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BlueGrace Logistics Awards 2017 Innovator of the Year to project44

BlueGrace Logistics annual award goes to the company they recognize as having the greatest impact on their business and industry via new innovation. They selected project44 from a group of hundreds of service providers that offer products, services, or programs. BlueGrace relies on its partners to provide best in class service while creating new and energizing offerings to the market. Bobby Harris, CEO of BlueGrace Logistics, stated “project44 went far beyond expectations for BlueGrace in 2017 and continues to rapidly expand their relationship with us by offering unique services. We couldn’t ask for a better partner.”

project44’s technology is integrated with their BlueShip TMS, creating new speed and visibility for customers not found in other 3PL TMS (Transportation Management System) solutions. Currently BlueGrace is utilizing the LTL, VLTL and TLV products available from project44.

“BlueGrace leads the industry by investing in innovative technology to deliver seamless services that meet their customers’ evolving transportation needs,” said Jett McCandless, CEO and Founder of project44. “They recognized very early on the value of automating manual processes and replacing outdated EDI connections. We’re proud to work with such a fast-growing and technology-focused logistics provider and to receive this award from them.”

Congratulations to project44 for their 2017 Innovator of the Year Award.

 

About project44

project44 enables you to deliver stronger value to your customers, through the power of information. By digitizing the entire shipment lifecycle, we ensure access to the right information, at the right time—creating a smarter end-to-end shipping experience. With project44, automate the full shipment lifecycle from quote-to-invoice to see real-time, end-to-end information symmetry. Our multimodal, one-to-many model gets you connected to the largest network of capacity providers in the most streamlined way, empowering you to immediately support new automations and carriers without spending IT resources or wasting time on complex integrations, improving the productivity and efficiency of your entire business.

Learn more:

 

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 12 corporate locations across the U.S. For more information, visit www.mybluegrace.com.

 

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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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E-commerce Returns Are A Major Challenge To Retailers

CNBC called returns a $260 billion “ticking time bomb,” in terms of the billions that retailers face each year handling unwanted, used or damaged goods. That’s a dramatic shift away from brick-and-mortar era when customers did most of the legwork, and employees could process the transactions in less than a minute.

E-commerce has flipped the paradigm and with giants like Amazon.com and Walmart.com transforming online retail into a virtual changing room – customers are growing more comfortable simply returning clothes that they don’t like, or that don’t fit. According to the Reverse Logistics Association, the average return rate on in-store purchases is about 8 percent. For e-commerce, the rate jumps to between 25 and 40 percent.

Managing that surge in two-way traffic can be a nightmare for smaller businesses

This time around, managing those shipments and paying for them falls onto the shoulders of retailers. That’s easy enough for established e-commerce companies, thanks to their extensive and sophisticated logistics operations, but managing that surge in two-way traffic can be a nightmare for smaller businesses, especially ones that are just now venturing into the realm of e-commerce.

Some Companies Are Looking Askance At Those Costs

In 2016, research from Barclaycard found that six in ten retailers were negatively affected by the growing costs of people returning items that they bought online. Online-only businesses were hit the hardest, with 31 percent telling Barclaycard that managing returns was hurting their profit margins.

Some businesses are even raising prices to cover the costs of returns, but that’s not a long-term strategy for success

Some businesses are even raising prices to cover the costs of returns, but that’s not a long-term strategy for success. Other businesses are getting out of online retail altogether, turned off by the volume of returns. That’s because on an individual level, it is incredibly hard to compete with the logistics outlays of major online retailers.

What Changed?

Amazon started the trend, turning its platform an easy-return zone. That means no questions asked returns, inducing buyers to add products to their shopping carts that they wouldn’t purchase with a no-refunds policy. That’s translated into more sales, but it’s created a headache for companies that operate in the Seattle retailer’s shadow because now, consumers expect the same thing from other retailers.

This trend is especially pronounced in fashion, where customers deliberately order far more items than they pay for, but its spread throughout the market.

Clicking That “buy” Button Sets Off A Mind-boggling Chain Of Logistics Transactions

The process of e-commerce tends to work best as a one-way street, with automated systems built to speed products to consumers as quick and cheap as possible. But e-commerce has given its customers a stake in the supply chain process, and today, they demand the same speed to reverse the process. Customers want that resolution and refund, fast.

A well-built and highly-transparent return management process is critical for two reasons. It reduces costs, allowing companies to grow margins on their online sales, and just as importantly, it keeps customers engaged and happy.

Keeping them informed and happy is critical to generating return business.

Until the return is processed, the customer is out the cost of their purchase, and the company is out the cost of transporting and processing the return. Nobody’s winning in that scenario, so the sooner the retailer can process the return, the better. And while that’s going on, the customer has a right to know where their product is, and when it’s going to be processed. It’s their money after all. Keeping them informed and happy is critical to generating return business.

To avoid tying up resources in a bloated logistics operation, companies need to revisit their approach to customer support and returns

Simply put, it’s relatively easy to sell goods online. There are scores of solutions for smaller companies, and larger ones have their own logistics operations. But far fewer companies can efficiently handle those pesky returns, despite the fact that they are an increasing part of online retail these days. To avoid tying up resources in a bloated logistics operation, companies need to revisit their approach to customer support and returns, and provide full transparency throughout the whole returns and claims process, to ensure high customer satisfaction rating.

Streamlining the Process

It’s important to understand and analyze returns to the granular level, leveraging that data to streamline future returns and ultimately, make sales more profitable.

The logistics experts at BlueGrace review historical shipping data to increase profit, cut labor costs, and keep the online customers loyal to brands by streamlining both the buying and returns process that underpins e-commerce in 2017. It’s important to understand and analyze returns to the granular level, leveraging that data to streamline future returns and ultimately, make sales more profitable. 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:

 

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BlueGrace Donates To Help Families Across The Country

The holiday season means many things to many people. For some, it means traveling hundreds of miles to see family and old friends. For others, it means preparing to host 20+ hungry guests and swearing never to do it again. While most simply worry about booking their flights or having enough seats at the kids’ table, there are some that worry they won’t be able to provide a holiday meal for their family at all. These are the members of our community that want to sit down at the table with their families and enjoy their favorite holiday foods, but aren’t sure where the money to pay for that meal will come from.

Partnering For A Cause

BlueGrace partnered with local organizations throughout the country again this year in an effort to decrease this need in local communities. In Tampa, the corporate office partnered with Metropolitan Ministries to host “Boxes of Hope,” a food drive that provides food to local families. This year, the Tampa team used the money collected through raffles, a hot one chip challenge and a rap battle to provide complete thanksgiving meals for 234 families, as well as donate over 200 lbs of canned and boxed goods to be distributed through Metropolitan Ministries’ food pantry.

We in turn feel very blessed to be able to make a difference for this family. It is a win-win all the way around.

BlueGrace’s Baltimore office hosted their own “Boxes of Hope” drive and adopted a family at Perry Hall Elementary School. They were able to provide a full Thanksgiving meal as well as a few treats, a $25 gift card and additional groceries to the family. “The family wanted us to know how blessed they felt to receive such a generous gift,” Michelle Welk, Customer Support Manager of BG’s Baltimore office explained. “We in turn feel very blessed to be able to make a difference for this family. It is a win-win all the way around.”

“Giving back to the community is part of who we are as an organization,” George Flores, a sales account manager in the Tampa office describes. “These drives combine my two favorite core values- our first core value of ‘Be Caring of All Others’ and our fifth, ‘Be Happy, Humble and Have Fun.’ While we are cheering on our teammates to eat a pie with no hands as fast as they can, we are raising hundreds to go towards a great cause.”

No Child Hungry

BlueGrace’s LA office kicked off their holiday season on the west coast by collecting and donating a full shopping cart of groceries to the Santa Clarita Valley food pantry for their “No Child Hungry” program. “This time of year, there’s so much to be thankful for,” Connor Bush, account manager in the LA office says. “One of those things is the ability to give back and make a difference in our community.”

We all need a hand up sometimes, and BlueGrace is here to be that hand for those who need it.

“I will never stop being moved by the impact these drives make in our communities, or seeing our employees band together to help those in need,” Courtney Smith, Manager of Culture & Engagement for BlueGrace continues. “Whether it’s in Tampa, Baltimore, LA, or any of our other offices throughout the country, the sentiment is the same. We all need a hand up sometimes, and BlueGrace is here to be that hand for those who need it.”

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Cost or Asset: The Need for Talent in the Supply Chain 

When it comes to the supply chain, efficiency is the name of the game. The smoother the interaction between the links, from start to finish, the more profitable everyone is along the line. Companies have been furiously analyzing every facet of the chain, from transportation routes to in-house technology and processes in terms of the financial efficiency. In short, if it can give an advantage, improve the system, or help to cut down operating costs in any way, it’s typically touted as a good thing.  But when it comes to investing in that efficiency, where is the best place to hedge your bets? Is it in technology? A consulting firm? While all of these are important, is any one of them hiding the real key to success.

The Un-Correlated

Given the many different assets a company could hitch their hopes on, it would seem like one would rise above the rest, right? If nothing else, given the size and scope of the transportation industry, there would at least be a trend towards one process over the other. While it makes perfect logical sense, the truth of the matter is, there really isn’t a direct correlation between investment and success in the industry.

“Despite all the ads at airports and pretty PowerPoints by consultants, we cannot find support for the claims of ‘Best Run Companies Use Technology X’ or ‘Manufacturing Companies Using Consulting Services With Company Y Have Better Results.’  …or a single instance of Enterprise Resource Planning (ERP) drives better results,” says Lora Cecere, the founder of Supply Chain Insights.

Companies think that they are managing costs and inventory better through technology investments, but they are not.

“Across the industry, we find that companies think that they are managing costs and inventory better through technology investments, but they are not. Through graphing the financial metrics, we find that 90% of companies are stuck at the intersection of operating margin and inventory turns. With rising complexity, they are unable to make improvements in a balanced scorecard,” she added.

Talent Makes the Difference

When it comes to controlling costs, the only constant for improvement is the investment in supply chain talent. According to the survey taken by Supply Chain Insights, it was the companies who could manage their talent better than their peer groups that gained the cost advantage. This played out in three different metrics: Operating Margin, Profit Margin, and EBITDA as a percentage of Quarterly growth. In all three of these metrics, it was proper talent management that proved to be the most effective.

So what are these companies with better talent management doing that their peers aren’t?

So what are these companies with better talent management doing that their peers aren’t? There are six aspects or gaps in particular that these companies are focusing on.

“Belief in the company, appreciation for work, the need to be a part of a talented team, admiration for leadership, training and professional development and flexible work schedules. Empowered workers make a difference. With the flurry of M&A, industry consolidation, outsourcing, and downsizing, the gaps for North American manufacturers are increasing,” says Cecere.

 Provide a job where your employees feel appreciated, and are given the tools they need to not only succeed, but grow, and you’ll have a more dedicated workforce.

Provide a job where your employees feel appreciated, and are given the tools they need to not only succeed, but grow, and you’ll have a more dedicated workforce.

“Most companies have an endless cycle of cost-cutting. The cost-cutting is more severe in the back office than the front office teams of sales and marketing. Companies are often so busy pinching pennies that they miss the greater opportunity. With slowing growth, as companies end the year, many teams face draconian cost-cutting efforts. When faced with these choices, just remember that empowered employees drive a competitive advantage. Our take? Talent matters,” Cecere adds.

The Reality of the Human Asset

Human talent will invariably become more valuable than any physical asset, including technology.

Investing in talent is about much more than merely cutting costs down the road. Human talent will invariably become more valuable than any physical asset, including technology. A study conducted by Korn Ferry and the Centre for Economic and Business Research, a British economic consultancy shows just how valuable people are to any organization.

“The study found that globally, human talent—people, labor, knowledge—will be worth as much as $1.2 quadrillion over the next five years whereas physical capital— inventory, real estate and technology—will be worth an estimated $521 trillion, showing human talent, intelligence and capital is far more valuable than physical capital,” the  22nd Annual Third-Party Logistics Study reports.

“Human talent is also the greatest value creator available to organizations. For every $1 invested in human talent, $11.39 is added to GDP, proving that investing in people can generate value for the organization over time that significantly exceeds initial financial outlay.”

While automation and new technology might replace some facets of the industry, even truck drivers, there will always be a need to have highly skilled professionals on the roster.

When you consider the rapidly evolving nature of the industry, it’s easy to see just how vital talent is to any company. While automation and new technology might replace some facets of the industry, even truck drivers, there will always be a need to have highly skilled professionals on the roster. Providing them with the right technology and opportunities to grow will not only enable them to sharpen their skills but also increase their value and subsequently the value of your business.

Your Supply Chain Talent Is Readily Available Here

There is no need for companies to search for more supply chain talent. BlueGrace has 100s of talented people with the skillsets to help improve or develop your supply chain. Imagine that you had 3 more people working on optimizing your freight for each single employee you have in-house. That is the value the team at BlueGrace offers. Let us monitor your costs, communicate with the carriers and lower your overall freight spend year over year. Contact us at 800.MYSHIPPING to talk with an expert today or fill out the form below.

Are You Part Of The Available Supply Chain Talent?

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!

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You Will Need Expedited Freight After The ELD Mandate Begins

The Electronic Logging Device (ELD) mandate is going to put a serious squeeze on many supply chains, and possibly have a major effect on your business as soon as December 2017. With the devices in place, stricter hours of service regulations will be going into effect. While these are meant to increase the safety and wellbeing of the driver, many are concerned about the interruptions this mandate will cause to scheduled delivery times.

Some Exemptions are Available

While an acclimation period is to be expected, the Federal Motor Carrier Safety Administration is making some exemptions to the ELD ruling in a few cases, the most important being:

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. Why is this exemption important for your freight? We will discuss more below.

So while the FMCSA is insistent on the implementation of the devices across the industry, they’re leaving a smaller, cross section of the trucking industry untouched. This comes with a slight sigh of relief as the rest of the industry continues to resist against the ruling. With the deadline for ELDs drawing closer and companies trying, and failing to repeal the mandate, other avenues for fast and timely deliveries need to be considered.

This is Where Expedited Shipments Can Help

Whatever the reason, a shipper needs to get their goods moved, and they need to get them moved in a hurry.

Unlike most other freight that moves with routine regularity, expedited freight has a nature of its own. Consider the timing aspect of it. The whole idea behind expedited freight is that it should be picked up and moved off quickly. A solution for anything from a shortage of parts to a peak season order. Whatever the reason, a shipper needs to get their goods moved, and they need to get them moved in a hurry.

In addition to the change in time and pace, there’s also the consideration that expedited freight might have some irregularities that aren’t found in normal day to day hauling. For example, the product that needs to be delivered might be going to an urban area. This usually means that ramps and docks aren’t an option, so the driver needs to have access to the right equipment to get the freight loaded or unloaded. There’s also a variance of cargo from one delivery to the next.

the nature of expedited freight is considerably different from standard freight.

In short, the nature of expedited freight is considerably different from standard freight. It needs to be quick, versatile and most importantly, available.

The BlueGrace Expedited Solution

So what do you do when you’re faced with less available hours and capacity? You turn to an expedited freight expert. The days of overpromising and overdriving trucking companies are quickly coming to an end. Instead, 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 teams 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 Logistics strives to streamline the expedited process for you.

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.

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ELDs Are Coming Fast! Some Facts & Predictions – Infographic

Countdown to the ELD Mandate – December 16th 2017

It is time to plan for the ELD Mandate as a freight shipper, if you haven’t already. When the electronic logging device mandate takes place, many shippers will be caught off guard with shipments taking longer than expected due to the restrictions put in place on drivers.

We thought it would be beneficial to show some fast facts and predictions about ELDs that we originally published in 2016. What do you think about the new requirements? Are you ready? If you have any questions feel free to contact your BlueGrace Representative today.

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

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Identity Theft is On the Rise, and Cargo Theft Might Not Be Far Behind

Identity theft is among the most insidious forms of crime. Not only can it mean a person loses their livelihood, but for an enterprising criminal it could just be a stepping stone for an even bigger target. What sort of targets would criminals be aiming for after stealing an identity? How about truckloads of cargo.

When you consider the amount of information people post digitally, there is a lot of sensitive data out there, just waiting to be taken. This is especially true when you consider the number of cyber attacks that have happened this year alone. The Equifax leak, for example, can be ruinous when you consider what can be done with a little credit information.  In fact, no one really knows just how extensive the security leak really is nor will we know just how many people have been affected by it. However, for freight companies, any form of identity theft could be catastrophic.

Identity theft is on the rise and cargo theft could see a drastic increase as well.

How Identity Theft Could Mean Cargo Theft

When someone takes control of your identity, they can wreak all sorts of havoc.

It seems like a bit of a leap to go from identity theft to cargo theft. After all, when someone steals your identity, that just means they tap your bank accounts and maybe open a credit line, right? Not exactly. When someone takes control of your identity, they can wreak all sorts of havoc. In terms of cargo theft, the scheme, as laid out by The Associated Press,  goes like this:

Thieves assume the identity of a trucking company, often by reactivating a dormant Department of Transportation carrier number from a government website for as little as $300. That lets them pretend to be a long-established firm with a seemingly good safety record. The fraud often includes paperwork such as insurance policies, fake driver’s licenses, and other documents.

Then the con artists offer low bids to freight brokers who handle shipping for numerous companies. When the truckers show up at a company, everything seems legitimate. But once driven away, the goods are never seen again.

And just like that, cargo is picked up and gone for good.

And just like that, cargo is picked up and gone for good. Here are some other interesting facts pointed out by Adrian Gonzales of Talking Logistics.

  • The average value of cargos stolen by fictitious pickup was $203,744 vs. $174,380 per incident for cargo thefts overall during the study period, a 17 percent differential.
  • The commodities most frequently targeted for fictitious pick-ups are foods and beverages, electronics products and metals.
  • Over half of fictitious pickups occur at the end of a week, on Thursdays and Fridays when the main concern of shippers and brokers is in meeting a delivery date and satisfying the customer.
  • Fifty-five percent of all reported fictitious pick-ups from 2011 through 2013 occurred in California. Significant fictitious pick-up activity has also been reported in Florida, Texas and New Jersey.

Cargo Theft Rates are Falling, but the Cost is Rising

While cargo theft rates have been falling from 2016 to 2017, the value of goods being stolen has been steadily increasing.  Cargo thefts fell for the third consecutive year in terms of reported incidents, but the value of the stolen goods rose 13.3% to $114 million, according to 2016 data from CargoNet.

“There were 1,614 incidents in the United States, including cargo theft, heavy commercial vehicle theft, and supply chain fraud. Thieves stole cargo in 836 cases with an average value of the contents at about $207,000, based on the 554 thefts with an assigned value. It represented a 7.7% decline in cases year-over-year and a 10% drop since 2014. The other 282 cases didn’t include a value for the cargo,” says an article from Transport Topics.

“However, the total value of the stolen cargo, $114 million, is greater than the $100.5 million in 2015 and $94 million in 2014,” they added.

What Happens to Cargo Theft Rates when Identity Theft Rises?

For freight companies, this means there’s going to be a need for even more vigilance than before.

As it stands, we’re still unsure as to how extensive the fallout from the increasing rates of identity theft will be. While cargo thefts have been in decline over the past few years, we might see a rise thanks to the number of vulnerable identities. For freight companies, this means there’s going to be a need for even more vigilance than before.

“Law enforcement has done an outstanding job responding to strategic cargo theft. But it’s like playing whack-a-mole. Not only will the groups pop up in different areas, but cargo thieves will bob and weave away from where the attention is from the police and private industry,” said Scott Cornell, second vice president and crime and theft specialist for Travelers’ Transportation business.

there’s no such thing as being “too careful”.

With the wave of cyber attacks, and now the rise of identity theft, there’s no such thing as being “too careful”. Know who you’re working with, and use a reputable broker to make sure your freight makes it to it’s intended destination.

 

 

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Saving Lives Through The Power Of Giving

At BlueGrace Logistics, our number one Core Value is Be Caring Of All Others. Every six weeks, we invite One Blood to come out to our Tampa office where our employees are able to take some time out of their day to go out and donate.

The Benefits of Donating

Not only do the people who are receiving blood transfusions benefit from the donation, but there are also some health benefits donors receive as well. Each time you donate you’ll receive a free wellness checkup which includes blood pressure, pulse, temperature, iron count and cholesterol screening. Studies have also shown that giving blood regularly can help keep your iron levels balanced, can result in fewer arterial blockages and giving at least three times a year may reduce the risk of heart attack.

Every two seconds, someone in the U.S. is in need of blood.

Every two seconds, someone in the U.S. is in need of blood. Once you complete your donation and your pint of blood is tested and marked as safe to use, the blood will be transfused within 48-72 hours. Many people think that accident and trauma victims are the patients who need blood transfusions most, but patients being treated for cancer, undergoing orthopedic surgeries, cardiovascular surgeries or being treated for inherited blood disorders are actually where blood is most needed.

Be Caring Of All Others

According to One Blood, over 37% of the population is eligible to donate blood, yet only 5% actually do. As of 2016, BlueGrace has donated over 130 units of blood. With each unit of blood, up to three lives can be saved. That is almost 400 patients that could benefit from the lifesaving efforts of BlueGrace employees! Mike Sumnick, VP of Operations at BlueGrace and the coordinator of the blood drives states, “We pursue outrageous goals here at BlueGrace, and every time we host a blood drive, we will strive to help save even more lives.”

To find a donation center near you, please visit https://www.oneblood.org/donate-now/

 

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How Shippers Should Already Be Prepared For The Holiday Season

Do you smell the pumpkin spice in the air? If you close your eyes, do you hear the faint jingling of bells in the distance to be? That’s because the holiday season is approaching. And, it’s approaching fast.  The busiest time for all, logistics companies, retail stores as well as shippers.

This is the season that can make or break shippers.

This is the season that can make or break shippers. If they are properly prepared, they can take advantage of having their items on the shelves faster for consumers to buy and reap the financial benefits. However, if they aren’t prepared, they could find themselves in a world of stress trying to find carriers to move their freight. – So, what can shippers do to prepare?

Plan For Unexpected Events

Remember while planning for the holiday season that it’s an incredibly busy time filled with unforeseen events. More people will be on the roads to visit their friends and family, and with more people on the road, more wrecks occur. More wrecks, more traffic jams, may cause your freight to be delayed.

Also, the holiday season usually packs a cold punch with winter storms creating dangerous conditions for drivers that could even keep them off the road for a few days. Be sure to track the weather before scheduling shipments around winter storms.

Things get hectic around the holiday season, making it more necessary to keep your documents accurate.

Things get hectic around the holiday season, making it more necessary to keep your documents accurate. One common mistake we experience time over time is the misclassification of freight. Minimize these errors by using a density calculator.

Compete With Larger Shippers

WalMart and Amazon are two of the biggest powerhouses in the world during the holiday season and can make it difficult for smaller shippers to offer competitive rates. Often times carriers can be lured away to make deliveries for these larger shippers on a seasonal basis.

We’ve seen this way too often. To be able to compete with larger shippers and keep their products moving, small and medium-size companies will have to offer and pay higher rates for carriers. If this story rings a bell, consider partnering with a 3PL. More often than not, 3PLs can provide better service and competitive rates.

Carriers enjoy working with 3PLs because they consistently engage with them by offering year-round agreements to keep their trucks rolling.

They can do so as they have an extensive network of carriers. Carriers enjoy working with them because 3PLs consistently engage with them by offering year-round agreements to keep their trucks rolling. Plus, the fact that they move such a high volume of freight that gives them a stronger buying power, which results in highly competitive freight rates.

Reflect On The Past

Think back to last year. Did your entire operation run smoothly with only a few minor hiccups or were you pulling your hair out? Make changes to improve your business from the inside out by locating the problems and finding solutions for them.

Did you have enough manpower to handle packaging and loading extra freight? You may need to implement an all hands on deck policy for the holiday months or hire a few seasonal employees. The key here is to hire good employees to keep your operations running smoothly. Also, consider a preseason training program for new and veteran employees to boost efficiency and minimize mistakes.

Did you have enough office staff to handle all of your paperwork in a timely manner? If not, consider getting a few extra secretaries or finding a way to automate processing all of this information digitally to cut costs and save time. Programs like Quickbooks could really help you transform your office.

Also, check out our latest technologies to see how to improve tracking, addressing, and product listing. By automating your services to become more efficient, you will be able to cut down on document processing time, costly accounting mistakes, and build more productive relationships with carriers.

Are You Ready? The Holidays Are Coming

Prepare your business now for the holiday madness!

 

 

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What Is The Current Status Of Trucking Capacity?

A sudden increase in freight demand throughout the United States might put shippers in a difficult position for capacity and price later this autumn.

According to the American Trucking Association’s’ (ATA’s) Truck volume leaped 7.1 percent in August from July, and 8.2 percent year over year, the ATA said Tuesday. ATA revised July’s tonnage index, increasing it from 0.1 to 0.5 percent.

Tonnage Gets An Added Boost

“Tonnage was stronger than most other economic indicators in August and more than I would have expected,” said ATA Chief Economist Bob Costello. “However, prep work for the hurricanes and better port volumes likely gave tonnage an added boost during the month.

“I suspect that short-term service disruptions from when the storms made landfall, as well as the normal ebb and flow of freight, could make September weaker and tonnage will smooth out to more moderate gains, on average,” he said.

Some of that 7.1 percent surge, however, may just be a seasonal adjustment.

Some of that 7.1 percent surge, however, may just be a seasonal adjustment. August is often a light month for tonnage as freight demand typically doesn’t start picking up till the fall. With such an increase taking place in August, ahead of schedule, that will push the seasonally adjusted index higher for the month. With the huge 10.5 percent uptick from July to August for unadjusted tonnage, that means that more, heavier freight was being shipped across the U.S. during August.

While this is good news for carrier, it could mean a rough season ahead for shippers. This increase in tonnage will likely mean tightened capacity for the fall. Additionally, shippers could be facing the biggest rate increase since 2014. 3PLs have been noting for months that capacity has been tightening as the economy improved.

The Effect of Disasters on Trucking

The devastation left in the wake of hurricanes Harvey and Irma is also having a significant impact on the trucking industry. Combined, the hurricanes have done almost $300 billion in damage, which has lowered U.S. economic growth by 0.8 percent in the third quarter.

Considering the damage alone, it’s no surprise that reconstruction demand will be taking the lion’s share of the trucking capacity that would normally be used to serve more general needs.

“Hurricane Harvey will ‘strongly affect’ over 7% of U.S. trucking during the next two weeks, with some portion of that fraction out of operation entirely, according to an analysis by freight research firm FTR Transportation Intelligence,” says Fleet Owner.

While the disruption was more or less contained around the epicenter of the damage, there is an effect that is going to be felt across the country.

“Due to the already tight nature of the truck environment, that means that loads could be left on the docks, according to Noël Perry, one of FTR’s partners. And though the largest ripple effects of Hurricane Harvey will be “regionalized” where freight shipments are concerned, transportation managers across the entire U.S. “will be scrambling,” he added.”

“Look for spot prices to jump over the next several weeks with very strong effects in Texas and the South Central region,” Perry said in a statement. “Spot pricing was already up strong, in double-digit territory. Market participants could easily add five percentage points to those numbers.”

The State of Capacity

As far as the current state of trucking capacity goes, shippers will have to deal with a considerable constriction as the industry contends with the natural disasters and the reconstruction effort. With a considerable jump in demand from July to August and the “peak” season starting early, shippers will also have to contend with the largest rate jump in years in addition to the tight capacity. Simply put, shippers will have to make smart moves if they want to stay ahead of the competition.

 

 

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NHL Hockey And BlueGrace, It’s That Time Of Year

Every new hockey season is a chance for fans to rejoice. A chance to once again hear the acoustical beauty of a slap shot, the ballet that is a gloves off fight and the trumpet of the goal horn. Hockey is a sport that engages the audience with an amazing atmosphere and unbelievably talented teams who somehow do it all on skates. At BlueGrace, we love hockey. Tickets for each Tampa Bay Lightning game are always in high demand, making them a top employee incentive!

The Preferred Shipping Partner of the Tampa Bay Lightning

The day after a clutch win or a tough loss, the emotions are still high at the office with plenty of couch coaching at the water cooler. Teamwork means everything in both business and in sports, and that mentality holds true to the way we operate at BlueGrace.

“Since Jeff Vinik purchased the franchise in 2010, we have looked to align ourselves with world-class brands that share our vision and values on and off the ice, and BlueGrace fully embodies that,” said Lightning CEO Steve Griggs. “BlueGrace’s community involvement and commitment to Tampa Bay is aligned with our mission and we look forward to our partnership with them.”

Widely-known for our unique culture, BlueGrace offers a dynamic work environment and lives by a set of 5 Core Values. The NHL as a sport, along with many of its teams, have the same set of values and commitment that we do – making the partnership a natural fit for both sides.

“It’s a natural fit for us to partner with a world-class organization like the Tampa Bay Lightning,” said Bobby Harris, CEO and founder of BlueGrace Logistics. “This partnership enables us to team up with the Lightning on charitable initiatives, increase our local visibility and expand our national brand. We look forward to a long-term relationship and years of success with the Tampa Bay Lightning.”

Bringing Core Values To Life, With Hockey

BlueGrace Core Values can be easily applied to the game of hockey, but particularly fall in line with the level of commitment & community-involvement of the Tampa Bay Lightning:

  1. Be Caring Of All Others – Help a teammate better his game, always think about your team first. Help local communities using your position as a star player to maximize charitable efforts.
  2. Simplify – Not all complicated plays end up with a blowing goal horn! Sometimes a simple play leads to more effective passes and faster scoring.
  3. Pursue Outrageous Goals – What is the most outrageous goal in hockey? Bringing home the Stanley Cup! When the season starts, everyone has a chance for the Cup, so reach for the seemingly impossible.
  4. Embrace Chaos – When the game gets tough, the tough play harder. Tired from 3 full periods of hockey? The game is tied – rest, quickly recharge, and get ready for the 3 on 3 overtime! That’s where champions are made.
  5. Be Happy, Humble & Have Fun – Sure you shot the winning goal, but without the assist and stunning performance by your defense, that shot would have never happened! Be humble, sit down, and celebrate with your teammates!

The Tampa Bay Lightning & BlueGrace: We All Bleed Blue

BlueGrace headquarters are in Tampa, Florida so we’re slightly (ok, VERY) biased towards our hometown Tampa Bay Lightning team. They’re an essential part of the small amount of fall/winter we have here in Tampa, home of some of the biggest sports fans. With regional offices in Boston, Chicago and Los Angeles, BlueGrace actually has quite a few Champion teams to cheer for (did someone say Blackhawks?). Regardless of which NHL team you cheer for, there will never be any shortage of fans who will be cheering hard. If business and sports have ANYTHING in common, it’s the team-first mentality that sets the successful apart from the rest. Perhaps the most important part of a team is the sense of brotherhood – letting your teammates know you have their back and you’re ready to flick an assist their way (play goal horn below!). Go Bolts!

Play The Tampa Bay Goal Horn Below!

 

 

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How does Freight and Transportation Fit into your Budget?

The 2018 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 2018 budget is locked in, it doesn’t change.

MABD and OTIF Affecting 2018

There will be challenges rolling into 2018 with freight carriers and big box retailers making their Must Arrive by Date (MABD) programs or On Time In Full standards (OTIF) 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. Now, Walmart is taking it one step further with OTIF, On Time In Full standards that can penalize businesses for being too early or not having matching amounts of product.

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 2018 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 2018 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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Embracing the New Future of Logistics

When it comes to transportation and logistics, the market is a decidedly different place than it was only a few short decades ago. These changes are not small things either, and given the speed at which these changes are coming, it’s creating a rift between those that are willing to plunge headlong into the abyss, and those that are still afraid to look over the edge.

While firms like Amazon are leading the charge, more companies are warming up to the idea of the new ways of doing business by embracing the digital chasm, as it were.

According to the findings from the “26th Annual Study of Logistics and Transportation Trends (Masters of Logistics)”,  more companies are beginning to understand that new business models and new competition in the field are changing customer expectations.

“Results from the 2017 study show that roughly 75% of respondents are using the mix strategy (be all things to all people) as the predominant approach for their companies compared to the 51% who we reported utilizing a mix strategy in our 2016 results. However, unlike 2016 where many of these same companies focused on reducing cost as a primary objective, respondents this year were almost equally focused on increasing customer service or reducing costs—31.3% and 30.9%, respectively,” says Logistics Management.

The Structure of Service

A strong structure is becoming even more important than it has been in the past. Part of the focus for this years study is the relationship between strategy and structure. Simply put, if a company’s strategy aligns with its objectives, then the structure of the company will naturally develop in a way that makes those goals achievable. While this seems straightforward enough, there is a surprising gap between strategic focus and organizational structure for many companies.

Companies that reported a cost leadership focus strongly agreed that transportation is strategically important to them

“For example, companies that reported a cost leadership focus strongly agreed that transportation is strategically important to them. However, there is not this same level of strong agreement for elements that would provide the supporting organizational structure, such as working together with transportation service providers to be successful or spending time with those providers to learn more about various aspects of their business,” LM explains.

Companies with a focus on customer service, however, have a strategy that better aligns with a transportation oriented structure. So why would a company that’s focused on customer service have a better transportation network than a company that is more dedicated to a cost leadership strategy? Because in the now digitized world of transportation, both transportation and speed of service are goals that directly align with customer service. This means that by focusing on customer service, a company can naturally set itself up to have a more efficient and successful supply chain.

The Impact of Technology

Cost is, of course, another important aspect of running a successful business. When developing a successful cost strategy, it’s crucial to understand the tradeoffs between cost and service. Sacrificing good service for the sake of cutting costs is just as bad, if not worse, than overpaying for subpar service. Additionally, the speed of service becomes even more important when it comes to the digital economy. Companies as well as their transportation service providers “must be able to quantify the cost/value of increasing service levels.”

“Understanding transportation pricing should rely heavily on data science,” says Tommy Barnes, a sponsor contributor. “Currently, there are a lot of decisions being made without a firm grasp and understanding of how they will affect transportation costs—both in the short-term and long-term.”

While we can certainly agree with that, Barnes also believes that most transportation providers don’t have the necessary technology in place to accurately determine the cost of delivering services to their customers.

“Without that, they can’t accurately convey the value associated with increasing service levels or capabilities, leaving their customers to make decisions on a commodity price basis only,” Barnes said.

Having the “right technology” in place is simply a matter of having the right Transportation Management System (TMS) in place.

Yet having the “right technology” in place is simply a matter of having the right Transportation Management System (TMS) in place. The transportation industry, as a whole, are embracing and utilizing a TMS and even those that don’t, can have access to a world-class TMS for free!

Improving Data Shows the Real Strength of Trucking

There is an interesting correlation between the success of the survey and the data technologies that are utilized as more companies start relying on digitized services. As more manufacturers and companies go digital, the ease of gathering information increases, which allows the survey to get a better feeling for what’s going on in all parts of the industry.

A company must have real-time visibility into the entire lifecycle of their freight—all the way from quote-to-invoice

The report credits this improvement as a direct result of adopting modern automation and visibility tools. “To compete in a digital economy, a company must have real-time visibility into the entire lifecycle of their freight—all the way from quote-to-invoice—in order to manage exceptions, and even prevent errors from happening altogether.”

“The most efficient way to achieve this is through a multimodal, multiservice connectivity platform, a single source that views and analyzes all inventory and transportation positions,” he added.

While new data does reveal a larger portion of the industry, it also highlights some of the troubled areas. Capacity in the LTL sector is beginning to tighten, owing to a lower availability of equipment. Additionally, we’re seeing a growth in turndown rates, which usually bodes ill for the industry.

“All of this is happening at a time when we’re also seeing some interesting changes in the transportation spend by mode. There was a sizeable increase in spend for private fleet/dedicated (23.8% in 2017 versus 20.8% in 2016). This was the largest shift in transportation modal spend YOY. LTL remained essentially unchanged despite healthy rate increases during the past 12 months. Surprisingly, TL showed a 2.1% increase in its share of the transportation budget despite significant pressure to reduce prices as capacity outpaced demand,” says TM.

All of this to say that despite the troubles the trucking industry has been facing, between new regulations, bouncing freight rates, and weak demand, the trucking industry is still going strong. In fact, trucking remains the favorite mode of transportation for the United States.

Embracing the Change

Fortune often favors the bold, and it will be the bold that emerge victorious in the changing market place. For companies who are still taking their first tentative steps to technology and digitization, embracing this new methodology sooner rather than later will pay off in the long run. Fortunately, trailblazing and pioneering isn’t necessary, especially when it comes to strengthening logistics and your supply chain. Find out how BlueGrace can help your company run more efficiently and let us help you take those first steps into the new market landscape.

 

 

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Hurricane Irma – BlueGrace Tampa Update

BlueGrace Post-Irma | We Are Up And Running

It has been a challenging weekend at BlueGrace corporate headquarters in Tampa, Florida. Hurricane Irma came in to our area Sunday night and left a trail of destruction, flooding and power outages, but we were prepared. BlueGrace got right to work, getting all of our cloud based systems transferred to our regional locations in Chicago, Boston, Los Angeles and Richmond.

Yesterday we were able to get our generators online and power restored to most of the office, and the Tampa team started back to work. We did have some obstacles with our systems but as of this morning, Tuesday September 12th, we are fully functional and providing the world class service our customers expect.

We want to thank you all for your patience! Now that we are up and running, we are ready to handle all of your freight and shipping requests.

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Why Heavier Trucks Aren’t the Answer

While the American Trucking Association has been rallying in an attempt to get approval for heavier trucks on the road from Congress, they might not be aiming in the right direction. The obvious standpoint is that heavier trucks would mean better business. As U.S. trucks haul hundreds of billions of dollars across the country annual, a heavy truck would mean more freight can be moved and therefore better profit margins, right?

The trucking slump has nothing to do with the weight of the trucks

But the truth of the matter is that the trucking slump has nothing to do with the weight of the trucks, desired or otherwise, and everything to do with the pricing and the trucking environment as a whole.

A Necessary Change of Perspective

It’s no secret that the U.S. trucking industry is going through a pretty rough patch. The driver shortage alone produces a myriad of problems as trucking companies struggle to retain drivers against new regulations, time spent away from home, and adequate compensation. Even as the industry looks to employ female drivers in what is typically considered a male dominated labor force, filling the gap is proving to be more than difficult.

Driver shortage notwithstanding, the biggest issue that the industry is facing is when it comes to pricing, not the weight allotment 

“Some of the industry’s challenges with achieving adequate profit levels result from overcapacity because of a failure to realize that trucking depends on derived demand for volumes, and that lower freight prices will not stimulate more shipments if the economy is not growing,” says the JOC.

What many carriers aren’t understanding is that price is the one aspect they do have control over. Unfortunately, many of them had fallen into the trap of using a pricing model that was created before many regulations were passed, meaning they’ve had the power to change pricing for the past 30 years but simply failed to do so.

The Turning Point

That’s right. Most trucking companies are using a service pricing system that should have been phased out 30 years ago. Interstate loads were deregulated in 1980 and the same for intrastate loads in 1995. Parcel carrying companies charged based on distance and weight since 1985, leaving some gaps in their plan that didn’t account for oversized packages. During this time there were only five accessorial charges.

Now, 30 years later, parcel companies have shifted over to DIM (dimensional) weight pricing

Now, 30 years later, parcel companies have shifted over to DIM (dimensional) weight pricing. Now, not only can they capture the dimension of all packages they process, but the added charges based on the new pricing structure lead to higher revenue for carriers. Additionally, the accessorial charges have changed from five to 60, which makes up close to 11 percent of the parcel carrier revenue.

Weight Vs. Distance

While the LTL sector has made some changes to incorporate DIM pricing, it’s the FTL sector that is lagging behind. The problem is that the truckload segment is still relying on the distance to create their price point. While load weight does affect variable and fixed costs, the industry has yet to fully incorporate weight into price point generation. Because of this outdated model, shippers with lighter loads can subsidize the heavier loads of other shippers which are hurting the industry as a whole.

Since they’ve begun to incorporate DIM weight pricing, LTL carriers have seen a growth of 3.2 percent per hundredweight for the second quarter of 2017

So what results has the LTL industry seen for their changes? Since they’ve begun to incorporate DIM weight pricing, LTL carriers have seen a growth of 3.2 percent per hundredweight for the second quarter of 2017. This follows the average growth trend of 3.3 percent per year from 2013 to 2016 since the changes have been made.

The FTL sector, however, has seen a nominal growth of 0.5 percent for the second quarter, down from the 1.8 percent over the 2013 to 2016 period. This shows a proof of concept that taking control over the pricing structure can have a much greater impact than bickering over the weight limit.

“As noted, other industry segments have changed business processes and pricing to capture the cost associated with different shipments and value added for various customer groups. Instead of spending resources on uncertainty associated with getting legislative relief for heavier trucks, which will likely create a more negative image with the public, truckload carriers should focus on digging out of the pricing pothole, which is within their control,” the JOC added.

Overall rate costs would be negligible for shippers and manufacturers

While shippers might not necessarily be thrilled at the prospect of higher rates, the overall rate costs would be negligible for shippers and manufacturers. Even a modest 7 percent increase in shipping price would have a negligible increase in production cost, which can easily be passed on to consumers, thus increasing the quality of service and easing the woes of the trucking industry.

 

 

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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.

 

Get A Free Freight Quote with Insurance Today!

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Strong Supply Chains Create Strong Customer Experiences

Regardless of the industry, customer service will always be the cornerstone of a successful business foundation. Ask anyone you know, and they can tell you about a time they received subpar service, and they will always remember the business who delivered it. It’s that little facet of human nature, the ability to recall something that displeased us so vividly, that makes customer service so vital to a company. Yet even knowing that only 27 percent of companies believe that they offer a superior service over their competitors according to research from Gartner.

A significant opportunity for companies to up their game isn’t from the front end, but the back

While customer service representatives play a prominent role in managing customer relations, a significant opportunity for companies to up their game isn’t from the front end, but the back. The supply chain is pivotal in both marketing and customer service, and strong supply chain organization can make a tremendous difference.

“The supply chain organization typically plays a secondary role to marketing in driving customer experience strategy,” according to Lisa Callinan, a research director at Gartner. “Things are changing, however, in forward-thinking organizations, because the supply chain is uniquely placed to identify customers’ needs and drive better customer experiences.”

Connection Between Supply Chain and Customer Service

Of course, many big name companies understand the importance of the supply chain when it comes to driving up customer satisfaction. Apple, Johnson and Johnson, and Toyota are just a few. Amazon is perhaps the reigning champ when it comes to their supply chain and customer satisfaction. “Customers are influenced by their experience of the supply chain — even in the simplest terms, it’s easy to see that a late delivery can disappoint, whereas an expedited delivery can delight,” Callinan added.

Logistics and customer service make up the backbone of customer interaction

Logistics and customer service make up the backbone of customer interaction, yet many companies still haven’t discovered the best way to obtain the maximum value from either aspect.

A Case Study

At BlueGrace we have the privilege of serving a broad range of companies and industries. One company in particular highlights just how important strong supply chain management can be when it comes to customer satisfaction.

In this particular example, we worked with a company that is the leader in lifting and moving equipment rentals for the U.S. and maintains a comprehensive inventory of equipment. However, despite being best in class for customer service, the company began to suffer when rapid growth began to affect their supply chain.

“Within their industry, this company has a well-earned reputation for best in class customer service. However, faced with changes brought on by rapid growth, they 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 them.”

Given the changes and increased volume of demand, the supply chain became disrupted which then created a domino effect. Inventory management costs began to rise while invoicing suffered because the supply chain stuttered. As a result, a company who typically excels in customer service started lacking which hurt the business as a result.

Through our four step transportation management process, the solution left the company in much better standing:

  • Discover – Research and analysis of current processes,
  • Engineer – Build the solution and plan for integration of process improvements,
  • Execute – Implement recommendations/support and finally
  • Perform – Measure, review and ongoing process improvement

Improved return rental cycle time by 7.3 days, reduced pickup information errors by over 95% and sped up invoicing of returned equipment by 80%.

With the solution in place, the company was able to improve their return rental cycle time by 7.3 days, reduce pickup information errors by over 95% and speed up invoicing of returned equipment by 80%. By making these improvements to the supply chain and making the process more efficient the level of customer satisfaction rose significantly.

This goes to show just how truly interconnected the supply chain is with good customer service. Customer service and the supply chain are the building blocks for any good business foundation. Handling them both properly is what separates a good business from a great business.

 

 

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Trucking is Still America’s Favorite Mode of Freight Transportation

The American Trucking Association recently released the latest edition of the ATA American Trucking Trends 2017 which serves as a compilation and benchmark of data for the trucking industry. Interestingly enough, despite the lull in trucking over the past few years, the ATA report shows the trucking industry’s revenues for 2016 to be upwards of $676.2 billion dollars for the year.

ATA report shows the trucking industry’s revenues for 2016 to be upwards of $676.2 billion dollars for the year.

“The information in Trends highlights exactly what I tell elected officials, regulators and key decision-makers every day: trucking is literally the driving force behind our great economy,” said ATA President and CEO Chris Spear. “Safe, reliable and efficient motor carriers enable businesses throughout the supply chain to maintain lean inventories, thereby saving the economy billions of dollars each year.”

Trends don’t just cover revenues either. Just about any data you could want or need about the trucking industry in the U.S. is at your fingertips. Here are some other interesting statistics uncovered by the ATA’s Trends

  • Trucks carried 70.6 percent of all freight moved in the U.S., about 10.42 billion tons.
  • In 2016, there were 33.8 million registered commercial trucks including 3.68 million class 8 trucks.
  • Combined they used 38.8 billion gallons of diesel, 15.5 billion gallons of gasoline and traveled a distance of 450.4 billion miles.
  • U.S. commercial trucks paid $41.3 billion in state and federal highway fees and taxes.

The trucking industry is one of the most resilient in the country

While it might seem like the U.S. trucking industry is on the ropes, the nation still depends on trucks to haul freight and keep the country moving. The Trends report just goes to show that the trucking industry is one of the most resilient in the country and will continue to be so for years to come.

Partner with BlueGrace Logistics

BlueGrace is an award-winning, full-service Third Party Logistics (3PL) provider that helps businesses manage their freight spend through industry leading technology with a large network of established carriers to customers across the country. Sure, lots of firms may claim that, but what really sets us apart is our passion to support your success in this complex $676.2 billion Billion U.S. trucking industry.

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Walmart OTIF Policy – What are the Challenges and Concerns?

Walmart’s new addendum to their Must Arrive By Date (MABD) provision is making some suppliers more than a little nervous. OTIF (On Time In Full) rule will begin to punish suppliers for late deliveries with a 3 percent charge back if they are not made in a timely fashion. While this extension of the MABD fits with Walmart’s ever growing expectations, it could create some significant challenges for the supply chain, particularly when fresh produce is involved as it narrows the delivery window from MABD significantly.

It could create some significant challenges for the supply chain, particularly when fresh produce is involved

While MABD isn’t anything new as other major retailers such as Target and Home Depot have been using the threat of the 3 percent charge back as a means of encouraging more timely deliveries from shippers, OTIF significantly narrows the grace period a shipper would have to make the delivery.  

“Walmart is going to require its suppliers (shippers) to meet a two-day shipping window instead of its previous four-day window, as well as up its required compliance rate from 90 percent to 95 percent,” says Logistics Management.

Tightening Expectations

Under the MABD guidelines, suppliers had a four-day window to ensure that product was delivered to it’s intended destination. Under the OITF policy, that window will narrow significantly, only allowing a one day window for produce and perishables and a two-day window for other general goods. Suppliers will be hit with the 3 percent chargeback penalty if goods arrive late, incomplete, or even early. Additionally, if Walmart decides the supplier is, in any way, responsible for a variance in the delivery, they’ll receive a chargeback, end of story.

Under the OITF policy, that window will narrow significantly.

Good For The Customers But Tough For The Suppliers

Walmart’s plan does make a lot of sense when you consider they are working with JIT (Just in Time) principles. They don’t want excessive inventory sitting in stockrooms or in trailers behind the store, and they expect their suppliers to help make that a reality.

They don’t want excessive inventory sitting in stockrooms or in trailers behind the store

“The impetus for these types of changes over the years, according to Walmart, is part of an effort to ‘streamline its supply chain and cut costs,’ adding that ‘stores are no longer acting as warehouses, with too much inventory in back stock rooms or in trailers behind stores. Walmart wants merchandise to arrive in stores just in time to restock shelves and serve customers,’ ” Logistics Management adds.  

Compliance for shippers and suppliers is a going to be much tougher

While this is a sound decision from the retailer standpoint, compliance for shippers and suppliers is going to be much tougher, especially when you consider the nature of the produce industry.

“We predict in advance when the crop is going to come off, but weather can change that. Are we going to be held accountable for that? That’s going to cause a problem,” says one Walmart produce supplier.

Walmart produce executive, Bruce Peterson of Peterson Insights Inc says “The fresh produce industry is different and there should be ‘at least some degree of tolerance.’ From his more than 20 years of experience as the top produce executive at Walmart, he noted that almost all of the violations of the OTIF policy are at the beginning or the end of a season when weather and timing do play an out-sized role.”

The fresh produce industry is different and there should be ‘at least some degree of tolerance.’

The Blame Game

Obviously, no one wants to take the financial hit for falling out of grounds on compliance. So the question being asked is if there is a violation, who’s at fault, the supplier or the carrier?

Who’s at fault, the supplier or the carrier?

Take a look at the industry wide issue of assessing a fee or a fine on someone involved in the logistics of the supply chain. Holding the supplier of the transportation financially responsible is problematic when factoring in the risk-reward nature of the total transaction.

For example — A supplier could have a load of product with a value of tens of thousands of dollars. A trucker may only be getting $3,000 for the delivery of that load. Assessing the trucker a fee, which could easily be 30 percent of his take, for a delivery out of compliance seems unreasonable.

It doesn’t seem right to punish a good shipper in the off chance that they’ve had a late delivery due to weather or some other unforeseen circumstance. Rather, if there’s a serious problem with the shippers, then it’s time to find a better shipper.

The Solution

Proper lead time is crucial for suppliers and manufacturers that work with larger retailers like Walmart. One way to increase your chances of success is to partner with a third party logistics provider (3PL).

The new OITF mandate is going to have an impact on supplier ratings,

The new OITF mandate is going to have an impact on supplier ratings, so finding a 3PL who is both consistent and reliable is critical for navigating these new changes successfully. A good 3PL partner can examine your supply chain from start to finish and help to strengthen weak spots that might create issues in the future, reducing the chances of chargebacks and other issues that might be caused by OITF.

A good 3PL partner can examine your supply chain from start to finish and help to strengthen weak spots

BlueGrace can work with suppliers on freight consolidation, chargeback auditing, and management as well as load planning and optimization. We look at every aspect of the shipment and find the appropriate fix for the shipments to reach the shelves on time and in-full. Combine this with our proprietary technology BlueShip™ and your chances for success during these mandates/compliance regulation changes will undoubtedly increase!

 

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