Routing guides are always going to fail. The basic reason is that forecast is linear, but demand fluctuates, so they are not always in perfect alignment — especially when taking lead time into account. The end result is tender rejection, a failed routing guide and a need to source capacity in the spot market.
Let’s take a moment to contemplate a routing guide that never fails. Let’s talk about one that incorporates a version of the spot market into being a digital part of it rather than an alternative source. MercuryGate is strategically partnered with Surge Transportation to offer this integration free to shippers and with easy implementation.
Rejection Rates Drive Change in Shippers’ Routing Guides Approach
As a result, there is a fundamental strategic shift in the way shippers are embracing technology to source capacity. Shippers are aligning with reliable, digital real-time API providers. The API providers – through application programming interface (API) — give them a fair market price, so shippers can send their freight directly to their real-time bucket while scrapping the routing guide altogether.
What is interesting to watch is that the real-time bucket is getting bigger and the routing guide is getting smaller. It is eroding. Shippers are carefully curating a community that welcomes only their best carriers and brokers to participate in an API environment – this is where strategic partners play.
Reasons for Routing Guide Erosion
API Accelerates Routing Guide Refinement
“Eroding” works in this case because routing guides are diminishing in size. It is not likely that routing guides are going to become extinct, but they will be smaller, more shallow and very much digital.
Learn more about how Surge Transportation offers MercuryGate customers easy access to real-time pricing on full truckload capacity when it is needed most. Attend our MercuryGate user conference Velocity 2022 in Scottsdale, Nov. 7-9.