BlueYonder ICON Event: How to Stay Ahead of Market Disruptions
Written by: Eduardo Silva, Director of Product Management
Last month our team had the opportunity to attend and present at BlueYonder's ICON conference in Las Vegas. The event brought together 2,000 supply chain and retail professionals.
During my time there, my biggest takeaway was the repeated message that shippers should consider new technology in order to stay ahead of unplanned market conditions. We all know everyone working in logistics has been on a rollercoaster the last few years. Disruptions in the market continue to occur for the wildest reasons: a global pandemic, a single ship obstructing the Suez Canal, or the fluctuation of commodity prices– it definitely feels like disruptions are increasing in frequency, and the time is now to invest and adopt next-generation supply chain systems to ensure growth.
Many companies are beginning to adopt new technology, yet there is still concern that the growth of adoption of technology remains flat year over year.
In order to decrease the impact of unplanned disruptions and build resilience throughout our supply chain, we need every participant to consider adopting technology that allows companies to partner and collaborate. I personally hope that the new wave of AI products will be a game changer for technology adoption. There are so many opportunities for optimization throughout the supply chain if everyone was to use and share data in efficient ways.
One of the most basic problems technology solves within supply chain operations, is allowing shippers to have access to real-time rates. Unfortunately, one of the obstacles of widespread adoption of real-time rates is the technology gap in the supply side of transportation. Many carriers still don't have access to technology needed to calculate real-time rates, which forces shippers who want to use real-time rates to only work with carriers who have access to this technology.
With such a fragmented carrier market, plus an aging workforce, and decade-old companies, many carriers still look at technology with suspicion.
In order to create an even playing field, shippers are choosing to skip on the benefits of technology, so every carrier and broker will be competing evenly. Although we agree that competition is healthy, we want the overall transportation market to become more tech-savvy. And closing the technology gap between shippers and carriers is a necessary step in creating a more efficient and sustainable supply chain.
Loadsmart and BlueYonder have partnered to close the technology gap by providing carriers with the technology needed to calculate real-time rates, making it easier for shippers to utilize technology to find real-time rates and take advantage of all the benefits technology has to offer.
The future of digital freight logistics starts with flexibility and automation. With so many disruptions happening in the market and the additional volume of data flowing, we should naturally have higher technology adoption, and shippers and carriers will be expected to adapt their plans in real-time. Not only helping them to respond to problems, but also allowing them to better navigate the marketplace.
Real-time rates are calculated based on the current supply and demand of freight, as well as other factors such as fuel prices, equipment availability, and weather conditions. With so many inputs, rates are moving on a daily basis. Shippers with access to real-time rates have a way to automate their decisions based on changing market conditions, allowing them to be flexible with their shipping strategies.
For example, if there is a sudden surge in demand for a particular type of freight, real-time rates will reflect this by increasing the price. Shippers who are aware of this can adjust their shipping strategies to avoid the higher rates and reduce their costs.
On the other hand, if there is a sudden oversupply of a particular type of freight, real-time rates will reflect this by decreasing the price. Shippers who are aware of this can adjust their shipping strategies to take advantage of the lower rates and increase their profits.
Reliable Contracts offers a contracted solution that is designed to adapt to these market disruptions. With Reliable Contracts, Loadsmart offers the benefits of secured capacity, 100% tender acceptance, and an incentive structure to drive shipper savings. This API solution is already integrated with BlueYonder, which means that shippers who use BlueYonder’s TMS can take advantage of this powerful tool.
The entire logistics industry has recently experienced unplanned market headwinds. The time is now to work together and partner with the right providers to accelerate the adoption of technology that helps to minimizes these disruptions. We believe technology will continue to increase the efficiency, transparency, and efficacy of transportation logistics.
Real-time rates and Reliable Contracts are powerful tools that can help shippers stay ahead of market disruptions and make informed decisions based on current market conditions. To learn more, visit https://loadsmart.com/shipper/.
No Comments Yet
Let us know what you think