Original article can be found at - Inbound Logistics April 2019
When I was the VP of Transportation Management Solutions, for a large trucking company I competed against providers offering JDA and other platforms. I sold Oracle and MercuryGate solutions to mid-market manufacturers and distributors. While I was a major proponent for these platforms, I learned that TMS platforms have not evolved to support LTL and parcel needs.
On-time, in-full scores for Wal-Mart’s top 75 suppliers -- including Unilever -- had been as low as 10 percent. Not one had reached the 95 percent long-term target, hurting the retailer's ability to improve product availability to compete with Amazon, which provides consumers with the products they want, when they want it at the price they want it. The retailer is losing an estimated $1B due to product unavailability as products are not being shipped on time, in full or products are arriving too early cluttering back rooms slowing time-to-shelf.
On average, mid-market supply chains ($50M to $150M) replace supply chain providers every 2 to 3 years as they are not achieving continuous ROI improvement and they are not getting the attention they deserve. They’re too big for the small supply chain operators who do not have the technology and processes in place to manage $50M to $150M in supply chain spend. And, they are not large enough to garner the strategic attention from the big industry players who are choosing to focus their improvement energy on the Apple’s and Nike’s that are providing higher supply chain revenues.
As the world moves to a more connected environment each day, the transportation industry has been forced to evolve along with it. Shippers and carriers, suppliers, and the intermediaries who coordinate between them have seen exponential growth over the last several years. The trends for 2018 and the years ahead look promising for licensed freight brokers and the customers they serve, but there are several areas of change of which they must be aware. Below are the most prominent changes coming to the freight and transportation industry this year.
When determining goals, they need to be Specific, Measureable, Attainable, Realistic or result focused, and Timely.
Definition of a Freight Broker – A freight broker is a company or individual who acts as a middle man between the transport service provider and the customer. Freight brokers do not actually provide the truck or the shipping, but instead they provide essential services that will help the shipper identify the best freighting company.