“As digital business models continue to grow, digital models in transportation are providing a complementary method to serve shippers’ freight capacity and deeper freight insights,” Gartner states in its May 2019 research report. Gartner goes on to say, “this research will help supply chain leaders get a better understanding of the digitized transportation networks.”
The report refers to Loadsmart as one of a number of Vendors for Digitized Transportation Networks. According to the report, “Digitized transportation networks provide an alternative to traditional brokers, load boards and the spot market, which remain time-consuming and collect information from carriers and shippers, but don’t support true collaboration.”
The need to further understand the benefit and types of digitized transportation networks is underlined in our Q1 2019 State of Truckload report. In the first quarter, we reported that spot rates (or market relative rates), were nearly 20 percent less than comparable contracted options. For shippers, this gap represents an arbitrage opportunity that can be exploited by digitized transportation networks.
While elevated concern around economic contraction in 2020 is appropriate, it’s not yet time for doom and gloom. Shippers have an opportunity to save in 2019 while capacity is high and spot rates are in decline.
Loadsmart has helped Fortune 500 customers take advantage of favorable market conditions by inserting real time rates alongside the static prices in their routing guide. This is made possible via direct integration with their TMS. In today’s market, there’s nearly a 20 percent gap between spot and contracted rates — savings which can be captured with our SmartRouting technology.
Gartner subscribers may access the full report here (paywall).
Loadsmart mentions in Gartner research include:
Gartner Disclaimer:
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.