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What Happens If Freight Economy Rises?

 

A market that is already beleaguered by a significant shortage in workforce is seeing a disturbing trend in the form of an uptick in turnover rates.

“The slight uptick in turnover, despite weak freight volumes in the first quarter, may be indicative of a tightening in the driver market,” said ATA Chief Economist Bob Costello. “The situation bears watching because if the freight economy picks up significantly, turnover will surely accelerate – as will concerns about the driver shortage.”

Turnover will surely accelerate – as will concerns about the driver shortage

Within the first few months of 2017, the annualized rate of turnover for large TL (truckload) fleets, rose three percent, up to 74 percent. While it’s somewhat heartening to know that this is still down 15 points from what it was last year, a 74 percent turnover rate is nothing to be ignored. For small TL fleets, the increase was a bit smaller, two points, bringing the turnover rate to 66 percent.

Fixing a Growing Problem

When you consider the importance of trucking to the United States, the shortage in drivers is becoming a serious issue. Add in the fact that a large portion of the active drivers on the road are just about at retirement age and you have a full-blown crisis for the industry.

The shortage in drivers is becoming a serious issue.

So what is being done to fix or, at the very least, soften the blow of the driver shortage? Well, for starters, many trucking companies are taking steps to recruit more women into what is typically considered a predominately male industry. Anything from offering better maternity leaves to other incentives. At this point, anything that can draw in more personnel and drivers is considered a win.

Many trucking companies are taking steps to recruit more women

‘The American Trucking Associations, declared in a recent report that the industry needs to add almost 1 million new drivers by 2024 to replace retired drivers and keep up with demand. Some companies have added 401(k) and tuition reimbursement programs. Others have hired “female driver liaisons” and started support groups called “Highway Diamonds,” said Ellen Voie, president of the Women in Trucking Association,’ in a quote taken from the Washington Post.

The industry needs to add almost 1 million new drivers by 2024 to replace retired drivers and keep up with demand.

“In 2015, her organization created a Girl Scout badge to teach girls that trucking isn’t just for men,”  WP added.

Women in Trucking

Carriers are really pushing for more female drivers, according to Voie. “They’re facing the retirement issue, yes, but they also know that women tend to be more risk averse, which is extremely important.”

The drive for more women drivers is starting to pay off, however, there was a slight increase in female drivers over the course of the past year, rising from 6 to 7 percent.

There was a slight increase in female drivers over the course of the past year

Even as we see some slight improvements, it’s almost impossible to believe that one of the most predominate fields of employment in the United States might be on the verge of extinction, or at the very least is in danger of heading that way.

Is the Trucker the Only One at Risk?

A recent post from Bloomberg has a rather interesting interactive chart that shows whether or not your job might disappear in the future. For the trucking industry, it’s not just the drivers who might be dusting off their resume, but even shipping clerks and freight agents might soon be out of a job as the industry continues to change and evolve through new technology.

Even shipping clerks and freight agents might soon be out of a job

Most of what the chart predicts is that low skill, low paying jobs, will eventually be phased out by computerization and automation. For example, Shipping, Receiving and Traffic clerks have a 98% probability of having their position becoming computerized in the future. However, as we’ve learned from history, the evolutionary path of technology isn’t always the easiest to predict. While it’s true some jobs might become obsolete, there are a number of jobs that will simply become augmented with technology, still maintaining the need for the human element.

 

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What is Volume LTL Shipping?

Businesses who ship product and carriers looking to maximize business revenue have come to embrace Volume LTL shipping.

The simplest explanation is volume LTL provides many of the benefits of truck load (TL) or partial TL with the cost savings associated with less than truckload (LTL). It’s a win-win for everyone.

 It’s a win-win for everyone.

A Quick Definition: A shipment greater than 5,000 lbs, 6 pallets or more and taking up 12 to 32 linear feet of trailer space qualifies as Volume LTL. Although sometimes referred to as partial truckload, volume LTL has distinct size requirements and does need product crated or on pallets, not a requirement for partial TL shipments. If the shipment will take up 20% or more of the trailer, volume LTL may be the way to go.

Volume LTL has distinct size requirements and does need product crated or on pallets

Why Customers Like It?

With Volume LTL, a business only pays the going rate for the space the freight uses and the total weight of the shipment along the shipping lane. This generally results in a lower cost to ship. Plus, shipments get out the door faster, usually same day and there’s a lot less risk of damage for freight. (Freight goes from dock to dock much like partial or full TL, not getting off-loaded at different terminals like standard LTL shipments.)

A business only pays the going rate for the space the freight uses and the total weight of the shipment

Why Shippers Like it?

Shipping companies get more business, more quickly. The daily demand for volume shipping continues to grow as companies look to reduce shipping costs by shipping greater volumes. Shippers do not need to turn down requests for those not-quite-partial TLs. Plus, volume LTL increases the loads on all runs – no more driving empty trucks home, making every trip profitable.

The daily demand for volume shipping continues to grow

Does Volume LTL Replace standard LTL Freight?

Not at all. Volume LTL makes sense for a lot of companies who need to ship products; and for many asset-based carriers looking to expand their business. Standard LTL freight offered by common carriers will continue to meet the needs of businesses in terms of costs, shipment size (5 pallets and smaller) and speed of getting product out the door each and every day.

Volume LTL makes sense for a lot of companies who need to ship products

A Real Win-Win!

Volume LTL allows companies to quickly ship larger volumes of product at lower costs. Win!
It allows shipping companies, especially asset-based carriers, to increase the profitability of every run; plus, it expands market exposure for greater revenues. Win! And both groups benefit from faster agreements (Click. Book. Ship.) and quicker pickups.

This means companies get their product delivered more quickly and shipping companies keep the revenue flowing!

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Do you have the right TMS for your business?

 

Transportation Management Systems on the Rise

Whether you’re shipping domestically or internationally, keeping everything running smoothly can be a big job to say the least. It requires a careful orchestration of a potentially vast number of moving parts. The smoother these parts operate in conjunction with one another, the better your operation will be. For that reason, transportation management is essential for domestic and global shippers.

Transportation management is essential for domestic and global shippers.

If we consider the way things have been done in the past in comparison to the new technological advancements that are being developed at an ever-increasing pace, the old school, manual system just isn’t going to cut it any more. Phone calls, faxes, emails, and spreadsheets might have been enough to keep a trucking company running a few decades ago, but now companies who can’t keep pace with the time and technology, will run the risk of being outmoded and left behind.

Companies who can’t keep pace with the time and technology, will run the risk of being outmoded and left behind.

Advancements in Technology

Transportation management technology has come quite some way from what it once was. The myriad of options available for both shippers and 3PLs to choose from for planning and executing systems is massive compared to that of the past. Not only are there more options to choose from, but the speed, cost, and modes that these management systems can be obtained, implemented, and used have also improved.

American Shipper TMS Benchmark

Transportation management systems (TMS) will vary from company to company, depending on what the shippers needs are. A recent benchmark report from American shipper highlights some of the key developments in TMS, including how shippers see the market, the technology they currently use, how they connect with other carriers, and how new transportation technology interacts with the inventory variance created by omnichannel marketing. In short, the nature of shipping and transportation is changing, and shippers will need a different approach to adapt to this market evolution.

When you consider that omnichannel retailing is on the rise, this will make things more difficult for trucking companies as it will require increased flexibility in their supply chain. In fact, only 20 percent of shippers and 30 percent of 3PLs feel that their TMS system can support an omnichannel strategy.

Only 20 percent of shippers and 30 percent of 3PLs feel that their TMS system can support an omnichannel strategy.

The report also highlighted some of the challenges involved with TMS. One of the biggest challenges, according to the respondents revolves around connectivity to outside partners and compatibility with other systems. While having a good TMS is useful, it doesn’t make too much of a difference if it’s only capable of working “in house.”

A Growing Need for TMS

Another startling discovery made by the report is that 40 percent of the respondents aren’t using a TMS or a 3PL to manage their logistics. However, given the coming shift in the market, there is a considerable uptick, 55 percent, in the amount of trucking companies who are beginning to utilize management systems when compared to last year. This is becoming increasingly important as trucking companies begin to shift gears for omnichannel demands which require higher data volumes and increased workload for transportation departments.

40 percent of the study’s respondents, aren’t using a TMS or a 3PL to manage their logistics.

An Industry Leading TMS Is Available For Free

While it’s encouraging to see that the number of companies who are open to using a TMS is on the rise, it’s still worrisome that there are many who don’t. TMS systems are not only improving in ease and speed of implementation, but the cost is also dropping. In fact, there’s even a free transportation management system that’s available to shippers. That’s right, free.

Whether you’re a one-time shipper or ship 7-days a week, the cost is zero to you!

Our proprietary transportation management system, BlueShip, is free! Whether you’re a one-time shipper or ship 7-days a week, the cost is zero to you! Whereas other 3PLs charge anywhere from $3-10K for the use of their TMS. Our system is cloud based, which offers ease of implementation and utilization from system to system and partner to partner. We’re always fine-tuning our system to offer you the best in both reporting and live tracking.

BlueShip Is Free For All BlueGrace Customers

 

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The Future of Same Day Delivery

 

A study commissioned by Intel has given us a glimpse into the economic impact of automated vehicles in the future. The report estimates that by 2050, automated vehicles and the self-driving market will add 7 trillion dollars annually, to the global economy.

By 2050, automated vehicles and the self-driving market will add 7 trillion dollars annually

“With interest from both seasoned and startup automakers, the autonomous vehicle (AV) market is expected to grow exponentially in the coming decades. A new study conducted by research firm Strategy Analytics and commissioned by Intel predicts that driverless vehicles will constitute a $7 trillion economic value by 2050, with $4 trillion from consumer use and another $3 trillion from business use,” says a recent article from Futurism.

The growth of automated vehicles will take place gradually

Futurism goes on to say that such a massive change won’t just happen overnight. The growth of automated vehicles will take place gradually, reaching upwards of $800 billion by 2035.

Trucking Takes the Lion’s Share

While the possibilities for self-driving vehicles are nearly endless, it will be the trucking industry that will see the highest rate of utilization. It’s estimated that the driver shortage rate will continue to climb in both the U.K. as well as the U.S. to a combined total of 300,000 drivers. Many trucking companies will be looking to automated vehicles as a possible solution to the industry-wide talent shortage.

The driver shortage rate will continue to climb in both the U.K. as well as the U.S.

“Transportation companies in many major international markets report that they expect significant shortages over the next several decades for long-haul drivers due to an aging workforce and the lack of qualified new applicants.” In the U.K., the Road Haulage Association estimates that it was short 60,000 lorry drivers in 2016 and that will grow to 100,000 in 2017.

In the U.S., the ATA projects that by 2025, the trucking industry will face an acute shortage of over 200,000 qualified drivers.

Trucking associations in Australia, Canada, Germany, and the United Kingdom all project that aging workforces and lack of new qualified applicants will intensify driver shortages in these countries in the next 10 to 15 years.

Japan Automobile Manufacturers Association projects that driver shortages will intensify over the next five to 10 years. Driver shortages are intensifying in Brazil and South Africa.  In India, 10 percent of the national truck fleet is currently unused because of a lack of drivers. The [cumulative] shortfall will lead to the need for 17 million more drivers over the next decade,” according to the study conducted by Strategy Analytics.

Driver shortages will intensify over the next five to 10 years.

Additionally, there’s also the consideration that brick and mortar stores are falling to the wayside. As more consumers turn to the internet for their shopping needs, the need for a more adaptive logistics is also on the rise. Retailers gone e-tailers will have to find more efficient means to deliver goods directly to customers making automated vehicles less of luxury and more of necessity.

The Realization of Same Day Delivery

Amazon continues to push the envelope for delivery speeds with the ultimate goal of achieving same day deliveries. Driverless vehicles, specially customized for LTL and parcel carrier services, will operate out of a fixed distribution center allowing them to carry high-volume, high-frequency items that are regularly ordered by consumers. Working within the fixed range of a DC has the possibility to shorten the average delivery time to just a few minutes.

Carry high-volume, high-frequency items that are regularly ordered by consumers

If we combine this localized supply chain with other venues such as drone delivery, same day delivery for a wider array of parcels, packages, and general consumer goods become a reality. Factor in that automated vehicles and drones won’t be subjected to the same HoS regulations as a human driver, shipping companies can see a higher level of efficiency through extended service hours at a much lower cost.

Shipping companies can see a higher level of efficiency through extended service hours at a much lower cost.

Of course, as the demand for automated vehicles continues to rise, there will also be a rise in the concern over displaced drivers. However, while it might seem like drivers would be phased out entirely with automated vehicles, there will still be a need for human involvement. This is what Strategy Analytics has to say about driver displacement:

“Drivers in these industries are likely to be displaced in significant numbers. However, it will also create opportunities for transportation companies to utilize the “freed” time of drivers to evolve and enhance their role and impact to the organization.

Drivers will become customer service professionals who can sell and market services and related goods and offerings

“In high-touch and high-turnover routes, drivers will become customer service professionals who can sell and market services and related goods and offerings. Drivers will also transition to become supply chain experts by extending inventory management and order processing. What is clear is that proactive transportation companies should explore these opportunities and plan for the re-training and balancing of their workforces.”

 

 

 

 

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Amazon’s Logistics Just Got A Whole (Foods) Lot Bigger

As companies go, there are few that have the prowess to grow and advance quite like Amazon. With a unique talent for turning a company-based product into a full-fledged service for customers, i.e. Amazon Cloud; the e-commerce giant continues to make a colossal shadow for other companies to try and follow. So what’s the newest thing to peek out of Amazon’s growing bag of tricks? How about buying out the organic grocery chain: Whole Foods.

An Eating of Words

Looking back through history, there have been a number of times where a CEO of a company simply brushed off their competition. A recent article from Stratechery has an amusing little anecdote to highlight just such an occasion.

“Back in 2006, when the iPhone was a mere rumor, Palm CEO Ed Colligan was asked if he was worried: ‘We’ve learned and struggled for a few years here figuring out how to make a decent phone,’ he said. ‘PC guys are not going to just figure this out. They’re not going to just walk in.’ What if Steve Jobs’ company did bring an iPod phone to market? Well, it would probably use WiFi technology and could be distributed through the Apple stores and not the carriers like Verizon or Cingular, Colligan theorized.”

Oddly enough, the CEO of Whole Foods, John Mackey, said something very similar pertaining to Amazon’s ability to fine tune their logistics capabilities to groceries only two years ago. So what changed that has now put the entirety of Whole Foods under Amazon’s control?

It’s because they misunderstood their competitions motives and goals.

The Evolution of Amazon

When Amazon first started back in 1997, their mission statement was simple: “Amazon.com’s objective is to be the leading online retailer of information-based products and services, with an initial focus on books.”

Which then grew into:

“Our vision is to be earth’s most customer centric-company; to build a place where people can come to find and discover anything they might want to buy online.”

While their initial mission statement seemed rather unambitious, what their current goal is now is certainly a lot grander. So what does that have to do with them buying Whole Foods, other than it gives them another product to offer online? Simple. A chance, to flex their logistics muscles.

Amazon Brand Logistics

Given the massive size and scope of Amazon’s delivery radius, it only makes sense that they would develop a logistics network. After all, that’s pretty much how their cloud computing service started, as an in-house function which eventually became sophisticated enough to market out to their competitors. While having a logistics network is all well and good, being able to deliver groceries and other perishables in a timely manner is something entirely different. Fortunately, Amazon’s logistics capabilities have grown to the point that they are now ranked the second largest logistics company in the world. Not only do they have the assets in place to handle groceries, but with Whole Foods under their wing, Amazon has set the stage to be the household provider of… well… everything.

Amazon has set the stage to be the household provider of… well… everything.

The Whole Foods Overlay

So how effectively can Amazon get into grocery logistics? Books and home goods don’t have an expiration date the way that groceries do, so making the switch seems like a colossal undertaking, right? Well, not exactly. The truth behind the trick is that Amazon isn’t necessarily buying a food retail outlet, but rather they have purchased their very own best customer. In much the same way that Amazon built their web service as “in house” Amazon Fresh will be similar. Turning their logistics structure into supplying Whole Foods will create the architecture necessary to branch out into other markets including restaurants.

Amazon has purchased their very own best customer

“In the long run, physical grocery stores will be only one of the Amazon Grocery Services’ customers: obviously a home delivery service will be another, and it will be far more efficient than a company like Instacart trying to layer on top of Whole Foods’ current integrated model,” says Ben Thompson from Stratechery.

“I suspect Amazon’s ambitions stretch further, though: Amazon Grocery Services will be well-placed to start supplying restaurants too, gaining Amazon access to another big cut of economic activity. It is the AWS model, which is to say it is the Amazon model, but like AWS, the key to profitability is having a first-and-best customer able to utilize the massive investment necessary to build the service out in the first place,” he added.

At the end of the day, we have to realize that Amazon is simply a service provider.

At the end of the day, we have to realize that Amazon is simply a service provider. Even their grocery services are simply another service offering that is built on and therefore protected by the scale of it. Purchasing Whole Foods has given Amazon a wide enough landing pad to pull off grocery chain logistics because of the size of their primary customer.

Grocery Chain Logistics

Are you a company that ships products to grocery chains? Do you find yourself with costly carrier invoices or freight reclassification? BlueGrace recently partnered with a company that specializes in creating healthy, protein-rich treats and was having these exact issues, and many more.

After partnering with BlueGrace, they saw a 14% reduction in transportation costs, an annual savings of $225,000

We saw several opportunities to cut their costs and improve their bottom line. Find out how this company was able to find over 14% reduction in transportation costs, an annual savings of $225,000, when they allowed BlueGrace to optimize their supply chain.

 

How a Grocery shipper saw a 14% reduction in transportation costs

 

 

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Filling the Gap: Ways to Improve the Shortage of Truck Drivers

 

With the median age for truck drivers pushing retirement and a severe shortage of drivers, to begin with, the U.S. Department of Transportation is putting forth two proposals. According to a recent press release from the Federal Motor Carrier Safety Administration, these proposals will make it easier for qualified applicants to earn their commercial driver’s license.

The first proposal is simple.

Any qualified veterans or active duty personnel can have the knowledge test waived. This allows veterans and returning soldiers to have an easier time finding work as truck drivers and bus operators and will make it easier for them to transition into civilian life.

This allows veterans and returning soldiers to have an easier time finding work

The second proposal calls for simplifying the process.

Simplifying the process to obtain a CDL will not only make it easier for drivers to find work but will also lower costs for both state driver’s licensing agencies as well for the applicant.

Simplifying the process to obtain a CDL

“Taken together, these two proposals will help ease the entry for thousands of qualified individuals into career opportunities as professional truck and bus drivers – a critical occupation facing an acute labor shortage in our country,” said FMCSA Deputy Administrator Daphne Jefferson. “We could eliminate unnecessary burdens to both the applicants and the states, save time, reduce costs and, most importantly, ensure that states only issue commercial driver’s licenses to well-trained, highly qualified individuals.”

Earn a Learner’s Permit

Under the new proposal, states can issue a CDL learner’s permit, with a one-year expiration date, which goes beyond the current six-month limitation. The added time cuts down on excessive costs and paperwork incurred by DOT agencies. It also eliminates re-testing and other additional fees accrued from renewals.

It also eliminates re-testing and other additional fees

“At the core of both proposals is the safety of the motoring public. We will continue to demand that commercial truck and bus drivers, and their employers, adhere to the safety standards that exist to protect all drivers,” Jefferson added.

A Much Needed Boost

With truck driving being one of the most preeminent professions in the United States, having such a severe shortage of drivers has put a serious hurting on the trucking industry. With 75 percent of all freight in the United States is being transported and delivered via trucks, anything that can fill the hole in personnel will come as a boon to the industry.

Having such a severe shortage of drivers has put a serious hurting on the trucking industry

Will Self-Driving Trucks Eliminate the Need for Drivers?

There is another consideration for the trucking industry. Concern for the future of truck drivers has been growing as the technology continues to develop. Many are worried that as self-driving trucks take to the roads, there will be no need for drivers. With 1 percent of the total labor force in the United States is being made up of truck drivers, phasing all drivers out of the picture would result in unemployment rates rising. However, there are many who believe that this alarmist prediction is a bit premature. In fact, with the disruptive technology coming to bare, there’s a lot of new potentials out there for the future.

There are many who believe that this alarmist prediction is a bit premature

“When the personal computer came out in the ’80s, people freaked out over that. It created new jobs, new industries, and it redefined certain jobs,” says Cathy Morrow Roberson, head analyst for Logistics Trends and Insights in an article from Trucks.com. “I think the same thing is going to happen with the trucking industry. I think it’s going to get sexy enough for the younger generation to want to get involved.”

Without a doubt, there is a significant change coming to the trucking industry. However, as with almost every disruptive breakthrough, the changes will unlock new potentials for the industry, strengthening it as a whole.

 

 

 

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Do You Have The Right Technology To Dissect Big Data?

 

For what was once a stagnant industry for best practices, the freight industry is now being bombarded with new disruptive technology on a near constant basis. Dealing with one issue means that another takes its place. Begin to understand and utilize new technology, and it becomes quickly outmoded, or there’s another system to learn. Even the roster of companies is constantly changing, old players, leaving and new ones rushing in to fill the void.

Dealing with one issue means that another takes its place.

With such a constant back and forth, it would be all too easy to simply stick to what you know and call it a day, especially from a technological perspective. However, those old ways, comfortable though they may be, are a road to ruin. Companies who embrace innovation and new technology will part ways with companies that rely on “traditional” methods.

Additionally, these “pioneering spirits” for the industry are providing new options for customers that simply can’t be matched by the old school. The industry is evolving, which means shippers and carriers need to be on board or be left behind.

The Keys to the Data Stream

Big data is a term that gets thrown around a lot, especially now with the changes in industry technology. Now more than ever, the supply chain can provide more data and insight into the process than ever before. More ways of tracking data can show where weak points are within the supply chain. Whether it be driver, loading or unloading, traffic issues, road conditions or damaged shipments, everything is being monitored for efficiency. Whenever a change in address comes in from head office, it can be pushed to the driver or captain in real-time. The system automatically calculates and optimizes the ideal and cheapest new routing to the new destination.

More ways of tracking data can show where weak points are within the process

Part of adapting to the changes that are happening within the transportation industry is to know which data is useful and which data isn’t. While collecting data is all well and good, there is such a thing as too much data (TMD), which can be overwhelming when trying to decipher it all.

Which data is useful and which data isn’t.

“Collecting too much data is a problem, because it forces a company to spend valuable resources gathering and understanding data, much of which is likely to not be impactful from a bottom line or service level perspective. It also creates a secondary problem that’s just as harmful—the valuable data can be lost in the avalanche of meaningless information,” according to American Shipper.

Having the Right System in Place

So what can you do to protect yourself from data overload? Well, it’s all about having the right system in place to make sure you’re collecting only the data that you’ll need and weeding out all the rest. Having access to the right data at the right time can prevent problems before they start and, more often than not, many of the issues for transportation come from poor planning.

It’s all about having the right system in place

One of the most instrumental uses for new technology is a transportation management system (TMS) which can give companies an edge when planning their logistics. Not only does this allow for a better insight into customer experiences and needs, but it also provides the necessary information to correct an issue before it becomes a more serious problem. Additionally, a good TMS can also help bridge the gap between shippers and carriers, saving both time and money when it comes to transportation.

American Shipper recently released a report about combating the volatility of transportation and part of their suggestion is the use of TMS.

“Shippers are realizing daily that transportation management systems (TMSs) are both more necessary and more affordable than ever before. Even the simplest of transportation networks could benefit from optimization and automation of data entry functions. But these TMSs are also becoming more hyper-reliant on outside sources of data to reach their peak usefulness. So a shipper can’t just simply plug a TMS in and let the magic happen. It has to actively feed that TMS with useful, forward-looking, and reliable data.”

All of this to say that armed with the right data and a strong TMS, a shipper can take their business much further.

BlueGrace Proprietary TMS – BlueShip®

The easiest way to get started utilizing your valuable shipping data is with a full featured TMS, such as BlueShip. BlueGrace’s proprietary technology is designed to put the power of easy supply chain management and optimization back in your hands. BlueShip® offers cutting-edge tools for strong reliability and quick performance. Our customers are especially impressed with the user experience, which is completely customizable and has real-time updates, giving them a single source tool for tracking, addressing, and product listing.

BlueShip Is Free For All BlueGrace Customers

 

 

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Automated Trucking is Poised to Play Huge Roll in Transportation Industry

Navigating the Transition to Driverless Trucking

Automated trucking is poised to play a huge roll in the transportation industry. Overall, the implications of driverless trucks have near limitless potential. Without the margin of human error, autonomous trucks are safer and more efficient. Working in tandem for one another, driverless trucks can capitalize on fuel efficiency while working around the clock bringing in more deliveries at a fraction of the labor cost.

Driverless trucks can capitalize on fuel efficiency while working around the clock

However, while the end goal of automated trucking in the freight industry has some incredible possibilities, it’s the transition to this point that has more than a few people worried. Given that driverless vehicles is something of a precedent, there’s a lot of obstacles to overcome before the idea becomes a reality.

The Un(der)employed 

Job loss is a very large possibility with automated trucking. As truck drivers make up 1% of the total U.S. labor force, the volume of displaced workers will be severe. Mitigating the job loss and the potential impact of unemployment rates will be a key element to the transition to automated trucking.

Truck drivers make up 1% of the total U.S. labor force

More often than not, whenever there is a potential for massive job displacement, the words to follow are “There are other jobs to be had.”  While this is true for some industries, it might not necessarily hold true for truck drivers. These, according to the International Transportation Forum’s report on the matter, are the possible obstacles to this “conventional wisdom.”

“The conventional argument is that displaced workers in any given industry will find alternative employment through the expansion of activity in new and existing industries. However, there are several reasons described below as to why this argument may not provide comfort for truck drivers and others in the high-automation scenarios.” 

  • The high costs associated with losing a job
  • The risk that this time is different, i.e. that a low employment future is possible, at least temporarily, because automation may occur in many sectors of the economy
  • The emerging economic context means that job losses may result in higher social costs than previously.

The cost of losing a job alone represents one of the biggest issues, both on a financial and physical scale. Displaced workers, on average, take a 20% drop in annual wages. Additionally, being displaced from a job is often a trigger for both anxiety and depression according to the ITF report.

The cost of losing a job alone represents one of the biggest issues

“The mental and physical impacts of job loss are estimated to have a greater combined impact on well-being than the financial costs from lost income. Helliwell and Huang (2014) estimate that such non-financial factors decrease the average person’s well-being two to seven times more than the does their lost income from losing their job.”

Infrastructure Challenges

In addition to the unemployment costs of automated trucking, there is some considerable concern about the infrastructure that will be required to support automated freight transportation.

“The infrastructure requirements for full automation of driving functions are not yet clear-cut (section “Towards driverless road freight”). The need for 5G mobile internet connectivity between vehicles along the full corridor is not yet certain. Further, specific applications such as platooning and remote control centre operations are also likely to have additional infrastructure requirements. For instance, platooning may require longer motorway entry and exit ramps than are currently in place (Janssen et al., 2015).”

A possible solution to this obstacle would be to roll out test corridors to slowly integrate autonomous trucks, which would significantly lower the upfront costs. However, as the technology grows in both sophistication and popularity, the overall costs will be both substantial and unmitigatable.

The Foreseeable Future

As it stands, the technology, policies, and regulations are not in place to fully support automated freight hauling. However, in the not-so-distant future, these questions and obstacles will need to be addressed in order for these driverless trucks to take the road. As with most disruptive technologies, it will be the transitional period that will be the hardest to accommodate.

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Adapting to the Growing Requirements of a Fast-Paced Supply Chain

 

With the constant fluctuations in the global market, the freight industry is changing. With new technology, shipping demands, and changes in global policies, freight forwarders will also have to change to keep the pace. Logistics Trends and Insights has released their 2017 survey on the Evolution of the Freight Forwarder, which asked respondents how the freight forwarder is changing.

With the constant fluctuations in the global market, the freight industry is changing

“Indeed, the market is not only undergoing a redefinition, but it also has literally been caught in the middle of global, political and economic changes. Shifts in political thought favoring protectionism or populism, along with continued concerns within the ocean and air freight markets, have led many forwarders to seek acquisitions, new services, and new geographies in order to stay afloat. While gross revenues and volumes for many forwarders grew in the past year or so, they came at a price with lower profits and in some cases, a financial loss,” the report says.

What obstacles will forwarders have to overcome?

As the market continues to shift, what obstacles will forwarders have to overcome to keep pace with the changes within the freight industry?

Critical Pain Points for Forwarders

The major obstacles for forwarders according to the respondents, can be broken down into four categories. Tight margins make up the bulk of forwarders woes with 42 percent marking that as their primary concern. Rates and uncertain global environment are almost tied at 23 and 22 percent respectively. The remaining 13 percent lists capacity as their top concern, something which has been troubling the industry as a whole over the past few years.

Changing Customer Expectations

Of course, it isn’t just the market that is changing, but also the expectations of customers. The average consumer wants their products sooner and at a lower cost. To adapt, shippers need to push their supply chain in a new direction which means that forwarders have to be able to respond in kind. So what are customer expectations for a freight forwarder?

Shippers need to push their supply chain in a new direction

“Forwarders are indeed facing many challenges, but we must not forget the value they bring to the table. A new question for this year, we asked, “What do customers value most from a forwarder?” The majority of respondents, 33.7%, indicated trade expertise.

Visibility of cargo movements and ease and timeliness in booking freight

We found this interesting as it seems to play into the evolving definition of a forwarder as a facilitator, value-adder and a consultant. However, 45% of the responses were split among low rates, visibility of cargo movements and ease and timeliness in booking freight while 21.3% indicated additional thoughts including all of these choices, credibility, communication, and control, analysis, development of supply chain solutions.”

Changing Transportation

Another aspect of changing expectations from customers is that they want more ways to move their freight. As such, forwarders have to be able to provide multiple modes of transportation that best suit the customer’s needs. As a result, forwarders are seeing some changes in revenues based on modes of transportation.

Forwarders are seeing some changes in revenues based on modes of transportation.

Air transport is one of the biggest growing sectors of market gain shares for forwarders at 42.3 percent of the responses. Given the uncertainty of ocean shipping, it doesn’t come as much of a surprise that ocean freight has been on the decline for forwarders. Rail and trucking haven’t changed all that much. However, there has been a slight increase in rail use with 33 percent of responses indicating growth while only 14 percent have marked down that it was in decline.

Opportunities For Growth

Of course, the object of any successful business is to differentiate themselves from the competition. Niche markets are one strategy that some forwarders are going with, catering to specific needs of their customers, other forwarders might not be able to offer. However, 44.3 percent of the respondents said that their differentiation strategy would be to invest in new technology.

The object of any successful business is to differentiate themselves from the competition

“Indeed, technology is playing a major role in forwarders’ evolution. DB Schenker’s investment in UShip, DHL’s launch of its online freight marketplace CILLOX and even FedEx’s introduction of FedEx Fulfillment are all redefining the way items are fulfilled, booked and shipped.”

There is also the growing need for e-commerce fulfillment which will provide many opportunities for forwarders to attain desired growth in both fulfillment as well as cross-border services.

Overall, the need for freight forwarders will only continue to grow

Overall, the need for freight forwarders will only continue to grow, especially if they can continue to adapt to the growing requirements of a faster-paced supply chain as well as providing the necessary flexibility required for e-commerce fulfillment.

To request your copy of the white-paper, click here.

 

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The Real Threat for the Trucking Industry has Nothing to do with the ELD

 

 

The electronic logging mandate (ELD) has been something of a sore subject for the trucking industry as many companies worry about it cutting into their efficiency and, subsequently, profit margins. However, the real threat for the trucking industry has nothing to do with the ELD, but rather the growth of e-commerce.

Changing the Game: Amazon

Amazon has a gift when it comes for shaking up expectations. Same day delivery or even one to two hour deliveries for groceries in select cities is giving trucking companies a run for their money, quite literally in some cases. As the expectations for consumers shift towards instant delivery and omni channel shopping, trucking companies that lose sight of what’s really going on are risking being knocked out the game by e-commerce companies.

Last year alone, e-commerce sales reached $394.9 billion, a 15% growth from 2015.

Last year alone, e-commerce sales reached $394.9 billion, a 15% growth from 2015. The 2016 e-commerce sales volume accounted for 8.1% of all U.S. retail sales and is continuing to grow. As for Amazon, the e-commerce giant underwent a huge growth spurt, up to 27% in sales volume, netting a cool $2.4 billion in profit, well above the 2015 figure of $594 million.

Amazon is outpacing most trucking companies and completely reshaping the market landscape in their image.

This is, in part, due to the fact that Amazon carries just about any product a consumer could ever want, which makes for convenient one stop shopping. With their growing logistics and delivery capabilities, Amazon is outpacing most trucking companies and completely reshaping the market landscape in their image.

Hot on the Heels

Amazon and Wal-Mart are usually the frontline runners when it comes to e-commerce sales and headlines, but they aren’t the only ones in the game. Many brick and mortar stores are starting to tap into the potential of e-commerce and omni-channel sales in order to stay viable. Best Buy, for example, made some considerable investments to their online sales, increased their e-commerce volume by 17.5% which then boosted their online sales by 21% according to the Motley Fool.  Other companies such as Macy’s and Home Depot are also starting to boost their e-commerce capabilities, offering their customers new ways to shop and more convenient ways to pick up their goods.

Many brick and mortar stores are starting to tap into the potential of e-commerce and omni-channel sales.

Trucking in Trouble

If a disruptive change is a good thing for an industry, e-commerce is presenting a destructive change for the trucking industry. Consider Amazon’s unparalleled purchasing power, while the increase in e-commerce sales might seem like a good thing for the trucking, Amazon is able to pursue a low-cost model for trucking.

E-commerce is presenting a destructive change for the trucking industry

“First, core carriers and dedicated carriers appear to be used by Amazon only in cases where brokers cannot find cheaper capacity in the open market,” said John Larkin, managing director and head of transportation capital markets research for Stifel Capital Markets. “This is a new, less attractive version of what core carriers and dedicated fleets traditionally represented [and] we have heard that several carriers have backed away from this customer for this reason.”

“[The truckload market] is still tough; excess capacity continues to exist, prolonging a very competitive pricing environment,” Larkin adds. “Trucking companies are still having trouble finding drivers and, to boot, poor weather is troubling the first quarter,” according to a recent post from FleetOwner.

The logistics industry as a whole is undergoing a considerable culture shock.

With the rapid growth and development of e-commerce sales, the logistics industry as a whole is undergoing a considerable culture shock. The tried and true method is rapidly vanishing as consumers demand faster deliveries from more locations. Distribution and warehousing centers are being to slow down and many are closing their doors for good. Unless the trucking industry is able to find a way to cope with these new changes, in addition to the hurdles they already have to clear, there could be a cataclysmic upheaval in the way we look at logistics.

 

 

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Last Mile Becoming the Front Line for Logistics

The growing strength of e-commerce has been putting a serious pressure on the transportation industry. As customer expectations are rapidly shifting towards the instant gratification of same day delivery, long haul trucking is shrinking by comparison. While some trucking companies are struggling to keep the pace with the changing market, others are shifting gears and switching their tactics. The game is changing for carriers and forwarders. It’s no longer about the journey but instead it’s all about the final mile.

It’s no longer about the journey but instead it’s all about the final mile.

So what exactly is the “last mile?” It’s pretty much just what it sounds like. Last mile deliveries are when the package makes the final leg of its journey straight to the customer’s preferred location. The caveat is that customer’s preferred location and item of choice are changing constantly. One day a customer might have a new keyboard delivered to their office, while the next day they might have some new workout equipment delivered to their home. In either instance, logistics providers, carriers, and freight forwarders need to find ways to get the package where it needs to go in the shortest amount of time possible.

Logistics providers, carriers, and freight forwarders need to find ways to get the package where it needs to go in the shortest amount of time possible.

The Short Stop Over the Long Haul

As the demands of e-commerce and last mile deliveries continue to grow, the trucking industry is at the precipice of change. The old way of distributing goods across the country by smaller fleets is fading.  Instead of simply bringing goods to a DC or warehouse, trucking companies are starting to favor the short haul, multi-stop nature of last mile deliveries in response to the growing need of e-commerce companies. The industry is growing rapidly. According to the Census Bureau  US E-Commerce Sales as Percent of Retail Sales is at a current level of 8.50%, up from 8.20% last quarter.

Instead of simply bringing goods to a DC or warehouse, trucking companies are starting to favor the short haul, multi-stop nature of last mile

Amazon alone is shaping up to control over 50% of the e-commerce market by 2021, with cause the demand for last mile deliveries to continue to grow exponentially. By switching modes of deliveries traditional long-haul companies are able to capture more of the e-commerce market share and for those that are perfecting their system, it’s making an incredible difference.

An Imperfect System

While last mile deliveries are certainly in vogue, they still leave something to be desired in terms of efficiency. For starters, the last mile isn’t something that has a set route or pattern. Instead, it’s constantly shifting and changing. While a package might be going to the same place, it could be coming from a different location, which can drastically alter the delivery time. Additionally, because the last mile of delivery is constantly changing, that also means that rates can vary rather drastically. This can create some difficulties when it comes to negotiations between both shippers and carriers alike.

Because the last mile of delivery is constantly changing, that also means that rates can vary rather drastically.

As if that wasn’t enough, there are other challenges that surround last mile deliveries. If a customer isn’t available at home to sign for a package, it could add to a backlog of deliveries. Package theft can increase shrink for shippers while lowering reliability ratings of carriers. Urban congestion and traffic can also cause some serious delays, making it that much harder to meet customer and consumer expectations alike. 

Alternative Methods of Delivery

While there are still some issues to work out, many delivery companies are working on finding alternative methods for completing the last mile. Drones have been in the headlines for quite some time as a viable means of delivering packages and Amazon has been getting closer to their goal of a drone delivery fleet.  Interestingly enough, the e-commerce giant has been taking a keen interest to geese of late. To better calibrate their drone systems to avoid collisions and other incidents, Amazon has been studying geese as a “non collaborative” control object or, simply put, something else to train their drones to avoid.

Amazon has been studying geese as a “non collaborative” control object or, simply put, something else to train their drones to avoid.

Aside from the drones, ground based delivery bots are also in the works, allowing deliveries to be made directly to a customer’s home via an autonomous system. These delivery bots are capable of navigating through residential areas via crosswalks and sidewalks. With deliveries made directly to a customer’s door step, it can expedite the last mile delivery process without necessarily cranking up the labor time.

However, there are other means of making the last mile that don’t rely on expensive assets like drones or delivery bots. Crowdsourcing apps are giving people looking to make a little extra money the chance to moonlight as a package handler.

“In 2015, venture capital investments in supply chain and logistics start-ups was more than four times higher than in 2014 ($1.2 billion versus $388 million),” said Andre Pharand, Andre Pharand, Accenture’s global management consulting lead for the postal and parcel industry. “Venture capital dollars invested in the same space in the first quarter of 2016 alone was $1.75 billion.Companies like UberRUSH for parcels, Postmates, Deliv and even Amazon Flex provide spot-market deliveries by independent drivers. The companies post delivery jobs on their apps to alert drivers to available gigs,” according to Supply Chain Dive.

Legacy Trucking Companies Beware

Legacy trucking companies who still think that e-commerce isn’t something to be concerned about are going to be in for a rude awakening. E-commerce is only continuing to grow and many brick and mortar are looking into omni-channel options in order to stay viable. Failing to adapt to this considerable disruption of the logistics industry will lead to considerable hardships in the future. Last mile deliveries are becoming the frontrunner for logistics focus as e-commerce continues to grow.

E-commerce is only continuing to grow and many brick and mortar are looking into omni-channel options

 

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What Can We Expect for the IoT for 2017 and Beyond?

The IoT of 2017

The Internet of Things, an interconnected program that is supposed to provide unparalleled data for shippers and carriers, has certainly been a hot topic for the logistics industry. With 2016 well and truly in the past, it’s time to start looking forward to what 2017 will hold for this burgeoning system. What new changes can we expect? How do these expectations compare to what we thought the system could do for us in the past? With a new partnership between Intel’s logistics platform and Honeywell’s hardware and cloud services, the IoT is beginning to really take shape.

What new changes can we expect?

The Partnership

The newly formed partnership, announced last Thursday, will marry Intel’s connected Logistics platform to Honeywell’s Connected Freight Solution. Data gathered by this new system will allow shippers to track products from start to finish. However, this system ranges far beyond the simple tracking capabilities of a truck or pallet. Users will be able to track a number of different variables including: temperature, shock, vibration, tilt, humidity, pressure, and exposure to light. If freight gets damaged during transit, a shipper will be able to know when, where, and how it happened. That alone can prove invaluable when it comes to preparing damage audits and projecting yearly PNLs.

Data gathered by this new system will allow shippers to track products from start to finish.

With data being tracked by a number of low cost sensors, part of the Intel/Honeywell package, users will have access not only to data on demand, but data that is pre-drilled down to useful data points that a company can act on.

Past Predictions for the IoT

While there have always been high hopes for the IoT, the expectations for it’s potential have changed throughout the past few years.

“Several years ago the market for connected products and services was promising eye popping growth numbers of up to 100 billion units. Today, a majority of forecasts show a more tampered 20 billion or 30 billion units (while a few others say we are saying we are still severely underestimating size of impact),” according to an article from Postscapes regarding IoT market forecasts.

Cyber security is also expected to become a boom market

What’s interesting to note from this article is that while the IoT is expected to grow by leaps and bounds, it’s not a standalone technology. Included in these forecasts is also expectations for sensor technology, cloud computing, and cellular capabilities will also continue to grow and expand. Cyber security is also expected to become a boom market as the sensitivity of data continues to rise.

On the Rise for 2017

So what can we expect for the IoT for 2017 and points beyond? Forbes has quite a few predictions that are worth considering. For starters, this year is going to see a lot of shake ups as new companies trying to get in on the game either make the cut, or get swallowed up by larger, more stable companies. As the IoT is now past proof-of-concept, there will soon be regulations and standardization to contend with as well. These regulations won’t be static either, as the technology continues to grow and evolve so will the standards being applied to them. As the IoT continues to grow and take shape, companies will need to embrace the new technology swiftly or fall behind the competition as supply chains and logistics fully enter into the digital realm.

Companies will need to embrace the new technology swiftly or fall behind the competition

 

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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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The Next Generation Supply Chain

 

The demands of today’s marketplace are shifting, growing, and evolving more rapidly than ever. Shippers have increasing expectations of carriers and their supply chain as a whole, requiring not only increased efficiency, but also flexibility and adaptability to respond to the events and obstacles that regularly occur in the ever shifting marketplace.

Shippers have increasing expectations of carriers and their supply chain as a whole

The next generation model of the supply chain is the combination of adopting automation and infusing it with digital technology for enhanced performance. While these new technologies are creating flourishes in innovation and creating opportunities to cut costs along the supply chain, it is also driving the rate of change, creating both disruption and pressure to remain competitive.

These new technologies are creating flourishes in innovation and creating opportunities

MHI has just released it’s 2017 Annual Industry Report which had 1,100 respondents from both supply chain leaders and manufacturers alike.  The focus of this report is to identify which technologies will have the most transformative potential on the future of the supply chain.

The Top Nine Technologies according to the MHI report are:

  • Cloud Computing and Storage
  • Robotics and Automation
  • Sensors and Automatic Identification
  • Predictive Analytics
  • Wearable and Mobile Technology
  • 3D Printing
  • Driverless Vehicles and Drones
  • Inventory and Network Optimization Tools
  • Internet of Things (IoT)

The Role of Big Data

Without a doubt, one of the largest focal points of new technology is data, whether it be the ability to access large amounts of data or to pinpoint certain factors that can affect the supply chain. The Internet of Things (IoT) was among the top five of the nine transformative technologies. While a number various technologies are essential to the collection and utilization of this data, the overall culmination from the IoT is becoming the lynchpin in technology growth. While 24% of the respondents currently use the IoT, 55% have plans to adopt it in the near future and within the next two years growing to 92% by 2023.

The Internet of Things (IoT) was among the top five of the nine transformative technologies

“On Demand” and “Always On” Supply Chain Models

In addition to the emergence of new technology, the industry is also looking at a different way of perceiving the supply chain. Service on demand, for example, is reflective of customers being more comfortable with technology and online transactions. Additionally, this spurs the increasing demands that customers are placing on businesses in terms of shorter service cycles, lower costs, increased transparency, as well as corporate responsibility. Even logistical feats such as next day delivery are losing their lustre as customers are now looking for an even shorter turnaround time. The only way to maintain such fluidity and flexibility in the supply chain will be by embracing new technology.

The only way to maintain such fluidity and flexibility in the supply chain will be by embracing new technology.

If the on-demand supply chain model wasn’t enough, those same growing expectations for customer service and quick turnaround are establishing the need for a supply chain to be “always on.” Order confirmations, updates, tracking information, order fulfillment, and proof of delivery are just a few of the expectations that are now being placed on shippers and carriers alike. In order to meet these requirements the supply chain must be efficient, transparent and, for lack of a better word, flawless. To that end, the concept of the ‘always-on’ supply chain can run around the clock in order to keep ahead of the daily challenges that face any supply network.

Robotics to Lead the Charge 

While data and information are important to predictive and reactive supply chain models alike, robotics will be setting the pace for the rest of the industry according to the report. The industry is currently looking at a 37% adoption rate for automation and robotics. However, that figure is expected to grow to 54% over the next two years, up to 71% within the next five years. Given that the cost of robotics is dropping while the implementation is getting easier, the rise in industry adoption rates is understandable. As menial and repetitive tasks are being doled out to the robotic workforce, human employees are given the flexibility to implement operational changes that allow a business to become more efficient while simultaneously cutting down costs on redundant labor.

The industry is currently looking at a 37% adoption rate for automation and robotics

As the technology continues to change and evolve at a rapid pace it will be up to logistics decision makers to keep ahead of the curve and stay competitive. While different manufacturers, shippers, and carriers each have an opinion as to which of the emerging technologies will be the most vital, it will undoubtedly be a combination of all of them that will provide the key to success.

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Drones – Why You Want Them In Your Supply Chain.

 

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

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

New Technology Makes Drones more Effective

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

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

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

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

What Drones Could Mean for Your Supply Chain

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

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

Companies Look into Fielding Drones

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

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

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

Proactive vs. Reactive

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

 

 

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SAP & Transportation Integration in Consumer Electronics

SAP provides unprecedented scalability as an Enterprise Resource Planning (ERP) for any business. SAP means quick access to all important components of your business with the data to back it up. Many businesses tend to miss out on valuable data for what can be a major component in their transportation and logistics programs.

We have already done the hard part.

Integration is Seamless

Integrating all your shipping and freight into SAP may seem complex and time consuming but when you partner with ERP-IS and BlueGrace Logistics, you will find the transition is absolute. We have already done the hard part.

It makes for an almost “Plug-n-Play” integration

The fact that ERP-IS and BlueGrace have already spent the time and money to seamlessly integrate our systems, it makes for an almost “Plug-n-Play” integration into a customer’s SAP environment. The partnership gives the CIO, CFO, and the executive suite, the information, data, and business intelligence reports they need to make their business more profitable.

Customization for Every Partner

Every SAP customer has their own level of customization, but it is nothing that our dedicated BlueGrace Engineers haven’t seen before.  Integration within a customer’s SAP environment requires only a bit of cooperation from their IT and Transportation personnel.

Every SAP customer has their own level of customization

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 onboarding 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 signifcant cost savings and reduction in transit time.

This ultimately resulted in a signifcant 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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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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BlueGrace Logistics – Why We Are Attending ConExpo 2017

This week, the transportation management team from BlueGrace will be exhibiting at the Con-Expo show in Booth #B9500 in the Bronze Lot at Con-Expo in Las Vegas, Nevada. The big question is “What is a Logistics company doing at a tradeshow for construction companies?” At BlueGrace we have a firm belief that we can make EVERY business better and have proved this again and again by providing transportation management services for companies in all types of industries. 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.

BlueGrace will be exhibiting at the Con-Expo show in Booth #B9500 in the Bronze Lot at Con-Expo in Las Vegas Nevada

What Services Do We Provide

A few of the services we provide to the construction industry are:

  • Specialized reporting, business intelligence, customer engineering, and analytics
  • Dedicated operations, project management, and customer service support
  • 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 the freight needs of the construction industry while at Con-Expo. If you stop by our booth or we stop by yours, here are a few things we would like to discuss:

  • Why did you decide to visit Con-Expo?
  • 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 week and what do you want to take away from the show?

BlueGrace is excited to be a part of this massive show that only happens once, every 3 years! Please add us to your agenda for the week and we look forward to this week’s show!

Download one of our construction industry case studies below

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

 

Learn how BlueGrace helped this replacement parts provider keep transportation spend below 7% of their total budget.

The Logistics Behind the Construction Equipment Replacement Parts

 

Reverse logistics can be a challenge for even the most seasoned transportation team. Read how BlueGrace helped them integrate and simplify.

BlueGrace Reverse Logistics In The Construction Industry Case Study

 

 

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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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