Matching carriers and shippers as efficiently as possible is the goal of logistics managers and supply chain directors across the board. To better adapt to the changing market and shifting consumer demands, the popularity of digital freight matching platforms has risen dramatically. These digital freight marketplaces make up a large segment of the transportation network and remain poised to continue growing at a record-setting pace over the next few years.
Digital Freight Marketplaces Need the Benefits of Carrier Diversity Found Within a TMS
Transportation service providers are trying to improve their market share by offering faster, easier, and more transparent platforms for booking freight. Digital freight marketplaces allow all this to happen with seamless integration and collaboration, which is possible only with carrier diversity and functionality.
This makes it possible for shippers and brokers alike to benefit from the carrier diversity of their unique transportation management system (TMS) design. According to SupplyChain24/7, the move toward offering trucking-as-a-service, or TaaS, has become much more common. The market is expected to grow to nearly $80 billion by 2025, a considerable growth from its current estimated value of just over $11 billion in 2020. A solid and effective TMS and carrier/shipper matching process remains the key to unlocking these fantastic benefits.
Using a TMS Enables Automated Quoting and Booking
Automated carrier and shipper matching services, such as those seen with digital freight marketplaces, allow shippers to directly and almost instantly identify and contact drivers with the capacity to transport their freight. These automated platforms make finding truckload, less-than-truckload, and partial truckload capacity faster and easier than ever before.
As a result, carrier diversity and shipper variety will only increase, making TMS-enabled instant quoting and booking the new expectation rather than the exception for e-commerce shipping demands. As Material Handling and Logistics reports, shippers get competitive and transparent rates to access real-time transportation and delivery details, so they always know the status of their shipments. This allows for faster onboarding of new tools and systems and boosts the power of automated quoting and booking throughout the supply chain.
Integration Further Reduces Back-Office Processes for Brokers and 3PLs Alike
Digital freight marketplaces can integrate with current enterprise TMS services to boost productivity for brokers and 3PLs alike. By automating processes such as capacity procurement, internal and external communications, rate quoting and negotiation, and other mundane and routine tasks, back-office processes become more efficient and organized.
Integration Promotes Use of Shipment Analytics to Enable Continuous Improvement
The integration between TMS systems and digital marketplaces hinges on analytics. The need for real-time capacity commitments and reliable carrier procurement has never been higher than over the last few years. From pharmaceuticals to grocery, many industries and markets need more reliable shipping service options to stay competitive and keep up with customer demands. Digital freight marketplaces offer a new level of freedom, versatility and optimization that has not previously existed for shippers and brokers.