Technology is playing a pivotal role in closing the gaps present in traditional business models and processes. The same can be seen in supply chain management. The proliferation of Artificial Intelligence, Machine Language, and Software-as-a-Service (SaaS) in the Trucking Management sectors is also providing innovative solutions to age-old pain points like efficiency, visibility, and route mapping.
A benchmark study by American Shipper titled A Clear View of Supply Chain highlighted that about 75% of Supply Chain Management stakeholders occupying decision-making positions consider visibility to be the second-most challenging aspect, with cost-reduction remains first. Clearly, in the near future, enterprises that will focus on freight visibility will enjoy a competitive edge over their peers.
Here are a few reasons why companies should shift their focus on improving freight visibility:
Consequences of Late Shipment Are Turning Grave
American Shipper’s study also discovered that a whopping 54% of third-party logistics reported that they possibly lost business due to their freight visibility capacity. This revenue erosion stems from the fact that unreported delays or late shipment damage the productivity of supply chain management. Factories, retailers, distribution operators, and other concerned parties are required to make last-minute adjustments to make room for logistics in their supply chains. These modifications or adaptations can have a ripple effect resulting in loss of time and money at all stages.
As a counter, enhanced freight visibility aims for on-time delivery. Trucking management software that offers real-time visibility and updates with regards to the movement of freight also prepares the concerned stakeholders for any surprises.
Freight Visibility is a Business Necessity
During the initial years, when truck management software was introduced as a novel approach to managing freight, it was considered a luxury. However, in the recent past, the same has transitioned into a business necessity.
Gaining high-quality data that offers extensive insights into supply chain processes played a crucial role in raising freight visibility software to its prominence. The cutting-edge technology lends freight visibility through markers like location and freight status to various players, right from manufacturers to shippers. In fact, freight visibility has now emerged as a core business feature that shippers look for while deciding their service provider. Brokers and 3PLs that share more frequent and detailed updates on the status of the freight enjoy greater preference over their competitors.
Offering freight visibility once helped logistics service providers stand out. However, the lack of it now will push them into anonymity.
It Offers Analytical Insight Into Disruptive Shipments
Let’s face it, off-schedule, late, and disruptive shipments are inevitable, and shippers understand that.
Hence, rather than demanding 100% on-time delivery, they prefer 100% visibility where they can get real-time updates in such instances. With real-time updates, various stages of the supply chain can employ predictive analytics to handle exceptions. When the affected parties are aware of an exception that has occurred, they will be in a better position to save time and adopt proactive management practices that plug resource drain while also boosting productivity.
On the other hand, logistics service providers can collect data regarding the off-schedule or late delivery and assess how it could have been averted. Whether the issue arises due to poor route mapping or due to detention time - 3PLs and shippers can identify these inefficiencies and work towards buffering their impact.
Uncovers Hidden Freight Hauling Opportunities
Trucking visibility software also brings new or hidden freight hauling opportunities to the table. This advantage is a result of introducing operational efficiencies that save time and money while optimizing shipments and route maps. Additionally, offering trucking visibility allows 3PLs to secure the business of other brokers and/or shippers and conduct business with them, which effectively means an added gain in freight hauling opportunities.
Putting the importance of trucking visibility in perspective, it becomes apparent that adopting and implementing a trucking visibility software can help streamline several processes. Further, it will add layers of cost-effectiveness, efficiency, and greater revenue - which addresses other pain points of fleet management.
Feel free to schedule a call with our logistics experts as to how freight visibility can be rolled out in your organization and your users can draw its benefits.