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A Bright Future for Intelligent Logistics

The transportation and logistics industries are perhaps one of the most vital industries in the United States, if not the entire world. On average, trucks haul approximately 70 percent of all consumer goods across the country, and that number is only expected to grow as the global economy continues to grow and change. However, while it is the most vital of all industries, it has also remained the most stagnant, with very little about the industry changing over the past several decades.

The potential for these digital changes is immense, allowing companies to work smarter by lowering operation costs while boosting efficiency.

Yet, we’re beginning to see what can be described as an age of enlightenment for the transportation industry, a digital renaissance. Something in which logistics planners and trucking fleet owners alike are beginning to dive into. These changes are covering everything from ridesharing, “smart” logistics, and even automated vehicles. The potential for these digital changes is immense, allowing companies to work smarter by lowering operation costs while boosting efficiency. Even going so far as increase environmental sustainability as truckers, planners, and shippers all learn to connect on a broader level.

The Growing Web of Interconnection 

In short, the digital age is built on the concept that just about anything is possible, including a sort of omniscience that is vital to running a highly efficient supply chain.  

One of the biggest advantages of this digital age is how interconnected everything is. The Internet of Things (IoT) is providing more data and more accessibility to that data than ever before. New software systems are able to track where freight is during every stage of its transportation and the condition of it during its trip. 3PLs and other intermediaries are developing digital platforms that can connect a shipper to a carrier with a few clicks, rather than an exhaustive list of phone calls, emails, and faxes. Customs documents can be uploaded and transmitted to mobile devices,  less demurrage and detention fees when a paper document gets lost in translation. In short, the digital age is built on the concept that just about anything is possible, including a sort of omniscience that is vital to running a highly efficient supply chain.  

Building On the Infrastructure 

Digitization within the transportation industry also has another, less obvious benefit. It gives developing countries easier access to the global market. As these countries haven’t built up their logistics capabilities to that of the U.S. or the E.U. attempting to break ground on this front is often both cost and time prohibitive. Having access to a digital platform allows them to “leapfrog” directly into digital and mobile solutions for logistics.  

“According to the All India Motor Transport Congress, there are close to 12 million trucks in India. The road freight volume in India is forecast to be 2,211.24 billion freight tonne-kilometer, growing at 4.7 percent,” according to a recent article from YourStory.com 

Market research from Novonous, ‘Logistics Market in India 2015-2020’ shows that India is a prime example of a country that can benefit from new, digitized logistics platforms. The report shows that the logistics sector for India approximately $300 billion, and expected to grow by 12.17 percent by 2020. Factor in that 90 percent of trucks in India are operated by single truck owners, and you can see the potential for connectivity and digital platforms.  

The Growth of E-commerce and Digitization 

E-commerce, of course, is at the heart of much of this digital growth as many consumers begin to veer towards a digital shopping cart, rather than brick and mortar stores. As E-commerce companies such as Amazon, Alibaba, and Flipkart begin to grow and attract more customers, the potential for higher logistics costs also increase. As it stands, India spends about 13 percent of its total GDP on logistics, versus China at 18 percent and the U.S at 8.5 percent. Even a drop of 4 percent in logistics spending could save India upwards of $50 billion.   

The visibility and scalability of a digital network will undoubtedly be vital for the growth of the global economy.

The visibility and scalability of a digital network will undoubtedly be vital for the growth of the global economy. Not only does it help to level the playing field for new players making the market more accessible, but it also helps veterans and legacy companies to operate more efficiently.  

Real-time visibility solutions can help tackle delays, productivity issues, accidents, diversion, theft, and damage.

“Mobile operators are uniquely poised to offer regional and global connectivity solutions for the logistics sector. These real-time visibility solutions can help tackle delays, productivity issues, accidents, diversion, theft, and damage,” says the Yourstory Team.   

“Governments can also improve the quality of logistics via measures like budgetary outlays, foreign direct investment regulations, clarity in classification of logistics players, tax structures, and requirements for open data sharing. This covers truck fleets and the warehousing sector,” they added.  

The logistics sector is heading towards a new digital era, that much is certain. Tech startups, along with forward-thinking incumbents, are bringing innovations and insights into the field and is shaking up the old ways of doing things. As this new era grows in years, it’s likely that we’ll be seeing the logistics and transportation industry in a wholly different light.  

Offering Intelligent Logistics To All Customers 

BlueGrace Logistics offers complete, customized transportation management solutions that provide clients with the bandwidth to create transparency, operate efficiently, and drive direct cost reductions. For more information on how we can help take your hard to understand and complicated data and turn it into easy to read and well calculated decisions data, feel free to contact us using the form below:

Change Is Coming For The Trucking Industry

Disruptive technologies will often alter the form and function of an industry, at least to some degree. The changes brought about by these new disruptions are subtle, making the sector more efficient (production is a good example of this) but change little else. The transportation industry, however, is standing at the precipice of total revolution. These new, disruptive advancements won’t affect it in small ways, but rather change it altogether, making the industry something completely different from what we’ve seen over the past several decades.   

There are some big questions to answer when contemplating how these new developments will alter and impact the industry.

There are some big questions to answer when contemplating how these new developments will alter and impact the industry. IHS Markit’s latest study “Reinventing the Truck” is taking a closer look at how new power-train and autonomous trucking will affect logistics, trucking, and the energy industry.  

New Changes for the Trucking Industry  

Of these new changes, the first one to consider is that we’re beginning to see new patterns of both distribution and consumption across consumer markets. Typically speaking, a growth in trade reflects economic activity, but that relationship might change due to changes in manufacturing and distribution practices. 3D printing, for example, means that certain consumer goods could be manufactured on site, rather than being transported from a manufacturing facility and then being hauled to a DC before reaching its final destination. Local production of consumer goods could reduce supply chains and lower demand for freight carriers, negating shipping costs entirely in some instances.  

New Technology in the Industry 

Technology will also be a driving factor. According to Markit’s study, there are three key areas in the industry that will be impacted. The first of these is through increased data access. As the IoT and expanded sensor banks allow logistics companies to gain access to more data throughout the supply chain, networks and best practices will see optimization and increased efficiency.   

Electric vehicles are becoming more sophisticated and developing a longer delivery range, making them ideal for urban settings.

Other advancements to be aware of will change fuel consumption patterns throughout the industry. Electric vehicles are becoming more sophisticated and developing a longer delivery range, making them ideal for urban settings. As electric drive trains are quieter, hours of operation can be extended, allowing carriers to operate throughout the night when traffic is reduced, which will change deployment patterns as well as fuel consumption.  

The Role of Automation 

Increased levels of automation within the industry itself will also play a large role in the transformation of the transportation industry. Warehouses are employing more robots for picking and packing of orders. Automated loading and unloading systems can reduce truck detention times, allowing a driver to get back on the road quicker.

Automation will greatly reduce costs by increasing efficiency which will be enhanced as connectivity and communication levels increase.  

Self-driving vehicles are also on the horizon which will allow for a greater traveling distance and might be enticing for new, younger drivers, as a reason to get behind the wheel. Automation will greatly reduce costs by increasing efficiency which will be enhanced as connectivity and communication levels increase.  

New Regulations will Change the Supply Chain 

Lastly, there is the change in trucking regulation to consider, which will have the most immediate impact on the industry. These new regulations are taking place on a local, state, and national level. These policies have a wide range of goals, anywhere from reducing CO2 emissions and improving (reducing) fuel consumption, to addressing longstanding labor issues. Regardless of their intention, these new regulations all share one factor in common, the will to alter the established patterns and practices of the trucking industry. Germany, for example, has allowed individual cities to ban diesel trucks. That alone will significantly change the transportation industry, bringing a new level of complexity for fleet operators that work in and around urban areas as it can vary from city to city.  

Change to Affect More than Just Transportation 

Considering that these changes have a far-reaching impact, not just on the transportation industry, the Markit study also looked at how other industries will be affected. With supply chains being shortened or even negated in some instances as well as new regulations and standards being put into effect, oil refineries and the petrochemical industry will begin to see a diminished demand from their biggest customer. 

Given that the transportation industry plays a considerable role in the global economy, many industries will be affected and will undergo their own set of changes in order to keep pace.  

In short, these new changes will push our understanding of disruptive technologies to a new level as the transportation industry will begin to undergo a metamorphosis. Given that the transportation industry plays a considerable role in the global economy, many industries will be affected and will undergo their own set of changes in order to keep pace.  

Ready for the Change? 

At BlueGrace, we work with you every step of the way. We’re here to help you understand your current freight issues and make sure your supply chain is ready for any changes in the industry without ever missing a beat. For more information on how we can help you simplify your supply chain and achieve your goals without labor or technology investments, contact us today using the form below: 

Attracting the Next Generation of Truckers

As time changes, the views and opinions of the generations that follow will also change. As the baby boomers are beginning to approach the golden age of retirement, new generations are starting to step up to the plate. This is creating a shakeup for the global economy as a whole. We’re seeing a change in aspirations as well as life goals in those that are entering the workforce. For some industries, it has created a renaissance of new ideas, innovations, leaders, and visionaries.

Simply put, the U.S trucking industry is facing a driver shortage of which it has never seen before.

Other sectors, like the trucking industry, might have a harder time attracting new prospects. Simply put, the U.S trucking industry is facing a driver shortage of which it has never seen before. As manufacturing and retail sales continue to increase, shippers and carriers alike are scrambling to find the capacity to keep freight moving, resulting in many shipments being up-charged or left behind. “A 2017 report by the American Trucking Association noted that the industry needs to hire almost 900,000 more drivers to meet rising demand, while the latest jobs report noted that 185,000 jobs have been added over the past four months alone,” according to a recent article from MSNBC 

 “The shipping infrastructure is facing a tight capacity crunch this year, and the small to mid-sized business shipper will feel the upward pressure in raised rates due to the lack of drivers and trucks available,” said Tim Story, EVP of freight operations at Unishippers. “The new mandate could result in a 4-8 percent loss in capacity (available trucks on the road).” 

To make matters worse, the average age of truck drivers on the road today is 55, which means many will be considering retirement in the near future. As qualified drivers begin to leave the field, there is a concern that there won’t be enough new drivers to replace them. In order to attract fresh blood and new talent for the industry, trucking companies are focusing their efforts on the newest generation of up and coming young adults: the self-oriented Millennials, who are in their twenties and thirties.  

Trucking is a Hard Sell  

While there is plenty of talent to choose from in the millennial pool, trucking is a hard sell when it comes to attracting new drivers. Truck driving doesn’t necessarily carry the glamorous reputation that some industries might have. Long hours and time spent away from home seem to be a deterrent for many who would consider getting behind the wheel.

While some trucking companies are willing to foot the bill for the education, that’s not a universal standard – at least not yet.  

Additionally, there’s the need for a CDL commercial driver’s license which is required to operate any combination of vehicles with a gross combination weight rating (GVWR) of 26,001 or more pounds. It takes both time and money to obtain. While some trucking companies are willing to foot the bill for the education, that’s not a universal standard – at least not yet.  

With that being said, it’s still a considerable commitment for someone fresh out of school who is trying to decide what to do with their life. Younger drivers will also be facing an age barrier as well as you need to be 21 and over to be able to cross state lines. Even if trucking companies were able to recruit younger drivers, there’s still going to be a time restraint before a young aspirant can become a full-fledged trucker.  That timing can make a big difference too. A millennial fresh out of high school isn’t able to enter into the field, which means by the time they can they’ve likely moved on to a different career field. Recruitment is also proving to be a challenge for the trucking industry as well.

Until a recruitment solution is identified, it will continue to be a problem.

While many trucking companies are starting to pay for ad space on social media sites in an attempt to find new drivers, the cost vs. yield is out of balance. “Carriers are having to spend more money on advertising to get people to apply, but only getting one to two drivers out of each 100 applications they receive,” said Story. “Between the training required, predominantly male-dominated field, age hurdles and more, carriers are having to pay drivers higher rates that will continue to increase. Right now, there aren’t enough qualified drivers in the applicant pool to satisfy the needs of the industry. Until a recruitment solution is identified, it will continue to be a problem.”  

Changing the Demographic  

Another issue for the trucking industry is that it is predominately male. According to Ellen Voie the president and CEO of the Women In Trucking (WIT) Association, only about seven percent of the entire trucking fleet in the U.S is made up of women. While this made sense for the physical requirements necessary twenty years ago, that’s no longer the case. “There’s very little physical exertion anymore,” says Voie “Even the hood releases and the dollies are hydraulic. You just push a button. WIT’s mission is to work with truck manufacturers and trucking companies alike to promote women in the industry and to help reduce the obstacles faced by women in the trucking industry. By making the industry more accessible for women, it will help to ease the driver shortage by increasing the available pool of drivers to get behind the wheel.   

Autonomous Trucks Will be Good for the Industry  

Conventional wisdom believes that automated trucking will simply remove the need for human drivers, but that isn’t the case, or at least it won’t be for quite some time. However, the trucking industry does stand to gain from the addition of autonomous trucking.

While Millennials might hold the keys to the future, reaching out to them will be the challenge.  

Autonomous trucks will still need a human driver to navigate urban settings as well as handling the more intricate aspects of entering and exiting highways. The technological aspect alone can help to attract younger drivers, while the added safety features might make the field more accessible to younger drivers and women alike while reducing the amount of training necessary to get them on the road. In any event, the trucking industry has its work cut out for it, especially as the driver shortage problem continues to worsen. While Millennials might hold the keys to the future, reaching out to them will be the challenge.  

Ready to Launch A Career in the Logistics Industry?

BlueGrace partners with the industry’s best in class LTL, Truckload and Expedited carriers. If you are ready to learn the in’s and out’s of the transportation industry, CLICK HERE to launch your logistics career and see all the positions available throughout the country at BlueGrace. We are constantly awarded a best place to work and love to see our employees succeed!

How To Label Your Freight Correctly, The First Time

While it sounds like a no-brainer, a lot of cargo damage happens due to incorrect labeling of the packages that are being transported. Labeling is an integral part of cargo packaging and is an essential aspect to ensure that your goods reach the correct destination at the required time. Correct and proper labeling including package handling instructions is critical to ensure that your goods are delivered safely and efficiently.

Labeling is also important to facilitate real-time tracking of your package as it moves through your trucker’s network and your country’s road network.

For example, if you are shipping liquid cargo or any other cargo that needs to be kept upright, it is important to label it correctly so the cargo handlers know which way to carry it. Similarly, if the cargo is hazardous, then it is important to label it appropriately. You should use the required hazardous labels so safety precautions can be taken. Not just for handling and safety, labeling is also important to facilitate real-time tracking of your package as it moves through your trucker’s network and your country’s road network.

Your cargo label should have a few mandatory components which are crucial to ensure prompt delivery.

  1. Clearly marked pick up or senders address. This is crucial because, in case of any returns or non-delivery, the cargo can be returned safely to the sender.
  2. Sender’s reference number. In order to identify the package, as the same sender could be sending various parcels to the same receiver but with different items.
  3. Clearly marked delivery address. This should have the full style address including the zip/postal code to ensure that it gets to the right area as there could be cities and streets with the same name in different parts of the country, but zip/postal codes are unique.
  4. Receiver’s reference number. The receiver may be receiving parcels from same, or various senders and they can identify the contents/order quickly with the reference number.
  5. If goods are hazardous, then the relevant hazardous labels must be affixed to the box.
  6. If the goods are Fragile, it must be labeled with Fragile stickers or tape.
  7. The label should have be clearly visible and have a big enough barcode for quick and reliable scanning.
  8. The label should be at least A5 size or larger to accommodate all the above information.

You have to ensure that only the relevant markings are present on the outside of the package

If there are markings on the label or box that are irrelevant to the shipment, that must be removed as it may cause confusion with regard to the delivery. The labels used must be hardy and be able to withstand the elements as in sun, rain, snow or any other conditions they may be exposed to during the journey although it is unlikely that the goods can get wet during road transport. If you have more than one item in a consignment to the same receiver, it would be good to affix the labels in the same place on each item as it makes it easier for the goods to be scanned and sorted.

There are standard labels for package handling instructions which clearly indicate the nature of the contents of the packages so that everyone in the transportation chain knows what handling methods to be used like whether the package is sensitive to heat or moisture or which side is up and where the loading hooks may be used etc.

The symbols on the labels are based on an international standard ISO R/780 (International Organization for Standardization).

Source: Transport Information Service

Do You Need Help With Understanding Your Freight?

Whether you are managing your own processes or you are using the logistics services of BlueGrace, proper preparation is one way to help prevent delays or additional charges. If you have questions about how you can better prevent freight issues, or just how to simplify your current transportation program, contact us via phone at 800.MY.SHIPPING or using the form below, we are here to help!

Why e-Commerce is now “Talking Shop”

Retail has undergone a radical evolution over the past few decades. When Amazon first appeared online, it was little more than an online bookstore which then piggy-backed toys for now extinct Toys-R-Us.

As e-Commerce began to gain ground, sites like Amazon were a good place to shop for a wide assortment of things you might need around your house. As the e-Commerce disruption to the brick and mortar store continued, you could launch Amazon from your phone, to shop or compare prices on the go. Now, e-Commerce goes a step further with voice-driven shopping, otherwise known as conversational commerce.

“The past year has been a decisive year for voice-driven Conversational Commerce – consumer purchase of products and services via voice assistants such as Google Assistant, Amazon’s Alexa and Apple’s Siri. While earlier restricted to chatbots accessed via messaging apps for shopping, the definition of Conversational Commerce has significantly expanded with the arrival of voice-based personal assistants, presenting brands with an opportunity to build greater intimacy with their customers,” according to an article from Capgemini.

The Growth of Conversational Commerce

Being able to shop from the comfort of your home on a computer or a smartphone is certainly a convenience. Being able to build a shopping list just by talking is even easier. That’s probably why Capgemini’s survey concluded that 40 percent of consumers would likely be using a voice shopping method over visiting a website or using an app within the next three years. Additionally, 31 percent will likely choose to use a voice assistant over physically visiting a shop or a bank branch.

When you consider the wide array of functionality, it makes sense that we’ll be seeing an uptick in voice assistant.

As the system is fairly intuitive, simply speaking what you want added to your shopping list. Given the ease of use, it’s no surprise that 51 percent of consumers are also voice assistant users for things such as purchasing. A voice assistant can also perform a wide array of other functions such as calling for a ride on Uber, making payments or sending money, or even ordering takeout for dinner. When you consider the wide array of functionality, it makes sense that we’ll be seeing an uptick in voice assistant.

A Personalized Customer Service

Typically, having to interact with a robot when you’re calling customer support can be an irritating process at the best of times. Interestingly enough, 1 in 3 respondents of the Capgemini survey said they’d be willing to replace customer support or in-store shop sales support with a personalized voice assistant to enhance their in-store shopping experience. While that might seem like a negative aspect for retail stores, it’s shown to actually increase brand loyalty as well as average spending by an additional 8 percent per order.

With this new wave of technology, retail stores are being presented with a truly unique means of increasing both their customer service and customer satisfaction. Companies that can create a dynamic and positive voice shopping assistant experience will be better able to serve their customers while increasing business at the same time. That’s not to say that human-based customer service will be completely phased out in the near future.

While a personalized voice assistant might be great for helping a customer look for specific items, they will perpetually fall short of the mark when empathy is required, specifically when things go wrong.

While a voice assistant is nice, it’s human empathy that can really make a person feel at ease when they have a problem. Many retailers are focusing on customer service as a means of increasing their business. This becomes increasingly important as many industries are turning towards automation to boost efficiency. While a personalized voice assistant might be great for helping a customer look for specific items, they will perpetually fall short of the mark when empathy is required, specifically when things go wrong.

This will certainly be something to keep an eye on as time and technology progress.

Logistics is a perfect example of this. When a shipper is having an issue trying to find a shipment, an automated call menu might be the last thing they want to hear. Having a human operator or customer service representative close at hand to help troubleshoot issues has always been vital, perhaps even more so now with the abundance of new technology. Because of this, retailers will have to learn to navigate the line between multi-platform digital solutions and good-old-fashioned human interaction. Voice assistants will be able to bring a lot to the table, connecting both companies to other companies and consumers to everything in new and exciting ways. This will certainly be something to keep an eye on as time and technology progress.

BlueGrace Cares

BlueGrace provides world class customer service and makes it easier than ever to reach your markets in an efficient and cost-effective manner. Their expertise and processes provide clients with the bandwidth to operate efficiently and drive direct cost reduction, backed by procurement and dedicated management. For more information on how we can help you analyze your current freight issues and simplify your supply chain, feel free to contact us using the form below:

Why Is The Supply Chain Industry The Source of So Much Innovation? 

Trucking is arguably one of the most vital jobs in the United States. When you consider that 70 percent of the freight that moves through the country is transported by trucks, the trucking industry is the backbone that holds the U.S. upright. As important as trucking is, however, it would be nothing without a strong running supply chain. Manufacturers need a constant stream of materials and resources to produce goods and retailers and other companies need a constant stream of deliveries in order for their business to operate. 

“The U.S. supply chain economy is large and distinct. It represents the industries that sell to businesses and the government, as opposed to business-to-consumer (B2C) industries that sell for personal consumption,” the Harvard Business Review says. Much the same way that the trucking industry keeps many U.S. citizens employed, the U.S. supply chain industry accounts for 37 percent of all jobs in the country, employing approximately 44 million people. Interestingly enough, these jobs also pay significantly more than a number of professions and are largely responsible for bursts of innovation within the economy.   

“The intensity of Science, Technology, Engineering and Math (STEM) jobs, a proxy for innovation potential, is almost five times higher in the supply chain economy than in the B2C economy. Patenting is also highly concentrated in supply chain industries,” HBR adds. 

It’s the supply chain that links so many different industries and companies together.  

So what is it that makes the supply chain industry pay so well and be responsible for such innovation? It might just be the fact that it’s the supply chain that links so many different industries and companies together.  

The Importance of Supply Chain Services 

As we mentioned above, the trucking, manufacturing and retail industries rely heavily on supply chain services to function and survive in today’s economy. With a heavy focus on lean manufacturing, many companies simply can’t afford to have extra products or parts lying around – there needs to be a constant influx, giving these companies what they need precisely when they need it. But it doesn’t explain why it stands out from other sources of employment. To that, Mercedes Delgado, a research director and scientist of MIT and Karen Mills, senior fellow of Harvard Business School, have taken a look at the categorization of employment and made an interesting discovery when it comes to the supply chain. “Only 10% of employment in the economy is in manufacturing, and 90% is in services. It is commonly thought that most of those service jobs are low-wage occupations at restaurants or retail stores, while the manufacturing jobs have higher wages. But not all services are the same.” – Delgado and Mills stated in the recent HBR article. “With our new categorization, we can separate supply chain service jobs – which are higher-paying – from the Main Street service jobs that tend to be lower paying. These supply chain service jobs include many different labor occupations, from operation managers to computer programmers, to truck drivers. They comprise about 80% of supply chain employment, with an average annual wage of $63,000, and are growing rapidly,” they added.  

On average, these jobs pay about three times more and have 18x the STEM intensity over Main Street services, and the job market is growing fast.  

Through their work, they’ve also uncovered a subcategory of the supply chain industry which is traded services. These services are traded and sold across many different fields such as engineering, design, software publishing, logistics services and many others. This subcategory, in particular, showed some of the highest wages and STEM concentration of the entire economy. On average, these jobs pay about three times more and have 18x the STEM intensity over Main Street services, and the job market is growing fast.  

“Our supply chain economy framework leads to a more optimistic view of the economy. If we were to focus on supporting supply chain services, particularly those in traded industries, the result might be more innovation and more well-paying jobs in the United States.”  

How Does this New Category Affect Policy? 

While it might not seem like an important find, this new categorization is actually very important, especially when it relates to U.S. economic policies. For starters, there needs to be a heavier investment in skilled labor. While the supply chain industry has the majority of STEM workers already on the payroll, there is a shortage in America in general. This makes it hard for both sides to continue the level of growth and innovation. Many companies already have a hard time finding the necessary talent to keep them moving forward.

Supply chain industries are even more at risk since continuous innovation not only needs new talent but the ability to retain existing talent. 

Supply chain industries are even more at risk since continuous innovation not only needs new talent but the ability to retain existing talent. The second point from Delgado and Mills is that we need to support regional industry clusters. “Suppliers produce inputs for businesses, and therefore, they particularly benefit from being co-located with their buyers in industry clusters. Catalyzing and strengthening organizations that support regional clusters is one way to promote buyer-supplier collaboration.” 

Finally, it’s a matter of making sure that supply chain service providers have access to the necessary funds to continue their work. Many of the products and services that they create are things that can’t be patented which makes it difficult, if not impossible, to continue generating the necessary capital. Having government policies in place that would guarantee loans or credit support for suppliers would go a long way to ensuring stability and funding for these service providers to start and grow.  

 The supply chain is a very large industry within the United States and one with the potential for some dynamic growth. Supply chain service providers play a crucial role in not only ensuring that other industries are able to function but also provide the necessary access to these resources that will help this new category of the industry to grow and the American economy as a whole.

Are you part of the supply chain talent pool?

Are you eager to work with a company that helps simplify businesses across the USA? Do you feel a sense of accomplishment when you can cut costs for a customer? If so CLICK HERE to see all the positions available throughout the country at BlueGrace. We are constantly awarded a best place to work and love to see our employees succeed!

The Long Bumpy Road to Blockchain in Trucking

With rapid advancements in interconnectivity, such as the Internet of Things and the added advantage of instant data streaming, the freight industry has been devouring data technology as a whole and is getting a much-needed overhaul. Yet, the picture is incomplete. There are still some serious gaps, tracking being a great example of this. While shippers may have a general idea of where the freight is during its transit, often it is difficult or impossible to pinpoint the exact location and the estimated time of delivery.

Let’s face it, trucking is the life force of this country.

Communication within the industry also leaves a lot to be desired. Throughout the industry, many companies are using different systems for recording freight which allows some data to be lost in translation. That might be the reason why there is some considerable hype being built around blockchain technology. In fact, this hype is gaining some serious momentum when you consider there is a new faction, the Blockchain in Transportation Alliance (BiTA) that is working to find blockchain solutions for some of the most common trucking problems. Let’s face it, trucking is the life force of this country. Trucks are moving approximately 70 percent of the nation’s freight. As a whole, it represents over 80 percent of the nation’s freight bill. That being said, they could use all the help they can get to make the process more efficient.

Privatized Blockchain for the Industry

There is a considerable amount of potential within blockchain technology. As a data service, it can track and categorize every transaction through a products life-cycle.

For a logistics decision maker, the ability to pinpoint the location of various assets, both tangible and intangible, is invaluable.

For a logistics decision maker, the ability to pinpoint the location of various assets, both tangible and intangible, is invaluable. Within every step of the shipping process, blockchain can track the data and provide analyzable and actionable information which allows for more accurate and efficient decision making. As it’s a shared platform, the necessity for a privatized blockchain for the U.S. becomes apparent. Of course, that privatization isn’t necessarily exclusive, but rather separate from other blockchains used just for the industry. This would give shippers, carriers, freight brokers, 3PLs and anyone else in the BiTA consortium who needs to be in the know, access to a transaction ledger. BiTA’s goal, as a standards organization, is to develop a common framework to encourage the development of blockchain applications for asset tracking, transaction process and overall logistics management. All of which is geared at turning the trucking industry into something more intelligent and efficient.

…and The Seemingly Never-Ending Capacity Issue

Think about some of the most common issues within the industry. Manufacturers and shippers have a hard time finding available capacity. Putting aside the driver shortage for a moment, it makes no sense that it’s so difficult to find capacity when there’s an average of 29 billion empty or partially loaded miles per year. It also helps to understand that the trucking industry itself is incredibly fragmented in the United States. There are over 1.5 million trucking companies fielding close to 3.5 million drivers. While that might seem like a lot, 90 percent of those companies have access to six trucks or less. That makes it even more difficult for shippers to match up with carriers, both of whom need each other.

Matching a shipper’s demand to a carrier’s supply is just one of the many ailments within the industry that can be alleviated by blockchain technology.

Matching a shipper’s demand to a carrier’s supply is just one of the many ailments within the industry that can be alleviated by blockchain technology. There are many in the industry, both startups and legacy companies alike that believe that blockchain technology can make routing more efficient, cutting down on fuel costs and increasing productivity.

 

Source: Next Autonomous

In reality, blockchain has a near limitless amount of potential, if it can get off the ground that is.

Considering how varied the industry is with so many different players in the game, it can help to unify the trucking industry to help it become more efficient as a whole. Logistics planners can see the “whole picture” rather than just pieces of it at a time. With real-time data, they can make better decisions to make the industry leaner and smoother overall. In reality, blockchain has a near limitless amount of potential, if it can get off the ground that is.

The Blockchain Obstacles  

As with any new technology, there will be some hurdles and obstacles that need to be cleared in order for it to become successful. The first issue is that everyone needs to trust in the technology and believe it to be the sole source of truth for the industry. While most people will believe in the system they are working with, it’s a little more complicated with blockchain. As a crypto-technology, it is incredibly secure and the data is locked. That being said, nothing can be changed, altered, or corrupted. It becomes carved in a digital stone, for lack of a better term. Because the technology is distributed, there isn’t a sole governing authority for the data either. In short, it’s a double-edged sword. Data can’t be lost or tampered with, but it also can’t be altered. This means that there needs to be absolute faith that the data within is a genuine accounting of transactions.

If there is any hope of uniting the industry and reducing the inefficiencies of fragmentation, everyone will have to play the game.

Secondly, blockchain will need total participation from smaller companies, both shippers and carriers. If there is any hope of uniting the industry and reducing the inefficiencies of fragmentation, everyone will have to play the game. Much the same as trust. The problem here is that smaller companies often have a hard time drumming up the necessary capital to invest in new technology. The electronic logging device (ELD) mandate is a perfect example of this. Larger companies had no problem, and many were prepared well before the deadline. Smaller companies, on the other hand, watched the deadline come and go with only 37 percent of 1,600 fleets in compliance with the ruling prior to the deadline. Trying to get that many smaller companies on board with the same, or at least compatible software will definitely be an uphill battle. However, once that’s done, you’ll have an entire industry, shippers, carriers and brokers alike completely connected and collaborating on a frictionless network.

Simply put, there is some tremendous potential for blockchain and it could very well revolutionize the industry.

Lastly, the industry as a whole needs to accept data standardization. Everyone does things a little differently, which might work in the fragmented mess that it is now, but in order for blockchain to not become a convoluted jungle of indecipherable data strings, it all needs to be standardized. This is something that BiTA is trying to spearhead by working on standardization from the outset. If the history of the trucking industry has taught us anything, it’s that incorporating blockchain technology universally across the sector is another obstacle that won’t be so easy to get around. A difference in programs could mean a time-intensive process for integration to simply make the program work with the blockchain, nevermind the data entry in itself. Simply put, there is some tremendous potential for blockchain and it could very well revolutionize the industry. However, it’s going to be a long and bumpy road before we get to the smooth workings and benefit from what blockchain could provide.

Working With a 3PL Like BlueGrace

BlueGrace makes it easier than ever to reduce the amount of physical paperwork with our FREE proprietary software, BlueShip®. BlueShip is user-friendly, completely customizable and has real-time updates, giving you a single source tool for tracking, addressing, and product listing. Fill out the form below to request a free demo today:

Choosing the Right 3PL to Align with Your Business Strategy

Most shippers don’t spend much time worrying about who is driving the trucks carrying their goods, but choosing a 3PL with the right carrier network makes all the difference when your business is expanding. B2B and B2C networks are increasingly determined by where the customer is, rather than a companies’ geographical location. With more business moving to online, you need to be prepared to meet your customers where they are. 

When your customers need change, you want to be able to say “yes.” But logistics is a complicated business and when you are examining your choices, there are some factors to consider.

The first step is to understand your internal requirements – consider what your specific needs are before looking for a 3PL. Questions to ask include, what modes of transportation and what services you will need? What volumes do you plan to ship and where? Do you have specific security or visibility requirements? Are your shipments time-sensitive? The list goes on… Despite their expertise, 3PLs are only as useful as their knowledge of your business and customer requirements. 

The right 3PL will also have a network density that connects you with the right carrier, at the right location and with the right capacity and expertise.

Start with Carrier Partnerships

Whether you are shipping intra-warehouse or last-mile, it’s important that your 3PL  has the capabilities to make it happen. Two considerations are technology and partnerships.  

Shippers should look for a partner that allows them to quote, track and control invoicing for their LTL and FTL shipments, across a nationwide carrier network. Because your shipping partner is responsible for integrating different shipments, they are responsible for implementing technology that provides visibility to your shipment across their network of trucks and more. 

The right 3PL will also have a network density that connects you with the right carrier, at the right location and with the right capacity and expertise. With capacity being tight these days, partnering with the right 3PL will increases the chances that your time-critical shipments will be delivered on time and at a competitive price. That means, if you have warehousing and delivery needs in Houston, your 3PL  should have vehicles available to accommodate those needs, and quickly. 

Door to Door deliveries

Not all trucking companies handle door-to-door deliveries and some don’t have to. What matters is that your 3PL is partnered with carriers that offer fleet capabilities that meet your needs. For your urban customers, the trucking company might need to deploy a fleet of smaller trucks or even vans. If your requirements are FTL B2B shipments, you need a trucking company with that sort of capacity. For many shippers, their requirements fall in-between, or into the ‘all-of-the-above category.’ In those cases, your 3PL needs to have a range of carriers available to facilitate your business. 

Experience matters

Shippers should ask themselves if their 3PL understands their business and customer base. For example, a company shipping high-value electronics, will want to check with their 3PL about security protocols. Are trucks secured? Is there a system in place to alert management when drivers divert course? Proactive 3PLs will have systems in place so that your customers can rely on you in turn.  

Shipping disruption is an unfortunate reality in the business, ranging from weather disruptions to dock strikes. The right 3PL will have a plan in place to make sure that you are taken care of. 

Do the services match the requirements?

Some 3PLs specialize in specific modes of transportation, commodities, dealing with regulations and origin/destinations. Others are generalists. Make sure that you ask potential 3PLs if they have experience handling the cargo that your business will be shipping. The right partner for your business will be able to walk you through the different steps required, allowing all parties to agree on the correct protocols and procedures.  Reviewing a 3PLs Case Study library can help you better understand their expertise.

How many modes?

There are four common modes – ocean road, air, and rail. Many 3PLs will offer “intermodal” services, but if they don’t have the size and experience to properly manage that freight in-transit, they are essentially handing off responsibility to another party. 

To avoid this uncertainty, make sure your 3PL works with established rail and intermodal carriers. That way, you get the most options. Offering a variety of modes that let shippers choose slower transit times when possible, which lowers costs. On the flip side, if you need something shipped fast, having a 3PL with a dedicated expedite team will help to ensures that your shipment gets where it’s going, in the time it needs to be there.

How’s their customer service? 

This might seem too obvious to print, but it’s important to distinguish between friendly phone conversations and 3PLs that can get you the information you need when you need it. If there’s a disruption or other events along the shipment chain, you need a 3PL that can reach out proactively to help you make the necessary adjustments on your end. There will always be disruptions, but that doesn’t mean they need to put you on your back heels. 

Customer service is also about finding a 3PL that’s willing to take the time to help you set up the right solution. If your business is experiencing sudden growth, you might not have all the answers.

Is your 3PL BlueGrace?

At BlueGrace, our freight specialists work with you every step of the way to understand your requirements and set up a solution that’s tailored to your needs. BlueGrace provides scalability for growing companies to achieve their goals without labor or technology investments. With a fully built-out national network and global partners, BlueGrace makes it easier than ever to reach your markets in an efficient and cost-effective manner. Our expertise and processes provide clients with the bandwidth to operate efficiently and drive direct cost reduction, backed by procurement and dedicated management. For more information on how we can help you analyze your current freight issues and simplify your supply chain, contact us using the form below: 

Freight Damage: 8 Practical Ways to Avoid It 

Whether you are a shipper, receiver or trucker, freight damage affects all equally. Freight damage not only increases your cost and affects your revenue, but recurring or heavy damages can cause friction between supplier and end users. 

As a Freight Operator, you can take several measures to avoid freight damage and shipping claims. 

1. Understand your cargo

Understanding the nature of the cargo is of utmost importance so that you can use the correct type of transport for your cargo and the correct type of packaging. For example, if you are shipping drummed cargo you don’t need the same level of protection as you would if you shipped fragile or bottled cargo such as sauces, jams, etc. If you are shipping cargo that is more volumetric in nature than weight (example Cotton Bales) you need a truck with a bigger space capacity than weight capacity. 

2. Choosing the right packaging

This is a critical aspect of trying to avoid freight damage. Once you have understood the nature of your cargo, which may be fragile, heavy, sensitive to water, sensitive to heat, etc., you need to carefully assess the type of packaging required for your product. For example, if you are packing fragile cargo such as bottles, it is important to ensure that these cargoes are packed using durable packaging like corrugated cardboard which is then palletized on wooden pallets for easy and safe handling. 

Use quality pallets that will last longer than cheaper pallets. Cheaper pallets may give in a short term, and better quality pallets will allow for double stacking as required. Don’t take shortcuts or skimp on the proper packaging material as this short-term saving could result in a much bigger expense at a later stage in case of any claims. 

3. Label your goods correctly

While it sounds like a no-brainer, a lot of freight damage can be avoided by labeling the cargo correctly. For example, if you are shipping liquid cargo or any other cargo that needs to be kept upright, it is important to label it correctly so the cargo handlers know which way to carry it. Similarly, if the cargo is hazardous, then it is important to label it appropriately. You should use the required hazardous labels so safety precautions can be taken. 

4. Protecting your packaging 

Cargo such as clothing, shoes and other high-value retail goods are special targets for thieves and protecting your cargo is of utmost importance. Protecting your packaging is also essential against weather and dirt, especially if you use cardboard cartons. 

You can protect your cargo by sealing it with good quality tape (usually with your company branding on it), strapping it and shrink wrapping it.

5. Stow the goods correctly

Stowing of goods on the pallet or the truck is absolutely essential to avoid freight damage. Due care must be taken to stack goods in a uniform and stable manner so that weight is equally distributed across the pallet(s) and the truck. Your products must stay within the dimensions of the pallet such that it cannot get damaged during handling. 

If your cargo has a mixture of heavy and light goods (say boxes of canned food and boxes of marshmallows), ensure that the boxes of canned food are stowed at the bottom and the boxes of marshmallows are stowed on top of the canned food. 

6. Stow the truck correctly

A lot of freight damage happens when cargo shifts inside the truck during transit. Cargo moves inside the truck due to improper stowage inside the trailer.  Whether it is palletized cargo or non-palletized cargo, the cargo should be stowed inside the truck as tightly as possible to avoid movement. 

If in spite of your best efforts there is some space between the cargo, you should use suitable dunnage material like airbags (inflatable dunnage) to absorb sudden impacts and to prevent the load from shifting. In the case of fragile cargo, you can use cargo nets to secure it, so it doesn’t move during transit. 

7. Ship in bulk

Try to consolidate your goods and move as FTL (Full Truck Load) to avoid using LTL (Less than Truck Load) as much as possible. LTL moves multiple handling before the cargo gets to its final destination. However careful one is, multiple cargo handling has a possibility of damaging your cargo. 

8.Choose reliability over price

Choose the right supplier. Using a reliable freight partner is of utmost importance in the whole supply chain process. You should choose your reliable carrier based on a few factors such as their FMCSA score, the trucks that they use, the age of their fleet, their insurance and liability cover, their cargo handling safety record and their staff training methodology. While these may not guarantee the safety of your goods, it can give you a pretty good idea of your supplier. 

To summarize, 

Freight Suppliers

  1. Ensure the cargo is properly packaged before you accept to ship it 
  2. Ensure that the cargo is properly labeled and marked
  3. Ensure that all documentation for the cargo is correct 
  4. Ensure cargo is stowed properly and can handle the various weather and transit conditions while en route to its destination 

Freight Customers

  1. Ensure that you know how to properly pack and stack your goods, or use a qualified company to do this job for you 
  2. Check and recheck your cargo, its packaging, its labeling, stacking/packing and documentation before it leaves your warehouse 
  3. Ensure you have the correct receipt from your supplier when you are handing over your cargo
  4. Ensure you choose the right supplier for the movement of your goods 

Whether you are managing your own processes or you are using the logistics services of BlueGrace, proper preparation is one way to help prevent damage. 

By working closely with all suppliers involved in the movement of your goods, you can ensure that your cargo will reach its destination in time, within your budget, and in the condition that it left the origin. 

Do You Need Help With Understanding Your freight?

Whether you are managing your own processes or you are using the logistics services of BlueGrace, proper preparation is one way to help prevent damage. If you have questions about how you can better prevent freight damage, or just how to simplify your current transportation program, contact us via phone at 800.MY.SHIPPING or using the form below, we are here to help!

The Importance of Customer Care in The Age of Automation and AI 

We’re approaching a new age. Not just in technology, but in our mentality towards that technology. Self-driving cars are no longer just a concept but are in the pre-production testing phase. Robots are less novelty and more integral to many aspects of our lives and our jobs. Simply put, we’re approaching a new age that might see a lot less need for human interaction.   

Though they may be intuitive and programmable, robots aren’t capable of handling every aspect of a job.

Many industries, not just the freight and logistics sector, have voiced some concerns about the integration of robots in the workforce. Truck drivers might take a back seat to an automated rig, at least for the highway stretches. Logistics planners might sit on the sideline while an AI constructs the hypotheticals and maps out the best route from A to B. When you consider it like that, it seems as though there might be a good reason to panic about the encroaching robotic workforce. Though they may be intuitive and programmable, robots aren’t capable of handling every aspect of a job. In fact, there are a few areas where they fall drastically short of the mark.   

Human Core Capabilities  

Despite what Isaac Asimov had to say about the matter, there are three areas in which robots simply can’t hold a candle to a human counterpart. These “core capabilities” are creativity, community and empathy. Robots aren’t designed to feel human emotion. They can’t understand when a customer is frustrated by a missing or damaged piece of freight.

Sharing Economy 

People will change their view of asset ownership, something that has been more or less hardwired into previous generations. For those that own assets, they want to get the most out of them. For those that don’t, they want to be able to access them instantly, without the need to ever own them. To make this easier to understand, consider Uber for a moment. The vehicle owner can take their asset and use it to make some extra money by giving rides. The users simply have to tap a few buttons on their phone, and a ride is summoned, ready to take them to their destination without the need to own a vehicle themselves. This is a perfect example of the Sharing Economy.  

Empathetic Businesses 

With automation growing, we’ll see a shift in the sharing economy into the empathy economy. This empathy economy will be more focused on matching humans or businesses with a need for empathetic services to those who are willing to offer them, according to the World Economic Forum 

True empathy isn’t easy, but it’s the most powerful expression of humanity. In a world full of robots, empathy can only become more valuable

“It’s cliché to say that empathy is in short supply today because every generation probably has the same sentiment. The good news is that automation will force humans to be more human and the empathy economy will create opportunities for humans to monetize a unique capability. True empathy isn’t easy, but it’s the most powerful expression of humanity. In a world full of robots, empathy can only become more valuable,” says WEForum.

Companies will need to find the balance between automated production and workers, with the softness of human emotion and customer service. Customer service specialists and the “white glove” treatment of customers will be the true differentiator between competitors in the field. The stronger the empathetic match between company and potential customer, the more likely it is that they will become a regular client.   

The Human Element 

In many regards, we look for other people to not only help us with our problems but also to understand what we’re going through. Humans will always be the best in understanding emotions. We understand how frustrating it can be to be put on hold or left with questions and seemingly no answers. It’s that human connection that is vital for businesses.  

While many businesses understand this, that’s not to say that they won’t automate at least some of their customer service elements. Well, augment might be a better word 

They all do that in the name of efficiency. However, it will be important for them and us as customers, to keep the human connection alive and well. Amazon’s Grab-and-Go is a perfect example of this. The concept is that customers don’t need to go through checkout or interact with a cashier. Simply grab the items they want and have Amazon automatically track and charge the “purchases.” While this drastically removes much of the human element, the Amazon Grab-and-Go stores are also staffed with human workers who can help answer any questions and guide customers through the process. In other words, there will always be a need for human interaction in any business environment. Human-based customer service is and will continue to be the cornerstone for building a strong business.  

Treat customers as people and not just another line in the profit margin and your business is golden.  

While data services are certainly a must, they are also becoming the norm in the logistics and freight industry. Real-time data and high-end visibility used to be a selling point, now it’s simply an expectation. Customers want to know where their products are and when they can expect them to arrive. They want a simple and easy to use system that gives them the comfort and security of knowing that they have made the right choices for optimizing their supply chain. Nonetheless, despite all the efforts and advancement of different technologies, it will be the mutual understanding created by the human empathy that will solve problems. Treat customers as people and not just another line in the profit margin and your business is golden.  

Working with a 3PL like BlueGrace

BlueGrace provides scalability for growing companies to achieve their goals without labor or technology investments. With a fully built-out national network and global partners, BlueGrace makes it easier than ever to reach your markets in an efficient and cost-effective manner. Their expertise and processes provide clients with the bandwidth to operate efficiently and drive direct cost reduction, backed by procurement and dedicated management. For more information on how we can help you analyze your current freight issues and simplify your supply chain, feel free to contact us using the form below:

Turning Returns into Return Customers: How Reverse Logistics Defines e-Commerce

The way to succeed at e-commerce is to think like your customers. But how do they think?

A decade ago, retailers were responsible for the in-store experience and the quality of their product. That was pretty much it. Today, online retailers are held accountable for everything that happens in-between, in transit, and a lot more. Traffic used to annoy shoppers on the way to the mall, but today, those same delays are the retailer’s problem as well. Online retailers picked up the legwork in exchange for access to a booming market. With those extra responsibilities, you might be obsessed with the complexities of your fulfillment and returns operations – like everyone else in e-commerce – but that’s not what’s important to your customers. They want reliability and they don’t want to pay for it.

To put it another way, the e-commerce experience starts the moment a customer navigates to a platform and ends either when the product arrives at the purchaser’s address, or when their returned purchase is processed, and the refund is deposited into their bank account or refunded to their credit card. In between those moments, a complex web of interactions brings dozens of different companies together, and the failure of one link can reflect poorly on the whole chain.

More Returns Than Ever

It’s a chicken and egg question whether e-commerce is driving returns, or if the increasing ease of returns is turning more consumers on to online purchases. One thing is for sure though, there are more returns than ever.

This is especially true for apparel shopping, where the widespread adoption of free returns has turned the internet into a virtual changing room. Some fulfillment experts estimate that the return rate for online apparel purchases is close to 40 percent. That’s because, as of yet, there really isn’t an online equivalent to trying on an article of clothing in person. There’s a similar dynamic at play with other online purchases. Those free returns induce shoppers to buy online because they know if it doesn’t work out, they can ship it back.

Without free returns, few shoppers would risk buying an article of clothing that might not fit.

Without free returns, few shoppers would risk buying an article of clothing that might not fit. So now that we’ve established the importance of returns, the challenge is to make returning an online purchase a positive experience for customers.

Why Returns Matter

It’s quite simple. Returns matter because the moment your customers decide – for any number of reasons – that they want to return their purchase in exchange for a refund, the clock starts ticking. The moment they make that decision, they are holding a product that they don’t want and they are short the amount of money they spent on it. It’s a delicate situation and keeping the customer on your side is a complex interaction of logistics and customer service.

At the same time, every one of us has retailers, restaurants, or other corporate entities that we love. For many of us, that attachment comes from their customer service experience, friendly interactions with the staff, or some other interpersonal experience. With e-commerce, those opportunities don’t exist and retailers must make up for that with flawless logistics, as customers swap brick and mortar familiarity for online convenience.

This challenge will be won or lost based on your company’s logistics

This challenge will be won or lost based on your company’s logistics, so having that in mind, here are a couple of points to consider as you evaluate your e-commerce strategy:

Make it easy – From your customers’ perspective, returns should be easy to handle and seamless. At this point, prepaid return labels and flexible return shipping are commonplace, but there’s still plenty of room for improvement. You need to make sure that you communicate the best return options to your customers, such as where they can drop off the packages, pickup times and other important information. You should communicate this automatically, in advance, so that your customers know that they have options. This will help them feel in control of the experience at all times.

Make it visible – with the right track and trace technology, it’s easy for logistics companies to know where a shipment is at any given time. That information should be communicated to your customer. Online shoppers might not even know about the option, but proactively letting them know how their return is processing improves the retail experience and converts customers into return shoppers.

Make it fast – Nobody wants to wait for their refund, so your returns policy should take that into account. A smart return policy should be able to dispense refunds in advance of their final processing when they arrive back at the warehouse. Regardless of how your company processes the return, the customer should be taken care of first and not held up by logistics constraints.

Make it scale – Every holiday season there are at least several articles about bottlenecks in the returns policy and that’s because millions of more customers turn to the internet every year for their gift purchases. Check with your logistics provider in advance of busy periods to ensure that they can scale to your needs.

How BlueGrace Can Help

You should be focusing on your core strengths in retail, not logistics, and that’s where we come in.

You want your logistics partner to embrace these values and to have a sophisticated enough approach to accommodate a data-intensive e-commerce operation. At BlueGrace, an experienced customer support team manages the entire returns and claims process to ensure a high customer satisfaction rating. BlueGrace uses its strategic relationships with their carriers to get great pricing with a mix of quality carriers. At BlueGrace, we work with new customers to understand their businesses and engineer the most seamless delivery and returns process possible. You should be focusing on your core strengths in retail, not logistics, and that’s where we come in.

With the logistics experts at BlueGrace reviewing past data at the beginning of the relationship, our partner e-commerce customers can increase their profits, save employee time and most importantly keep the online customers they spent so much to acquire. Feel free to fill out the form below for a free analysis today!

Rising Costs and Lower Capacity in the Domestic Truckload Market

2018 is off to a strong start for the economy and manufacturing, but there is a shortage of available truckload capacity on the spot market. The Purchasing Managers Index has not dropped below 50 since August of 2016. This time frame almost exactly correlates with the last low point in the Dow Jones Industrial index. (October 2016, 18142.42) In August of 2016, the dry van spot market rate was roughly $1.65 per mile, today that number is $2.30 per mile. As already discussed, that number is coming along with a driver shortage and carriers not wanting to adhere to the ELD mandate.

More Freight, Less Capacity

Currently there are 5.5 available loads for every available truck in the United States. Carriers can pick and choose the freight they want, at the rate they want, going where they want.

On the heels of the new Tax Plan, businesses like Boeing, AT&T, AAON, AccuWeather, Southwest Airlines, American Airlines and many others have given out employee bonuses and increased charitable donations to show good faith in the plan. This leads many to believe economic growth is not slowing down in 2018 which then leads to more manufacturing and more freight shipments.

How Can BlueGrace Help?

Transportation Management providers like BlueGrace Logistics will consult with your business and provide a solution that can help insulate your company from the chaos in the spot market. Here’s how:

  • Current State Analysis, inefficacy identification
  • Future State Vision and growth plan
  • Benchmark Current Rates, identify lanes and current carrier mix
  • Load Planning and Consolidation Scope and Strategy
  • Network Optimization
  • Dedicated resources

BlueGrace can start this process with an initial consultation and discovery call. Do not let the constraint and capacity of 2018 ruin your budget before it even gets started. Fill out the form below to schedule your free assessment today!

The Digital Pathway to the Logistics Industry’s Future 

Make no mistake, digitalization is merely the pathway to the future of the industry. For an industry so vital to the entire world, the freight industry has been rather stubborn to change its ways. Sticking by the tried and true, fax machines whir and phones ring off the hook as shippers try to connect to carriers, book freight and make sure their goods get from A to B in good condition. For the last several decades, that has been the industry standard, until recently that is.  

We are witnessing a technological revolution as the freight industry finally moves to the present age. Digital services are changing the game, increasing mobility, visibility and information alike. While this change might be coming in with fits and starts, make no mistake, it is coming, and the world is changing as a result.  

Digitalization is Reshaping the Industry 

We are already beginning to see the emergence of highly automated vehicles in many applications, paving the way for those that will be fully autonomous. Warehouses are beginning to incorporate robotics and automation, reinforcing the efforts of human labor and expediting what is typically the most time-consuming process of the freight industry. Blockchain is producing some prodigious effects in terms of information technology and logistics planning. Even e-Commerce is an industry that is picking up speed and outmoding the standbys of brick and mortar stores.  

All of these changes, advancements, and innovations are being brought about by digitalization. 

It’s the capacity of both the storage and the ability to share data that will be the driving force behind the revolution of the transportation industry. That capacity will mean that there is never an empty or impartial load; the most optimal route will always be chosen, and a number of other variables will be predetermined before the order is even sent.  

Digitalization will be what drives innovations in a number of integral supply chain functions while adding new ones such as platooning, load matching and eco-driving. All of these innovations will focus on increasing efficiency without the need to reduce capacity. This means that even as demand rises, the supply chain will be ready to carry the load.   

The Effects of Digitalization on Legislation 

Of course, digitalization can do more than simply make the supply chain more efficient. There is also an enhanced regulatory effect that can be gained from it. While regulations are typically viewed with a negative connotation, such as the Electronic Logging Device mandate, there are some upsides to it as well.  

Digital documentation can help streamline the process in a number of different areas. Compliance with federal regulations like the Hours of Service ruling can be easily done through the ELD. As the mandate was originally designed to make roads safer by removing fatigued drivers, an ELD can be a quick and easy way to show compliance while providing other useful information to both the carrier and the shipper.  

Reduction of physical paperwork can also expedite customs processes, which are notoriously tedious and can drastically slow down the transportation process. With less back and forth on the phone and easy access via a digital platform, the necessary information can be shared quickly and easily, reducing the time and potentially costly penalties for non-compliance. This is just one of the many potential applications for digitalization of the industry.  

A Digital Infrastructure for an Automated Future 

When considering the potential scope of digitalization in the freight industry, it is necessary to understand that it’s not just a handful of companies or even countries that are participating in the technological revolution. It is the industry, as a whole, worldwide. While these little nuances and conveniences might seem novel now, they will inevitably become the industry standard in the near future.  

Digitalization, however, is only the beginning. It is establishing the framework and infrastructure for which all other innovations are being built on. For any of this to work and succeed, it is going to be a continued collaborative effort as an industry to both embrace and adapt to the new way of doing things. — Digitalization is merely the pathway to the future of the industry.  

Working With a 3PL Like BlueGrace

As the digital infrastructure continues to optimize freight, BlueGrace has been at the forefront, simplifying our customers businesses. BlueGrace makes it easier than ever to reduce the amount of physical paperwork with our FREE proprietary software, BlueShip®. BlueShip is user-friendly,  completely customizable and has real-time updates, giving you a single source tool for tracking, addressing, and product listing. Fill out the form below to request a free demo today:

The End of NAFTA Could Be a Nightmare for Truckers 

Recent actions from the U.S. President, Donald Trump, have truckers more than a little concerned. During his time on the campaign trail Trump has made his opinion on foreign industries, Mexico in particular, very clear. Touting his “America First” slogan, Trump promised the American people that he would focus on bringing jobs back to the United States and would renegotiate trade agreements to put the U.S. in a better position.  

While that sounds all well and good, the actual ramifications of Trump’s trade tinkering could be disastrous.

While that sounds all well and good, the actual ramifications of Trump’s trade tinkering could be disastrous. He’s already threatened higher tariffs on trade with Mexico and now the president has his sights set on another target, solar energy. His most recent legislative move would place a 30 percent tariff on any solar equipment that is manufactured outside the United States.  

According to Bloomberg, the 28 billion dollar solar industry is heavily reliant on these outsourced parts. In fact, 80 percent of its supply chain is centered around the acquisition of them. Bloomberg also says that this doesn’t just affect the renewable energy industry, driving it to the point of being cost prohibitive, but it could also cause 23,000 Americans to lose their jobs. The tariff would not only target solar panels, but a number of consumer electronics and the steel industry. It’s highly likely that these tariffs could create restriction on US-made goods in other countries.

Truckers Fear of NAFTA Ending 

The North American Free Trade Agreement has been a crucial element for the U.S. economy since its implementation back in 1994. The agreement was aimed at reducing or eliminating tariffs and other trade restrictions between partnering countries; Mexico, Canada, and the United States. As partner countries are attempting to work together to renegotiate the deal, the process is being dragged down with “contentious negotiations” and threats of an all-out withdrawal by the United States.  

While many in the industry will agree that the trade agreement is due for some updates and renegotiating, it is Trump’s critical attitude toward these trade agreements that have the freight transportation industry concerned.  

“NAFTA has been a major point of contention since it was first implemented over two decades ago. Critics have argued the trade deal has benefited large corporations or foreign workers at the expense of domestic workers. But to industry groups, the trade deal has been vastly more beneficial than not,” says an article from Transport Topics 

The trade agreement has been very helpful in opening up the markets between the three participating countries and has been a driving force in the success of the trucking industry. With over $6.5 billion in annual revenue for the industry, NAFTA is responsible for creating jobs for over 46,000 people; 31,000 of which are U.S. truck drivers.  

Restricting foreign trade in certain circumstances could hurt both domestic companies and consumers by limiting the flow of goods they might rely on

“President Trump hopes to use trade and other reforms to encourage domestic production – which could result in more jobs. But some domestic production faces barriers that other countries don’t have. Restricting foreign trade in certain circumstances could hurt both domestic companies and consumers by limiting the flow of goods they might rely on,” Transport Topics adds.  

The Fallout from the Death of NAFTA  

So what would happen if the United States were to withdraw completely from the free trade agreement? Most agree that the results would be disastrous.  

The disagreements and heated rhetoric have fueled concern throughout the economy. Many businesses rely on the massive trade deal, which could make them vulnerable depending on how the negotiations end and create uncertainty in the process. Alliance of Automobile Manufacturers Federal Affairs Vice President Jennifer Thomas notes that there are two bad outcomes that could potentially come from these talks. The first of these scenarios is that NAFTA becomes unworkable and useless due to unrealistic expectations. The second, and potentially most frightening, is we simply lose NAFTA altogether because the U.S. has pulled out entirely.  

The trucking industry could stand to suffer the most, as transportation from the U.S. to either Canada or Mexico is predominantly done by trucking.  

It’s more than just the threat of higher tariffs that would hurt American consumers, who would end up taking the brunt of the increased costs. There are a significant amount of jobs at stake, all of which are heavily reliant on NAFTA. The trucking industry could stand to suffer the most, as transportation from the U.S. to either Canada or Mexico is predominantly done by trucking.  

According to a report released last December by The American Action Forum, a center-right nonprofit, pulling out of NAFTA would increase consumer costs by at least $7 billion and businesses would be hit with $15.5 billion in new tariffs.  

As NAFTA negotiations are still ongoing there is hope that the trade agreement will make it through. However, with the Trump administration avidly arguing against it, there’s really no telling what form the trade agreement will take in the end.

How Can A 3PL Help?  

While we can’t control national policy, we can help our customers navigate through it. When retail stores added ‘Must Arrive By’ Dates, we were able to offer solutions. When Walmart went a step further and tightened their delivery rules with OTIF (On Time In Full), we successfully assisted many of our retail customers. With the ELD mandate in full effect, we’re actively helping our customers navigate issues that cause capacity and expensive penalty problems. No matter the situation, we are the experts here to simplify your freight needs. If you have any questions about how a 3PL like BlueGrace can assist, feel free to fill out the form below:

 

How a 3PL Takes the Logistics Out of Running Your Business

One of the first rules of running a business is, “focus on your strengths.” It sounds easy in principle, but for medium-sized companies undergoing rapid growth, it’s often hard to discern what those strengths are when every day brings new opportunities and challenges. Logistics is a tricky area. In today’s tech-intensive retail environment, customers expect to get their orders quickly, reliably and transparently. When they don’t, they will walk away and take their business elsewhere. The good news is that the rise of online shopping has pushed a slew of new, tech-savvy logistics companies into the sector while forcing established companies to invest in making their operations more digital and agile.  

You’ve Got Choices 

Let’s start with scalability because that’s where a lot of businesses run into supply chain problems. There once was a two-person startup that was growing steadily until they were mentioned on The Colbert Report, and nothing could have prepared them for what happened next. In the span of 24 hours, they went from local business to national retailer doing twenty times the sales – and nobody was prepared. The ‘Colbert Bump,’ a term coined to describe a surge of interest or business in the wake of a mention on TV, is an extreme example – but it makes for an interesting case study for scaling. It quickly became clear that they couldn’t handle their own fulfillment anymore. In addition to the complexities of hiring and training more staff, it was a question of simple economics. They needed a national presence and that meant forward shipping their products closer to major markets to deliver ‘on demand.’ 

If you’re going national, you need a national partner that works with a spectrum of carriers and different modes of transportation, with competitive pricing.

The next couple of months they’d learn that if you’re going national, you need a national partner that works with a spectrum of carriers and different modes of transportation, with competitive pricing. That way, you’re sure that your product is where it’s supposed to be and you can align your inventory with expected sales. 

Stay in Control 

Outsourcing your logistics shouldn’t mean losing visibility. It should mean the opposite.

Outsourcing your logistics shouldn’t mean losing visibility. It should mean the opposite. The right logistics partner will create transparency in hidden corners of your supply chain that you didn’t even know existed. Whether you like it or not, your in-house distribution is already working with multiple partners – and that’s problematic. You might have a separate partner for pick up, one for distribution, one for packaging and then one for returns. That’s an incredible amount of time spent calling multiple vendors and carriers, especially when there’s uncertainty in whether you’re getting the right services, process transparency, and competitive prices. 

A 3PL provider allows your company to integrate all of these costs and pay a single vendor, rather than several for your packaging and shipping needs. In addition to lower costs, one dynamic partner lets you allocate more resources toward growth – and that’s what you’re good at. There’s also an important customer service advantage to partnering with a 3PL. When your customers order from you, their three most important interactions are with your sales platform, customer support team, and the company that delivers their order. The right 3PL partner can use their expertise and infrastructure to exert that kind of control over the delivery process. That way, you can be assured that the deliveries are happening on time and you can pass on that level of visibility to your customers. 

Built to Scale 

3PLs are built to handle higher volumes of orders with increasing logistics needs. Your company might be able to handle fulfillment today, but as your market expands it will take up more of your time and might exceed your level of expertise. Bringing in a logistics partner leverages economies of scale. With higher volumes of shipments, the rates you’re charged are increasingly important. A single 3PL partner centralizes organization, meaning real-time visibility over your supply chain and more customizable shipping options.

The right 3PL partner will also increase transparency and that’s going to make your customers happy, while cutting costs.

That’s what 3PLs are designed to do. Apart from cutting payroll with a much smaller logistics operations staff, you can opt for a specialized in-house logistics department that interfaces with your 3PL. No matter how good you are, your 3PL is better when it comes to managing inventory and logistical distribution. When choosing a 3PL partner, make sure that they have developed software and tracking systems, which can be used to generate data that will allow you to reach your customers more efficiently. A tech-savvy logistics partner can help your company understand customer behavior and keep you ahead of industry trends. The right 3PL partner will also increase transparency, and that’s going to make your customers happy while simultaneously cutting costs.

Working with a 3PL like BlueGrace

BlueGrace provides scalability for growing companies to achieve their goals without labor or technology investments. With a fully built-out national network and global partners, BlueGrace makes it easier than ever to reach your markets in an efficient and cost-effective manner. Their expertise and processes provide clients with the bandwidth to operate efficiently and drive direct cost reduction, backed by procurement and dedicated management. For more information on how we can help you analyze your current freight issues and simplify your supply chain, feel free to contact us using the form below:

A Fork In the Road Between Shippers and 3PLs 

Shippers and third-party logistics providers work hand in hand and they tend to agree on most things when it comes to the freight industry. However, what they agree on can have some degree of variance. While there usually isn’t a drastic swing one way or the other, it would seem that 3PLs have a slightly less optimistic view of the future, according to the Journal of Commerce. “Results from more than 200 shippers and third-party logistics service providers underscored a divide in how shippers and their logistics partners view the transportation landscape. In most cases, shippers took a more conservative view of how 2018 would unfold and that alarmed more than a few 3PLs. The survey reflected a market in rapid transition from a two-year downturn to more dynamic growth and tightening capacity,” The JOC said.

Tightening the Belt on Capacity

Capacity is one of the many differences in opinion that the JOC highlighted. Of course, more available capacity means better rates for shippers. The question is, does the conservative stance of shippers validate, or does it perhaps a make them a little naive?

In terms of statistics, the survey shows that 57 percent of shippers believe that capacity will tighten “considerably” over the course of the year. 3PLs, on the other hand, are at 71 percent. When it comes to the topic of already tightened capacity, the scores are a little closer with 44 percent of shippers and 51 percent of 3PLs believing that capacity is already tight.

Much of the capacity conversation has to do with the fact that the U.S. has suffered through a number of natural disasters over 2017. Back to back hurricanes drove up demand for freight as emergency supplies and construction materials were rushed to the sights where the storms hit the hardest. This is on top of an already nationwide surge in freight demand.

While the hurricanes might be over, that doesn’t mean that nature is done messing with the market.

While the hurricanes might be over, that doesn’t mean that nature is done messing with the market. Winter Storm Grayson helped kick off the new year with some extreme weather conditions. As a result, supply chains needed to respond quickly to deal with the oncoming rush of orders amidst the treacherous transit conditions.

3PL Insight on Rising Rates

The rise in rates is another point of debate between shippers and 3PLs. Logistics providers are more apt to see a rise in rates than shippers. Only 58 percent of the shippers surveyed believe that less-than-truckload rates are going to rise, as opposed to the 75 percent of 3PLs. For full truckload rates, the difference is even more drastic, with 66 percent of shippers and 86 percent of 3PLs believing there will be an increase in future rates.

The question is, are shippers being too conservative, or are 3PLs being paranoid?

Much of the rate increase is due to tightening capacity brought on by the additional need from the storms. The question is, are shippers being too conservative, or are 3PLs being paranoid?

The Effects of the ELD

The Electronic Logging Device mandate is now in effect and there are still a number of shippers who simply aren’t prepared to deal with it. The majority of 3PLs, 82 percent, believe that the ELD will have a negative impact on the industry. A third of that number believe that the impact will be moderate.

As for shippers, only 70 percent believe that the ELD will have a negative effect. Of that 70 percent, only 33 percent of those surveyed believe that the impact will only be a slight one. While optimism is usually a good thing, it can prove to be disastrous if shippers aren’t careful. With the ELD in effect and no chance of repeal on a federal level, the once potential punishments are now a very real risk that shippers will have to be ready to answer for if they’re operating outside the federal mandate.

Shippers who are going into this time of change alone have a lot more risks to face than those working with 3PLs as they could be caught off guard by the shift in the market.

The overall takeaway from the JOC survey is this: growth is more than just imminent, it’s already here. Demand is slowly beginning to climb and with it, the cost of operations. Shippers who are going into this time of change alone have a lot more risks to face than those working with 3PLs, as they could be caught off guard by the shift in the market. Between storms and national demand growth, it’s going to be a busy year for shippers and 3PLs alike.

Working with a 3PL like BlueGrace

With our extensive carrier network, technology, and dedicated teams, we are able to provide solutions for our customers when they need it most. We understand that not every customer has the same needs and that those needs may change over time with the growth of your company. We offer customized services and provide on-demand solutions for your business. From daily shipments to the most difficult situations, BlueGrace is dedicated to being the shipping partner that truly gives your business the 3PLTLC it deserves. For more information on how we can help you analyze your current freight issues and simplify your supply chain, feel free to contact us using the form below:

Surviving the Digital Race: What to Watch for in 2018

As we enter into a brand-new year, it’s time to start looking ahead to what 2018 will hold. The past few years have been considerable, in terms of both changes and technological advancements, with the freight industry seeing some of the most drastic changes. Mergers and acquisitions have challenged the playing field by taking smaller players off the board and strengthening the position of others. As for technology, the freight industry has undergone a veritable renaissance. Data analysis and predictive modeling are just the beginning of the industry’s new bag of tricks.

In 2018, it’s going to come down to the 3PLs and freight forwarders to help bridge the gap in supply chains – for both shippers and carriers.

That being said, shippers and carriers will still need help making it through. While 2017 was certainly better than 2016, it’s still going to be a slog to get back to the post-recession era. In 2018, it’s going to come down to the 3PLs and freight forwarders to help bridge the gap in supply chains – for both shippers and carriers. This change won’t take place overnight of course, but the gradual change will build up to a complete revision of the industry. “The next few years will see an evolution of the sector rather than a big-bang revolution. Undoubtedly, there will be change and those companies who cannot adjust to the new environment will drop out of the market. However, for most of the largest providers at least, the new technologies offer another way of differentiating their products and services; of driving down costs and of creating efficiencies in their networks,” according to Transportation Intelligence.   

It’s the technology that will pave the way for the future, and if 3PLs want to stay viable, they’ll have to adapt. They’ll need to be able to provide higher levels of service such as big data analysis and real-time visibility, all at competitive prices.

As we move forward we’ll eventually see a shift, not just in the way companies perform logistics, but in how they think about logistics as well. Real-time shipping quotes are something of a bonus right now, a feature that shippers appreciate but aren’t demanding just yet. Within the next decade however, real-time quotes and total visibility will become the norm. The next generation of logistics planners will see these ‘smart-contracts’ as part of the everyday operations. It’s the technology that will pave the way for the future, and if 3PLs want to stay viable, they’ll have to adapt. They’ll need to be able to provide higher levels of service such as big data analysis and real-time visibility, all at competitive prices.

What to Watch for 

Big technology trends that started up in 2017 are expected to continue as the new year progresses, as they’ve given visibility to some of the long overdue changes within the industry. As it stands, technology is going to be the lynchpin for 3PLs and forwarders, leaving its mark on the industry as a whole.

Here are the biggest trends to keep an eye on as 2018 gets underway.

Visibility, in particular, is going to be essential for supply chain management in the future.

Digitization- The digitization of the supply chain is a significant move as it completely overhauls the way the industry has been run for the past several decades. Not only is it more efficient, but the amount of accessible information allows more insightful decisions at every step of the supply chain. With the increase in focus on digitization throughout 2018, many companies will realize that in order to survive they’ll have to join the digital ranks. Digitization incorporates many different strategies ranging from a focus on hiring to technology investment strategies. Visibility, in particular, is going to be essential for supply chain management in the future.

Adaptive Organizations and Capabilities– A strong supply chain relies on its flexibility above all else. It’s the ability to adapt and react to any changes or potential obstacles in the environment. “In terms of organizational structure, the largest difference between more and less mature supply chain organizations is typically a broader span of control that includes strong relationships with functions such as customer service and product development, in addition to traditional planning, sourcing, manufacturing and logistics. More significant differences emerge in the scope of responsibility for functional owners and how they partner internally and externally to manage end-to-end (E2E) business process flows such as design-to-launch, requisition-to-settlement, and order-to-cash,” says Supply Chain Management Review.

Automation- Drones and robotics are just the beginning of automation, but they will undoubtedly play a big role in the future. Warehousing and order selection is slowly being automated, but so are last mile deliveries, as drones and automated delivery robots are allowing packages to be delivered quickly in urban settings. Warehousing will see some of the biggest investments in robotics over the course of 2018. As pick-and-pack order selection tends to be the most time and labor-intensive process, a robotic workforce could provide a considerable ROI over time. A culmination of EFT’s 2017 Research and Reports data, as well as the 2018 Third Party Logistics Study report, says that roughly 70 percent of supply chain executives have plans to automate their warehouses.

Electronic transmission of data gives companies more insight to work with, and the amount of raw data that is generated by blockchain will certainly give companies plenty to work with in terms of increasing visibility and reliability

Blockchain Technology- Blockchain has slowly gained traction over 2017 and it’s expected that it will only continue to gain ground. Electronic transmission of data gives companies more insight to work with, and the amount of raw data that is generated by blockchain will certainly give companies plenty to work with in terms of increasing visibility and reliability. As it stands, many in the industry still don’t know enough about blockchain to make much of a comment, but that will change as time progresses and more companies begin to adopt and adapt to the new technology.

Supply Chain Management 

Ultimately, controlling the supply chain and managing it properly will be one of the most crucial service offerings for 3PLs. Management solutions in today’s marketplace will require forwarders to offer shippers access to a myriad of different carriers, routes and modes of transport, and instant pricing. Strong management will be heavily reliant on big data; data gathered via the IoT, blockchain and any other technology will need to be broken down into actionable data and analyzed into something that can be used, whether in predictive modeling or direct decision making.

For 3PLs that want to stay in the game and do better than just survive, it’ll be a matter of harnessing the power of digitalization and information technology. That information will need to be applied in the best possible way to suit the needs and desires of their customers.  

As the old adage goes, knowledge is power, and in today’s marketplace that certainly holds true. For 3PLs that want to stay in the game and do better than just survive, it’ll be a matter of harnessing the power of digitalization and information technology. That information will need to be applied in the best possible way to suit the needs and desires of their customers.  

How BlueGrace Can Help in 2018

When companies want superior supply chain management services and best-in-class technology, they turn to BlueGrace. Our proprietary technology is designed to put the power of easy supply chain management and optimization back in your hands. BlueGrace Logistics offers complete, customized transportation management solutions that provide clients with the bandwidth to create transparency, operate efficiently, and drive direct cost reductions. For more information on how we can help you analyze your current freight issues, feel free to contact us using the form below:

The Fight Is On: The Current State of the ELD Mandate

The December 18th deadline has come and gone, the trucking industry is still trying to rally against the ELD mandate. The Electronic Logging Device (ELD) requires truckers to switch from paper logs which have been in use since 1930, to a digital system that automatically record hours of service. The original idea behind the mandate was to make roads safer by reducing the number of fatigued drivers on the roads and therefore reduce the number of accidents that occur.

Many in opposition are still looking for a repeal of the regulation.

“Groups representing small businesses and owner-operators have been increasingly vocal in Washington, calling for a delay or exemptions from the mandate for independent truckers and smaller motor carriers. (Some groups have already received exemptions.) Some of those drivers protested against the mandate at truck stops and state capitals across the US Monday,” says the Journal of Commerce.

The Root of the Rally

There are a number of reasons that the trucking industry is fighting against the ELD mandate. For some companies, it’s simply a matter of costs, which could prove to be a detriment, at the very least, to smaller companies. Many critics of the technology claim that standards are lacking in the new devices and could cost operators upwards of $4,000 for the first year it’s installed. An industry-wide estimated price tag for the new mandate runs to the tune of $1.8 billion. Based on cost alone, smaller companies (even those with sterling safety records) could have a hard time footing the bill.

Other drivers believe that the device is a violation of their privacy and even “criminalizes” them.

“That truck is my home, my business, my moneymaker,” truck driver Kim Schwindt told reporter Michelle Choi of KHOU. “I have a right not to have a GPS tracking device on my home.”

Another driver questioned the need for electronic logging.

“If you’re a safe operator, why must you be monitored by the federal government, like you’re a criminal?” David McKinney said. “The Owner-Operator Independent Drivers Association (OOIDA) raised privacy issues in its lawsuit against the mandate, but its arguments were rejected by the US Court of Appeals for the Seventh Circuit in October 2016. The court found the Federal Motor Carrier Safety Administration (FMCSA) rule did not violate driver confidentiality or the Fourth Amendment,”according to the JOC.

#ELDorME

In a last-ditch effort to shake off the looming ELD mandate, truckers are appealing to U.S. President Trump, who supposedly, is “anti-regulation.”

“The U.S. Department of Transportation and supporters of the rule, set to take effect on Dec. 18, say it will save lives and make the nearly $700 billion trucking industry more efficient. Opponents contend the technology is unreliable and the $1.8 billion price tag is excessive,”said Reuters.

“Small operators – many of them Trump backers – view the Republican president’s response to requests for a delay as a test of his avowed support for small business. ‘One of the things we voted for, I voted for, was a change in the attitude in D.C.,’ said Dick Pingel, a 64-year-old Trump supporter and independent trucker from Plover, Wisconsin. ‘I guess if he doesn’t do anything about it, government isn’t listening to the small guy again,’” the Reuters article added.

A Done Deal

Because the mandate has been passed and is now required by law, it isn’t clear as to how much leeway the White House and the Department of Transportation have to work with if they decided they wanted to delay the ELD.

“My understanding with regard to ELDs is that they are now legally required,” Raymond P. Martinez, Trump’s nominee to head the FMCSA, said during his Oct. 31 nomination hearing. “It would be my intention to first and foremost abide by the law but also to have an open-door policy and work with all the impacted stakeholders,” according to the JOC.

Like it or not, the ELD mandate has kicked off. While the trucking industry is still trying to fight against it, many simply weren’t prepared for the mandate to begin with. With the hope of a delaying action all but past, trucking companies should be looking at the implementation in order to avoid fines and penalties.

The BlueGrace Expedited Solution

So what do you do when you’re faced with carriers who will have less available hours and capacity? You turn to an expedited freight expert. Working with a broker who has the resources to expedite shipping will be the answer. BlueGrace not only understands the importance of getting your product from A to B quickly, but they also understand that the new regulations are very quickly going to start cramping up the rest of the industry.

BlueGrace is ready to serve customers with our national fleet of non-dock high sprinter van, small/ large straight trucks with liftgates and pallet jacks for inside pick-ups and deliveries. As we mentioned, sprinter vans up to 24ft and straight trucks with a gross weight under 10,000 lbs will not have the ELD regulations and will be able to meet time sensitive deadlines. We will also be able to provide true team’s services for sprinter vans and up to 26ft straight trucks. Another added benefit to the hands on approach for expedited is that all shipments are tracked with updates every 2-4 hours depending on day points.

BlueGrace takes the stress out of your freight by giving you the information and technology you need to get the job done.

BlueGrace Logistics strives to streamline the expedited process for you. BlueGrace provides you with a pool of 300+ pre-screened carriers that specialize in expedited shipments and can provide you with a quote in as little as 30 minutes. How’s that for fast?

In an uncertain time, BlueGrace takes the stress out of your freight by giving you the information and technology you need to get the job done. Click here to download our Expedited PDF with more details.

Need An Expedited Quote?

Fill out the form below for your FREE 30 Minute Expedited Quote, or call TOLL-FREE 877.630.7446 to be connected with our Expedited Freight Team immediately.

BlueGrace Continues The Gift of Giving

As we celebrate the “Season of Giving,” it’s easy to forget what an impact a simple gift can have. A gift can put a smile on someone’s face when they’re having a hard day, or show someone they’re cared for when they’re unsure. Children of all ages plan for months what gifts they will ask for when December comes around. A two-wheel bike or a new baby doll can be found on many lists, but sometimes a list is as simple as just “a toy.” For many children, simply receiving a gift is special as it isn’t guaranteed.

Coming Together As An Organization

BlueGrace recognizes this need each year and works together as an organization to provide gifts to children across the country. “These children aren’t asking for much-just one or two toys to be under the tree on Christmas morning,” Jessica Gonzalez, audit team specialist in the Tampa office and Bags of Joy team captain says. “Giving $10 instead of spending it on coffee can mean the difference between a child receiving and not receiving a toy for the holidays.”

Giving $10 instead of spending it on coffee can mean the difference between a child receiving and not receiving a toy for the holidays.

BlueGrace Richmond Partners With Salvation Army

BlueGrace Richmond partnered with their local Salvation Army this year for their “Angel Tree” program. The Angel Tree program provides more than 2,000 children with toys annually. As an office, they collected and donated 45 toys, which will be gifted to the children in the Virginia area. Sheron Roane, a Customer Service Representative and culture ambassador in the Richmond office, felt this truly reminded their office what the holidays are about. “It’s so easy to get caught up in the holiday parties and craziness of the season. For some children, these toys we donated are the only ones they will receive this year.”

BlueGrace Tampa Partners With Metropolitan Ministries

BlueGrace Tampa partnered again with Metropolitan Ministries for their Bags of Joy drive. “We have 20,000 children we would like to provide 1-2 toys for this year,” Alison Matherly, associate director of corporate partnerships for Metropolitan Ministries explains. “That’s 40,000 toys, which is no easy task.”

The Tampa office held fundraising events all week to raise money, including gift wrapping for donations and a holiday-themed relay race complete with reindeer onesies and ornament races. When all was said and done, 179 toys were donated as well as $200 in online donations. Samantha Downing, Campus Recruiter in the Tampa office, explains the drive to potential employees by saying, “It’s such a great opportunity to be able to give back to the community and really live up to our first core value of ‘Be Caring of All Others.’”

BlueGrace Baltimore Adopts A Family

The BlueGrace Baltimore office adopted a family through Perry Hall Elementary School for another year. This year’s family was a single mom with an 8-year-old special needs daughter and a 6-year-old son. The family received several gifts and outfits for each child, as well as a Walmart gift card for their mom. In addition to gifts, employees provided a full Christmas ham dinner with delicious sides for the family to enjoy.

BlueGrace Chicago Supports Military Families

Lastly, BlueGrace Chicago supported military families by donating to the “Toys for Tots 4×4 parade.” They were able to donate $500 worth of toys to the well-known organization as well as attend the parade to show their support. Abby Palumbo, a Sales Representative and culture ambassador in the Chicago office organized the event. “Many of these military children are celebrating the holidays here while one or both of their parents serve our country overseas or away,” Abby observes. “If we can put a smile on their face, even just for the day, it’s worth it.”

Holiday Magic

So many are in need of just a few minutes or hours of magic this holiday season and if a toy or gift can provide that for a child and their parents, BlueGrace is happy to continue their efforts for another year.

Retailers Say Don’t Let Your Freight Be Early Or Late

The transportation industry is perhaps one of the most daunting when it comes to rules and regulations. Hours of Service and Electronic Logging Devices are just a few of the most recent roadblocks to come up recently. Merely staying in compliance with these new regulations can be a costly endeavor. What’s worse is that being caught out of compliance could mean penalties, fines, or even a trucker losing their job.

As if all that wasn’t bad enough, truckers and freight forwarders have to balance all of that on top of growing customer expectations. WalMart, in particular, is starting to crack down on deliveries with their OTIF program. Kroger, another heavy-hitting retailer, is also beginning to levy penalties on tardy shipments. Missing the delivery window could mean hefty fines for carriers. However in this case, missing the delivery window doesn’t just mean being late, but even arriving early could prove costly for carriers.

Tardy Carriers Will Pay the Price

Retailers are warning retailers that disputes simply won’t be tolerated. On Time. In Full. Or Else.

WalMart can be rather ruthless when it comes to their profit margins, but other retailers are starting to rally to the call, creating an unforgiving environment for errant carriers. Retailers expect their loads to be packaged properly, delivered in full, at the designated time. To that end, retailers are taking a very defensive stance over their new initiative, warning retailers that disputes simply won’t be tolerated. On Time. In Full. Or Else.

Wal-Mart has signaled it could do more than levy fines if problems persist. Charles Redfield, executive vice president of food for Wal-Mart U.S., told suppliers they could also lose shelf space if they don’t solve their delivery issues, according to people in attendance at a supplier meeting earlier this year. “Retailers can threaten suppliers with loss of promotional space in stores”, analysts said, according to the Wall Street Journal.

In the few short months that the program was unleashed upon carriers, WalMart has already been dishing out the penalties. For example, late or missing freight could cost a carrier up to 3 percent of its value. Early arrivals are no less forgiving due to the fact that they create an overstock. This overstated Just In Time philosophy keeps the shelves full and the WalMart customers spending, which is all well and good for WalMart as it means they can run with the big dogs like Amazon.

it’s likely only a matter of time before more retailers jump on the no-nonsense bandwagon.

“Wal-Mart executives say a more-precise delivery window keeps shelves stocked and the flow of products more predictable, while reducing inventory—all of which are increasingly important to the retailer as it invests heavily to compete online. The change could create $1 billion in additional sales over time, they said. “We hope we don’t have to collect any fees from suppliers. We would much rather have all the product we ordered on time,” said Wal-Mart spokesman Kory Lundberg,” the WSJ adds. While Kroger is seemingly more lenient, simply charging a flat $500 for late shipments, it’s likely only a matter of time before more retailers jump on the no-nonsense bandwagon.

Carriers Feeling the Pressure

These new policies will be costly for carriers for more reasons than just the fines.

These new policies will be costly for carriers for more reasons than just the fines. Simply implementing the procedures and equipment necessary to hit that 95 percent compliance mark could prove to be too much for smaller carriers. While bigger carriers can just add some new factory processes to help with packing and loading, smaller carriers don’t always have that luxury. Many new carriers are just hoping to break even for their first few years of operation until they can build both a steady reputation as well as a customer base.

Furthermore, WalMart and Kroger’s steadfast approach to “no excuses” will mean that carriers can be slapped with a fine for circumstances that are beyond their control. Anything from heavy traffic and construction work that causes serious delays to severe weather events that makes travel all but impossible will all have a negative impact on carriers. Conversely, what happens if a carrier does happen to show up early? Is it better to take the financial hit for the early delivery or shell out for extra meals and more time on the road for the driver?

There’s also the concern that drivers might take it upon themselves to exceed the daily drive limit to ensure their delivery is on time. Not only is this dangerous, not to mention illegal, but soon driver’s won’t even have that as an option when the ELD mandate goes into effect this December.

The Bitter Citrus Industry

A growing concern over these new on-time delivery policies is what it will mean for Florida’s citrus growers. As both Walmart and Kroger are considerable retailers of foodstuffs and produce, that makes them some of the biggest customers for such items. As Florida citrus groves have not only been ravaged by HLB for several years, but hurricane Irma caused some considerable damage.

“Andrew Meadows, a spokesman for Florida Citrus Mutual, a trade organization for growers, predicts growers statewide will end up losing more than half of this year’s crop to Hurricane Irma. The Florida Commissioner of Agriculture has estimated the cost of Irma to Florida’s farm sector at $2.5 billion, with projected losses to citrus producers the worst of any sector, at $760 million,”according to an article from Marketplace.

Suffice it to say, this policy might create better profit margins for retailers, but it’s not going to make them any friends among the carrier community.

This puts both the growers and their carriers in a serious predicament. As much of the damage won’t be fully realized for another two years at least, making guesses on shipments is a dangerous gamble. Guessing too low means crops left unsold which is money wasted. Guessing too high, however, means that carriers won’t be able to make full deliveries which means the fines will get passed down the line back to growers. In either case, it’s a lose lose for an industry that’s already in danger. Suffice it to say, this policy might create better profit margins for retailers, but it’s not going to make them any friends among the carrier community. As the regulations begin to tighten from both retailers (who will undoubtedly add more to the list) as well as the ELD mandate, we’ll have to wait and see how carriers respond to the growing pressure.

Do You Need Help With OTIF Issues?

A 3PL, such as BlueGrace, can help your business overcome the challenges of OTIF and other supply chain issues. If you have questions about OTIF or just how to simplify your current transportation program, contact us via phone at 800.MY.SHIPPING or using the form below, we are here to help!

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