More than halfway through 2016 and there are some top trends emerging that will last long after the New Year. In order to get ahead of the trends, here is our list of the top trends in freight management presented by GlobalTranz.
#1: Move Toward Sustainability
The logistics industry like every other industry in America is experiencing a huge shift toward sustainability and energy conservation. Some changes are coming at freight agents rapidly while others will take a cultural shift. For freight agents trying to get a foothold the move toward sustainability can be a win-win.
Through efforts to make carrier fleets more fuel-efficient and to limit the number of empties returning to warehouses and distribution centers, 3PLs are actually saving thousands in costs. Earth saving measures is a trend for which there is no end in sight.
#2: Adapting to Changing Regulatory Landscape
Some changes that are happening rapidly have to do with regulatory changes and increased oversight. In the government’s effort to reduce the U.S. carbon footprint, legislation from state to state, particularly in California governing freight shipping is designed to make the road safer and to reduce carbon emissions.
Take for example the FAST (Fixing America’s Surface Transportation) Act signed into law last year. The goal is to ensure that interstate highways and transit lanes are better maintained through additional funding.
This in turn will help freight agents when mapping out new, more efficient routes and taking advantage of better lane assignments. However it will likely also add additional taxes to your business expenses.
#3: Third Party Logistics Outsourcing Business Functions
Outsourcing by 3PLs is a new trend for freight agents. Technological changes in business have altered the way services are rendered across the board. There are companies out there designed to manage accounting, transportation management, software adoption, and payment processing.
Many 3PLs are trying to increase productivity by handing off some of their time consuming administrative tasks to third party providers. The beauty of our freight agent technology at GlobalTranz is that our software handles all of those functions without the need to outsource anything.
#4: Dimensional Pricing to Replace NMF Classification
For more than half a century the National Motor Freight Classification System has been used as the foundation for how freight is shipping is classified and therefore what rates are charged. Freight today no longer fits into the classification system particularly as LTL and TL shipments have become standard.
Expect a trend for 2016 in logistics and beyond to be centered on the push for a change to dimensional pricing to replace the NMFC system. While older more traditional carriers would prefer to stay the same, the tide is turning and more modern technologically advanced 3PLs will demand the change.
#5: Incorporating IoT Technology into Supply Chain Management
Lastly, the IoT will change a way a lot of things are accomplished including freight shipping. First, the driver shortage that gave rise to the booming 3PL industry of today will also create the need for more partnerships and collaborations between 3PLs and their carriers.
The IoT will bring more machine-to-machine technology like driverless cars and drone technology that will be able to move freight without the need to hire drivers and carriers. Moreover, through advanced automation like RIFD tagging and sensor technology, much of the day-to-day tasks of your warehouse and distribution centers can be streamlined and automated.
Getting Ahead of the Trends with GlobalTranz
One thing is certain, as these trends began to fully come on board you can expect GlobalTranz to be at the forefront. Our technology is the most advanced proprietary software designed precisely for freight agents and brokers.
We have always been able to utilize the advantages created by modern technology and harnessed it to help our customers to create stronger more competitive freight businesses. Most importantly, we make technology that is easy to use and integrate into your operations seamlessly.
As time goes on expect technology to continue to make shipping easier, cheaper, and faster. We will be there for you offering the world-class logistics technology that you have come to expect from us at GlobalTranz. If you want to get ahead of the trends so that your agency is ready for 2017 and beyond, contact our team today about adding GlobalTranz technology to your freight operations.