Leading up to the recent market volatility and disruptions faced in the domestic truckload sector, many logistics service providers have had difficulties keeping up with everyday operations. Carrier revenue, while generally up, has faltered some compared to what was expected, but as recovery continues, rebounding can and will occur. While profitability is up year over year, miles driven are still lower than usual. However, as freight technology makes it easier to increase profits by ensuring shipment density, carriers will have a unique opportunity to maximize revenue streams. But first, let’s look at the challenges of managing shipment density and how technology can help.
The Challenge of Managing Freight With Antiquated Technology
Increasing carrier revenue, managing shipments, and addressing consumer needs are among the top challenges transportation service providers face in today’s volatile freight market. That’s especially true as rate structures have changed in recent months, reflecting peak surcharges, GRIs, and the elephant in the room–dimensional weight rating models. Of course, there’s been a long-held focus on digital transformation, and the problem that outdated technology could cause.
Ironically, it goes back to the issues of limited visibility. Poor visibility made it troublesome, if not impossible, to understand where consolidation opportunities might exist, which resulted in poor shipment density. Poor density is simply a way of saying wasted space or empty space.“Companies that were using antiquated visibility and forecasting tools (e.g., those based on spreadsheets or in disconnected software systems) had difficulties keeping up with huge upticks in ecommerce orders, managing remote workforces, handling supply interruptions, and meeting brand new customers’ demands.
With 2022 now firmly in the rearview mirror, the technology decisions companies made over the last 12 months are making for a less tumultuous year – despite the ongoing impacts of the pandemic – while also pushing shippers to more closely examine what the digital supply chain means to them.” With that in mind, it’s time to think about how freight technology really does increase carrier revenue by reducing overhead.
Innovation Within Freight and Transport Technology Improves Carrier Revenue
As new trucking network-related software, hardware, tools, equipment, devices, platforms, and applications grow more accessible, shippers and carriers across all industries are working them into their supply chain strategies. Innovations within freight transportation, such as machine learning, automation, AI, the Internet of Things (IoT) and cloud-based services and management processes, can improve efficiency and reduce overhead. Proper onboarding and utilization of modern transportation technology can impact everything from capacity procurement, driver scheduling, shipment density, shipment tracking, fees and surcharge management, and customer loyalty. In the midst of unprecedented changes and volatile markets, tracking all costs is the top priority. Furthermore, maximizing carrier revenue unifies all those activities together to ensure the best freight load is selected for each driver, trailer and move, reducing costs and optimizing the route along the way.
Streamline Repetitive and Mundane Tasks With Efficient, Automated Platforms and Tools
Automated freight matching platforms and tools offer several great benefits that augment carrier revenue. By streamlining repetitive tasks and freeing up team members from mundane work, the entire supply chain realizes increased efficiency, and those same automations trickle down into faster shipment execution from either a carrier or shipper perspective. Automation and integrated systems can help improve end-to-end processes within the supply chain market. Together, they serve to increase profitability from any standpoint without undercutting their client’s goals, such as a carrier that wants to maximize carrier revenue without charging so much that it would push shippers away to their competitors. Delivery ETAs, carrier pick-up rates, carrier revenue, shipping automation, tracking and monitoring, and innovative data analysis are all possible with integration between these tools and technologies easily accessible.
Boost of Profits by Ensuring Maximum Capacity and Density With Every Shipment
Transportation service providers continue to embrace innovations and advancements in supply chain technology and digital truckload carrier tools help transportation service providers find the best loads, in the best pick-up markets, with the right rates and with the right equipment. Together, technology helps carriers do more with less, and it helps shippers keep freight spend in check. While it sounds like carrier revenue and shipper efficiency are at opposite ends of the revenue spectrum, there’s actually a balance to be struck that will benefit everyone. And digital freight marketplaces that make this possible will be the defining factor in how carriers and shippers alike find new ways to increase revenue, make every move as dense as possible, and avoid extra expenses along the way.
Furthermore, increased shipment density also benefits everyone on the planet by lowering total carbon emissions too, so why wouldn’t any company look to technology to increase their own sustainability and profitability goals?