KEEP CONTROL. I FEAR OF LOSING MY ROLE IN LOGISTICS MANAGEMENT.

Most fear losing control of their logistics operations or that it won’t be done correctly. However, a best-in-class TMS allows you to decide the amount of control you would like to have. You can opt for a TMS that integrates with your current system, using your own carriers and rates. Or if you want to be more “hands-off” you can outsource your TMS with a 3PL that provides software, account management, and use of their carrier relationships and rates. If you’re in between, you can have help with account management but still be involved and a mix of your own carriers and rates and your 3PL’s carriers.

Even with all those options, no matter your role in logistics management, a TMS isn’t going to do it all for you. Instead, technology like a TMS simply helps you do your job more efficiently by automating those very manual and time-consuming tasks that we do every day!

TMS HESITANCY 2: IT COSTS TOO MUCH

This is often a misconception. With software as a service (Saas) and a cloud-based or web-based TMS, sometimes there are no costly up-front investments. It also means you won’t have to worry about having software installed on company servers and continuously managing updates.

It really depends on your logistics needs and the solutions your provider can offer you. At Trinity, we offer technology solutions for companies of all sizes and with different levels of services. A TMS can often end up saving you money in the long term by helping you better manage your freight spend and performance.

TMS HESITANCY 3: MY BUSINESS IS TOO SMALL. WE DON’T WANT TO MAKE ANY CHANGES.

No business is too small! And even if you don’t want anything to change in your process, change is inevitable as it will happen in your industry and business. Will your business be ready for when that happens?

It’s vital to adopt technology, like a TMS, into your business before you grow too fast rather than waiting until while you are growing quickly. What you have in place may work for now, but when your business really starts growing, the cost and time to manage your workload will be growing too. Can your process handle that?

We all know change can come quickly and unexpectedly, causing disruptions in our processes. 

A TMS can help you be better prepared and ready for any changes.

TMS HESITANCY 4: IT’S TOO COMPLICATED TO USE. WE TRIED IT BEFORE AND NO ONE WOULD USE IT. 

Some TMS’s can be difficult to navigate and if there’s not a lot of support, you may abandon it. But a best-in-class TMS should be user-friendly and configurable to the needs of each individual user. You should also have access to a support system that can help you when needed.

There’s a big difference between purchasing software to use from a company and working with a 3PL that offers it as a solution. Considering a 3PL often uses their own TMS, they’ll know how to use it and help you. Quality TMS providers will work with you to make sure the TMS meshes well with your other systems.

ARE YOU EXPERIENCING ANY OF THESE CHALLENGES?

Struggling With Keeping Your Quotes Organized

If you work with several different shipments, it can be time-consuming and overwhelming to be on the phone or going from website to website asking for rates from carriers in your network. Contacting all those carriers for your different shipments and keeping track of those quotes can take you away from the other important aspects of your business.

Managing and Selecting the Best Carriers

We know that not all shipment is the same. Some shipments need temperature control, require special delivery services, or need to be handled with extreme care. Because of that, not all shipments are handled by the same carrier. There are carriers best suited to handle all your shipment needs. However, managing them all can be difficult.

Keeping Track of Your Shipments

As mentioned above, most often all your freight is not hauled by the same carrier. It can be common for several different shipments to be in transit aboard different company trucks all over the country/world. Because of this, freight tracking can be challenging. Without a TMS, there will have to be someone entering shipment numbers into forms on several different carrier sites.

Not Getting Insight into Your Logistics

Without proper reporting from a TMS, it can be hard to gather data to determine which carrier was the cheapest throughout this past year. Or analyze which carrier had the best performance. Or find out what your freight costs were on certain lanes. 

Not all TMS’s may generate the reporting you need, but a best-in-class TMS can off you advanced reporting to go into specific logistics metrics. Without TMS technology to offer you data-driven insight into your business, can you really know how you are doing year after year?

STILL NOT READY TO COMMIT TO A TMS?

Say Hello to Trinity’s Customer Portal

We understand. Committing to a TMS can be a big change. We listened and heard you.

That’s why we now offer our Customer Portal for shippers working with Trinity. There’s no commitment, no additional charges, with a sample of TMS technology right at your fingertips.

Track your shipments, request quotes, view and pay invoices, or view and duplicate historical quotes. See how easy it is.

Start shipping with us today to gain access.

REQUEST A QUOTE I ALREADY SHIP WITH TRINITY, SIGN ME UP

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?

GET MY FREE SUPPLY CHAIN ANALYSIS

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.

SCHEDULE A RISK-FREE LIVE DEMO

AUTHOR: CHRISTINE MORRIS

All industries are currently facing challenges with their logistics and the supply chain. Challenges that include overwhelming demand, tight capacity, rising freight rates, and shortages in materials, products, labor, and drivers. However, industries facing high flatbed demand, like construction and manufacturing, are seeing more difficulty than others. 

These industries have been dealing with capacity challenges throughout the pandemic as they have remained in high-demand. As it continues to rise, the needs for their supplies have increased, creating a surge of flatbed demand that’s weighing on the supply chain. Let’s take a deeper look into these challenges and present some considerations for how those in the industry can overcome them. 

FLATBED DEMAND VS. VAN AND REEFER

Finding truck capacity of any type is proving to be difficult. Flatbed capacity seems even more challenging because of the continued demand in construction and manufacturing. As a result, flatbed spot rates are reaching new highs and convincing more shippers to look for solutions. 

According to DAT, the flatbed load-to-truck ratio is up 169.3 percent year-over-year (YOY) from June 2020 to June 2021. In comparison, reefer’s load-to-truck ratio is up 111.7 percent YOY. Van load-to-truck ratio is up 57.8 percent YOY. 

The monthly national average flatbed spot rates have risen for eight consecutive months, reaching $3.15 per mile in June. There’s not looking to be any fall soon, as the industries pushing the flatbed demand are cranking it into the next gear. 

FACING DISRUPTION AFTER DISRUPTION


The return to normal may be farther away than you think. With demand, there are still projects waiting in the wings until materials can be properly sourced and shipped. And demand already has construction projects beyond their pre-pandemic heights. Just look at the Associated Builders and Contractors’ Confidence Index, which is now positive for sales, profit, and staffing level expectations for the next six months. 

Covid-19 Hit First..

When the pandemic hit, people had found they had nothing to do while staying home. And so, we saw a rapid uptick in those wanting to buy a new house or remodel. Demand quickly exceeded supply. Supply shortages and delays have put pressure on contractors as the demand rose despite a lack of supply.

..Then There was the Texas Freeze..

In February and March 2021, Texas saw their lowest temperatures in years and were not prepared for the intense weather conditions that they experienced. Many manufacturing plants in the area had to shut down, which created more disruption in the supply chain. 

..Then the Suez Canal Blockage..

The ship that blocked the Suez Canal for several days caused severe delays in the imports of many products needed. This created many shipping bottlenecks that we’re still experiencing the aftermath of today. 

..Now the Wildfires.

Currently, the raging wildfires on the west coast are causing further disruption and delays to an already stressed supply chain.

Issues such as these are causing supply chain disruption after disruption, resulting in increased costs and delays. Many companies rely on materials that come from delayed or now-unavailable, global manufacturers. This has shifted companies to search for regionally based suppliers, creating higher demand on smaller supply chains. After over a year of continuous supply chain disruptions, there’s been an industry-wide realization that building resilience into supply chains is vital. 

RISING FUEL PRICES

One of the areas affecting logistics cost are the continuing rise in the costs of fuel. The latest Energy Information Administration data shows the national average diesel price is at $3.34 per gallon, a $.05 increase from one month ago. Regional diesel prices range from $3.08 in the gulf coast states to $3.48 in the central Atlantic region. California diesel prices are averaging $4.19 per gallon.

SHORTAGES AND DELAYS

Lumber shortages continue to be a significant problem nationwide. Both steel and electrical supplies have faced steep price increases in the past year. According to the U.S. Census Bureau’s Small Business Pulse Survey, 59.7 percent of respondents reported domestic supplier delays which is a huge jump over the national average of 36.3 percent. These aren’t domestic only issues as 19.1 percent of respondents are also dealing with foreign supplier delays. 

MATERIALS THAT HAVE BEEN EXPERIENCING SHORTAGES

THE RAW MATERIAL SHORTAGE


There is currently a global shortage of raw materials. This comes from factory slowdowns and, in some instances, factory closures due to many reasons. The shortage of raw materials continues to put a strain on the production of products, like insulation, paints and adhesives, and packaging.

THE LABOR & DRIVER SHORTAGE

Another cause of rising costs and delays is the shortage of labor and drivers. Labor rates have skyrocketed in recent months. This is due to the high labor demand and trades raising their rates because of the overwhelming amount of work. The big challenge these industries face is finding qualified labor to perform work, whether that be driving a truck to deliver materials and products, painting a house, or installing plumbing. In logistics, driving a flatbed truck, especially one hauling an oversized load, requires a different skill set than your typical van trailer trucking.


HIGH PRICES KEEP HEADING HIGHER

The Associated General Contractors of America (AGC) released a survey recently showing 93 percent of more than 1,400 respondents reported higher costs for materials, parts, and supplies. Construction material prices have increased so much in 2021 that the AGC issued a rare Construction Inflation Alert. This hasn’t taken since place 2008, citing a 12.8 percent jump of input costs for projects since the pandemic began. While that number is notable, some materials have risen even more. Lumber and plywood jumped 62 percent and steel recorded a 20 percent rise since April 2020. Diesel fuel, the lifeblood of the heavy equipment and transportation haulers needed to build major projects, has surged 114 percent. Even when materials are ready to be shipped, the transportation market is trying to play catch up. As mentioned earlier, there is currently more demand than there are trucks available. 


Rising costs and supply chain disruptions have pushed more hardships on the construction and manufacturing industries, slowing down their projects and business progress. Data found that more than three-fourths of construction firms have indicated projects are being postponed or canceled due to unavailable materials or cost overruns. 

Like other transportation, flatbed demand remains high. This demand is creating challenges for shippers like tight capacity, rising freight rates, and shortages in materials, labor, and drivers. To keep your shipments moving, we’ve got some tips to help you navigate this difficult market.


POSSIBLE SOLUTIONS

Experts are estimating that the high demand in these industries and flatbed demand may continue through 2022. Not to mention, who knows what other possible disruptions we may see soon. Hurricane season is upon us and could cause some more delays. 


It’s never too late to find ways to improve your supply chain and keep costs budgeted. Here are some suggested solutions to facing this difficult time we’re in.


LOOK FOR ALTERNATIVE ITEMS

It might be worth checking into other materials to offer your customers. Many other companies are doing what they can to keep their projects moving forward and communicating this with their customers. For example, with rising lumber costs, you may find redwood or cedar to be more affordable alternatives. They may also be much easier to get your hands on. 


INTEGRATE TECHNOLOGY

Integrating technology has become a necessity for all stakeholders to maintain real-time communication and visibility. Gain total visibility and trust from your stakeholders with logistics technology like a transportation management system (TMS). A TMS can help you with routing decisions by matching your freight with the best carriers, lanes, rates, and transit service. 


Having a best-in-class TMS also provides you with data-driven insight to better manage disruptions and budget your logistics spend. By using data analytics, you’ll be able to recognize which carriers are most likely to have capacity and have a full view of your transportation management and what’s happening across all markets. 


CONSIDER NEW OPTIONS

When possible, see if you can use van options for your transportation, considering the load-to-truck ratio shows less demand and lower freight rates. You may also be able to consider other modes, if possible, but any oversized freight must be hauledwith a flatbed trailer. 


PLAN IN ADVANCE

Many other companies are stocking up on available supplies or finding other ways to look far ahead. Consider doing the same. Stock up on what materials you use most often for your projects. Do keep in mind that the more you stock up on, reduces the overall supply, increases demand, and thus pushes prices higher. Don’t go overboard and hoard ALL of it but do try to keep some stock in supply. Try planning your projects far enough out, correlating with the longer lead times we’re experiencing. If the material you need says it will take nine to ten months, then plan your project around that time frame.

BUILD A STRONG NETWORK OF CARRIER RELATIONSHIPS

Due to the over-demand of freight, load boards don’t move shipments the way they once did. Strong relationships will get you the coverage you need, better pricing options, and often better service. If building a large enough network for you seems daunting, you can always partner with a third-party logistics company (3PL), whose main role is their relationships among shippers and carriers. Here at Trinity Logistics, we have over 70,000 qualified carrier relationships to help haul your freight. 

BUILD A RESILIENT SUPPLY CHAIN

At a time when your costs are a critical issue, reimagining your supply chain could be a way to build resilience and reduce costly disruptions before they happen. Now is the perfect time for companies to build resilience into their operations to be better prepared for future disruption we may see.


Opportunities to do so range from reevaluating your business models and building efficient industrial supply chains, to building new and more regional manufacturing and distribution facilities to help with the vulnerabilities the pandemic brought to light. You could put in place more flexible sourcing and distribution strategies, including shifting your suppliers closer to home.

WORK WITH A QUALITY 3PL, LIKE TRINITY

We do more than arrange your freight. Consider us your logistics consultants. As logistics experts, we keep a close eye on the market, keeping you educated so we can help you plan and forecast. 


No matter the market, you can use your Trinity relationship and discuss your current and upcoming projects, even if they are in the planning stages. This helps us give you things to look out for to keep your transportation aspect of business more stable and reliable. When markets fluctuate, having a solid relationship with experts such as Trinity will prove to be your largest asset. 


Should issues arise, we at Trinity, work until they are resolved through and communicated. In the logistics industry, things will happen, and bad news doesn’t get better with time. We stay upfront with any challenges, and we bring solutions. When given the chance to prove our communication and service, we make sure to set the bar high. 


If you’re ready for a reliable provider to help you with your shipping needs and logistics management through People-Centric Freight Solutions®, then request your first quote to get started.

REQUEST A QUOTE

Author: Paul Nelson

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;

Then keep reading as we’re going to take a look at some common areas of improvement you could see with a Managed Transportation approach.

You’ll learn how Trinity’s unique solutions focus on finding the right mix of people, process, and technology. Through this, we can help leverage your supply chain into a competitive advantage for your organization.

Let’s dive in.

PAIN POINT 1: LACK OF EFFICIENCY

Lack of efficiency in your business is a direct result of a decentralized and very manual approach. Programs like Outlook and Excel were just never intended to handle a freight spend of $1M or more. If your freight spend is $1M or more, you’re probably working with a couple of hundred orders a month, with who knows how many stakeholders to help micromanage quotes, tenders, tracking, and tracing of shipments.

How much time is being wasted across your organization with overwhelming manual processes?

Does this process save you any money when it comes to freight spend?

Do you know if you are utilizing the right carriers?

Would contract pricing cost you less than the spot market in the long run? 

The bottom line is this is a reactive strategy focused on individuals’ tasks. To optimize your team and freight, you need a major shift towards being more proactive and customer-focused. This is where Trinity’s technology can help you. All of our Managed Transportation features a cloud-based TMS platform that creates a centralized freight command center, replacing your redundant manual processes with automation. Our TMS helps you manage the entire life cycle of an order and we can even integrate with your order management system to truly optimize your workflow. This means no more phone calls, typing out shipment details, or wondering where your freight is or when it’s going to deliver. Technology is one of the critical aspects of our solutions here at Trinity and also a major catalyst to transforming your supply chain.

PAIN POINT 2: PERFORMANCE

Efficiency isn’t just about getting faster; it’s about getting better. Finding and creating better team performance, better carrier performance, and ultimately improving your bottom-line company performance. So, is there room for improvement in these areas for you? Are your current strategies effective? Can they be measured? You may have answers to these questions that vary from location to location. You’ll usually find some of your distribution centers are better at procuring freight than others.

While a siloed strategy may have made sense for you at one point, companies grow and change. Considering change is a constant, a more wholistic approach will typically yield a better overall cost and carrier performance for you. This is what we consider to be the process part of our solutions. Data is a key driver for the strategy on this one.

On the surface level, it will appear that you simply are spreading your freight too thin across too many carriers or brokers. At Trinity, our Team of Logistics Consultants can quickly diagnose if you are leveraging your overall volumes to the best of your ability. Through strategic sourcing and customer-specific pricing, you can yield savings of six to ten percent, sometimes even more. It can also have a significant effect on improving on-time performance. Best of all, with Trinity’s Managed Transportation, you’ll always be able to track these metrics. You’ll be able to know exactly how your teams compare to the market and are able to adapt quickly when things change. 

PAINT POINT 3: VISIBILITY

It’s hard to overstate the importance of real-time visibility in today’s supply chain. When a customer or sales rep asks for a delivery ETA or if the warehouse needs to know what trucks are scheduled to come in; that can all fall back on your outdated and manual processes. Things like picking up the phone, back and forth emails, creating and sharing spreadsheets, that’s just your day-to-day visibility. What about those overall performance metrics and being able to measure your team or your carriers? Unfortunately for many shippers, there can be too many roadblocks for effective communication and a lack of overall supply chain awareness. 

However, with the right strategy and technology, visibility can shift from a challenge to a strength. Having access to a TMS takes over a lot of the heavy lifting for you, acting as a virtual control tower for all logistics updates and communication. With Trinity’s solutions, we included unlimited users who can access updates and data 24/7 via the cloud. We can even create push notifications where your team, your warehouse, and your customers can receive updates for their specific tasks automatically. For most shippers, real-time visibility has fully transitioned from an optional benefit to a business necessity – which is why Trinity brings all of this valuable information right to your fingertips. 

PAIN POINT 4: BUSINESS INTELLIGENCE

Data has quickly become one of the world’s most valuable resources. In order to make effective decisions, proper data and analysis are needed, especially for logistics strategy or more enterprise-level decisions that reach far beyond the supply chain.

Now let’s say you do have access to good, tangible data. Even still, most likely your data is spread out among various laptops, email accounts, and carrier portals. Trying to compile complete and accurate information is difficult in itself this way, but the greater challenge is what can you do with this data?

That’s where working with Trinity comes in hand. We help compile and present a key analysis in a way that is easy for you to understand and collaborate on action steps for your company’s continuous improvement. Our customers are able to successfully leverage their data to lower costs, improve performance, and drive their company forward. There are many types of helpful reports you can expect to see such as carrier scorecards, customer profitability reports, to network analysis, and distribution projects.

From Surviving to Thriving

Whether or not your challenges have already been identified, through a Managed Transportation Discovery Call with our people-centric approach, you can learn how to take your business from surviving to thriving. Your consultation is free and the only thing you have to learn is how your business can operate more efficiently and strategically. 

What do you have to lose?

Intrigued? 

Request a consultation

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.

Register

By definition, logistics is the management of the transportation of materials or equipment from where they are to where they need to be. For everyone, materials or equipment need to arrive on time and with no damage, and this lies especially true for those coordinating construction projects. Construction sites require heavy-duty and valuable equipment and materials that must be delivered on schedule. The absence of a logistics plan and tracking for your freight to your construction sites can lead to several problems. Here are some reasons why you don’t want your logistics in construction projects to be an afterthought. 

BEHIND SCHEDULE

It only takes one delayed shipment for a construction project to cause the schedule to fall behind days, weeks, or even months. According to the Electrical Contractor, in 2017, 61 percent of construction projects were shown to be behind schedule. Obviously, this is a big problem in the industry. Even worse, being behind schedule raises costs. Over half of those 61 percent of construction projects that were behind schedule were also over budget. 

EXTRA COSTS

When materials or needed equipment aren’t delivered on time and on-site when the crew members are scheduled, then they are sitting ducks with nothing to do. Since scheduled, they will still need to be paid for those days that they are on-site, whether they are working or not. Additionally, you’ll have to pay them for any extra days that they will need to complete their work, which may come with extra costs due to pushing back their work schedule. When the material or equipment needed is not on the job, you’re simply not making money. 

You’ll also need to consider theft. According to the National Crime Information Center, nearly 1,000 pieces of commercial construction equipment are reported stolen each month. Thieves often target valuable construction equipment like bulldozers, forklifts, or generators, and even materials with a high resale value. Theft can be costly as you not only have to replace the stolen equipment but face the possibility of increased insurance costs due to the claim. 

Choosing a provider to support your logistics in construction projects can give you the potential to avoid, or at least be better prepared should something happen. 

REDUCED TRUST

The worst issue caused by improper logistics planning is reduced trust in your customers and partners. Falling behind on schedule and incurring extra costs that have to go somewhere makes you seem less reliable. You could lose customers and gain a poor reputation. Nobody wants that for their business. 

BE BETTER THAN THE REST

Having effective transportation and logistics in construction projects ensures that your materials and equipment will be delivered on time, keep you on budget, and keep your reputation among customers. Yet, becoming effective with your logistics can be tough, but it doesn’t have to be. Consider partnering with a third-party logistics company (3PL) to help you can gain a competitive advantage by better managing your logistics. 

CONSIDER A 3PL TO HELP WITH LOGISTICS IN CONSTRUCTION

Focus on what you do best and let a 3PL do the rest. Working with a 3PL can eliminate the headache of handling your logistics in construction projects by offering you access to :

A VAST CARRIER NETWORK

You need experienced, qualified carriers, and 3PLs, such as Trinity, to have those much-needed relationships with them. A 3PLs service is to both shippers and carriers, allowing us to build solid relationships with carriers all over. Each motor carrier is vetted through our Compliance Team, so you’ll never have to stress over your freight arriving on time and safely.

MANY MODES

Since we work with so many carriers, we have access to many modes of transportation. Whether you need air, ocean, rail, truckload, or anything else, you’ll no longer have to work with several companies for your logistics needs. 

AUTOMATED PROCESSES

Whether you choose to outsource your freight transportation or all your logistics, you’ll see efficiency in the automation we offer. From carrier vetting, freight tracking, invoicing, and more, you can reduce your time on many manual logistics processes.

ACCESS TECHNOLOGY

No need to pay for (costly) technology when you can gain access to state-of-the-art technology when working with a 3PL. At Trinity, we offer tracking through FourKites, MacroPoint, Trucker Tools. View all your shipments and their statuses, pay your invoices online, or request a quote on a new shipment in our Customer Portal. Or work with our Managed Services team and see if a TMS solution is what you need.

GAIN MORE CONTROL OVER YOUR LOGISTICS COSTS

Through all the benefits mentioned above, you gain control over your logistics costs. When working with Trinity, you’ll have an expert on your side to help you make informed decisions so you can choose what works best for you and your budget.

KEEP YOUR CONSTRUCTION PROJECT ON TRACK

The main benefit you gain from using a 3PL for your logistics in construction projects is that it helps you simplify your challenges and find your own customized solutions. 3PLs, like Trinity, work with complex situations and variations frequently, and better yet, we thrive in them. In construction, we know your supply chain is always changing. When you choose to streamline your logistics, you can lower your costs and know your construction project will be completed on time. 

Trinity has supported construction and manufacturing companies of all sizes. We’ve aided in logistics projects like office buildings, roadways, housing developments, and more. We know that in your industry you need your materials and equipment exactly when and where you need them. Let Trinity help keep your construction project on track. 

Find my logistics solution