The Role of Equipment

When it comes to moving over-dimensional cargo, the importance of equipment cannot be understated. Find a carrier with a range of specialized trailers designed to transport massive structures with unconventional shapes or configurations.

Multi-axle trailers evenly distribute weight for stability, making them ideal for heavy haulage. They utilize specific axle configurations to spread cargo weight and comply with road and bridge capacity limits. Double drop trailers, on the other hand, feature a single lower section with raised front and rear sections, providing stability for tall products.

Work with the carrier or freight agent to find the right piece of equipment for the freight.

Carrier Commitment

Selecting the right carrier for the shipment is not as simple as finding a carrier with a truck and specialized trailer for the lowest cost; it’s about aligning with transportation professionals who have a vested interest in and a proven track record of safely and reliably moving cargo that’s too tall, wide, or heavy for standard shipping.

Additionally, don’t discount the value of experience. Carriers with truck operators who have years of experience securing and transporting over-dimensional freight bring an irreplaceable wealth of knowledge. The cargo is in adept hands from pickup to delivery.

Put simply, reputable heavy/specialized carriers emphasize safety, thereby reducing the likelihood that accidents or freight damage may happen. Protect the freight by selecting a carrier with decades of proven success.

The Right Network

When choosing a heavy/specialized carrier, it’s crucial to assess if the carrier has a team experienced in moving the unique cargo at hand. For example, Landstar excels with its comprehensive network of skilled owner-operators and agents focused on customer service and adaptability, in addition to its array of equipment. Landstar’s capabilities place it as the largest, and one of the safest, heavy/specialized carriers in North America.

Obtaining the appropriate permits and planning correct routes are essential for transporting heavy/specialized loads due to varying regulations on size across states, counties, and cities. Some locations may require a police escort, while others do not.

Landstar has staff members who work with freight agents and owner-operators on planning routes and pulling the correct permits and escorts for each load. Thus, customers feel confident that their freight will not only be transported correctly, but that they have access to a full network of solution-oriented individuals in one place.

When it comes to moving freight that is over-dimensional or overweight requiring specialized moves and excellence in every shipment, trust leading carriers with the right equipment, the right experience, and the right commitment to customized solutions.

Carriers can also activate embargoes at their discretion, but it’s often necessary to impose an embargo to balance capacity during times of peak demand. That’s why it’s crucial to engage technology that provides comprehensive carrier information.

Freight embargoes are common when disruptions such as tight carrier capacity, severe weather, terminal repair or closure, geographic events, and other unforeseen incidents occur. Planned embargoes can be less disruptive if shippers know they are coming versus unplanned embargoes that don’t allow time for advanced planning.

Unplanned Freight Embargoes

The impacts of unplanned freight embargoes usually can’t be avoided. Sudden and unexpected embargoes force the supply chain to temporarily adjust to the strain on LTL carrier resources. Using logistics technology can bring much-needed visibility to the supply chain and help drive better decision-making during these challenging times.

Planned Freight Embargoes

In comparison, planned freight embargoes, such as those imposed during peak season, can be more easily navigated. The duration of planned freight embargoes is typically stated up front, though carriers can extend it if capacity hasn’t eased sufficiently. Knowing how long an embargo will continue helps shippers weather the disruption better—and communicate with their customers in advance.

Planned freight embargoes give shippers time to explore other lanes and understand the costs associated with newfound carriers. Just like unplanned embargoes, planned embargoes are aided by access to technology that can harness this information and make it visible to shippers.

Transit Alerts Aid Decision-Making

Having to manually search for carrier transit times and service details during a freight embargo is a time-consuming, frustrating, and arduous process. Access to accurate, comprehensive, up-to-date LTL transit details is invaluable. SMC³’s CarrierConnect® XL delivers this data, providing LTL transit times and LTL carrier service detail from more than 300 leading national, super-regional, and regional carriers across North America.

If a carrier indicates they must shut down in an area for terminal maintenance and other repairs, an alert goes out. Shippers are also alerted to terminal closures that aren’t due to repairs. Even large events occurring in certain geographic areas—Mardi Gras, for instance—will trigger an alert. A catch-all alert is sent for embargoes that don’t fall into the other categories.

Up-to-Date Carrier Details

With CarrierConnect XL and transit service alerts, shippers can future-proof their supply chains. This technology empowers carriers to manage embargoes and custom messaging for shippers at the terminal, city, or postal code level. It also allows carriers to adjust pickup dates and calculate estimated delivery dates based on optional embargo data.

The technology helps shippers make the most accurate routing decisions during a freight embargo. With CarrierConnect XL 3.0, dynamically updated carrier information can be accessed through either RESTful APIs or SOAP API messaging. When combined with SMC³’s RateWare® XL technology, CarrierConnect integrates carrier-specific points of service and transit times with rates to provide a holistic view of LTL pricing, transit times, and carrier services.

AI technology really started to take off in the early 2000s as more companies began feeding machine learning algorithms with mountains of historical data, resulting in better predictions about consumer demand, inventory management, and market risks. Fast forward to the mid-2010s, and AI software started to become commonplace for its role in powering robotic arms and autonomous vehicles in warehouses.

However, those are all examples of traditional AI. Traditional AI solutions allow companies to program repeatable tasks and scenarios with minimal variability, such as picking up a tote and bringing it to a packing station.

Generative AI has the potential to get more creative, own more processes, and help stakeholders make better decisions based on real-time data.

Generative AI in 2024

Go down the AI rabbit hole on Reddit or Facebook, and you might come across arguments about how generative AI image generators or content producers are unethical because they mimic the style and capabilities of real artists. However, the ethical implications are less sticky in the global supply chain. Suppose an AI solution can learn from thousands of historical decisions made by real-world supply chain practitioners. Then, automating basic supply chain and logistics functions in an industry facing a years-long talent shortage becomes possible.

AI won’t change the supply chain overnight, but we should see steady technological progress in the next few years. Here are some of the things we might see from supply chain AI solutions in 2024:

• Better forecasting. Until the COVID-19 pandemic, forecasts were largely created based on historical data (basically, we hoped people would keep doing what they always did)—but those models no longer work. Generative AI lets companies analyze their full pool of historical data and stack it against other factors, such as inventory data, supplier data, distribution networks, and market trends, to create more accurate and resilient forecasts.
• Advanced warehouse robotics and automation. Generative AI will let robots handle more complex tasks than simple picking, offering support across sorting, returns management, and more. Additionally, modern AI software can analyze warehouse layouts and processes to reduce travel distances for robots and employees, optimize workforce planning, and orchestrate optimized interactions between workers and robots to improve warehouse efficiencies.
• Improved risk management. With generative AI, risk assessments will go beyond basic seasonal or templated event models by allowing supply chain practitioners to model specific events (like hurricanes, wildfires, recessions, and yes, even pandemics) to see what risks they pose to the organization’s supply chain.

Barriers to AI

You might remember several years ago, everyone thought blockchain would reshape the supply chain overnight. Yet, despite several successful pilot programs, progress for blockchain supply chain solutions has slowed significantly because of a lack of standardization.

Similarly, generative AI technology has much potential but is also relatively new. While it does seem inevitable AI will play a prominent role in the future of the supply chain, only time will tell exactly what that role looks like.

To do this, companies are turning to artificial intelligence (AI). Here are five ways logistics providers can leverage AI to operate supply chains sustainably and cost-effectively.

1. Logistics planning. AI can process vast amounts of data to optimize the movement of goods. Food shippers and logistics providers are now applying machine learning algorithms to accurately predict shipment ETAs across all transportation modes. For ocean container shipments, AI systems can accurately forecast weather conditions and diagnose the impact of disruptive events along each shipment’s route.
Due to multi-terminal stops and widely variable transit times, predicting arrival times for less-than-truckload (LTL) shipments has previously been a challenge. With AI, shippers and logistics providers can predict LTL shipment delivery times within minutes.

2. Mode management. According to the Massachusetts Institute of Technology (MIT), over-the-road hauling can emit over 100 times as much CO2 as ships carrying the same freight amount. Data from the EPA shows moving cargo by rail rather than truck lowers GHG emissions by up to an average of 75%.

Leveraging AI for sustainable network optimization makes it possible to analyze vast internal and external data to create multimodal transportation solutions. Furthermore, introducing sustainable alternatives can cut a shipment’s transportation costs by around 60%.

3. Shipment consolidation. Milk-run shipments can prevent stockouts; however, shipments may occur before truly needed, run partially empty or require additional material handling and equipment that severely strains sustainability.

With AI, food shippers and their logistics partners can determine the best cadence for cargo that balances service requirements with sustainability. Doing so reduces the need for additional over-the-road truck movements that generate harmful emissions.

4. SmartWay selections. The SmartWay program tracks, documents, and shares information about fuel usage, freight emissions, and environmental risks across the supply chain. Freight shippers, carriers, and logistics companies voluntarily partner with the EPA to measure and improve operations to reduce their ecological footprint.

With AI, logistics partners can prioritize top-ranked fleets using SmartWay data without manually filtering through thousands of transportation providers. Additionally, AI can examine data retrospectively to make future recommendations, advancing sustainability goals with minimal supply chain disruptions.

5. Working in the warehouse. Estimates show that 90% of warehouses primarily rely on manual processes, creating space and energy inefficiencies. By turning to technology, these companies can increase throughput while decreasing the environmental footprint.

Innovations like dynamic slotting use AI algorithms to decrease inventory space. AI improves inventory management by predicting demand, tracking current inventory and optimizing stocking levels. AI can suggest an appropriate box size based on an order’s dimensions to minimize packaging waste.

AI will continue to rapidly evolve and change the landscape of industries across the board. At the end of the day, a successful business is people-centric and technology-enabled.

To learn about the full scope of Jarrett’s AI strategies, visit www.gojarrett.com.

If you’re lucky, the battery will take a charge—but you know that lack of charge is already a good sign of poor battery storage. This situation is a good example of how your supply chain and logistics decisions can impact your customer’s experience.

You Better Watch Out

Please don’t make your end customer explain to their child why Santa’s warehouse didn’t store its lithium-ion batteries properly. Instead, maximize the service life of your product batteries by remembering this acronym:

SANTA

• State of charge matters.

Battery industry professionals use a scale between 0C and 1C to measure the charge level in a lithium-ion battery. While you don’t want to store your batteries fully charged, keep in mind the battery will lose 1-2% of its charge for every month it sits unused in storage. If your batteries will get used within a few months, you can store them at or just below a half charge, or 0.4-0.5C, though your insurance carrier would prefer under 0.3C.

• Always be ready for fires.

Lithium-ion batteries carry a risk of thermal runaway, in which a chemical reaction within the battery causes a temperature spike. Batteries in thermal runaway release toxic gases and smoke and may catch fire or explode if improperly handled or stored. Thermal runaway can result from heat exposure, drops and impacts, overcharging, internal short circuits, manufacturing defects, and more.

As such, you must store batteries in a facility with appropriate fire detection and suppression systems to keep fires from spreading to the rest of your battery inventory. Very few buildings are equipped with the proper fire suppression for lithium batteries, so do your homework before signing a lease. Finally, consider thermal imaging and other technology to detect changes in temperature to catch problems early.

• Notify your insurance company.

If you intend to store lithium-ion batteries in your warehouse, notify your insurance company immediately to ensure you have the right protections. Due to the increased risk of fire or product damage, most standard insurance policies won’t cover accidents pertaining to this type of battery. Lithium-ion battery storage facilities usually require special insurance policies that not all insurance brokers offer.

• Temperature control is essential.

Lithium-ion batteries should be stored between 40°F and 75°F. Some specialized batteries require a storage environment under 55°F. Storing batteries in a carefully temperature-controlled room in your facility helps to minimize the risk of degradation from freezing temperatures or fire and explosions from high temperatures.

• Ask for help.

If you don’t have experience storing lithium-ion batteries, it’s best to outsource your battery storage to a third-party logistics (3PL) provider familiar with the regulations and best practices surrounding this type of inventory.

An experienced 3PL will have standard operating procedures (SOPs) in place for safe handling, storage, and emergency response. It will also already have invested in the right fire systems, equipment, and insurance policies.

As you consider the changes you will make to your operations in 2024, remember the look on the face of that kid you knew whose toy wouldn’t turn on. Address your battery storage issues before the next peak season to ensure you’re a Santa and not a Grinch.

The escalating impact of AI was captured in the key findings from the 2023 MHI Annual Report, “The Responsible Supply Chain: Transparency, Sustainability, and the Case for Business.” Co-authored by MHI and Deloitte Consulting, the report also revealed a growing impetus for supply chains to tackle sustainability issues. A free download of the report is available at: mhi.org/publications/report.

Multiple stakeholders are pressuring supply chains to become more environmentally responsible. In the report’s survey of more than 2,000 supply chain professionals, 48% of respondents reported increased influences to adopt sustainability.

To deliver greener supply chains, organizations are increasingly turning toward technology. Using AI, digital twins, and predictive analytics, companies are reducing waste, optimizing vehicle routes to consume less fuel, and making data-driven decisions.

These technologies also help supply chains establish common greenhouse data metrics with their suppliers, denoting the importance of collaboration. Nearly 75% of survey respondents reported using some form of supplier collaboration to drive sustainability. As supply chains improve their abilities to monitor, evaluate, and share data, they illuminate the path to net zero.

Technology Investment on the Rise

In addition to meeting sustainability goals, supply chains are also adopting emerging digital technologies to boost the overall resiliency of their operations. In the survey, 74% of respondents said they planned to increase their investment in supply chain technology and innovation.

Specifically, 90% said they plan to invest more than $1 million—a 24% increase from the previous survey in 2022. This reflects that many companies have recovered from pandemic disruptions and can divert their focus from inventory management to future innovation. It also highlights the industry’s optimism in technology’s ability to create more efficient supply chains.

This year, AI was identified as the most impactful technology for supply chains. 44% of respondents said that it had the potential to create a competitive advantage, while 14% said AI had the potential to disrupt the industry. The industrial Internet of Things and driverless vehicles and drones also ranked high on impact.

Moving in the opposite direction, robotics and automation dropped five positions this year. However, more than 75% of respondents predicted the adoption of robotics/automation within 5 years, potentially signifying a changing perspective of robotics as table stakes for operations as opposed to a game changer.

MHI is currently conducting the survey for the 2024 MHI Annual Industry Report. To participate, add your input at: surveymonkey.com/r/2024AIR.

Labor Remains Top Challenge

Despite ambitious plans to invest in emerging digital technologies, many respondents cite a talent shortage as a current barrier to implementing them. For example, in the case of AI, 30% said that “lack of adequate talent” was the primary barrier to adoption. To combat labor issues, many supply chains are investing in upskilling and reskilling programs.

MODEX 2024. To discover AI and other cutting-edge technologies propelling the supply chain, visit MODEX 2024. Held March 11-14 at the Georgia World Congress Center, this event features the full spectrum of the supply chain ecosystem. You can attend free education sessions, hear dynamic keynotes (including the release of the 2024 MHI Annual Industry Report), and visit more than 1,000 exhibitors showcasing the latest innovations. For more information or to register, please visit modexshow.com.

Some of the largest, most innovative shippers and 3PLs have adopted these technologies and learned automating the LTL shipment lifecycle pays off in greater efficiency, cost savings, and transparency.

Good news! LTL APIs aren’t just for industry giants. Small to mid-sized companies can benefit from the power of LTL API connectivity to access data and information, which enables improved decision-making and transparency in the shipment lifecycle. By integrating with a TMS or using a cloud-based web tool (like SMC³’s LTL GO solution), shippers and 3PLs of any size can have powerful LTL data right at their fingertips.

They can receive LTL quotes, self-assign PRO numbers, leverage electronic bills of lading (eBOL), digitally schedule pickups, monitor shipments via real-time messaging, and view and download shipment documents. Easy, digital access to this information eliminates gaps in shipment visibility, automates time-consuming manual processes, and enables redeployment of resources.

How LTL APIs Work

Specifically, SMC³’s LTL APIs provide a single source for LTL pricing and transit information. All shipment information is stored in one location, with a common digital format, that makes freight processes secure, fast, and customer-centric. But it goes beyond simple connectivity to service orchestration. Every step in the freight workflow—from pickup to in-transit to at-terminal and out-for-delivery—is automatically monitored.

The SMC³ platform provides shippers and 3PLs with APIs for analytics, execution, and visibility through a secure private cloud. Today, these advanced APIs handle more than 50 million LTL transactions daily. Summarily, LTL API provides three top-line benefits: quality and cost control, visibility into the entire shipment lifecycle, and easy retrieval and auditing of shipment documents.

API Benefits for Carriers

LTL APIs bring digital efficiency and order to managing and communicating with customers through all stages of the shipment lifecycle. From LTL rating to execution to tracking and audit, carriers communicate with shippers and 3PLs in real-time, offering frictionless connectivity. They eliminate manual processes for all transportation stakeholders and allow resources to return focus to revenue-generating activities.

Carriers use freight APIs to automate and streamline price benchmarking, bid management, rating, transit time, customer inquiries, service orchestration, and automated delivery notifications. This can result in better visibility, enhanced efficiency, less network traffic, and faster payment for carriers.

APIs in the Real World

TMS provider MercuryGate recently partnered with SMC³’s APIs to automate many time-consuming and tedious manual processes that LTL shippers and 3PLs must perform. They needed a communication solution to improve workflow automation, customer satisfaction, and operational efficiency while providing real-time carrier capacity insights and facilitating smooth integration with existing systems.

Accelerating the Digitization Journey

Digitizing the shipment lifecycle incrementally moves the LTL industry out of the past. The recent eBOLs standard being brought from concept to full reality was the beginning. The next step on the digitization journey is accelerating LTL shippers and 3PLs to retire more manual processes by using APIs to digitally manage the shipment lifecycle from beginning to end—from pricing to execution to tracking to document.

As a founding member of the Digital LTL Council, sponsored by the National Motor Freight Traffic Association, SMC³ is working to make that happen. The Digital LTL Council recently announced a new initiative to develop a complete API roadmap for all LTL shipment data. The end goal: Enable shippers, carriers, and 3PLs to perform all LTL processes digitally.

Contact SMC³ for more information about our LTL APIs or visit www.smc3.com/ltl-api to learn how you can get started digitizing the entire shipment lifecycle today.

Leadership Team & Culture

The leadership team’s tenure, customer-centricity, and engagement are essential factors to consider. The executive team’s support is vital for contract logistics, as operations must adapt to changes in the market.

It is important to assess the company’s culture, as this is often cited as a differentiator. Touring the warehouse and observing employee engagement, leadership presence, and hiring processes can help assess cultural fit.

Facilities/Operational Experience

Facilities and operational experience are also important factors to consider. Tours of potential provider sites can give an idea of layout, labor management, security, and general housekeeping. The company’s capabilities should be aligned with your needs, and it should be open to sharing similar capabilities with you.

Technology/Systems

Evaluating technology is crucial, particularly the Warehouse Management System and Integration Platform. The WMS should be industry-leading, highly configurable, and able to adapt to changes in business needs. The integration platform should meet all your integration needs without requiring you to make changes to your systems. These supply chain solutions should be managed and administered by an experienced IT team.

Financial Strength

Before signing a contract, investigating the provider’s financial stability and strength is crucial. Look for a partner that invests in facilities, systems, equipment, and human resources necessary for optimal logistics solutions.

Summary

In summary, the decision to select a contract logistics provider comes down to finding the partner with the closest fit for acting as an extension of your brand. The ideal partner efficiently handles the supply chain, advances customer service, reduces costs, and emphasizes core capabilities. The leadership team, culture, expertise, technology, and financial strength of the provider are all important factors to consider when selecting an optimal contract logistics provider.

When evaluating drayage software, it’s essential to consider these key features and functionalities that will directly impact business operations:

Automated container tracking. Enables drayage truckers to monitor the real-time location and status of their  containers, whether they are on a vessel or dock, or sitting empty at a yard.

Automated container tracking helps drayage firms proactively address any issues, such as detention and demurrage (per diem), ultimately reducing per-diem charges. Automated container tracking also helps to optimize trips to and from the terminals.

Real-time dispatch and routing. Allows your team to optimize routes and assign jobs to drivers efficiently—in near real time. By providing accurate, up-to-date information on the location of your vehicles and the status of jobs, a TMS can help you reduce operational costs and improve service quality.

Customer support offered by both the software provider and the product. A reliable support team can help troubleshoot issues, provide training, and ensure that your software runs smoothly.

Transitional training and onboarding. Adequate training and onboarding support are essential to ensure a smooth transition from one TMS to another. Solid support is especially necessary for companies moving to TMS from non-software management tools, like spreadsheets.

A good software provider will offer comprehensive training and resources, such as a knowledge center, to help your team get up to speed quickly, which will help reduce downtime and maximize the benefits of the new system.

Tips to Evaluate Drayage Software

Here’s some simple, and practical advice for selecting the best drayage TMS for your business.

1. Assess your current and future needs. Evaluate your current processes around things like dispatching, driver management, and informing customers of freight status, and identify areas for improvement. Software can dramatically improve the workflow for these processes and bring efficiency benefits you’re likely not getting currently.

Consider the future growth of your business and ensure that the software can scale with your needs.

2. Compare features and pricing. Review the features and pricing of various TMS solutions to find the best fit for your budget and operational requirements. Keep in mind that the cheapest option might not always be the best choice in the long run.

3. Request a demo and explore sales engineering. Before committing to a TMS, request a demo from the vendor and spend time with experts within your organization to ensure that the software meets your expectations and is user-friendly. This hands-on experience will also help you identify any potential issues or shortcomings in the system.

Make an Informed Decision

Carefully considering the features and support that various TMS providers offer can help you make an informed decision and choose the best drayage software for your business. The right software will improve efficiency and cost savings and ensure that your operations are well-positioned to adapt to the ever-changing landscape of the shipping industry.

Transportation management systems are bringing technological innovation to drayage firms, helping them make the switch from outdated, manual processes into the modern era of automation. Digitizing operations is an important step, so it’s important to fully research the options and understand the market.

drayOS–PortPro’s leading drayage TMS–is revolutionizing logistics and supply chains by leveraging cutting-edge technology to streamline processes, optimize routing, and enhance end-to-end visibility. PortPro offers innovative platforms that empower businesses to efficiently manage operations, reduce costs, and grow, driving drayage forward into a new era of digital transformation.

Traditionally, site selection criteria have focused on freight costs, real estate costs, and proximity to population centers for access to labor. In recent years, the labor piece of the equation has loomed large as the competition for workers has intensified. Automation, particularly automated storage and retrieval systems (ASRS), has the power to remove that labor consideration from the conversation, giving organizations invaluable flexibility.

Addressing Automation Earlier

Most warehouse and distribution center facilities open with mid to low levels of automation and then gradually become more automated over time. At the outset, they must factor labor heavily into their site selection consideration, absorbing higher real estate costs to locate closer to population centers.

Today’s organizations, however, should weigh whether to speed that automation journey up. In particular, they should ask: If we invest more in automation from the outset, does that lead to significant savings on the location that we choose?

Historically, many organizations have planned their network with automation in the back of their minds. The approach is, “Let’s get the DC up and running and then we’ll automate to save on our annual operating expenses.” When you make automation part of your initial decision-making, it might require more time and investment in the planning process, but you can save a substantial amount in the long run.

Finding the Right Fit

ASRS encompasses a variety of solutions, ranging from very high throughput systems with massive efficiency gains to more flexible and cost-effective systems. The size of an operation, the location of the operation, and the extent of the labor constraint can all play a role in which tier of ASRS is the best fit.

Organizations engaged in site selection should enlist the help of third-party automation experts to evaluate their ASRS options. These experts can determine the true value of automation to your operation and the cost savings and efficiency it can bring, while helping you wade through the many ASRS solutions available.

A Forward-Thinking Solution

Automation’s flexibility is invaluable when you look toward an uncertain future. Those who study the labor market do not see it improving in the years ahead. Meanwhile, warehouses and DCs are facing growing demand to process higher volumes at elevated speeds.

When your organization does capacity planning and considers expected volume growth in the years ahead, you must weigh the mobility of your operations, gaps in your networks, and places where you are exposed to such unseen challenges as fresh labor shortages or population shifts. Savvy companies are eyeing that horizon and exploring how ASRS can help protect against those challenges and safeguard for their futures.