How We Help Our Clients Reduce Spot Market Exposure by 50%

On May 15, 2018, we wrote about the first fully automated intelligent routing guide with dynamic rates in the US. That powerful tool enables shippers to automatically book a truck before the shipment turns into a spot load and has reduced spot volume for Fortune500 Shippers by as much as 50 percent. Loadsmart accepts 100 percent of tenders received from the dynamic routing guide, guaranteeing capacity. This feature helps shippers avoid the same-day/next-day markets, which are known for steep prices and service failures. Given the huge interest and questions we got from the logistics community, we decided to expand and explain the reasoning behind it and how it actually works in a granular way.

At Loadsmart, our mission is to do more with less. That’s why we innovated with a major customer to help them drive down their spot market exposure by 50 percent. We worked with our customer to help them do more with less by pushing market-based truckload rates into their TMS for every load that goes through their routing guide. Simply put, we do three things:

  • Provide real-time pricing on every load in the routing guide via API;
  • Auto-accept every tender we receive;
  • Guarantee capacity for all of those auto-accepted tenders.

This explains how we went from participating in a daily spot auction via email to a full-fledged integration with our customer to reduce spot volume.

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Logistics technology eliminates deadhead miles to make the trucking industry more environmentally friendly

How Logistics Technology Can Save the Environment

We’ve talked about how logistics technology can save the industry, but did you know it could help save the environment, too? As a highly fragmented industry that’s severely lacking in technology, many trucks are running with little efficiency. If the trucking industry could eliminate its deadhead miles, trucks would spend less time on the roads, using less fuel and cutting down on emissions.

The Facts of the Matter: Deadhead Miles and the Trucking Industry

In a 700 billion dollar industry that moves 70% of all goods in the United States, there is little room for inefficiency. Class 8 trucks log over 130 billion miles a year, with nearly 20 billion of those considered deadhead miles. The trucking industry accounts for 12.8% of all fuel purchased in the U.S., which translates to 17.5 billion gallons in 2014 alone. By eliminating deadhead miles, the industry would save over 2.5 billion gallons of fuel every year. A decrease in fuel use and emissions will in turn reduce air, water and land pollution, acid rain and ozone destruction.

Real-Time Shipment Tracking and Notifications Eliminate Deadhead Miles

Real-time shipment tracking sounds pretty “Big Brother,” right? Well it’s not, in fact, real-time shipment tracking is one of the most powerful tools available to the industry, for shippers, carriers and the environment. Using GPS technology, logistics platforms are able to send carriers local jobs instantly, eliminating time usually spent at loadboards. When carriers are able to find loads via location instead of traveling back with an empty trailer, shippers receive better rates, drivers don’t have to waste time, extra trips are eliminated and the entire process is streamlined.

Fleet Management Makes For Better Business Decisions

Knowledge is power. It’s an age-old adage for a reason. When dispatchers and owners know exactly what’s going on with their drivers, via tracking, open communication platforms, instant e-document transfers and load organization tools, they are able to make better and more informed business decisions.

So What Does Logistics Technology Mean For the Environment?

With a growing number people in the industry transitioning to technology based platforms, the overall efficiency of the industry is poised to skyrocket in the coming years.Our goal is to bring the excess capacity to market and eliminate the billions of deadhead miles traveled every year. With an increase in efficiency, there will be a decrease in traffic, emission, safety and economic concerns. 

 

Freight management tools are the future of the industry

The Technological Touch: 3 Ways Logistics Technology Simplifies the Industry

As we mentioned before, there is and always will be a need for humans in the third party logistics business. A lot can go wrong out on the road, and it’s important to know that there’s a human on the other end that has your back. With that being said, logistics technology is not something to be overlooked. What can logistics technology do for you? Well…

Paperwork: Stop Faxing Your Bill of Lading

Imagine a world without paperwork. Impossible, right? Well yes, technically. But technology can help take the paper out of paperwork and make the entire process of freight management much more efficient. For instance, if the Bill of Lading could be automatically uploaded as soon as the delivery is complete, wouldn’t that make things much more simple? Or if there was a place to access and review past Bills of Lading, eliminating the mountains of paperwork you typically deal with? Well, there is a place to do this, and it does simplify freight management. With e-documents, all paperwork is in the palm of your hand and saved safely. No more lost documents.  And the best part? An added bonus? The efficiency allows everything to be completed and drivers to be paid in under 48 hours.  

Communication: Open Chat Rooms and GPS Sharing

While the days of stopping at a payphone are long gone, communication methods are still evolving. Cell phone calls and texting are commonplace, but they’re not always the most efficient solution when many parties are involved. That’s why a place where all parties can communicate freely without even exchanging numbers is an important tool to have. Broken down? Delayed? Ahead of schedule? An open communication platform combined with live GPS freight tracking prevents potential problems and keeps everyone informed.

Efficiency: Eliminate Empty Miles with Logistics Technology

Logistics and technology go hand-in-hand. The basic, yet constant supply and demand of the industry makes it easy to convert traditional methods to tech-based ones. With new logistics technology, shippers can easily post loads and carriers can easily accept them. Simple. Advances in logistics technology allow us to provide carriers with jobs that are tailored to their preferences and location, based on GPS freight tracking, eliminating deadhead miles and time wasted at loadboards.