Truckload Freight Procurement: 5 Ways to Build Meaningful Density in Your Carrier Network

Truckload Freight Procurement | 5 Ways to Build Meaningful Density in Your Carrier Network

There was a time when the capacity crunch dominated the headlines in 2018. Then, in 2019, capacity grew exponentially and the freight market was seeing hundreds of carrier bankruptcies. Then, the COVID-19 global pandemic created a surge in freight volumes, increasing tender rejections and making truckload freight procurement challenging at best. A highly active hurricane season added more disruption. Even before the pandemic, in early March, companies had trouble keeping capacity and delivery commitments, said Peter Moore of Logistics Management:

“Recent articles and announcements speak to the growing challenge for less-than-truckload (LTL) and express carriers to fulfill the one- and two-day promises of marketers in B2C and B2B commerce.”
Why is all this important? It is simple; the supply chain will always be subject to disruptions and recoveries. And any disruption to parcel or LTL for that matter will inevitably put a strain on full truckload. Those uncertainties are growing more difficult to predict and accommodate. For that reason, all freight management companies need to leverage a truckload freight procurement-inclusive TMS that works across all freight segments and overcomes obstacles through autonomous logistics.
Let’s look at five ways to build meaningful density in your carrier network with digital, advanced resources.

1. Leverage Digital Freight Matching

Digital freight matching is among the most effective ways to source additional capacity within your carrier network. It involves the digital matching of available loads to available capacity based on predetermined factors, such as setting a maximum rate that the shipper will accept or creating a “pick up by” date. Eliminating the need for endless calls and emails derives value and adds capacity faster.

2. Automate Tendering Processes

It is essential to realize that digital freight matching and automated freight matching are not necessarily the same. Yes, rulesets can be built to enable automated digital freight matching. However, some companies may still opt for a user-guided process. Regardless, automating the tendering process within an overarching transportation management system (TMS) adds value.

3. Use Autonomous Logistics to Manage by Exception

Leveraging autonomous logistics to manage by exception is another hallmark of the practical application of load data. Since truckload freight procurement means recognizing when a load is uncovered before its ship-by date, it is possible to post the load on a freight matching tool and find available capacity. Of course, that depends on leveraging automated solutions to execute loads, query available carriers, access rates, and finalize bookings.

4. Apply Data in Negotiations

Another critical step in truckload freight procurement is using data gathered from advanced systems, including the transportation management system, big data analytics’ engines, and even through the warehouse management system, in negotiations and requests for proposals. While a typical RFP process is a once-a-year occurrence, any period of disruption may result in a subsequent RFP process to find additional capacity and onboard new lanes.

5. Increase Reporting and Collaboration With Carriers

Truckload freight procurement also benefits from increased reporting and analytics-driven insights compiled by advanced resources. The same analytics that enables more effective negotiations during short-term and long-term negotiations also help build collaboration with carrier networks, other brokers, and more shippers. In a sense, increased reporting and collaboration with carriers amounts to opportunities to increase truckload freight capacity.

Augment Carrier Capacity With a Truckload Freight Procurement Inclusive TMS

Across the spectrum of logistics companies, the need for continuous improvement is absolute. All organizations want more capacity, transparency, agility, responsiveness, and throughput. These characteristics form the foundation of an effective supply chain. And it is essential to realize that all those processes can involve truckload freight procurement. Unfortunately, finding capacity continues to be a key challenge. That challenge is amplified for non-asset-based brokerages and shippers that are continuously trying to find a better deal. And in fact, companies are turning to supply chain transportation technology experts to build meaningful density in their carrier network. Take this final example.

In partnership, Newtrul is putting the power of the MercuryGate TMS to work to enhance truckload freight procurement without disrupting everyday operations.

Sign Up for a Custom Demo Online of How This Partnership Is Adding Value Today

MercuryGate
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