Supply chains continue to endure dramatic changes arising from volatility. More volatility makes the process behind each load tender more important in the grand scheme of things.
Without a focus on transportation costs in a capacity constrained environment, it is difficult for shippers and logistics service providers to achieve total cost reductions. This is true across all modes of transit, including truckload, less-than-truckload, parcel, and last mile. Look no further than current inventory rates for a hint at the cost impact.
“Just months after snarled supply chains led to widespread inventory shortages, the proverbial pendulum has decidedly shifted to the other side,” according to Supply Chain Brain. “Now, companies have a different problem. They have entirely too much merchandise sitting in their warehouses. As a result, business executives and C-suite leaders face enormous pressure to reduce their inventory and lower costs. This is easier said than done. “
Shipment visibility can improve freight flow and inventory management. Automated load tendering can, too.
Continuing Challenges of Load Tender Pricing and Capacity in the Market
Trucking rates are the result of supply and demand in available trucking capacity. As a result, pricing challenges emerge a competitive environment:
- Increased activity among LSPs creates room for error in managing capacity.
- Back-office processes to find capacity — i.e., calls and emails — take more time.
- Ocean delays create equipment uncertainties and tighter capacity.
- Above-average demand among shippers results in more chaos.
Automated Freight Management Creates Instant Visibility & Capacity
When faced with limited capacity, automating the process of creating a load tender and confirming a freight booking is the go-to solution.
- Shippers secure more confirmed bookings. They also ensure every shipment is processed at the right service level and with the right equipment.
- Use of a high-quality, connected TMS aggregates capacity and data from a larger network. Since users can tag and submit time-sensitive shipments, they are also able to better identify opportunities for improvement.
Additional Freight Booking Benefits of Real-Time Pricing and Capacity Data
Leveraging a world-class TMS does much more than simply use real-time data to reduce costs. It can boost throughput and enhance back-office processes, too. It can lessen the risk for error in all activities. And using a centralized supply chain control tower will inevitably lead to:
- Reduced deadheading in trucking by giving carriers and LSPs more tendered loads.
- Increased access to mid-market carriers that may not have their own TMS platforms.
- Improved collaboration and schedule management.
- More digital document management solutions that compile data and keep everyone informed at each step.
- Secure, digital track records that improve traceability to build more accountability.
- Lower landed costs by keeping all shipments focused on the end goal.
Calculate your potential Saving While Using an enterprise TMS
Reap Rewards of Automated Load Tender and Booking Processes Now
The modern supply chain needs automation. Without it, all processes are subject to the pitfalls of manual management and execution. In freight transportation, this amounts to limited capacity access and elevated rates determined by carriers’ choices. Manual processes also require labor hours that might be better allocated to more strategic activities. That is an unacceptable, outdated approach to freight management.
