Trucking Industry-A Little Bit of History

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2. A little bit of history… February 1, 2016 The trucking industry, or more specifically the freight management side of it has changed immensely in the last decade. This is due to various factors that encompass the needs of customers, shippers, and carriers alike. As the old saying goes, “in a world where our focus has become driven (no pun intended) by faster, cheaper, and better,” how does the industry adapt? Customers and consumers will always have a need for both soft and durable goods that need to be transported on a continuous basis with efficiency and cost at top of mind. Population growth is increasing the need for commodities manufactured throughout the world; the supply chain is essential. It is estimated that 70% of Canadian domestic freight is moved by truck. Let’s look at it like this, as an average consumer of any product you see, eat, wear, or use, was moved at least once via truck. On the cross-border side of transportation Delivery Duty Paid, or DDP, has become the “go-to” for many manufacturers to offer their clients. DDP offers full coverage to their customer until the goods have been received. This includes transportation, duties, and all incurred costs. Seems efficient and protected, but is there a better way? Technology has provided the industry with Real-Time GPS tracking of shipments to provide accurate delivery times and control the logistical placement of trucks for more efficient service. Furthermore there have been many advancements with online platforms allowing customers, shippers, and carriers to effectively complete their role in the process. But does it work? Let’s ask again, is there a better way? PDF generated automatically by the HTML to PDF API of PDFmyURL

3. It’s clear that trucking is an indispensable variable in the supply chain. It’s simple, we cannot move goods from manufacturer-to-warehouse-to-end destination, or any combination, without it. Often we see manufacturers and warehouse companies steer away from moving their own goods due to the high costs incurred from such an endeavor. This is subject to the commodity being produced but moving their own product requires equipment, maintenance, storage and staff, all very costly and time consuming. This is especially relevant to LTL. So what is the answer? Outsource to an established carrier that can exclusively move their goods or use multiple carriers? Again a very costly endeavour as this requires a full-time employee to coordinate the transportation. So where does that leave us? Ladies and Gentlemen the birth of the Logistical Consultant (LC). Depending on the need of a customer, manufacturer, or warehousing company an LC can be an enormous asset. Reputable LC’s have a unique knowledge of the transportation industry and established network of trusted carriers. Their network allows them move freight at a reduced cost to their customer while taking full responsibility for the load in all aspects. Consider the role of an LC as your one-stop-shop for all your transportation needs. An established LC will closely monitor shipments from door-to-door and look after all the required paperwork, from dangerous goods to customs documentation. Their knowledge and expertise shines by using the appropriate carrier for the specific move. This takes the onus entirely off of their customer and at a reduced rate. It’s a growing profession and continues to provide effective and efficient service to all parties mentioned above. PDF generated automatically by the HTML to PDF API of PDFmyURL

4. Cross-border shipping is a vast aspect of the transportation industry, NAFTA opened the gates for North America and overseas shipping is becoming ever more popular as manufacturing costs are far less across the pond. As mentioned Delivery Duty Paid (DDP) has become increasingly common when moving freight cross-border. DDP is defined as such – all risks and costs reside with the seller of the good until delivery is made, any damage or loss of cargo is the sole responsibility of the seller. To a customer of any commodity a very attractive proposition indeed. Now what about cost? Is DDP “baked-in” to the cost of transportation? Of course it is. Again here is where an LC can be a crucial asset to any customer whom has purchased goods that need to be moved cross-border. As we touched on previously reputable LC’s assume full responsibility for all the cargo they move. The cost savings begin with the reduced rate that their carriers offer exclusively from an existing relationships and knowledge of the industry. Damages and insurance claims are covered by the LC inclusively. They manage the move(s) and closely oversee all shipments. So is DDP the path of least resistance and the most efficient way? Or is it just an upsell, like buying extended warranty on a new flat screen TV? Technological advancements and feats are mostly based on making life easier and more efficient. Technology has, and continues to pave the way to make our lives easier and more practical. It has changed the way the world thinks many times over. The transportation industry is no exception, let’s look into the future of transport. An up and comer in the industry is Pick My Load Inc. Their premise is simple, preforming as a free Cloud based solution for the trucking industry, where shippers and carriers will have their profiles set-up. Profiles include all information that is industry specific and legally compliant, it allows the tool to execute their shipping needs on a daily basis, but this is also thought as a PDF generated automatically by the HTML to PDF API of PDFmyURL

5. matching tool, allowing the service seeker and the service provider to find each other in the easiest, most intuitive way. The unique and innovative aspect is pricing. Their model allows the trucking industry to self-regulate in terms of freight pricing since transport costs will be entirely up to the shipper to decide and it will be totally up to the carrier to accept the “offer”. A very creative approach to the future of transport… All industries change over time due to uncontrollable variables and obstacles. It’s a sink or swim scenario and the need for creative effective solutions is apparent. Trucking will always exist but how do we make it faster, cheaper, and better? Logistical Consultants provide a service that saves their clients time, money, and resources. They bring a skill set and knowledge to the table that is unmatched in the business. LC’s may be the answer to DDP as the same service can be provided at a lower cost and less client assets being spent on logistics. Online platforms such as Uber (in the passenger sector) or Airbnb in the hotel industry have been widely successful. No doubts that a similar model should take flight in the freight realm. Shifting the transportation paradigm has indeed started… This entry was posted in Uncategorized and tagged #Cargo, #Freight, #LTL, #TransBorder. Bookmark the permalink. PDF generated automatically by the HTML to PDF API of PDFmyURL

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