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BlueGrace Logistics

BlueGrace Logistics Enterprise Division Announces the Promotion of Dustin Snipes

Snipes Earns Director of Sourcing Strategy Title

In a wave of growth, longtime sales standout, Dustin Snipes, was recently promoted to the Director of Sourcing Strategy for the Enterprise Division at BlueGrace Logistics.

“This only adds to the excitement and joy that I have been able to experience over the last 6 years. BlueGrace is an amazing place to grow and I am allowed the opportunity to do that and work with incredible people on a daily basis.” said Snipes.

Dustin began his career with BlueGrace in 2010.

Dustin began his career with BlueGrace in 2010, and has held the roles of National & Inbound Sales Rep, National & Inbound Sales Manager. Dustin was National Sales Rep of the Year in 2011 & National Sales Manager of the Year in 2013.

“Along with his incredible talent in sales, he was also instrumental in developing our marketing & sourcing strategies,” said Adam Blankenship, CCO and EVP at BlueGrace Logistics.

Dustin Snipes – Director of Sourcing Strategy

In 2015 Dustin joined the Enterprise Division as the Enterprise Sourcing Manager, in which he developed sourcing strategies to help EDRs research, qualify, and quantify Enterprise Leads. His team has grown from 2 to 17.

His team has grown from 2 to 17.

“Dustin took on one of the most vital roles in the company and arguable the weakest link in our sales process.  He worked through cleaning up our data, developing the strategy and tactics to build a team of EDR’s that were set up for success,” continued Jason Lockard, Senior Vice President, Enterprise at BlueGrace Logistics, “We are now recognizing the results of his hard work over the last year.”

The Enterprise Division at BlueGrace has grown to over 50 team members across 5 locations in the United States since 2010.

About BlueGrace Logistics:

Founded in 2009, BlueGrace Logistics is one of the fastest growing leaders of transportation management services in North America. As a full service third party logistics provider (3PL), BlueGrace helps businesses manage their less-than-truckload and truckload spend through industry leading technology, high level freight carrier relationships and superior insight of the complex $750 billion U.S. freight industry. BlueGrace is headquartered in Riverview, Florida with over 60 corporate and franchise locations across the U.S. For more information, visit www.mybluegrace.com.

 

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How Do Construction Suppliers Overcome Logistics Challenges?

The MABD and Your Construction Supply Company

Construction suppliers who provide hardware and tools are under tighter compliance regulations to get the right products to the right stores or distribution centers by a certain time, or they pay a fee. Walmart suppliers now face paying a fee of 3% of the cost of goods of all deliveries after the Must Arrive By Date (MABD).

These regulations for Walmart were implemented back in early 2016, but other retailers such as Target and Home Depot have been charging these fees for some time.

Walmart suppliers now face paying a fee of 3% of the cost of goods of all non-compliant deliveries.

Your construction supply company succeeds or fails based on the constant delivery of your products. Even more so now with the MABD mandate. The timely and effective delivery of your products, is a major priority for you, your retailers and your market. How do the logistics aspects of hardware and building materials differ from other industries?

How do the logistics aspects of hardware and building materials differ from other industries?

The truth is they don’t, with the exception of specific project dates and deadlines that could be missed.

Manufacturers and suppliers that work with large retailers like Walmart, Target and Home Depot are more successful in getting their merchandise on the shelves with the proper lead time due to partnering with a third party logistics provider (3PL).

Out with the Old

Doing things the old way, is not always the best way. Once employees get comfortable in their schedule and day to day routine it  becomes difficult to change those habits and behaviors. BlueGrace Logistics has seen and learned how to explain and implement these changes. In the case study you will learn about a Hardware distributor that was drowning in manual processes and letting inefficiencies become the norm.  

Once employees get comfortable in their schedule and day to day routine, it becomes difficult to change those habits and behaviors.

How We Reduced Costs & Removed Manual Processes for Hardware Supplier

A large big box hardware supplier, based in the Midwest, was utilizing a single national carrier model. There was no GRI mitigation, or freight bill auditing. The manual task of booking shipments was taking up much of the customer support team’s day. The accounting team had no way to tell if the invoiced amount of the shipment was the same as the quoted amount of the shipment. The ways of the past were starting to catch up as volume increased and this supplier had to make a change.

This Hardware Supplier saved 13% of their yearly freight spend which added up to $260,000 annually.

Hardware Suppliers In The Construction Industry Case Study

What About Other Construction Freight?

As a successful third-party logistics (3PL), BlueGrace handles the freight for all types of construction supply businesses. This freight can be heavy, oversized loads, such as cranes and dump trucks to replacement parts and pallets of construction materials. Our first step in any relationship is what sets us apart and brings the most value to your freight and logistics team. Your current freight data is analyzed and then processed with our proprietary engineering software.

Your current freight data is analyzed and then processed with our proprietary engineering software.

This process gives your logistics team a brand new overview of your freight. From there, your team has access to the entire BlueGrace toolbox of solutions, including ERP integrations to our flagship quoting and product, BlueShip. All of these tools come with a team of logistics experts at your disposal and a constant goal to make your freight program more successful.

Would you like to talk with BlueGrace today? Feel free to call our Enterprise Group at 800.MY.SHIPPING or come see us at the CONEXPO in Las Vegas March 7-11 Booth #B9500.

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Carrier Spotlight: UPS Capital Insurance Agency, Inc.

 

BlueGrace logistics is partnering with UPS Capital Insurance Agency, Inc. (UPSCIA) to provide quality protection for carrier’s goods in transit. Our specialized logistics knowledge, proven industry experience and enhanced supply chain visibility allows UPSCIA to offer insurance services you may not find with typical risk mitigation providers.

Why UPS Capital Insurance Agency, Inc.?

A lost, damaged or delayed delivery can result in revenue loss and a ruined reputation. That’s why UPSCIA offers a variety of options that deliver affordable cover­age to protect BlueGrace customers against loss or damage to freight shipments. This wide range of insurance products helps avoid delays and protects your bottom line in the unlikely event of a disruption.

Features of the protection program:

  • Covered losses are valued at replacement cost at destination, as determined if applicable by commercial invoice plus freight
  • Declare values easily through BlueShip®
  • Covers multi-carriers

Benefits of the protection program include:

  • Simple claims process delivers efficient resolution and settlement
  • Ease of use – insure freight shipments seamlessly through BlueShip
  • Coverage flexibility – coverage applies to any freight carrier you choose through BlueShip®
  • Fast claims resolution

 

Protecting your freight shipment:

Customers can select UPSCIA protection directly through BlueShip®. The freight management system will automatically calculate the total insurance charges for the transaction entered as determined by the commodity being shipped, mode of transportation and final destination.

Pricing:

UPSCIA protection is based on a commoditized pricing structure. The cost of protection will be calculated by the freight management system and presented for final review and acceptance before completing your transaction.

Limits of protection:

Customers can select coverage for goods up to $100,000 in value, per shipment. Shipments exceeding $100,000 will need to obtain additional approval from UPSCIA. (Maximum Insurable Value: $1,000,000 per shipment) 

Additional services offered by UPS Capital, a UPSCIA affiliate company

UPS Capital, an affiliate of UPSCIA, offers a wide range of products and services designed to meet all of your supply chain needs. Customers searching for additional supply chain solutions can visit our website at www.upscapital.com and discover a wide range of products and services designed to improve cash flow, reduce trade credit risk, and securely accept payments.

 

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Reverse Logistics and Its Impact on Today’s Construction Industry

Your construction business succeeds or fails based on the constant delivery of your products. It doesn’t matter if your product is for building, demolition, concrete, heavy equipment, or such as tools, requires final delivery to retail. The timely and effective delivery of your freight, is a major priority for you and your end user. How do the logistics aspects of construction differ from other industries?

How do the logistics aspects of construction differ from other industries?

The truth is they don’t, with the exception of potentially expensive construction, specific project dates and deadlines that could be missed.

Reverse Logistics

Moving, hoisting, rigging, jacking, pulling, material handling, safety equipment, etc., to and from construction sites can become quite the headache if not done efficiently. This is where a third-party logistics (3PL) company, such as BlueGrace, would work along side the company and help deliver a more efficient logistics operation. Many types of construction freight requires a return trip back to the vendor which adds an additional layer of complication. This is called Reverse Logistics.

Many types of construction freight requires a return trip back to the vendor which adds an additional layer of complication. This is called Reverse Logistics.

In the case of this BlueGrace client, the single largest organization devoted exclusively to the provision of lifting and moving equipment for rent, there were problems that became increasingly apparent due to rapid growth. This company experienced increased inventory management costs and a negative impact on invoicing as a result of delays associated with rentals placed in ‘Off-Hire’ status, but not yet returned to their facility. BlueGrace was able to dig into the toolbox of logistics expertise and deliver an integrated, time and money saving solution for this construction rental company. We have written a case study based on this experience which can be downloaded below.

Does Your Company Ship Freight?

If so, this Case Study will reveal how BlueGrace is able to transform your current transportation program for maximum cost savings, even if your freight is as complicated as Reverse Logistics.

New BlueGrace Reverse Logistics In The Construction Industry Case Study

What About Other Construction Freight?

As a successful third-party logistics (3PL), BlueGrace handles the freight for all types of construction businesses. This freight can be heavy, oversized loads, such as cranes and dump trucks to replacement parts and pallets of construction materials. Our first step in any relationship is what sets us apart and brings the most value to your freight and logistics team. Your current freight data is analyzed and then processed with our proprietary engineering software.

Your current freight data is analyzed and then processed with our proprietary engineering software.

This process gives your logistics team a brand new overview of your freight. From there, your team has access to the entire BlueGrace toolbox of solutions, including ERP integrations to our flagship quoting and product, BlueShip. All of these tools come with a team of logistics experts at your disposal and a constant goal to make your freight program more successful.

Would you like to talk with BlueGrace today? Feel free to call our Enterprise Group at 800.MY.SHIPPING or come see us at the CONEXPO in Las Vegas March 7-11 Booth #B9500.

 

 

 

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Laying the First Bricks: Amazon is Getting Physical but Wal-Mart Fights Back

 

There aren’t a whole lot of companies that can match up to the innovative prowess of the e-Commerce giant, Amazon. It seems as though every couple of months we’re catching some snippet that Amazon is trying out a new trick for the convenience of its loyal customers and, true to it’s nature, Amazon is about to pull their next trick out of the bag. An actual grocery store.

Amazon Go

Unlike AmazonFresh, the online grocery shopping option that promises quick deliveries of produce and other perishables, Amazon Go will be an actual brick and mortar store, one of the few ventures Amazon hasn’t really gotten into yet. So why the sudden change? For starters, how about throwing the competition a curve ball?

Some of Amazon’s biggest competitors are Wal-Mart and Target, who focuses on a combined service of both groceries as well as higher ticket items such as apparel and home goods.

Some of Amazon’s biggest competitors are Wal-Mart and Target, who focus on a combined service of both groceries as well as higher ticket items such as apparel and home goods. While the groceries and produce account for a relatively small amount of the sales, it does bring in business which helps these chains hit their real goal of selling more expensive items.

Working out of a brick and mortar store will have its advantages.

Logistically speaking, trying to deliver produce and temperature sensitive goods in an appropriate time frame isn’t out of the scope of Amazon’s fairly comprehensive delivery machine, but it’s not necessarily practical either. This is why the grocery delivery service is only offered in select locations and still isn’t quite as popular as the tried and true alternative, as many customers still prefer to do their grocery shopping in stores, being able to touch, smell, and generally select their produce before purchase.

Many customers still prefer to do their grocery shopping in stores, being able to touch, smell, and generally select their produce before purchase.

According to an article from the Wall Street Journal, Amazon is experimenting with a few different styles of store, a convenience style or quick pick up store, as well as a drive through style, which lets customers skip having to walk into the store to begin with. The key is this, if Amazon has a physical location to work out of, they can capture more of the grocery market shares. As it stands, online grocery shopping is only a small portion of the business, about one percent currently, but is expected to continue to grow.

Wal-Mart Fights Back

If Amazon is going physical then Wal-Mart is retorting with the digital, according to an article from The Motley Fool. Many of the Wal-Mart supercenters are getting a technological upgrade in the attempt to keep Amazon in check in two ways. First is the curbside order pickup. Rather than having to walk into the store, select your items, then wade your way through the checkout line, you can simply place your order online and have it brought out to the car, allowing customers to skip the check out.

Additionally is the Gas and Go Style of Shopping, Similar to a Convenience Store.

Additionally is the Gas and Go style of shopping. This involves a secondary shop, similar to a convenience store, that has some last minute grocery items, coffee, snacks, and other concessions, as well as being a full service Gas Station. The twist is that, customers can place an online order, which is fulfilled by a nearby Supercenter, and arrive at a set time to have their groceries delivered while they gas up their vehicle. This level of convenience, combined with the grocery infrastructure that Wal-Mart already has in place might be enough to keep Amazon Go at bay.

This level of convenience, combined with the grocery infrastructure that Wal-Mart already has in place might be enough to keep Amazon Go at bay.

The Master of Logistics

It’s fairly safe to say that this point that Amazon’s actions are rarely without some sort of ulterior motive. Think back to the Amazon cloud services, which was originally designed to be an in-house service and was then converted into a highly successful business model.

If Amazon can get down the necessary logistics infrastructure to handle groceries and perishable produce, who’s to say they can’t then turn that service towards their competitors?

If Amazon can get down the necessary logistics infrastructure to handle groceries and perishable produce, who’s to say they can’t then turn that service towards their competitors? While it’s unlikely that many grocery stores are eager to hand over any form of control over to Amazon, it might be something we hear about in the future, especially given how skilled Amazon is at offering a high caliber service at a lower rate than the competition. Again, this is a bit too far off to tell presently, but it will be something to keep an eye on, especially as Amazon Go stores start to open around the country.

 

 

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2016 BlueGrace National Conference | Recap

BlueGrace Logistics recently hosted their 2016 National Conference right here in Tampa, Florida. This was the company’s 6th installment and biggest conference yet with action-packed keynote speakers like Cameron Herold, Bobby Harris, Afterburner, Inc, and Travis Mills. The location was a huge hit as well, as it was the first time the entire company came back to where it all began.

Welcome to Tampa | Meet & Greet Mixer

The 2016 National Conference kicked off with an opening reception Sunday night at the Tampa Marriott Waterside, where employees, franchisees, regional and branch offices could gather and meet new people and see old friends. For some it was their first time interacting in person, since many of the franchises and locations had been acquired in 2016. Putting faces to the names was the goal of this event and it would spark conversations that lasted the entire 3 days.

Putting faces to the names was the goal of this event and it would spark conversations that lasted the entire 3 days

“This was a great opportunity for our our offices out on the west coast and mid west to meet our employees from the east coast,” said Adam Blankenship, Executive Vice President of Operations at BlueGrace Logistics.

Monday Morning | Day 1

Monday morning started bright and early with an employee breakfast and an official kick-off message from BlueGrace Logistics CEO & President, Bobby Harris. His message touched on how BlueGrace performed in 2016 and what BlueGrace is projecting for 2017. He covered every single angle of the current status of the business and really brought his message home when he announced a huge rebranding for the company. The rebranding consists of a new logo, tagline, website redesign, and much more.

The rebranding consists of a new logo, tagline, website redesign, and much more.

“This branding revamp has been in the works for a while, but the whole concept came about in a very organic way. Because of the amount of effort put into the logo change, we weren’t even sure it would happen, but now we couldn’t be happier with the final results and feedback.” said Bobby Harris, CEO, Founder & President of BlueGrace Logistics.

The excitement started early with the BlueGrace rebranding announcement and would continue non-stop for the remainder of the conference. The schedule would include prominent speakers and breakout sessions to help bring the entire company together and land on the same page with the 2017 goals.

Keynote Speakers | Day 1

Cameron Herold

After Harris wrapped up his presentation and a quick break, Cameron Herold, the “COO Whisperer” addressed the company with a powerful message. He touted high level leadership development qualities and generated a buzz with “Building a World Class Company”. As an experienced speaker and author, Cameron has an uncanny ability to draw the audience in and leave them inspired to simplify their daily tasks and and keep the company goals in line with their own.

“Cameron really delivered a solid message and left all the fluff out. He kept it real and talked about how to build a company with the people you want on your team.” said Vanessa Castillo, Vice President of BG Freight.

Breakout Sessions | Day 1

The remainder of Day One consisted of two tracks and one roundup for different employee types; Sales and Leadership. The first track was an eye-opening sales training for the BlueGrace sales teams from around the country. The focus was to learn how to sell under different circumstances and to many types of shipping customers. The sales team learned that by taking more time to listen and really understand the logistics pain points for each potential customer, they could utilize the entire BlueGrace “toolbox” and help solve their specific issues.

There was also a new leadership development track with an in-depth overview of each BlueGrace department.

There was also a new leadership development track with an in-depth overview of each BlueGrace department. Leadership from every department prepared specific messages to engage and empower employees. There were detailed discussions on employee engagement and human resources, explaining how the hyper-growth at BlueGrace would be managed, so every employee would be happy and healthy.

BlueGrace sales associates recieved a one-on-one presentation from Roadrunner Freight’s Grant Crawford.

In addition to the Sales track, the BlueGrace sales associates recieved a one-on-one presentation from Roadrunner Freight’s Grant Crawford. He had the entire sales staff’s attention as he discussed the new branding, capabilities and dedication of Roadrunner as a trusted carrier for the logistics industry. With a detailed presentation on 2016 numbers and 2017 predictions, Grant demonstrated Roadrunners track record for effective freight management and how all of the sales staff could benefit by using them for their current customers.

The remaining option available to the Sales staff was a carrier roundup. In a structured table to table roundup, the BlueGrace sales staff had the time to move from carrier to carrier and learn more about their services and programs. BlueGrace invited carriers to not only attend the conference, but to sit and talk with the sales staff to answer questions and provide direct answers about how their services can help customers achieve their freight objectives. At its conclusion, the feedback on the carrier roundup was very positive with many opportunities shared and discussed.

Monday Night Festivities | Slapshots on Ice at Amalie Arena

Being the Preferred Shipping Partner of the Tampa Bay Lightning NHL team has its perks! The Tampa Marriott Waterside is directly across the street from the Amalie Arena, the home of the Lightning, so BlueGrace jumped at the opportunity for an on-ice experience. Vendors, carriers and employees were invited to the Amalie Arena for a VIP Tampa Bay Lighting event. Amalie Arena was open to just the BlueGrace conference attendees which gave everyone the opportunity to take a couple slapshots on the NHL team’s ice.

Being the Preferred Shipping Partner of the Tampa Bay Lightning NHL team has its perks!

“We wanted to give all of our BG family a unique opportunity to go down onto the ice of a top ranked NHL team and take a slap shot, and they all loved it,” said Harris.

After everyone took their shots on the ice, the night concluded with hors d’oeuvres, drinks and an additional carrier reception in the Chase Club, a premier sporting event entertainment area within Amalie Arena. The carrier discussions continued until the early evening as Day 1 came to a close.

Tuesday Morning | Day 2

Afterburner, Inc.

Tuesday kicked off with an exciting presentation from Afterburner, Inc. This group consists of retired military service members who served in leadership roles within elite units of the Armed Forces and consider themselves performance improvement experts. Their main focus was “Flawless Execution.” They fired up the crowd with examples of how they used a “debrief” to both prevent mistakes from happening and for learning from them after they do. The conference crowd left the room excited to utilize what they have learned to help all forms of business communication, from internal to customer interaction.

Day 2 presentations from BlueGrace management were a bit more in-depth. The IT department discussed many of the new tools being added to the BlueShip platform in 2017 that would enhance ease of use, increase the options for the customer and streamline the freight process even more. A round of applause came after IT committed to finishing development in 2017 for all new projects they discussed in their presentation. As the IT department tripled in size in 2016, the ability to add new options simplified billing to additional mode options has become a reality. BlueShip will continue to be on of the industries leading  TMS products in 2017 and beyond.

BlueShip will continue to be on of the industries leading  TMS products in 2017 and beyond.

Enterprise had the sales staff excited with their presentation on how BlueGrace engages with our larger customers. While discussing how to interact with types of customers by handing them off to the Enterprise team, they also discussed some of the reasons why BlueGrace is the best partner for these businesses. After receiving the current shipping data provided by a potential customer, Enterprise can run the numbers through our proprietary formulas and reporting systems to generate exciting and time/money saving opportunities.

Enterprise can run the numbers through our proprietary formulas and reporting systems to generate exciting and time/money saving opportunities.

From distribution models to preferred carriers and on-time delivery options, the Enterprise team at BlueGrace can move more product, more effectively for our customers. As the presentation explained, it does not end there. After the customer in engaged with BlueGrace the reporting and optimizing continues and the program will only get better through new time/money saving options being constantly updated and developed.

Tuesday Keynote Speakers | Day 2

Dave Ross

After the morning presentations, it was time for a keynote from Dave Ross, Managing Director of Global Transportation and Logistics at Stifel Nicolaus. As one of the top financial analysts in the logistics industry, David waspicked #1 by the Wall Street Journal’s Best on the Street Analysts Survey in the industrial transportation industry. His view of the logistics industry is deep and robust.

He was able to discuss with the BlueGrace team as well as the carriers, the impact of 2016 market situations and what the future holds for our industry.

He was able to discuss with the BlueGrace team as well as the carriers, the impact of 2016 market situations and what the future holds for our industry. The inner workings of the financial side of logistics was on full display as he presented what to expect in 2017 with a new president and coming industry regulations and changes.

Travis Mills > Never Give Up. Never Quit.

The final keynote speaker was recalibrated warrior and motivational speaker, Travis Mills. Despite losing portions of both arms and legs from an IED blast while on a deployment to Afghanistan, Travis continues to overcome life’s challenges, breaking physical barriers and defying odds.

Travis lives by his motto: “Never give up. Never quit.”  Travis infused his humor and military background to get the BlueGrace team thinking about what is really important in their lives. To focus on the things you can control and no matter where life takes you, stay on the good side, because if he can do it so can you. Travis stayed after for an hour signing his book and taking pictures with anyone who wanted one, he was a true inspiration the BlueGrace Logsitics team.

We can’t thank him enough for his service and sacrifice. Travis you are a true inspiration.

Tuesday Night Festivities | Gala Celebration at the Oxford Exchange

Originally built in 1891 as a stable for the Tampa Bay Hotel, 420 West Kennedy Boulevard has gone through several transformations in its long history. At this amazing Tampa location, BlueGrace put on an event that would not soon be forgotten. The entire location was rented out and and the fun loving conference attendees filed in.

The Oxford put on a great party with a cocktails, a sit down dinner with fine food and an great dance floor.

The Oxford put on a great party with a cocktails, a sit down dinner with fine food and a great dance floor. The live band came all the way from Jacksonville and played just the right music as the attendees danced the night away. It was an amazing end to the best BlueGrace National Conference yet. We would like to thank all of our attendees, employees, carriers and sponsors for making it an event to remember and look forward to an even better event in 2017!

We would like to thank all of our attendees, employees, carriers and sponsors for making it an event to remember and look forward to an even better event in 2017!

2016 BlueGrace Sales Conference Sponsors



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2017 Is The Year Of The 3PL. Will Your Freight Be On Board?

While the shipping industry is still suffering through a glut of overcapacity, things are finally starting to look up. The 3PL Value Creation Summit of 2016 yielded some pretty interesting results. Namely that the value added by 3PLs is only expected to keep going up through 2017 and beyond, a welcome boon for the weary shipper. This growth is expected to continue well through the following year and only continue beyond that.

“The global third party logistics (3PL) market is expected to be worth $925.31 billion by 2020 and will be partially driven by the outsourcing of secondary business activities,” according to a study released by Orbis.

A Combined Front of Transportation

While just about all modes of transportation are experiencing an issue, oceanic freight is dealing with a gross overcapacity and weak demand, truckers are faced with growing legislation and on the road concerns, to name a few issues, it will be the combined effort of all these various modes of transportation that will create the greatest value for shippers. A service, of course, that is rendered by eager 3PLs.

“Although carrier overcapacity on the still continues, Evan Armstrong, the president of Armstrong & Associates, predicts that integrated solutions such as air-ground, air-sea, and other combinations will create more value for shippers and increase 3PL margins,” said Patrick Burnson, executive editor for Logistics Management and Supply Chain Management Review .

The big winner in the transportation race is going to be the domestic transportation sector

However, the big winner in the transportation race is going to be the domestic transportation sector, responsible for facilitating the last mile deliveries for the majority of eCommerce companies.

Calmer Waters for M&A to Mark Stability for the End of 2016

One of the most promising signs of 2016 is seeing the feeding frenzy of mergers and acquisitions finally dying down. Now that all of the smaller companies have either been absorbed or faded away, the transportation industry is able to turn its attention on the importance of building the right team, focusing on training and talent acquisition. This is important to note given the confusion and frustration of the M&A period that many companies have experienced caused by negative acquisition experiences and overpriced companies. With the dust finally settling, 3PLs and logistics companies can focus on adding value for their customers, which will come as no small undertaking.

With the dust finally settling, 3PLs and logistics companies can focus on adding value for their customers, which will come as no small undertaking.

The challenges of managing geographically dispersed supply chain operations as a result of increased globalization, has led to several companies to outsource their logistics function.

And difficulties with addressing logistical challenges has also led to increased outsourcing by wholesalers and retailers, thereby boosting the 3PL industry.

It found that emerging trends such as Big Data and availability of bespoke 3PL services are expected to drive the market over the forecast period,” says Andrew Allen, a CIPS contributor.

Improving Technology will Continue to Add Value

Another driving factor is the continuous improvement of technology which will only add value for all parties involved. Cloud based IT solutions help to control overhead costs while providing invaluable data in real time, which is necessary for the continued success of 3PLs and shippers alike.

All told, 2017 looks to be a more promising year for both Shippers and 3PL providers.

 

 

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Is Your Freight Protected? Freeze Protection For Temperature Sensitive Shipments

As the holiday season approaches, there are a number of freight tips companies should take into account to ensure that their supply chain continues to function efficiently and cost effectively. Companies must also consider the challenges presented by winter weather that accompanies the holiday season.

Anticipating transportation delays and mapping suppliers that could be affected by big storms and freezing temperatures, are good first steps.

Winter Giving Transportation the Cold Shoulder

The 2015 – 2016 winter season was responsible for a record-breaking blizzard that brought freight transportation in mid-Atlantic states to a halt for a number of days as crews worked to clear the roads of upwards of 3 feet of snow in cities such as Richmond, Baltimore, New York City and Philadelphia. Immobilizing snow also fell across areas in Tennessee, North Carolina, Kentucky and Arkansas and thousands of freight cargo flights were grounded as major transportation hubs were closed.

Outside of unavoidable transit delays, companies also need to consider physically protecting their freight shipments from the harshness of winter.

Outside of unavoidable transit delays, companies also need to consider physically protecting their freight shipments from the harshness of winter. You should also consider working with a third-party logistics (3PL) provider that is able to offer an all-inclusive coverage plan for freight shipments to alleviate the pains of not only damaged freight, but to protect temperature sensitive shipments as well.

Technology Gives Logistics Some Valuable Insight

Weather forecasts are all well and good, but even preparing for delays due to the weather will only go so far. What about when the unexpected should occur. A truck carrying temperature sensitive materials breaks down and will miss its scheduled drop off. Will it be caught in time to make other arrangements? This creates a rather dangerous guessing game when it comes to sensitive freight. Fortunately, that doesn’t have to be the case.

The Internet of Things (IoT) is creating a valuable web of information that users can access, in real time…

The Internet of Things (IoT) is creating a valuable web of information that users can access, in real time, to check the location and the status of their freight. That sort of information can make the difference between arranging a truck transfer to get cargo to its destination on time and watching, in horror, as millions of dollars of product simply goes to waste because of a mechanical error, as was nearly the case for Biogen, whose truck carrying temperature sensitive pharmaceutical components was nearly lost when a truck broke down.

Not only does this information greatly help with making logistics decisions, especially when it comes to rerouting a truck due to weather concerns, but it can also help to control shipping costs and strengthen the working relationship of a shipper and a 3PL service provider. That alone can be reason enough, especially when it comes to dealing with the rather unpredictable Winter weather.

Find a 3PL Who can Handle the Cold

It’s important to understand that ‘Acts of God,’ such as extreme winter weather, are not covered when it comes to guaranteed or expedited freight. Being prepared in advance and moving shipments earlier than routinely expected when weather is expected, is something a transportation partner would help with.

A prepared 3PL will understand that every company has its own specific needs in relation to freight transportation and in the winter months

A prepared 3PL will understand that every company has its own specific needs in relation to freight transportation and in the winter months that can mean that some shipments need to maintain an above freezing temperature in order to maintain their quality and value. As many items such as perishable foods, chemicals & electronics are ruined and become useless if they reach a temperature below freezing, it’s important to be ahead of the coming cold.

There are several different means of protection available for shipments such as these and a reputable 3PL will work with specific carriers to make sure that your freight is taken care of properly. From heated or insulated trailers and temperature sensitive load planning and routing technology, to on-site snow removal and cargo quilt thermal blanket protection, your shipment will be protected.

Finding a 3PL that has a large network of LTL and truckload providers that offer freeze protection services to ensure that your shipments arrive safely, and on time, is key to your supply chain’s success this winter.

The challenges of winter are nothing new but preparation in advance is key. Are you prepared?

 

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BlueGrace Logistics Launches New Branding & Logo Concept

 

Riverview, FL, December 12, 2016 – BlueGrace Logistics, a third-party-logistics (3PL) provider, successfully unveiled their new corporate messaging and logo design in front of over 300 employees, franchisees, vendors and partners at their 6th Annual National Conference in Tampa, Florida.

“This branding revamp has been in the works for a while…”

“This branding revamp has been in the works for a while, but the whole concept came about in a very organic way. Because of the amount of effort put into the logo change, we weren’t even sure it would happen, but now we couldn’t be happier with the final results and feedback.” said Bobby Harris, CEO, Founder & President of BlueGrace Logistics.

While the technology based 3PL stayed true to their original blue palette, the font and icon graphics have been updated…

While the technology based 3PL stayed true to their original blue palette, the font and icon graphics have been updated to give the overall feel of advancement and movement. The ellipse that was once in the center, has evolved to a two-color object at the end of ‘BlueGrace’ and suggests both the upward trajectory and depth of the current company.

BlueGrace also announced a new tagline.

Alongside the new logo announcement, BlueGrace Logistics also announced a new tagline; Passion for Logistics. The new tagline and logo are just the beginning of a full rebranding campaign for the rapidly growing 3PL.

 

About BlueGrace Logistics:

Founded in 2009, BlueGrace Logistics is one of the fastest growing leaders of transportation management services in North America. As a full service third party logistics provider (3PL), BlueGrace helps businesses manage their freight spend through industry leading technology, high level freight carrier relationships and overall understanding of the complex $750 Billion U.S. freight industry. BlueGrace is headquartered in Riverview, Florida with over 60 corporate and franchise locations across the U.S. For more information, visit www.mybluegrace.com.

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How To Break Into The Booming Logistics Industry, Now!

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Are you competitive, hard working, passionate about excellence and caring of others? Are you looking for a new career?

Third Party Logistics (3PL) Market size to reach $1,029.47 Billion by 2022 and you could be part of it.

BlueGrace Logistics will be hiring 20+ new sales associates for our transportation department over the next few months and we need someone just like you.

With a competitive salary plus commission after 90 days, the Transportation Sales Associates are primarily responsible for generating qualified prospects to lead-pass and calling carriers to find capacity.

Are you competitive, hard-working, passionate about excellence and caring of others?

The Transportation Sales Associate will be trained on effective prospecting, identifying prospects and converting opportunities. So if you find that the shipping and freight industry is foreign to you, fear not because you will learn from some of the best in the industry.

Upon completion of the first 90 days, trainees can graduate into an Account Executive role and earn a $1000 bonus & start earning commission

This is an entry level position with immediate career path opportunities upon successful completion of the 13-week introductory period. Read more about this position and apply —> HERE.

Why BlueGrace Logistics?

BlueGrace Logistics is a unique place to work. If you have ever worked in a boring, stiff, corporate setting, know that BlueGrace is none of those. In fact, BlueGrace is quite the opposite.

The culture here is something that most other employers can’t duplicate. Our employees have fun, work hard, and are ultimately good people, because that is who we focus on hiring.

“Our hiring process if very culture driven. We hire the people not the resume,” said Bobby Harris, BlueGrace President and CEO.

In the beginning of 2016 BlueGrace employed 170 people and as of November we have grown that number to 457. Along with a huge amount of growth internally, BlueGrace will also continue to expand  nationally with our recent $255 million private equity infusion from Warburg Pincus. 

“Our commitment to the Florida Governor was surpassed as we have doubled our hiring numbers in the Tampa office alone, in the last year,” said Mercedes Essmann, Director of Recruiting at BlueGrace Logistics.

Our Capital Investment Will Fuel Growth, Hiring, and Large National Expansion

Along with an increase in hiring over the last year, we have also received a private equity investment through Warburg Pincus that will set us on the path for more jobs, acquisitions and continuing with a national expansion.

BlueGrace intends to use the funding to fuel the rapid growth of the business, including hiring 500-700 new employees, accelerating its national expansion plans and pursuing strategic acquisitions.

This investment will give a major shot of adrenalin to our already fast-growing operations

“This investment will give a major shot of adrenalin to our already fast-growing operations,” said Harris. “We’re helping customers transform their shipping across the country. And for me, it’s especially gratifying to see more and more employees come into the Company and find a great career.”

If you think the shoe fits – Wear It

Training for Transportation Sales Associates begins January 9th, so if you feel you fit our core values  and are ready for an exciting career in logistics,  apply online TODAY.

To see all of the BlueGrace Logistics Job Opportunities, click HERE.

We encourage the use of social media, and it shows!

Scroll through our current twitter feeds to see what is happening at BlueGrace today!

 

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How Can Expedited Shipping Be A Game Changer For Your Business?

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Quick, Fast and In a Hurry

With the holidays quickly approaching, you can bet that manufacturers will be paying close attention to the Must Arrive By Date (MABD), set by big box retailers like WalMart and Target. While big box retailers mandate Must Arrive By Dates to ensure their shelves are always stocked with products consumers want, many companies who sell products directly are often are losing potential customers and revenue by not offering expedited shipping options to customers who have their own Must Arrive By Dates in mind for freight sized purchases.

What Is Expedited Freight?

For smaller parcel sized items, a business will often utilize the overnight or next day air options available from USPS, FedEx or UPS. But for larger sized items requiring freight shipping, many businesses and consumers aren’t aware that expedited shipping options are available, or find that they aren’t able to receive reliable or economical shipping rates from their current transportation partners.

Let’s explain more about how Expedited Freight works in comparison to standard LTL Options.

The transit of a standard LTL shipment is typically estimated as the shipment being picked up from the shipper that has to be taken to a terminal where it will be cross-docked. During this process the shipment will be loaded and unloaded from freight trucks multiple times, depending on the distance, before it arrives at the final destination. While many LTL carriers offer guaranteed shipping services, some shipments need to arrive sooner than LTL shipping can provide.

New Expedited Options For Your Business

Depending on the size of a shipment there are multiple expedited shipping options available for freight sized orders. By cutting out the cross-docking necessary in LTL shipments, expedited services are able to cover quite a bit more ground, or air, in a much shorter time than a standard LTL carrier could.

Cargo vans, straight trucks with lift gates, and air freight can be utilized for shipments that would ordinarily take up a few pallet spaces on a LTL truck. For orders that require a full truckload, a team of drivers can be booked so that your freight can theoretically move non-stop without breaking regulations imposed by the United States Department of Transportation. 

Expedited Freight = Time Sensitive Freight

It doesn’t matter if it’s July or if its a few weeks before Black Friday, as a shipper, you have the ability to expedite your freight. Whether you need to get your pallet of a custom equipment repair parts to the factory that is currently down or you need to get your trade show displays to a convention center by Friday, expedited shipping may be the best route for you. Some of our current customers are from industries like: Auto Parts, Promotional Displays, Industrial EquipmentTrade Show Management,  Airplane Parts, Computer Servers & Equipment, Maintenance Repair, AV Equipment, Restaurant Equipment and Medical Suppliers.

What Qualifies for Expedited Shipping

  1. Shipments that need to be picked up after 5 p.m. and delivered before 8 a.m.
  2. Shipments that need to move 1000 miles in 24 hours.
  3. Shipments that are loose and fragile, can’t be cross-docked with LTL carriers.
  4. Shipments that require faster transit than what LTL can offer. (Express LTL is one step away from Expedited)

How Does BlueGrace Put Expedited Shipping to Work for YOU?

BlueGrace can easily handle any expedited freight shipment request. We offer 30-minute quotes on price and capacity directly, from over 300 pre-screened, local expedite carriers nationwide. With over 10,000 pieces of equipment from Sprinter vans and semis, to domestic air, we can handle any type of freight. Each shipment it tracked by Macropoint, so you always know where your freight is located.

Expedited Freight Only Works With An Expedited Quote

BlueGrace is also one of the few providers that is able to offer guaranteed pricing and availability within 30 minutes of your request.

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For any questions, please contact your BlueGrace Logistics Rep today! If you call after 5PM EST or weekends, please email expedite@mybluegrace.com or you can download our Expedited PDF by Clicking Here.

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Debate This: Vehicle-to-Vehicle Communications Systems

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We saw the success of the automated fleet as it made its debut journey through Eastern Europe. The idea that something the size of a tractor trailer can link up and draft off another tractor trailer in near perfect unison seems like something out of science fiction. However, the technology is not only here, but is undergoing approval for use in not only the logistics sector, but also for non-commercial use as well. The V2V or vehicle to vehicle communications systems is currently being debated on with a final decision to be issued from the White House this coming January.

“The National Highway Traffic Safety Administration (NHTSA) submitted a draft proposal to require V2V technology in all cars and light trucks to the White House at the beginning of this year,” said Transportation Secretary Anthony Foxx, who is optimistic that the rule would be released before the next administration takes over in January.

A Frequency Issue

One of the biggest opponents for the V2V systems is the band spectrum which the system will be using according to a recent article from Bloomberg. There is a growing concern as telecommunication companies are attempting to skirt around the Department of Transportation’s issuance of the V2V rule which would allow automotive manufacturers to start making plans to use the spectrum.

The DOT and the Federal Communications Commission are working together to test spectrum-sharing tools. However, the 5.9 gigahertz spectrum band at the center of the industry fight should remain dedicated for use by connected cars until there is a proven and safe method of sharing it,” Foxx said.

About More than Just Communication

While the vehicle-to-vehicle communication system is all well and good, there’s a bigger prize at the end of the line, the driverless car. This has some pretty big implications not just for the consumer sector, but would prove to be a massive boon for the logistics industry as a whole. Imagine if the roads were free of traffic jams and snarls caused by inattentive or unskilled drivers. Not only would this cut down on the amount of accidents, but also traffic flow as a whole would be greatly improved. This improvement would come as an increase in fuel efficiency and productivity overall for trucks on the road, allowing for better forecasting and productivity for logistics decisions makers.

That is, of course, if the NHTSA, the DoT, and the White House can all come to a consensus this Janurary.

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A Change of Plans: Reevaluating A Company Supply Chain

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Sales and Operations Planning (S&OP)

Both are critical to running a successful business, however trying to favor one over the other can prove to be disastrous. More often than not, companies are losing out on considerable profits, or paying out tremendous expenses such as last minute shipping charges due to a lack of cohesion between sales and operations planning.

A number of manufacturing companies are operating off a general set of rules for supply and demand, leaving both sales and production teams frustrated when they aren’t reaching their target goals.

While these generalizations might have cut it in the past, companies are going to have to change their operations if they want to succeed and thrive in the future.

The Creation of Internal Conflict

Supply Chain Management Review, an online industry news source recently reviewed this issue as it’s occurring in a number of companies, not only manufacturing, but service firms as well. With decision makers from both sides of the companies calling shots without conferring with the other side, there are a number of mistakes being made.

“A different type of demand–supply mismatch plagued a computer hardware maker. It relied on ocean shipping for units made in China because that was $15–$20 per unit cheaper than air freight. But while the units sailed across the ocean, the commercial team frequently changed their forecast for the mix of units that would sell over the next few weeks. The company routinely had to scramble at the last minute to ship via air (at great expense) in order to match the right supply to changes in demand forecasts.”

The article goes on to list a number of different causes for these problems, the core of which, comes down to poor information. Often times different cells within the operation are operating with different sets of data, both of which are skewed, leading to complications down the line.

Learning the Best Practice

Perhaps the biggest facilitator for change is the growing expectations from clients. With higher demand for more products with shorter delivery times, manufacturers will need to get their act together. Failure to do so could mean losing out on profits or even losing clients altogether.

“Running merely good S&OP may no longer be acceptable, because customers have higher expectations for product availability and fast delivery. The spread of new digital channels, on top of existing physical channels, has made it more complicated to know where inventory sits and what it will cost to deliver to customers. Also, the supply chain has grown more complex as suppliers operate a more far-flung network of suppliers, third-party logistics providers and inventory partners. Coordinating all that activity can be a stiff challenge.”

Changing the Game

In addition to finding better ways to communicate within the business, other business are branching out in different ways and are successful in doing so.

Apple is a perfect example of this. Originally, all Apple products were made and manufactured in the U.S. which was all well and good when they started. However, it didn’t take long for Apple to realize that manufacturing could be done cheaper out of house.

Not only could parts be procured at a lower cost but everything from assembling to warehousing could be done at a better rate. Some would simply cite lower labor costs as the main reasoning for this strategy, and to that end, gives Apple some flak for not bringing jobs back stateside. However, there’s more than one side to that issue.

“It’s also about, you don’t have as many mid-level manufacturing engineers available in the U.S. anymore, just because as an economy we don’t have as many of those types of jobs. That’s not the type of education that we focus on anymore, and there’s a ton of that over there,” said Evan Niu in an interview with the Motley Fool.

“Including the lower-cost labor, they have more people that are within the specific skill sets that they need to ramp up the manufacturing. I think a long time ago they said you could fit every single manufacturing engineer within, they would need a baseball stadium; in the country, that’s just how many there are now. Over in China, Foxconn can get hundreds of thousands of engineers within a couple hours if they need them to make some change, or tweak some processor. There’s a lot of sides to the story why they do it like that,” he added.

The manufacturing industry is accelerating and evolving rapidly, creating a challenge as businesses will need to be able to adapt and overcome, altering their business structure to meet the ever changing demand. — The real question is, will companies be able to adapt to quickly enough to meet these new expectations?

 

 

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Mosaic VP Joins Leadership Team at BlueGrace

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Sean Butler Announced as New Chief Human Resource Officer

BlueGrace Logistics announced today that Sean Butler, former Vice President of Human Resources at Mosaic, has joined the company.

Butler was named the new Chief Human Resource Officer just last week and will be leading the human resource strategy and talent acquisition efforts as BlueGrace embarks on the hiring for several hundred more positions over the next few months.

“I am thrilled at the opportunity to start a new adventure with a unique organization like BlueGrace. The pace at which this company is expanding its footprint is incredible, and I am glad to be joining the team during this exciting period of growth,” said Sean Butler, Chief Human Resource Officer at BlueGrace Logistics.

Sean Butler comes to BlueGrace Logistics from Mosaic, where he served as the VP of Human Resources for over 18 years. While at Mosaic and Cargill, he managed HR for the worldwide operations for approximately 4200 employees.

“Sean is a perfect fit for BlueGrace, both culturally and professionally. His extensive background in HR will be instrumental in our employment development over the next phase of growth,” said Bobby Harris, CEO & President of BlueGrace Logistics. “We did a national search and were extremely excited to find the best person was here in Tampa,” continued Harris.

BlueGrace is projected to hire another 500 – 700 new employees in Tampa over the next couple of years, accelerating its national expansion plans and pursuing strategic acquisitions from the recent $255 million private equity investment.

While Butler has a vast amount of experience in human resources with major corporations like Mosaic and Cargill Fertilizer, Inc., he also enjoys serving on several boards throughout the Tampa Bay area.

Notably he serves as the Committee Chair of Compensation Committee for the Lowry Park Zoo and as the Workforce Solutions Committee Chair for Career Source Tampa Bay.

“I really enjoy being involved and supporting the community in which my family and I live,” said Butler.

 About BlueGrace Logistics:

Founded in 2009, BlueGrace Logistics is one of the fastest growing leaders of transportation management services in North America. As a full service third party logistics provider (3PL), BlueGrace helps businesses manage their freight spend through industry leading technology, high level freight carrier relationships and overall understanding of the complex $750 Billion U.S. freight industry. BlueGrace is headquartered in Riverview, Florida with over 60 corporate and franchise locations across the U.S. For more information, visit www.mybluegrace.com.

 

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Empathy in the Workplace – Why BlueGrace is Successful!

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Empathy: The ability to understand and share the feelings of another.

Take a moment and think back to some of the jobs you’ve held in your life.

If you identify as a millennial, you’ve probably held several jobs since college. You maybe reach a point where you hit a ceiling, or you don’t enjoy the culture, disagree with management, etc. You may have worked for a company that doesn’t empathize with it’s people.

Typically the older generations have more tenure at companies and see long-term growth within. They ignore the issues with management or the mundane work culture, and “put in their time”.

So who is right and wrong in this scenario? Are the millennials wrong for wanting to be happy and pursue something different? Are the Gen X and older right for “embracing the suck”?

The feeling of being unimportant and undervalued is actually more common than you might think.

The End of an Era

The days of ‘hiring the resume’ are soon coming to an end. Highly successful start-ups are focusing on the person and not necessarily the resume, in the recruiting process.

A large issue is that companies are placing too much value on “hard skills” or the abilities of prospective employees that directly complement the nature of the position.

On paper, that sounds like what a company should do right?

There is no arguing that hard skills are important, as the company does depend on employees with strong knowledge that allows the organization to run smoothly. Putting a strong emphasis on the process has allowed companies to evolve and develop to the point they have today.

When Process Comes Before People

However, when process comes before people, when empathy and the true valuing of employees comes after the bottom line, it creates a large problem for retention.

No one wants to work a job where they don’t feel appreciated.

Prospective employees don’t want to sign up with a company where all their coworkers seem unhappy. It creates stagnation and lack of innovation, which can be the death of a business, or at least have a crushing effect on morale and productivity.

Building a Team

Much the same with playing sports, your team is only as good as your weakest player. Here’s where ideas like empathy and inclusion come into play.

Your smartest and most tenured manager may be loaded with hard skills but lack in the subtleties necessary to be an effective team player. This person could be ruthless when it comes to efficiency, which may lead to a singular mode of thinking, “My Way or the Highway” scenario.

While you might get a good jump in numbers for a time, that sort of thinking can be fragile, as it’s too rigid.

The logistics industry is constantly changing, and because of this, a good manager needs to be able to adapt and change tactics as necessary. They need the help of the team in order to stay ahead of the changes and make the process work consistently.

This is why empathy is so very important.

BlueGrace Logistics and Empathy

We’ve mentioned our Core Values before and we have highlighted our second as ‘Be Caring of Others’. This is probably one of the characteristics we focus on the most during the recruiting process.

Our team not only cares about each other, we care for our carriers, vendors, clients and partners. We work best with those who have compassion for others and truly show it.

The takeaway from this is simple. If you want a better business, you have to put your people first. Give them an environment where they cannot just survive, but thrive, and you’ll find your company will also reap the benefits.

To see all available positions at BlueGrace Logistics locations all over the US, visit careers.mybluegrace.com today.

 

 

 

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Fast Facts & Predictions About ELDs – Infographic

Countdown to the ELD Mandate

The time to plan for the ELD Mandate is now!

With the new ELD compliance creeping up on the trucking and logistics industry, we thought it would be beneficial to show some fast facts and predictions about ELDs. What do you think about the new requirements?

Click the image below for a larger version or download the PDF version here and feel free to share.

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Drones – Why You Want Them In Your Supply Chain.

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Drones are all over the media these days. Civilian drones have taken selfies to a whole new height, while Amazon has been working to get their drone delivery service off the ground. However, many companies are looking at the other ideas of using drones, especially when it comes to mapping out your supply chain.

An article recently released on Forbes website is showing the advancements being made to drone technology and why they could become an invaluable resource moving forward.

New Technology Makes Drones more Effective

One of the most pressing concerns about drone use is the limited range of operation. Even with the new battery technology, a drone typically has a flight time of about 25 minutes.

While this is great for taking a few aerial shots at a picnic, it’s not too helpful when it comes to large scale operations like mapping a supply chain.

Matternet, a company that specializes in drone logistics systems, partnered with Mercedes-Benz to co-develop a docking system that would allow a drone to take off from and reconnect to the roof of a vehicle. This would not only solve the matter of charging, it would also accommodate for packing and delivery all while increasing the range and payload utilization in the field.

This alone already ramps up the possibility for drone usage for last mile deliveries and improved logistics.

What Drones Could Mean for Your Supply Chain

First and foremost, drones are incredibly flexible as far as their uses go, even if you’re not looking to make quick deliveries.

“It’s increasingly clear that drones deserve consideration as part of your digital roadmap. Plus, ground and even ocean-going drones are developing fast, with problem-solving applications such as driver hour limitations, inaccessible or hazardous locations and massive materials handling chores, similar to what BASF is doing with autonomous vehicles in its mega-plant in Ludwigshafen, Germany,” says Forbes writer, Kevin O’Marah.

Companies Look into Fielding Drones

More and more companies are looking into fielding drones, and nearly a third of all supply chain professionals have said that drones have become very important to their supply chain roadmapping and strategy.

This is almost triple what the response was only two years ago, back in 2014.

More businesses are seeing the tremendous benefit and are lobbying to get regulatory approval for wider use. This is something which the FAA has been slow to agree to at first, but is starting to become more receptive to the idea as time goes on.

Proactive vs. Reactive

Much like the new digital platforms that are allowing businesses to be proactive about their supply chain issues, rather than merely reactive, it would be a mistake to ignore the benefits of drones and the advantages they can bring to your supply chain.

 

 

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How does Freight and Transportation Fit into your Budget?

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The 2017 budget season is heating up!

We all know how it goes. The heads of each department work on their annual budgets and turn them in to finance. Finance then returns with remarks like “the budget is too high, make it leaner.” How do you go about “trimming the fat” off of the transportation budget? Transportation is typically a 10-12% cost band on the general ledger for most manufacturers and distributors and once the 2017 budget is locked in, it doesn’t change.

MABD Affecting 2017

There will be challenges rolling into 2017 with freight carriers and big box retailers making their Must Arrive by Date programs or MABD rules more strict.

Huge retailers have very strict rules when it comes to receiving products by a certain date to restock their shelves. If a manufacturer or distributor is not getting their product to the retailer by the (MABD) or Must Arrive By Date, the retailer can hit the business with a ‘charge-back’ for a certain percentage of the invoice value. Not only will the business have to pay a fee, but it will reflect poorly on their business scorecard as well.

General Rate Increase with Less-Than-Truckload

At the beginning of every year the LTL carriers will begin to roll out general rate increases also known as GRIs.

Something to remember about LTL carrier GRI’s, is that the announced GRI isn’t necessarily indicative of the true impact to a shipper’s bottom line freight cost because the GRI is not a flat percentage rate increase across the board.

It is merely an aggregate combined average percentage increase across all lanes serviced by a carrier. Rates in some lanes may remain unchanged but some may increase by more than 4.9%.

A shipper could be seriously impacted by a general rate increase much higher than what’s announced by the carrier, so it’s imperative for shippers to check each lane for actual impact on costs.

Has your transportation and supply chain departments brought these items into consideration when rolling out transportation budgets?

Freight Cost Allocation

There is also the issue of past freight cost allocation. True freight cost allocation should show your most profitable ship to locations, customers, and products. Were you able to deploy sales people, advertising, and marketing budgets to the correct locations? Were customers, and product lines also accurate in relation to your budgeting for 2017 as well?

Transportation cost is much more than beating up LTL Carriers on price, sending out an annual RFP and picking carriers based on cost alone.

Don’t just remove a carrier and bring in a new one if you have a spat with the driver or if a shipment gets damaged. Make the decision based on the total of the carriers activity.

Consider a 3PL When Budgeting

Transportation costs affect all aspects of your organization and should be taken very seriously. When working on the 2017 budget, consider working with a third party logistics provider (3PL), as they will take the time to learn your business and see how these costs can affect everyone in your organization.

 

 

 

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The Logistics of Natural or Manmade Disasters

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Transporting freight to areas affected by natural or manmade disasters is one of the toughest challenges in logistics. The recent floods in Louisiana are an example of the difficulties involved. Two interstates were closed causing 55,000 daily motorists, including truckers, to use Interstate 20.

This added over 200 miles to some of the trips.

There were trucks being dispatched with relief supplies and there were trucks passing through the affected regions with loads destined for Houston and San Antonio, TX. The detours and interstate delays caused many loads to miss their service deadlines.

Now Hurricane Matthew has it’s eye on the southeastern corridor. 

Hurricane Matthew will hammer parts of eastern Florida starting Thursday, and then spread up the coast of Georgia and the Carolinas Friday into the weekend. This will inevitably affect deliveries and pick ups, as terminals will possibly be closed due to mandatory evacuations throughout the coastline.

Disaster Recovery Procedures Established

Since the terrorist attacks on September 11, 2001 and the devastating flooding of Hurricane Katrina in 2005, much improvement has been made in the area of disaster recovery logistics.

We now have established frameworks are in place to handle almost any situation.

However, due to the nature of disasters and catastrophes, logistics experts must be adaptive. An example of the Strict Utilization of Established Frameworks is brought to mind with the story of a few “Good Samaritan” truck drivers who wanted to support the Hurricane Floyd relief effort. They arrived at inland shipping locations, volunteering to move the loads of supplies at no cost. After much confusion and hours of waiting, they were turned away as the contracted carriers transported the loads.

Some companies like Anheuser-Busch, take this opportunity for charity as well. They recently sent over 250,000 cans of water to the Louisiana flood victims.

FEMA Diverts Carrier Assets

During times of disaster, the Federal Emergency Management Agency (FEMA) works with contracted carriers to transport basic needs items like water, food and temporary shelter.

When the event happens, carriers supply resources to FEMA immediately because the response has to be swift in order to be effective. These FEMA contracts are very lucrative and assets must be provided as requested per the demanding federal contracts. Shippers could be left out in the cold when carrier assets are diverted to such an operation.

Specialized 3PLs Dedicated to Recovery

Major segments of the economy have standing agreements with 3PLs that specialize in business continuity and disaster recovery operations. When disaster hits, there is no time to build relationships and negotiate responsibilities. It has to be pre-planned and recorded in a binding contract or a memorandum of understanding.

When asked about his responsibilities, this small fleet owner who contracts with a specialized disaster relief 3PL said –

“I subcontract with a logistics provider who contracts directly with AT&T. The communication sector is vital to our national economy and national security, so when there is a disruption, we are called to transport fuel, generators, sanitation equipment, temporary shelters, food and anything else you can think of that is needed in a disaster response.”

In conclusion, logistics providers must have established procedures in place, prior to a disastrous event. Attempts to circumvent established procedures will not work in times of crisis.

Customer needs must be clearly defined.

Customer needs must be clearly defined for these situations and a framework of service providers identified. When such an event happens, the long hours of planning will pay off and result in the service being provided.

 

 

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Carrier Spotlight | Old Dominion Freight Lines

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OD Freight Line fits many of our Core Values. Their ability to Pursue Outrageous Goals for over 82 years, is a huge reason why we continue to work closely with them to provide our customers with complete shipping needs.

One of BlueGrace Logistics Core carriers, Old Dominion Freight line, has 226 shipping service centers, 32 transfer points, and more than 18,000 employees. OD Freight Line provides service to six major geographical regions and thousands of direct shipping points in the lower 48 States.

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OD’s single-source operation helps you manage your domestic freight shipping needs with confidence and provides complete nationwide coverage across all regions of the United States.

Their Super Regional Service allows businesses to ship both inter and intra-regionally with the most competitive transit times and pricing available.

In 1934, Earl and Lillian Congdon founded Old Dominion Freight Line in Richmond, Virginia, with one truck and a commitment to keep their promises to customers. Since then, OD has turned into a global transportation leader. Today, Earl Jr. and his son, David Congdon, carry on the family tradition of doing whatever it takes to help the world keep promises.

Recently, Old Dominion was recognized with the following acknowledgements for company leadership in the industry:

  • Inbound Logistics magazine recognized Old Dominion as a 2016 Top 100 Trucker and named the company to its 75 Green Supply Chain Partners (G75) list for the sixth consecutive year.
  • For the seventh consecutive year, Logistics Management honored OD with its Quest for Quality Award.
  • SupplyChainBrain named ODFL in its 2016 “100 Great Supply Chain Partners” listing.
  • NASSTRAC honored the company as 2016 Multi-Regional LTL Carrier of the Year for the fourth consecutive year.
  • Forbes Magazine named Old Dominion one of America’s Best Employers in 2015
  • Fortune named CEO David Congdon to its 2015 Businessperson of the Year list.
  • The ATA Transportation Security Council awarded OD with its 2015 Excellence in Claims and Loss Prevention Award for the third consecutive year.
  • Mastio & Company ranked Old Dominion as No. 1 National LTL carrier for the sixth consecutive year.
  • 2015 SmartWay Excellence Award winner.
  • Commercial Carrier Journal ranked OD No. 10 on the 2015 Top 250 Carriers list.
  • Forbes Magazine named Old Dominion as one of America’s 100 Most Trustworthy Companies for three consecutive years.

Carrier Relationships

BlueGrace Logistics is always focusing on how to make each shipment, with each carrier, cost efficient. Working with carriers like Old Dominion Freight Lines is one of the many reasons we are successful in providing cost efficient and custom transportation plans for our shippers!

 

 

 

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