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Is Intermodal on the Rise with ELD, Driver Shortage and Tightening Capacity?

A recent Cowen & Co survey discovered that 65 percent of shippers didn’t move their freight from road to rail during the second quarter. This result was also backed by a survey from Morgan Stanley, which had 59 percent of respondents indicating the same. However, while few shippers decide to make the switch, that could be changing this December. Why would shippers decided to hop the rails instead of utilizing trucks? Because of the Electronic Logging Device mandate which will be going into effect at the end of the year.

65 percent of shippers didn’t move their freight from road to rail during the second quarter.

The Reluctance to Shift

While rails are touted as a way to save money, more than a few shippers are reluctant to shift away from using trucks to haul their freight. Ideally, railroads as an intermodal service can offer a lower price at the expense of some speed. When it comes to inbound costs, it can be a way for some shippers to cut down on expenses in order to remain competitive. Or at least, that is the reasoning being sold to them.

Railroads as an intermodal service can offer a lower price at the expense of some speed

According to the Cowen survey, nearly half of the shippers surveyed stated that intermodal options only saved them upwards of five percent. A quarter of the respondents said that truck prices were lower than intermodal options. It’s that tight gap that might be responsible for making the reluctance to shift from road to rail. As there isn’t a huge cost advantage for sacrificing speed, most shippers prefer to stick with trucks as they don’t believe that rail can keep up with the speed of inventory turnover.

They don’t believe that rail can keep up with the speed of inventory turnover

Rails Starting to See Growth

Whatever reservations shippers might hold for rail and intermodal options will soon be falling to the wayside. For shippers that already made the switch, they noted not only better intermodal service but also the tightening of truckload capacity as their main reasons why.

Tightening of truckload capacity is a BIG concern

“Morgan Stanley asked shippers to rank truckload capacity in six months based on a scale where one equals abundant, five is balanced, and 10 is very tight. Shippers put the current market at 6.3 and projected 6.8 in six months. One year ago, the number was 4.9,” according to Transport Topics.

Executives believe that many truckers will leave the industry rather than deal with the ELD mandate

Another factor to consider is the potential spike in truck rates as truckload executives believe that many truckers will leave the industry rather than deal with the ELD mandate. Which, in turn, could cause a modest 3 percent increase in intermodal rates over the next six months due to a rise in demand.

“Overall, we view the results of this survey as positive for the railroads,” says Jason Seidl, a Cowen & Co analyst. “The 3.0% price increase expectation leaves additional breathing room from the all-important 2% rate, which is important because rail-cost inflation typically hovers in that area, and pricing will need to remain above that level in order for the railroads to improve their operating ratios.”

We view the results of this survey as positive for the railroads

The ELD mandate, the tightening of capacity, and the driver shortage could all be contributing factors to shippers taking a more favorable look at intermodal and rail options. In any case, 72 percent of respondents for the Morgan Stanley survey indicated that they would be increasing their rail spending in the next six months. However, in order to close the gap between either mode of pricing to err on the side of rails, there would have to be a serious shift in the trucking industry.

 

 

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Understanding and Managing Your Hazardous Materials Supply Chain (hazmat)

Shipping Hazardous Materials

Any company that ships hazmat knows that every piece of the puzzle needs to be perfect before the freight gets moving. Between surcharges, accessorial fees, packing groups and hazmat classes, every aspect of each shipment needs to be in its place or else someone gets fined.

With the government mandates and regulations so heavily involved in every aspect of the transportation industry, it is imperative for a logistics coordinator or a third-party logistics (3PL) provider to be knowledgeable and current with industry and carrier regulations. Here is where it can get sticky for some providers who may not have excellent carrier relationships.

Our relationship with our carriers is different.

Our relationship with our carriers is different. They are as important to us as our customers, so it is to our benefit to work with them to stay up to date on industry and carrier regulations. We are constantly training our transportation and freight representatives as well as communicating weekly with our ‘Carrier Update’ that goes out to our entire company, not just sales!

How BlueGrace is Different

BlueGrace is different than other 3PLs for several reasons, but one that sticks out above the rest; Business Intelligence and Transparency.

Business Intelligence and Transparency

A massive agriculture chemicals manufacturer in the United States was with another large 3PL when an opportunity came across for BlueGrace to do a consultative review. Upon conducting the review and data engineering screening, this company felt that BlueGrace offered greater transparency and pricing structure than their current provider and ultimately made the switch.

See How BlueGrace Helped an Agriculture Chemicals Manufacturer Realize a Cost Savings of 14% YOY

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Use a Proven 3PL for Your Hazmat

 

 

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Tampa Manufacturing and Logistics – A Perfect Marriage.

Manufacturing in Florida, is the backbone of the state’s economy.

Florida has nearly 18,000 manufacturers in all types of industries ranging from traditional such as plastics and printing to breakthrough technologies like aerospace and medical devices.

Tampa Bay knows a thing or two about manufacturing and economic development, as it is home to 19 corporate headquarters with over $1 billion in annual revenue, eight of which are Fortune 1000 companies.

The depth and diversity the city provides for its economy makes for the perfect marriage of logistics and businesses, especially manufacturers.

Manufacturing Growth Perfect for 3PLs

While the manufacturing businesses in the region are continuing to see a huge amount of growth, the infrastructure that Tampa Bay provides, is allowing modern logistics and Third Party Logistics (3PL) providers to grow and adapt alongside the companies they ship for.

Florida is second in the nation for transportation infrastructure with our ports, airports, rail and roadways.

Logistics and 3PLs providers are always looking for ways to improve these modes to help businesses move raw materials, components and finished products. With these options, logistics and 3PL providers have the ability to provide customized transportation programs that help grow local manufacturing.

E-Commerce Puts Pressure on Logistics

Both regionally and nationally based manufacturers are seeing a demand to keep up with e-commerce giants like Amazon, which means that their logistics provider needs to stay one step ahead to provide efficient and cost effective transportation management. Much like consumers, big box retailers and mom and pop shops now demand the product to be on their shelves at a quicker pace. This “just-in-time” mentality is what puts a strain on manufacturers who rely on an in-house transportation department. Business intelligence and carrier advocacy are critical to these companies in order to keep up with the changing market.

The Value of Business Intelligence

Of all the resources that a logistics or 3PL providers delivers to its customers, the most underrated yet most valuable is business intelligence. A 3PL has the ability to take a company’s current freight data and see where opportunities are being missed, find ways to shave costs and offer an efficient transportation program that ultimately mirrors their business model and will push for more growth.

This valuable data, when run through the right engineering platforms, can help decide the best modes, which carriers to use and even help pinpoint where the best location for a new distribution center would be, based solely on past data and performance.

By partnering with logistics or 3PL providers that have access to multiple modes of transportation, large carrier networks and the ability to review current freight data, solutions can be provided that better fit the company’s business model. Manufacturers can adjust rapidly to the increased supply chain demands, without expensive increases to the head count of their transportation department.

Job Opportunities for the Future Generations

While the logistics and 3PL providers continue the push to deliver customized and adaptable transportation programs for manufacturers, the state of Florida is also striving to increase job opportunities to fulfill logistics and distribution demands. Currently the logistics and transportation industry employs more than half a million Floridians. 85,500 of these employees are working at companies that specifically provide logistics and distribution services. The future is also bright as Florida has ten public high school career academies offering training in Global Logistics and Supply Chain Technology.

Optimization and Forward Thinking Manufacturers

Today’s technology and service that a logistics or 3PL providers utilizes, paired with a forward thinking manufacturer looking to optimize their supply chain, will prove to be a successful marriage for growth. This growth is what will help bring even more success and jobs to Florida for both the manufacturing and logistics sectors.

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

 

Quick, Fast and In a Hurry

You can bet that manufacturers pay 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 June 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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BlueGrace Logistics – Why We are Attending SAPPHIRENOW 2017

 

Why BlueGrace Logistics is Attending SAPPHIRE NOW

At BlueGrace we have a firm belief that we can make EVERY business better and have proven this again and again by providing transportation management services for companies in all types of industries.

A single provider for your freight that is more of a partner than a vendor.

No matter what the industry, we look to become your outsourced transportation department. A single provider for your freight that is more of a partner than a vendor.

What Services Do We Provide

A few of the services we provide are:

  • Specialized reporting, business intelligence, customer engineering, and analytics
  • Dedicated operations, project management, and customer service support
  • SAP/ERP integration
  • TMS solutions
  • Freight Bill Pay and Audit
  • Claims Management
  • Freight Cost Allocation, GL-Coding, and Customized Invoicing
  • Indirect Cost Avoidance Measures

Let’s Talk More At The Show

We look forward to discussing your freight needs while at SAP. If you stop by our booth (#1053) or we stop by yours, here are a few things we would like to discuss:

  • Why did you decide to visit SAP – SAPPHIRE NOW & ASUG Conference?
  • Based on your business model, would any BlueGrace customers benefit from your services?
  • Can you or your vendors benefit from any of our services?
  • What all do you have planned for the conference and what do you want to take away from the show?

BlueGrace Logistics is excited to be a part of this massive show! Please add us to your agenda while you’re here and we look forward to this year’s show!

Free Case Study

SAP & Transportation Integration in Consumer Electronics

In the case of a world-wide consumer electronics manufacturer that was already lined up with a shipping platform through an SAP partner, BlueGrace provided a more cost effective and efficient approach to their supply chain.

We immediately identified carrier routing opportunities

While this manufacturer was already integrated with the SAP partner, their shipping process was a bit antiquated. Our transition and on-boarding process with them provided a modernized solution to preparing data and exposing inefficiencies within their supply chain. We immediately identified carrier routing opportunities that would have gone unnoticed and this ultimately resulted in a significant cost savings and reduction in transit time.

This ultimately resulted in a significant cost savings and reduction in transit time.

READ MORE about our partnership with this Consumer Electronics Manufacturer in the case study below.

SAP & Transportation Integration In The Consumer Electronics Industry

 

 

 

 

 

 

 

 

 

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Is Florida’s Growing Season on the Rocks?

 

Produce Season in Florida

Produce season is certainly a profitable time for a lot of states, Florida in particular. With 9.4 million acres spread across 47,300 farms as of 2015, when it comes to produce, Florida is one of the biggest growers of fruit and vegetables in the United States. In addition to sheer volume of oranges and fresh tomatoes that Florida grows annually, there are a number of other crops being produced including grapefruit and sugar cane, both of which account for more than half of the total U.S. value.

When it comes to produce, Florida is one of the biggest growers of fruit and vegetables in the United States.

While most of the crops grown in Florida are exported to the U.S. East coast, some of the biggest competition for the Sunshine state doesn’t come from the U.S but Mexico. What Florida exports to the East Coast, Mexico predominantly covers for the West Coast and then some. However, with President Trumps hard line stance against Mexico, how will this affect trade between the two?

What Florida exports to the East Coast, Mexico predominantly covers for the West Coast and then some.

Florida Agriculture Wants its Voice to be Heard

According to the Florida Department of Agriculture and Consumer Services, the specialty crop industry has been working with them to come up with ideas to dilute the “Mexican Dumping” of produce.

Florida agricultural representatives were visiting lawmakers offices throughout the month of February

So How will Trump Help?

Part of the rallying cry for Trump’s campaign was to bring back manufacturing jobs to the United States. Part of the plan to do so was to impose a 20% trade tariff on goods and produce coming in from Mexico. While it sounds like an intimidating move, it’s more or less just posturing at this point as Trump doesn’t have the authority to make such a change to an already existing trade agreement, only Congress can do that.

Part of the rallying cry for Trump’s campaign was to bring back manufacturing jobs to the United States.

However, assuming that Trump somehow managed to wiggle around that, it’s highly unlikely that the additional cost wouldn’t simply be passed onto the U.S. consumer instead. So, while it might seem like Mexico would be paying for the border wall, it would really come down to the U.S. consumer in the end.

Florida Vs. NAFTA

While the President can’t directly affect a preexisting trade agreement, it’s certainly no secret that NAFTA hasn’t done Florida growers any favors. Given the lower cost of production and access to a longer growing season, Mexico can “dump” produce into the U.S, over stocking the market and driving down Florida’s profitability.

It’s certainly no secret that NAFTA hasn’t done Florida growers any favors

“In the years immediately after NAFTA’s passage, U.S. trade officials failed to fulfill promises and commitments that were made to secure Florida’s support for the trade pact. Safeguards and remedies that were supposed to protect Florida’s specialty crop industry clearly did not work,” according to an article from Growing Produce. “That’s why the grower community is hopeful over President Trump’s announced intention to renegotiate the North American Free Trade Agreement (NAFTA). They see it as an opportunity to right the wrong dealt to the industry when the treaty was negotiated in the early 1990s. The ordeal of Florida farmers since the pact was signed illustrates how poorly crafted trade agreements can hurt an industry.”

U.S. trade officials failed to fulfill promises and commitments that were made to secure Florida’s support for the trade pact.

 

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The Evolution of Shopping: Capitalizing on Omnichannel Retailing

 

There are many aspects of our daily lives that we tend to take for granted, at least when you compare it from it’s origins to where we are now. Communication, for example, has come a long way when you look at the evolution of the telephone to the cellular marvels that are housed in just about every pocket around the world. Shopping is another necessary aspect of daily life that has evolved considerably from its origins. Retailers need to understand these changes that are happening now, are going to be crucial if they want to stay in business.

Shopping is another necessary aspect of daily life

Disruption Breeds Change

Shopping is equal parts necessity and leisure activity for today’s population. We go to the store to buy the things we need for daily life such as consumable items and domestic goods. But there’s also the aspect of bargain hunting which thrills some consumers to no end. In either instances, there have been some considerable disruptions throughout the history of commercialism that have changed the scope and shape of the game. These disruptions, according to the Harvard Business Review, take place about every 50 years or so.

Shopping is equal parts necessity and leisure activity for American population

“A century and a half ago, the growth of big cities and the rise of railroad networks made possible the modern department store. Mass-produced automobiles came along 50 years later, and soon shopping malls lined with specialty retailers were dotting the newly forming suburbs and challenging the city-based department stores. The 1960s and 1970s saw the spread of discount chains—Walmart, Kmart, and the like—and, soon after, big-box “category killers” such as Circuit City and Home Depot, all of them undermining or transforming the old-style mall. Each wave of change doesn’t eliminate what came before it, but it reshapes the landscape and redefines consumer expectations, often beyond recognition. Retailers relying on earlier formats either adapt or die out as the new ones pull volume from their stores and make the remaining volume less profitable.”

Omnichannel Shopping, is going to pose a considerable change for brick-and-mortar retailers

The newest disruption, Omnichannel Shopping, is going to pose a considerable change for brick-and-mortar retailers, one that will facilitate the need to adapt or step out of the game entirely.

The Best of Both Worlds: Capitalizing on Omnichannel Retailing

As with just about any industry, when new technology comes into play, you either adapt and succeed or you fail. However, understanding the bridge between having a physical store and an online presence, isn’t impossible. It’s about putting customer service at the forefront. While online sales are great, especially when there are customers who don’t live within easy travel distance to the actual store, brick and mortar stores are still very important. This is especially true when you consider the fact that Amazon, which started exclusively as an e-commerce business, is now building physical locations for their shoppers. Why would Amazon want a brick-and-mortar storefront when their customers can literally shop for just about anything from the comfort of their own homes with a few simple clicks? It’s easy, shopping in store gets shoppers to buy more.

Amazon, which started exclusively as an e-commerce business is now building physical locations for their shoppers

Impulse buys and tactile shopping (the ability to touch and feel things like clothes) actually generate higher sales than shopping online does. A customer can feel the item, take in the sensations of the display and try it out for themselves, rather than trying to guess at it from a screen. This is one reason why retail stores need to keep their physical presence up before delving into the digital realm.

Transportation and Logistics can be a Big Opportunity for E-Commerce

While physical retailers will have to look into making digital investments, digital retailers are gearing up to make logistics investments. Given the rate of growth for online sales, expedited logistics and transportation is a fast growing industry. Consumers want to be able to order their goods and either have them delivered same or next day, or have the option to pick it up at the closest store. In order to make that happen, there needs to be a fairly substantial increase in the flexibility of transportation and logistics. The standards for a company’s supply chain are no longer about just getting goods from A to B. It’s more like A to Z12  and then the logistic support necessary for omnichannel retailers becomes infinitely more complex.

There needs to be a fairly substantial increase in the flexibility of transportation and logistics

Getting the infrastructure in place to make these deliveries in a timely manner will pay dividends for e-commerce companies, an opportunity that many aren’t willing to pass up.

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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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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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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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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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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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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.

bluegrace-eld-infographic

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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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How Expedited Freight Can Influence Purchasing Decisions

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Steve Daniels: Account Executive at BlueGrace Logistics

Expedited Shipping Options & the MABD

In a previous blog post we detailed how BlueGrace Logistics was able to resolve a long standing Must Arrive By Date (MADB) dilemma that was negatively impacting a health and beauty products company whose business model was increasingly moving towards “big box” retailers.

While big box retailers mandate MABDs to ensure their shelves are always stocked with products consumers want, many companies who sell products out of their own brick and mortar stores or through online eCommerce sites, are often losing potential customers and revenue by not offering expedited shipping options to customers who have their own Must Arrive By Dates in mind for purchases.

Fast Growing Automotive Industry

In 2015, the US automotive industry had a record 5.7% increase in sales growth over 2014. With this increase in sales comes additional demand for parts, to service these newly bought vehicles.

Many dealerships and local service shops find themselves having to order parts from manufacturers outside of their local areas to complete repairs and get vehicles back on the road as quickly as possible. The price of an item is just one factor consumers consider when deciding where to order an item from. Others, such as those in the automotive industry, are increasingly basing their purchase decisions on how quickly they can get a product delivered.

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

Expedited LTL Transit

The transit of a standard LTL shipment is typically estimated as the shipment being picked up and 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. Depending on the size of a shipment there are multiple expedited shipping options available for freight sized orders.

By cutting out the cross-docking in LTL shipments, expedited services are able to cover a lot more ground or air, in a much shorter time than a standard LTL carrier could.

Cargo Vans and Air Freight

Cargo vans and air freight can be utilized for shipments that would ordinarily take up a few pallet space on a LTL truck, and 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.

30 Minute Guaranteed Price And Capacity

BlueGrace can easily handle any expedited freight shipment request. With a network of over 1,100 carriers and 10,000 pieces of equipment available we can meet demanding pick-up and delivery times on weekends, nights and holidays, including 2 day cross country service. BlueGrace is also one of the few providers that is able to offer guaranteed pricing and availability within 30 minutes of your request.

GPS Tracking Of Your Freight

We also offer GPS Tracking of your expedited shipment. This data is updated every 2 hours for 1 Day Point shipments, every 4 hours for 2+ Day point shipments. Either way your Expedited Freight is tracked for visibility and security.

For any questions, please contact your BlueGrace Logistics Rep today! If your request is after 5PM EST or weekends, please email expedite@mybluegrace.com

 

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How We Reduced Freight Costs by 14% for Healthy Living Company

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A company that specializes in healthy, protein rich treats was able to see a 14% reduction in a transportation costs by partnering with BlueGrace Logistics. This organization was growing at a rapid speed which lead to a long list of transportation issues that needed to be alleviated and managed more efficiently.

Opportunities For Cost Savings

Their transportation problems range from costly carrier invoices and freight re-classing to no carrier management and lack of warehouse space to hold orders. We saw several opportunities to cut their costs and improve their bottom line. Our first order of business was to break down their issues into sections and tackle them one at a time…

Does your Health & Wellness organization ship product to retail? If so, this Case Study will reveal how BlueGrace is able to transform your current transportation program for maximum cost savings.

New BlueGrace Heathy Living Product Case Study - 14% Reduction In Costs
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5 Things to Consider When Selecting a TMS

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A Transportation Management System (TMS) can offer huge benefits for manufacturers, distribution companies, and anyone who ships freight. The benefits go way beyond lowering the cost of shipping freight by helping to reduce costs throughout the entire transportation process.

Transportation Management Systems help companies move freight from origin to destination efficiently, reliably, and cost effectively. A TMS serves as the logistics hub for route planning, load optimization, freight audit and payment, order visibility, carrier management and much more.

But is every TMS the same?

Not every TMS is the same. Here is what you need to know before selecting a TMS for your business.

1. Upfront costs can be high

In most cases, your business will need to budget accordingly and prepare for a costly bill. At BlueGrace Logistics we offer our TMS to our customers as part of our business partnership package. Having a powerful and user-friendly TMS is a benefit to both our customers and to our staff.

2. It takes time

A full implementation and integration for a TMS can take several months and there will have to be upgrades every few months to ensure efficiency. It is true that integrating a TMS with other systems can take time, but at BlueGrace our in-house IT team works directly with yours to integrate almost any ERP system into our BlueShip product.

3. IT Staff

Will your IT staff be able to integrate the software into your ERP system? If you find that your staff will not be able to handle the work load for implementations and upgrades, you can partner with our IT staff at BlueGrace Logistics; we can help manage the upgrades and integrations.

4. Ongoing Management

Who will be using the system and how many people do you have on staff dedicated to transportation that would be logging into the system on a daily basis? We would recommend having a specialist dedicated to this system that is able to provide direct reports to your organization. Your team at BlueGrace will also be available to work closely with your team daily to answer questions, correct issues and instruct them how to maximize the system.

5. Key Performance Indicators (KPIs)

You will need to decide what exactly you will be using the TMS software for. Will your freight bills be invoiced into the TMS via EDI’s or API’s from freight carriers? Will the system manage accruals and freight cost allocation? If you answered yes, these variables would need multiple licenses and different departments working in the software during the implementation and attribute to the ongoing success of the software.

This all becomes before transportation procurement, negotiating with carriers, getting the carriers to EDI tracking, and invoicing into your TMS. Your new team at BlueGrace will discuss all these options before any integration takes place. We will work together to determine what KPIs matter most and report on them so we both know which KPIs are being hit and which may be a miss.

This whole process can be and will be overwhelming to most.

Partnering with a transportation management provider that has the dedicated resources as far as IT, transportation procurement, dedicated support, project management, finance, and operations is often a better option.

So, do the hard and soft costs outweigh the benefit of implementing a TMS software platform for your business exclusively?

Take the time to discuss with BlueGrace your needs before you shop for a new TMS. You will find that we offer all of the tools of a standard TMS. We combine that with the ability to integrate the TMS, monitor KPIs, handle disputes and provide customer support for all your shipments.

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Electronic Logging Devices:  Making time more valuable

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There has been much speculation on the upcoming electronic logging device (ELD) mandate that is to be implemented in December 2017.  The discussion often heard is not about the benefit to safety even though that was how it was sold to Congress.  The American Trucking Association (ATA) lobbied the Federal Motor Carrier Safety Administration (FMCSA) for ELDs based on the promise of safer highways.

However, compliance enforcement and keeping everyone on a level playing field is most likely the goal of the ATA.

That is understandable as smaller companies and independent truckers have not voluntarily embraced ELDs and subsequently can move freight farther and faster.  But that is about to change in December 2017.

Pending Lawsuit to Stop ELDs

Before we predict the future of trucking and develop a course of action for shippers and logisticians alike, it would be clumsy to not mention the lawsuit that is standing in the way of implementation.  The Owner Operator Independent Drivers Association (OOIDA) filed a lawsuit that can be read about here and should be decided by the end of 2016.  OOIDA’s legal team has a history of challenging FMCSA overreach and winning – so stay tuned.  OOIDA’s president recommended to members that they wait on the court decision before they purchase an ELD.

The Law of Supply and Demand

Now, assuming the ELD implementation goes into effect next December, there will be an immediate demand for more trucks as the supply will be reduced.  How is the number of trucks reduced you wonder?  There will still be the same amount of trucks on the road the day after ELD implementation as the day before.

But the amount of hours available to wait on the shipper, receiver and drive will be strictly enforced.  There will be no more favors of putting in a few extra hours to get the load delivered a day early.

Some service times between a shipper and receiver may increase by an entire day if they were already borderline before mandatory ELDs.  Paper log books are easily manipulated and some shippers and 3PLs have standardized the faster service times by expecting everyone to do it.  A conversation with a 3PL agent sometimes sounds like this:  “You can’t get this shipment 800 miles to destination next day?  My other carriers do it all the time.”

Loading and Unloading Times Should Improve

The detention of trucks at shippers or consignees will have to improve.  Either the load/unload times will be expedited or heavy detention rates will be charged in order to compensate for the lost driving time.  Remember, every minute that a truck driver is on-duty will be more valuable because it will be precisely measured and regulated by ELDs.

In the past, some trucking companies have looked the other way as the dock delays cut into driving time.

Now, with strict compliance to hours of service regulations around the corner, trucking companies will no longer look the other way in order to save business, but will look to levy detention fees to shippers and receivers who unnecessarily borrow valuable driving time from a trucking company.

 

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