Freight capacity procurement and management looks vastly different than it did a decade ago thanks to the benefits of a digital freight network.
In the simplest of terms, this modern network is an expansive and fully connected system that uses automation, technology, machine learning, virtual tools, data analysis, and other software.
The goal of a Digital Freight Marketplace is to efficiently connect shippers and carriers to meet the ever-changing wants and needs of consumers today.
Where Traditional Freight Management Falls Short
The digital freight network has made it possible to overcome a fundamental problem with traditional methodology.
According to Uber, 20% to 35% of the estimated 175 billion miles trucks drive each year are likely empty. At the same time, drivers can spend hours waiting at docks and delivery destinations due to poor appointment scheduling. This waste drives costs higher for carriers, which means the added expenses get passed onto the shippers and, ultimately, to the consumer.
Of all the problems in trucking, poor scheduling and route management remains one of the biggest problems that traditional freight management can cause. Making the shift to digital freight network designs and implementations can save time and money from end-to-end.
It can also go a long way to fix the problems traditional methods can cause with freight market volatility.
Benefits of a Digital Freight Network and its Impact on the Modern-Day Supply Chain
- Lower costs with automation - The ability to monitor current processes at any time allows for automated communications and real-time adjustments during shipping. Such a focus helps improve shipping processes and timelines and helps avoid costly delays and unnecessary expenditures.
- Increased route optimization - Access to data regarding traffic, weather, delays, and other disruptions allows shippers to manage and navigate routes effectively. It also enables managers to stay caught up and effectively communicate delays or issues promptly.
- Boost network communication - The capacity to share information and exchange data effectively throughout the supply chain network remains critical. Exchanging data in real-time, rather than playing phone tag or waiting hours for emails, dramatically improves efficiency.
- Provide better planning capability - Real-time planning and monitoring allow managers and drivers alike to respond to situations with confidence. Planning capacity loads, arranging driver schedules, and dealing with disruptions becomes more manageable with a digital freight network setup.
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What Does a Digital Freight Network Include
- IoT-enabled systems. Hardware and devices, connected via the Internet of Things (IoT), can unlock visibility into shipment location and condition which, in turn, enables greater communication and operational insights.
- Real-time route optimization. Access to real-time data allows managers to optimize routes, avoid significant delays, and keep drivers moving effectively.
- Data-driven decision-making. The ability to respond in real-time helps improve shipping services and overall performance when critical decisions are required.
- Innovative freight matching. Digital dashboards and platforms allow for customized load and capacity procurement to maximize every load transported.
The digital network enables logistics managers and drivers to meet the growing needs and demands of an e-commerce driven freight market.
Establish Strong Digital Freight Networks With the Right Automation and Capabilities in Your TMS
Many shippers and carriers are slow to embrace modern processes of the digital freight network, clinging instead to traditional methods. Such reluctance can lead to several shortcomings, the most damaging being the inability to use real-time data tracking and analysis.
Growth and survival in today’s competitive market require the complete onboarding of new and innovative processes within the supply chain network.
Building a solid freight network that takes full advantage of today’s tools and technology requires a TMS setup focused on digital techniques and innovations.
MercuryGate’s Digital Freight Marketplace makes navigating complicated digital freight networks BASIC. Download this infographic to see how, and click the link below to see a demo of our Digital Freight Marketplace.
