Today, ninety percent of Fortune 500® companies rely on 3PLs for outsourced logistics and supply chain services, according to an Armstrong & Associates report. Whether you’re a B2C or B2B company, how promptly and efficiently you react to customer orders has a direct bearing on customer loyalty, retention and earnings. Company supply chains have become strategic imperatives, with businesses investing heavily to create competitive advantages through innovations in their fulfillment, warehousing and logistics operations.
When you outsource non-core functions like logistics, you can focus entirely on what you’re great at: growing and building your business.
Explore these seven reasons to outsource logistics services and partner with a 3PL:
1. Focus on Core Business
There aren’t enough hours in the day to become an expert on the complexities of logistics while still creating new products, expanding markets and growing your company. When you outsource logistics management, you put the day-to-day execution, strategic recommendations and logistics operations in the hands of a trusted partner. In the process, you’ll free up time for employees to focus on customers and expand your business.
2. Gain Access to Technology
Cutting-edge logistics technology developed by 3PLs helps businesses drive supply chain efficiency, cost savings, and visibility. Companies like GlobalTranz empower businesses with transportation management software that integrates logistics operations with ERP, CRM, order management, and back-office systems. This data flow provides supply chain visibility, process automation, and business intelligence to help transform and grow businesses.
3. Drive Efficiency and Cost Savings
Third-party logistics companies bring experience, technology, scale and operational best practices to help businesses increase overall transportation management efficiency and cost savings. 3PLs combine the volume and scale of all customers’ freight to “buy in bulk” from carriers and negotiate competitive rates for shippers. As businesses continue to look for ways to reduce transportation costs, 3PLs provide logistics optimization tactics to help companies realize sustainable long-term savings. Technology-driven 3PLs like GlobalTranz also provide shippers with logistics management platforms that provide end-to-end automation.
4. Improve Risk Management
Risks are an inherent part of supply chains, but 3PLs can help businesses mitigate incidents and prevent downtime. Many 3PLs provide 24×7 monitoring and visibility to anticipate and respond to problems that keep your supply chain operational. As part of its GTZconnect logistics platform, GlobalTranz is using pioneering technologies like AI (artificial intelligence) and machine learning to help businesses solve problems before they happen. AI gathers and analyzes thousands of data points from historical events, current environment and future expectations to help businesses manage disruptions (like weather), reduce downtime, and effectively plan and budget their logistics spend and operations.
5. Acquire Custom Solutions
Using multimodal shipping services and logistics solutions, like combining intermodal with truckload and final-mile, helps mitigate capacity challenges and meet customer delivery expectations. Full-service 3PLs like GlobalTranz have access to a broad range of carriers and transportation services that can be combined to create custom logistics solutions for your business.
6. Develop Internal Staff
Outsourcing your logistics to a 3PL expands the expertise of your team. 3PLs bring logistics operational best practices and work alongside your team to help them develop new skill sets and process efficiencies. When your employees are well-trained and develop new skills, they add more value to your organization.
7. Improve Customer Satisfaction
Consumers and business buyers’ delivery expectations are rapidly increasing. 2-day and next day delivery are now the status-quo. To manage these delivery demands, 3PLs like GlobalTranz are tapping their networks and resources to provide just-in-time logistics solutions designed to meet expanded buyers’ needs. Automated warehouses, final-mile, multimodal, and multi-vendor are just a few of the logistics services a 3PL can provide to meet your customers’ unique delivery requirements.
Helping You Grow Your Business
Overall, the success of outsourcing your logistics is dependent on choosing the right 3PL provider. Outsourcing logistics management drives operational efficiency and cost savings while providing technology, knowledge, and expertise to help you grow and transform your business.
The ever-expanding field of artificial intelligence (AI) is leaving an indelible mark on every industry, logistics included. In its Logistics Trends Radar report, DHL identified AI and machine learning (a subset of AI) as key technologies driving logistics innovation. With its ability to rapidly make sense of massive data sets and automate operational processes, AI is transforming the movement of goods and creating competitive advantages for business supply chains across the globe.
For shippers, AI tools consistently deliver an array of benefits from improving efficiency and productivity to saving you dollars throughout your logistics operations.
Here are 3 Ways AI is Transforming Logistics Management
1. Predictive Logistics
With its ability to gather and analyze thousands of disparate data points, AI can help you solve a problem you don’t know is there. Combining data from historical events, current environment, and future expectations, AI enables businesses to shift from reactive to proactive decision making. With AI technology, shippers can manage disruptions (like weather), reduce downtime, and effectively plan and budget their logistics spend and operations. More impactful than dealing with disruptions, AI-enabled logistics platforms allow organizations to drive efficiency and profitability from daily operations.
At GlobalTranz, we help companies track financial forecasts, pace and flow of production, and order processing. These data points, combined with deep insights into carrier capacity and performance, allow companies to answer questions like, “How many more orders can we service within budget for a given set of lanes? or How much can we increase manufacturing without going over our freight budget?”
2. Optimization Events
AI is being used to make faster and smarter decisions that optimize carrier selection, rating, routing and quality control processes. The abundance of data, sophisticated algorithms, and dynamic business rules helps move shipments from point A to point B, C, and D, using the most efficient, fastest route. In the past, it could have taken up to six months to thoroughly understand the unique features (best- and worst-case transit time, the impact of weather and other factors) of specific routes. Today, analytics based on AI can examine large sets of data in seconds and create simulations that match shipper demand with carrier behaviors like capacity, service capabilities and backhaul opportunities to determine the best combinations of carriers and lanes for delivering loads.
3. Recommendation Engines
In logistics management, many repetitive tasks can be made more efficient through automation. Using AI computing techniques, like machine learning and natural language processing, we can teach systems to recognize patterns in data, and based on its findings, issue a recommendation or action. Over time, self-learning enables logistics solutions like GTZconnect to continuously improve operating algorithms and deliver more informed suggestions that help shippers automate logistics decisions and increase the efficiency of business processes.
For example, at GlobalTranz, we use the concept of ‘AI everywhere’ in our GTZconnect platform to integrate user, carrier, shipper, historical and predictive data to route inbound inquiries to the best customer support representative equipped to handle a question or issue. We also incorporate real-time information on weather, seasonality, traffic, and other data inputs to recommend the best solution for each shipment. Rather than spending hours on repetitive tasks, AI enables businesses and their employees to focus their time on higher-value projects that help transform and grow their businesses.
How to Leverage the Power of AI in Your Logistics Operations
As companies continue to emphasize the impact logistics has on earnings and customer loyalty, they increasingly turn to innovative technology and automation for practical solutions. Logistics leaders should equip their business and teams with technology, like GlobalTranz’s no-cost TMS platform, which centralizes freight data, integrates business systems data, and leverages AI, machine learning and predictive analytics to create operational efficiencies and make better business decisions.
Mergermarket, the leading provider of forward-looking M&A intelligence and data to M&A professionals and corporates around the world, featured GlobalTranz’s plans to grow its capabilities through strategic acquisitions that add value for shippers, carriers and freight agents.
GlobalTranz, a private equity-owned provider of transport logistics services, is actively looking at six or seven acquisition candidates of varying sizes, CEO Bob Farrell said.
The Phoenix-based company, which generated USD 854m in annual revenue for 2017 – up from USD 550m the previous year – has completed five acquisitions over the last 13 months, he added. A month ago, it purchased AJR Transportation, a Texas-based freight brokerage and logistics company. It expects to close on one or two deals in the first half, according to Farrell, who was appointed CEO in early 2016.
Some of the targets in question are the same size as GlobalTranz, while some generate as little as USD 10m in revenue, he added. Targets on the larger end of that spectrum tend to have more diversified business models and bigger customer bases, while smaller targets can offer niche technologies or logistics solutions, he said.
The company is “on the path” towards ending 2018 with USD 1bn in revenue, not including additional acquisitions, Farrell said.
Generally, GlobalTranz wants to find companies with “great revenue synergies as opposed to expense synergies, which will either be there or not,” said Farrell.
Targets that bring new capabilities in international ocean and air freight, intermodal transport and last-mile delivery would also be attractive.
“People are shipping big and bulky items as well as big fluffy items in ways they’ve never done before,” Farrell said. As a tech-driven company, it would be helpful for GlobalTranz to acquire solutions in those areas instead of building them, he said.
In particular, technology related to predictive analytics, machine learning, advanced customer management and pricing engines would be desirable to obtain via acquisitions, he added. As far as attractive markets, GlobalTranz is seeing a lot of freight opportunities in durable goods, food manufacturing and infrastructure.
GlobalTranz has seen “a lot of goods moving northbound” from its customers in Mexico. For this reason, it could buy Mexican logistics companies, the CEO said. He maintained that the company is not yet in talks with any groups from that area, but is looking broadly across the US.
The company is not using an external financial advisor for deals, as it has an internal team that is “able to do pretty detailed levels of diligence and analysis,” said Farrell. It retains KPMG, RSM and Ernst & Young for auditing and other financial purposes, as well as CBIZ for quality of earnings and tax analysis, he added.
In 2014, GlobalTranz completed a USD 40m Series C led by Providence Equity and Susquehanna Growth Equity, which own the majority of the company. Shortly after, the company’s then-CEO Andrew Leto told this news service that GlobalTranz could seek additional capital, or possibly an IPO, by 2016, when he expected its revenue to reach USD 1bn. According to Leto, the company had raised USD 53m to date. Its law firm was then Greenberg Traurig.
Farrell said GlobalTranz no longer uses Greenberg Traurig and that its counsel is now Quarles & Brady as well as Weil, Gotshal & Manges. When asked if the company could seek an IPO upon reaching the USD 1bn milestone, Farrell replied that this plan is not in the cards right now. Asked about other exit options, he said that GlobalTranz is focused on increasing the value of the company, declining to elaborate.
Upon Providence and Susquehanna’s investment, GlobalTranz moved from “being entrepreneurially-led to focusing on profitability. We did some things internally to get ourselves aligned to grow organically and also have the framework to integrate acquisitions,” he added. Specifically, the company enhanced its technology, upgraded its staff and “made decisions based on data trends.”
Providence and Susquehanna did not return calls seeking comment.
For more information on GlobalTranz, visit GlobalTranz 2017 Financial Results and Highlights
Consulting company Capgemini recently shared its list of the top challenges facing logistics and shipping managers. The list, compiled through a survey, found the top challenge to be “cutting transportation costs.”
While many shippers naturally start to look for ways to reduce their rates, there is also a broad range of optimization tactics logistics managers can employ to help their businesses realize sustainable long-term savings.
Here are 10 shipping optimization tactics you can apply today:
1. Supplier Inbound Compliance
Make sure you have consistent processes in place for managing all your inbound freight. Perform an annual audit to measure what percentage of your material purchase orders have “collect” shipping terms versus “prepaid.” In general, a buyer should control inbound transportation unless the product the company is buying is extremely expensive or risky to move.
If you allow suppliers to ship freight prepaid, you also run the risk of paying 10–40 percent premiums, which are profitable for the supplier, but expensive for you, the buyer. You may be paying state sales tax on freight charges if they’re buried in the overall product cost, also known as “freight allowed” or “freight included.”
Use a web-based routing guide to instruct your suppliers what carriers to use when shipping to your locations, and add these instructions to your purchase orders. Incorporating vendor routing and compliance guides can help improve transportation service times, control costs, and streamline warehouse operations.
2. Outbound Routing Discipline
You have thousands of carriers to select from to haul your freight. Do you always pick the low-cost option? Or are you choosing a carrier based on convenience? Make sure your process for selecting carriers is consistent across your company.
Use a web-based TMS (transportation management system), with a network of pre-qualified carriers, to provide your team a consistent means to quickly compare carrier rates, transit service, and match the best carrier with your shipment. Utilizing a TMS provides you visibility to all your outbound and inbound freight, so you can make data-driven decisions that drive cost savings for your business.
3. BOL Reduction
Reducing the total number of BOLs (bills of lading) created each day will help lower your freight costs. If your team is responsible for outbound and inbound freight, make it a practice to combine more orders into one shipment, which will create more cost-effective larger volume loads. With more intra-company transparency and connected technology systems, you’ll create significant cost-saving opportunities.
4. Mode Shift and Multi-Mode Combinations
Combining multiple shipments into a single, larger shipment, is called mode shift. With this tactic, you move your shipments into an alternative, less expensive mode. An example of this is combining multiple LTL shipments into a volume LTL, partial truckload or full truckload.
When shipping expedite, it’s essential to compare ground and air freight options. On any given shipment, air freight might be less expensive than a sprinter van, but sometimes, a two-person driving team in a cargo van or 28-foot box truck might be less expensive than shipping via air.
Leveraging multimodal shipping services and logistics solutions, like combining intermodal with truckload and final-mile, helps reduce your overall costs while mitigating capacity challenges and meeting your customer delivery demands.
5. Accessorial Audits
Take the time to audit your freight invoices from the past 6–12 months to make sure you’re not being charged incorrectly, and identify opportunities where you could eliminate accessorial charges. Administrative accessorials like weight and BOL adjustments can be avoided with proper training. Educating your employees on accessorials, and the importance of properly weighing, measuring, and classing shipments, can help reduce your accessorial fees and overall shipping costs.
6. Get Your Product Closer to Customers
As consumers and B2B buyers increasingly expect next day delivery, your fulfillment and logistics strategy is an important part of your customer service equation. When you leverage a nationwide network of warehouses, you reduce the distance between your product and your customers, which can also decrease your cost of transporting your product to market. The overall cost of regional freight shipping from fulfillment centers is usually less expensive than shipping cross country.
7. Increase Lead Times
The more time your logistics partner has to book a shipment, the more leverage they have to secure the best carrier and equipment for your load and lane, identify efficiency improvements and negotiate rates. An advance shipping notice helps a carrier line up the assets and resources they need to efficiently pick up and deliver. One of the biggest costs for carriers is paying for a trailer that’s sitting idle somewhere, waiting to load. When you plan ahead for pick up, staging, and loading, carriers can reduce idle time, lower costs, and pass savings on to you.
8. Leverage Backhauls
Once carriers complete a delivery, they typically travel back to their home base, or to the next pick-up destination. This trip is often taken unloaded or without any freight onboard. Every minute a truck is empty it incurs expenses. Carriers are most efficient when they are hauling freight instead of an empty truck. Logistics service providers can negotiate backhaul credits or targets to help you save money and meet your delivery demands.
9. Pool Shipments
Pooling deliveries from different shippers, destined for the same region or distribution networks, results in cost control. Third-party logistics companies like GlobalTranz can leverage their network of 25,000+ shippers and 30,000+ carriers to coordinate pooling opportunities that combine your shipments with other deliveries and help you save on your overall transportation costs.
10. Drop Trailers
Drop trailers are often used at locations that have enough outbound shipping volume to fill a trailer in a week or less. These enable you to load freight when convenient and combine shipments, which might normally go LTL, into one full truckload. Drop trailers also reduce the amount of time drivers sit idle waiting for their truck to be loaded. In today’s tight capacity market, and with the recent launch of the ELD mandate, carriers and drivers are more conscious of dwell time and lost productivity. Using drop trailers creates flexibility for your dock and warehouse schedule, helps mitigate capacity issues, and enables drivers to quickly pick up your delivery, which in turn helps keep your freight costs down.
Create a Freight-Optimization Culture
When you optimize your freight shipments using these tactics, you’ll deliver savings to your company’s bottom-line. Over time, driving these practices into your culture will yield overall freight savings far beyond one-time rate discounts.
Increase your freight management efficiency and overall cost savings. Get a personalized logistics consultation today. Call 866.275.1407 or Request A Consult.
PHOENIX (Feb. 12, 2018) — (BUSINESS WIRE) — GlobalTranz Enterprises, Inc., a leading technology-driven third-party logistics (3PL) solutions provider, today reported a fourth-quarter revenue increase of 67 percent and earnings growth of 62 percent year over year. Closing out 2017 with total revenue gains of 55 percent and earnings growth of 42 percent, GlobalTranz continues to outpace many competitors in the industry.
The company’s ongoing success is driven by organic growth, strategic acquisitions and exceptional performance of transactional and managed transportation. Approximately half of the company’s 2017 revenue growth was organic, while the remainder was achieved through strategic acquisitions.
“For the second year in a row, GlobalTranz has achieved record growth and profitability,” said Bob Farrell, chairman and CEO. “Our exceptional performance in volatile market conditions can be attributed to the power of our technology, the strength of our go-to-market model, and our expansive suite of multi-modal logistics solutions. As logistics increasingly becomes digitized, we are pioneering the use of new technologies like AI and Predictive Analytics to add value for shippers and carriers, and drive market leadership in the industry.”
2017 Company Highlights
“We are pleased to announce record year over year results,” said Renee Krug, CFO. “Our commitment to meet customers’ evolving logistics needs with our innovative technology and expanded service offering is having a positive impact on our financial performance. We will continue to invest in bringing industry-leading solutions to market that add value for our customers and drive efficiencies into their supply chains.”
In addition to the company’s financial success, GlobalTranz was recognized in 2017 for its innovation, growth and leadership.
2017 Industry Accolades and Awards
The company’s growth is expected to continue throughout 2018. “Increasing our national footprint through organic growth and acquisitions contributed to our 2017 success,” said Farrell, “In 2018, strategic mergers and acquisitions will continue to play a key role in expanding our capabilities, market share, and supplementing our organic growth as our revenue exceeds $1 billion.”
GlobalTranz continued to establish new corporate citizenship initiatives, actively supporting the communities it serves.
2017 Corporate Citizenship Initiatives
For more information, visit www.globaltranz.com and follow us on LinkedIn and Twitter @globaltranz.
GlobalTranz is a technology-driven freight brokerage company specializing in LTL, full truckload, third-party logistics and expedited shipping services. GlobalTranz is leading the market in innovative logistics technology that optimizes the efficiency of freight movement and matches shipper demand and carrier capacity in near real-time. Leveraging its extensive freight agent network, GlobalTranz has emerged as a fast-growing market leader with a customer base of over 25,000 shippers. In 2017, Transport Topics ranked GlobalTranz as the 13th largest freight brokerage firm in the U.S.
Chief Marketing Officer
(619) 888 -2324
Today’s freight industry runs at rapid speeds to meet customer delivery demands. One event that can disrupt the flow of your freight management operations and supply chain is damaged or lost cargo. The majority of shipments are picked-up and delivered on-time and intact, but knowing what to do and who to contact if you need to file a freight claim can be a key differentiator to minimizing downtime.
These 4 guidelines will help keep your supply chain operating efficiently:
Choose quality over price when selecting a carrier
Sourcing a carrier based on price over quality of service could result in a lot of headaches (as the saying goes, you get what you pay for). If you’re shipping products regularly, do your research and make sure the carriers you use have been thoroughly vetted with the highest level of safety and quality standards. Know the ratio of a carrier’s total shipment count versus their claims count, and find out what other shippers are saying about their experience with that carrier. Front-end research can eliminate potential disruptions.
Package your shipments properly
Proper packaging is critical to preventing cargo damage. If you’re packing items in boxes, make sure your commodity doesn’t exceed the weight limitations of the box. Select a proper box size that allows your item(s) to fit securely inside without excessive empty space. Ensure your product is protected by cushioning material on the inside of the box and stacked on proper pallets and shrink wrapped. If items are shipped loose, your cargo could experience a lot of turbulence, so make sure to package your items to withstand typical LTL shipping treatment. Freight claims can’t be filed on packaging damage alone. The purpose of packaging is to protect your goods from damage.
Label your shipments
To prevent cargo loss, make sure your delivery and return address information is listed clearly and accurately on your shipment. Labels and stickers should be positioned on top of the box, and all former labels need to be removed or covered. Make sure you place labels on an even surface of your package and not on the flap or seals.
When receiving a shipment, be sure to take your time examining the delivery and paperwork. Using the Bill of Lading (BOL) and delivery receipt, verify delivery address, shipment information, count the items on the BOL compared to the quantity being delivered, and inspect the condition of the shipment. If you identify any damage or discrepancies, follow the below tips.
Record specific damage and/or loss details on the delivery receipt
The delivery receipt is a legally-binding document. You must notate all damages, shortages or evidence of pilferage to cartons and containers on the delivery receipt and Bill of Lading (BOL) prior to signing. If a shipment is accepted without exception (i.e., the receiver doesn’t note specific information about what is damaged and/or shorted on the delivery receipt at the time of delivery), then a freight claim will be considered “concealed,” and difficult to resolve in your favor. All damage and loss notation must be clear and specific. Phrases such as “subject to count/inspection,” “potential damage,” and “subject to review,” will not be considered an exception. It’s also a good idea to take pictures of the damage for claim documentation.
Retain the freight at either the shipper or consignee location, not the carrier
Before the carrier resolves a freight claim, they will want the shipper or consignee to retain the goods. If the consignee cannot keep the products, then the shipper must ask the carrier to return the shipment. Keep in mind that the carrier will charge you storage fees if it holds the shipment. Do not dispose the goods prior to claim resolution or the carrier may decline your claim.
Ask the carrier to inspect the damaged freight
Once the shipper or consignee retains the freight, ask the carrier to inspect the goods. Most carriers will only investigate if the damage is greater than $1,000 or may waive their right to inspection. Nonetheless, still make the request. Having the shipment inspected before you submit the claim can help expedite resolution time.
Gather documentation to support your freight claim
By law, you must provide three pieces of evidence to support your claim:
Ensure you complete the appropriate claim form, detailing every item you are claiming. Include quantity, weight, and value. Collect the invoice showing what your cost was (i.e., your vendor invoice or manufacturer invoice) and the sales invoice (i.e., indicating the amount for which you sold the goods). Also, provide pictures, packing list, signed BOL, and signed delivery receipt.
Pay your freight bill
If you don’t pay your freight bill, then the contract hasn’t been completed between the two parties. Throughout the claim process, the freight bill remains valid—the invoice is not put on hold and isn’t voided automatically. If the carrier provides a legitimate declination on the freight claim, they are still owed payment on the freight bill. If a claim is approved and carrier negligence is demonstrated, the carrier won’t pay if the freight bill remains outstanding. If shipping with a 3PL, note the 3PL isn’t the liable party unless otherwise stipulated in your contract.
When presented with a claim, a carrier must prove they were not negligent. The carrier may also decline liability by using one of these five defenses outlined in the Carmack Amendment, a law created for uniformity in rules governing interstate shipping.
It’s not often we see claims declined for reasons one, two or four. If a carrier does reject a claim, it’s usually for reason three or five. The following are the principal reasons carriers deny claims:
The carrier will deny the freight claim if the shipment wasn’t packaged according to industry standards, or if it couldn’t adequately protect the load.
The carrier cannot decline a claim because the receiver didn’t notate damages/shortage on the delivery receipt, but if no additional evidence can be provided to prove the carrier caused damages during transit, they will decline the claim.
Carrier delivered precisely what they tendered
The only piece-count the carrier is liable for is the unitized pieces they pick up, not individual pieces found under shrink-wrap or within a crate. Regarding shortage claims, if the driver picks up one shrink-wrapped pallet and drops off one shrink-wrapped pallet, the contract is fulfilled. If the driver wasn’t present while the individual pieces under the shrink-wrap were counted and loaded, they aren’t liable for that piece count. Note: The driver will typically record the actual piece count when signing the BOL.
Give carriers time to investigate
Carriers have 30 days from the date of the claim submission to acknowledge receipt of the claim, then 120 days after that to investigate. The National Motor Freight Traffic Association (NMFTA) also allots carriers additional 60-day blocks of time after the initial 150 days, if they haven’t reached a decision, as long as they provide written status updates. Create a calendar reminder every 15-20 business days to track the age and status of the claim.
Provide additional documentation or information if the carrier requests it
Throughout the process, there may be multiple people reviewing a claim, especially for high-value shipments. One person may spot something that another person missed and need information from you to properly investigate. These requests can come any time within the 150-day process, and the clock is paused when the carrier sends an inquiry. Sometimes, a phone call to the carrier is all that’s needed to clarify the inquiry.
Complete as much work as you can before submitting your claim
Because everything else in the freight industry moves so quickly, it’s easy to assume that if a claim isn’t submitted just as fast, it could slow down the process. This isn’t true. It’s better to collect all the necessary documentation, inspect the goods first, and make sure this shipment is in the hands of the consignee or shipper prior to submitting your claim. You’ll save time by anticipating what the carrier may need during its investigation. Legally, a shipper has nine months from the date of delivery (pickup, if lost) to provide a formal cargo claim to the carrier.
Mitigate the product or goods
This is a fancy way of saying the shipper must: salvage, discount, or repair the commodity. If you can fix a $10,000 machine for $100, it’s better to make the repairs and file a claim for the cost of the repairs. Remember to first ask the carrier to inspect the products and confirm with them that you may mitigate before proceeding with then claim. Carriers also have rights to the salvage if they pay a claim.
Purchase shippers Interest Insurance
Unless otherwise stated in your contract with a carrier and 3PL, every LTL shipment will fall under the carrier’s limits of liability. The liability limits may be based on class/weight (e.g., class 60 pays $1.50 per pound), products (e.g., furniture pays $2 per pound), and whether the product is new or used (i.e., used is typically $0.10 per pound). The carrier may pay per a general maximum liability (e.g., $15 per pound) or decline the claim entirely because the products are listed on their “restricted/excluded” list. Purchasing shippers interest insurance confirms your products are covered at the invoiced value, and not limited to carriers’ published tariffs.
Planning Eliminates Future Surprises
Navigating the freight claims process doesn’t need to be a daunting task. With the right amount of planning and following the above guidelines, you’ll avoid most of the “road hazards,” while saving time and cost in the process.
Looking for a partner that can manage your logistics operations so you can focus on growing your business?
Call 866.275.1407 or Request A Consult.
PHOENIX – January 10, 2018 – (BUSINESS WIRE) – GlobalTranz Enterprises, Inc., a leading technology-driven freight management solution provider, today announced it has acquired AJR Transportation, a Texas-based freight brokerage, and logistics company. The acquisition further solidifies GlobalTranz’s position as a top freight brokerage firm and validates the continued strength of the freight agent business model.
AJR Transportation brings freight management expertise and best practices that can be leveraged across the GlobalTranz network, helping to improve operational excellence. AJR Transportation’s ability to build strategic relationships and provide exceptional customer service makes it a valuable addition to GlobalTranz.
“We have worked with GlobalTranz as a freight agent for five years. Its technology platform coupled with its back-office support have helped us grow tremendously, providing significant value to our customers,” said Wayne Waggoner, owner and founder of AJR Transportation. “We are thrilled to become part of GlobalTranz and look forward to helping drive company growth and agent success.”
“AJR Transportation has a deep knowledge of the industry, a strong customer service focus and the ability to share valuable insights with our freight agents which will continue to help accelerate our company’s growth and expansion. We’re excited to have this team on board,” said Bob Farrell, chairman and chief executive officer at GlobalTranz.
AJR Transportation is GlobalTranz’s fifth acquisition in 12 months, expanding its footprint and capabilities with Utah-based Apex Logistics Group, Milwaukee-based Global Freight Source, Minneapolis-based Logistics Planning Services, and Richmond-based Worthington Logistics. GlobalTranz announced its 2017 Q3 earnings; reporting record revenues from organic and strategic growth.
About AJR Transportation
AJR Transportation is a privately-held, Texas-based freight brokerage specializing in LTL, full truckload and expedited shipping. Founded in 2009, AJR Transportation provides shippers of all sizes value-added freight management services and technology that drives efficiency, reliability and cost savings for their businesses.
GlobalTranz is a technology-driven freight brokerage and logistics company specializing in LTL, full truckload, third-party logistics and expedited shipping services. GlobalTranz is leading the market in innovative logistics technology that optimizes the efficiency of freight movement and matches shipper demand and carrier capacity in near real-time. Leveraging its extensive freight agent network, GlobalTranz has emerged as a fast-growing market leader with a customer base of over 25,000 shippers. In 2017, Transport Topics ranked GlobalTranz as the 13th largest freight brokerage firm in the U.S. For more information, visit www.globaltranz.com and follow us on LinkedIn and Twitter @globaltranz.
Chief Marketing Officer
(619) 888 -2324
As we start 2018, I have been reflecting on the state of the logistics industry and I wanted to share trends that will likely affect our shipper customers in the upcoming year.
The logistics industry is evolving, bringing both risk and opportunity to corporate supply chains. In 2017, natural disasters, government regulations, and a healthy GDP created challenging capacity and rate conditions. The booming e-commerce space and demand for operational efficiency continues to amplify the need for increased automation and technology. Companies are putting more emphasis on logistics due to the impact it has on earnings and customer loyalty. Supply chain and logistics management are strategic imperatives.
As you plan for 2018, consider these macro trends that will likely impact your logistics and supply chain operations.
We’re coming out of a turbulent year where an unprecedented number of storms have sharply impacted trucking capacity. Hurricanes in Texas and Florida took anywhere from 5-10 percent of capacity away from the market, which in turn drove up rates.
There is also a significant challenge in the industry as trucking companies navigate the ELD mandate, which went into effect on December 18. Many experts predict we will see a productivity drop of 4-6 percent following the rollout, thus exerting more pressure on capacity.
These capacity pressures are occurring amid a thriving economy with an overall strong GDP, which is increasing demand for trucks. While at the same time, the nature of freight is changing. As B2B buyers mirror consumer purchasing behaviors and delivery expectations, more businesses want their inventory (SKUs) closer to customers. The result is more frequent shipments that are lighter in weight. To contend with these changes in buyer preferences, carriers are adjusting their rates to focus more on how much trailer space the shipment occupies (density pricing) and less on weight and tonnage.
For many companies, the supply chain is no longer a simple cost of doing business, but a way to generate competitive and operational advantages. Technology has become the perfect enabler for most advances in the supply chain. Tools like artificial intelligence (AI) and machine learning can instantly identify opportunities for efficiency, cost improvement, and risk management.
The growing access to thousands of data points, computing power, and cloud capabilities, combined with AI and machine learning algorithms that analyze trends and predict scenarios, is providing shippers with the real-time knowledge to make faster and better business decisions. GlobalTranz is creating ways for people to turn massive amounts of data into actionable insights that increase logistics efficiency and drive overall cost savings.
Additionally, the Internet of Things (IoT) will come into play when companies begin deploying control towers that will help increase supply chain visibility. More visibility into your lanes improves what we call strategic capacity. Once we understand our shippers’ movements and the nature of their freight, we’re able to build specific carrier relationships that give us access to capacity on a consistent basis throughout the year.
Everyone is talking about blockchain, including the logistics industry. Blockchain technology is an open, distributed ledger or database, that digitally records the transaction history between parties involved. In transportation, blockchain can create a more connected and efficient supply chain by enabling real-time, secure, and inalterable information sharing between shippers, carriers, brokers, and more. Eventually, blockchain technology will impact logistics, but today we’re in the infancy stages. In 2017, GlobalTranz became one of the first 3PLs to join BiTA (Blockchain in Trucking Alliance), to develop industry-specific standards and help grow and educate the logistics industry about this promising technology.
Consumers and business buyers’ delivery expectations are rapidly increasing. Next day delivery and unique service expectations are now the status-quo for e-commerce, and a growing number of retailers and businesses are enforcing must-arrive-by delivery requirements. According to The Wall Street Journal, “Wal-Mart Stores Inc. is charging suppliers monthly fines of 3 percent for deliveries that don’t arrive exactly on time.”
To manage these delivery demands, logistics service companies like GlobalTranz are tapping their networks and resources to provide just-in-time logistics solutions designed to meet expanded consumer and business buyers’ expectations. Automated warehouses, final-mile, multimodal, and multi-vendor are just a few of the services companies are relying on to meet their customers’ unique delivery needs.
How to Thrive in Disruptive Times
The times are indeed changing, but you can make the most of the evolving logistics space considering these suggestions in 2018.
Utilizing multimodal shipping services and logistics solutions, like combining intermodal with truckload and final-mile, helps mitigate capacity challenges and meet customer delivery expectations. Working with a full-service 3PL provides access to a broad range of carriers and services that can be combined into custom solutions for your business.
Build a large, diverse network of qualified carriers that have the equipment to move your commodities to the locations you currently ship and can accommodate your future expansion plans. GlobalTranz has a network of 34,000+ carriers capable of moving anything from a pallet of bottled beverages to an 800,000-pound transformer anywhere in the world.
Adopt technology that can automate tasks, provide actionable insights to help you make smarter business decisions, and scale as your business evolves. A TMS, like the GTZ technology platform, integrates with your ERP and business systems to analyze trends, optimize routes, match your shipments with optimal capacity, and increase your freight management efficiency and cost savings.
Because of the rising complexity of today’s supply chains, you could argue that there has never been a time where the 3PL has been more critical, or strategic as it is now. Because of advances in e-commerce, multimodal, and the emergence of final mile, white glove, and technology-driven supply chains, about 90 percent of domestic Fortune 500 companies partner with third-party logistics providers for outsourced logistics and supply chain services.
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2017 has been a busy year for the logistics industry. In the past 12 months, we’ve seen natural disasters, government mandates, and technology innovations impact supply chains. As the final week of the year comes to a close, we’re looking back at the top logistics stories and topics of 2017.
The ELD mandate went into effect on December 18, after several attempts to delay the initiative. The ELD mandate requires most motor carriers and drivers, who are currently required to prepare hours-of-service (HOS) records, to use electronic logging devices to record their time on and off-duty. The mandate went live with an enforcement grace period, which means vehicles not equipped with the required ELD device will not be placed out of service or receive points against their safety scores until April 2018. Many analysts predict ELDs will impact capacity and rates through 2018, and could result in a capacity decline of approximately 4-7 percent.
According to Logistics Management, more data has been generated in the past two years than in the entire history of humans. This growing accessibility to thousands of data points has businesses looking for ways to translate numbers into actionable insights. In 2017, AI and machine learning technology received a lot of attention in the logistics industry for their ability to process massive amounts of data, analyze trends, predict scenarios, and provide shippers with real-time knowledge to make faster and better business decisions.
In 2017, retailers, e-commerce, transport and tech companies worldwide tested drone deliveries of various products from medical supplies to fast-food orders. While current regulations prevent wide-scale implementation of drones, these pilot programs are helping companies gain experience with drone technology, which could be the key to meeting delivery demands in rural, urban, rugged and remote areas.
Consumer pressure to fulfill and ship orders same day is pushing warehouses to automate more processes. In 2017, robotics, voice picking, and mobile scanners made waves as innovations that are increasingly helping warehouses drive down order cycle time and meet delivery demands of consumers.
The driver shortage was named the number one critical issue facing the transportation industry by the American Transportation Research Institute’s (ATRI) annual list. Many are hopeful that autonomous trucks will help solve the growing driver shortage in the trucking industry. While we’re still a long way from autonomous trucks being mainstream, in 2017, several companies made investments and developed pilot programs to help move the technology forward. In November, the start-up, Embark, began delivering refrigerators in Southern California via self-driving “robo-trucks,” while major players like Volvo, Daimler and Tesla are working on their own autonomous trucks.
Digital freight matching, or the “Uberization” of freight, generated a lot of attention this year as Uber officially launched its Uber Freight app in May. The concept of matching available capacity to demand is not new in the logistics space, and many 3PLs, like GlobalTranz, have been doing it for years using proprietary technology. While Uber has a track record of success in connecting passengers with drivers, commercial trucking and large freight movement is much more complex. Uberization and digital freight matching will continue to evolve in 2018. At GlobalTranz, we look forward to working alongside or in partnership with on-demand freight options as we continue to grow our full-service freight management solutions.
2017 e-commerce holiday sales hit record numbers, and online buying continues to trend upward in both B2C and B2B markets. E-commerce has transformed supply chains by emphasizing the importance of final-mile deliveries and automating warehouse and fulfillment operations. As more retailers boost their omni-channel capabilities to compete with Amazon and other e-commerce giants, the logistics industry will be called upon to develop solutions to help businesses meet customer delivery demands and create competitive advantages.
As consumer delivery expectations increase and companies compete with Amazon’s delivery promises, final mile delivery solutions are becoming critical to the success of retailers, grocers and e-commerce businesses. Final mile deliveries are a difficult piece of the supply chain because they require individualized shipping to unreliable destinations due to consumer availability. Full-service logistics companies are becoming strategic partners for businesses in the final mile space because they provide access to a broad range of carrier types and services that can be combined into custom solutions to meet the growing consumer delivery expectations.
Hurricanes Harvey and Irma caused nearly $200 billion in damages to Texas and Florida. The storms put an incredible strain on the supply chain as flooding and power outages closed ports and prevented trucks from entering affected areas. Hurricanes took about 5-10% of capacity from the market and significantly impacted rates. Many industry experts predict that we’ll continue to see tight capacity into 2018 from hurricane rebuilding efforts, the ELD mandate and a healthy GDP producing high freight demand.
Everyone is talking about blockchain, including the logistics industry. Blockchain can create a more connected and efficient supply chain by enabling real-time, secure, and inalterable information sharing between shippers, carriers, brokers, and more. In 2017, GlobalTranz became one of the first 3PLs to join BiTA (Blockchain in Trucking Alliance), to develop industry-specific standards and help grow and educate the logistics industry about this promising technology. Eventually, blockchain technology will impact logistics, but today we’re in the infancy stages.
2017 has been an influential year for supply chain and logistics management. The industry is evolving and technology continues to be at the forefront. As a technology-driven 3PL, we look forward to continuing to develop innovative solutions that help businesses drive supply chain efficiencies and deliver overall cost savings in 2018 and beyond.
From everyone at GlobalTranz, Happy New Year!