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CSA Report Card: Room for Improvement

Compliance, Safety & Accountability

While the Compliance, Safety, Accountability (CSA) scoring mandate is meant to improve carrier performance and safety for trucks on the road by providing a scoring metric, it wasn’t without its blind spots. A recently released report from the National Academies of Science, Engineering, and Medicine (NAS) shows that the CSA scoring method has some pretty glaring flaws when it comes to the Safety Measurement System (SMS) which can lead to an unfair scoring for a company.

CSA scoring method has some pretty glaring flaws

The main issues brought up by the NAS report include “some BASICs lack correlation with crash risk, data insufficiency, use of relative rankings, use of non-fault or non-preventable crashes, state variations in inspections and violations, lack of consistency in violation coding, a lack of transparency of the SMS algorithm and the public availability of SMS rankings,” according to GloStone.

The DOT will need to make the SMS metrics more fair and accurate

A point to note from the NAS report is that they believe the premise behind the SMS is fairly solid; it’s the FMCSA’s execution of the program that leaves something to be desired. The DOT will need to make the SMS metrics more fair and accurate when it comes to assessing actual safety risk.

Recommendations for the SMS

Again, the idea of the SMS is sound, the main problem is when it comes to the execution of the SMS. “The Safety Measurement System is used to identify commercial motor vehicle carriers at high risk for future crashes. It’s the heart of the Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability enforcement regime, known as CSA. After numerous criticisms of the methodology from the industry, Congress called for the review of SMS as part of the Fixing America’s Surface Transportation (FAST) Act of 2015,” according to TruckingInfo.

Congress called for the review of SMS as part of the Fixing America’s Surface Transportation (FAST) Act of 2015

The current SMS metric fails to take into account some variables that play a bigger role in safety practices. Some of these faulty measurements include:

  • Using highly variable assessments
  • Not accounting for crashes where the motor carrier is not at fault
  • Including carriers that have very different tasks in the same peer groups
  • Using measures that are sensitive to effects from one or more individual states
  • Using measures that are not predictive of a carrier’s future crash frequency
  • Using measures that are not reflective of a carrier’s efforts to improve its safety performance over time.

Statistically Principled Approach

It’s easy to see that these oversights can lead to some bigger issues down the road. For that reason, the NAS study suggests that the current system takes a “more statistically principled approach” when it comes to collecting data. The NAS report recommends using latent trait theory or an “item response theory” (IRT) model. The IRT is the same approach used by hospitals for safety and performance rankings and helps to shape policy decisions.

“We have found, for the most part, that the current SMS implementation is defensible as being fair and not overtly biased against various types of carriers, to the extent that data on MCMIS can be used for this purpose,” said the National Academies panel.

SMS implementation is defensible as being fair and not overtly biased against various types of carriers

“However, we believe some features of SMS implementation can be improved upon, and some of the details of the implementation are ad hoc and not fully supported by empirical studies. Many of these details of implementation would be easily addressed if the algorithm currently used were replaced by a statistical model that is natural to this sort of discrimination problem,” they added.

Quality of Data

Another issue mentioned by the report is the poor quality of data. It’s recommended that the FMCSA continues to work with state departments and other agencies to improve the collection of data when it comes to miles traveled and crashes. Unfortunately, as it stands, this data is either missing or is of poor quality. Should the FMCSA be able to improve the quality of their data, the SMS will be able to take other factors such as environmental factors of travel which will give a better understanding of the crash conditions.

Unfortunately, as it stands, this data is either missing or is of poor quality

There are other, more obscured, data points that the report says should be included when collecting data on carriers, including driver turnover, cargo type, as well as method and level of driver pay. The panel suggests that driver pay is an important factor to consider especially when taking into account that better-paid drivers (those who aren’t paid based on miles traveled) tend to have fewer crashes.

What Does this Mean for the Industry

As you can imagine, the trucking industry has been waiting for NAS findings as it highlights all the issues they’ve had with the program for the beginning.

“This report has confirmed much of what we have said about the program for some time,” said American Trucking Associations President and CEO Chris Spear. “The program, while a valuable enforcement tool, has significant shortcomings that must be addressed, and we look forward to working with FMCSA to strengthen the program.”

we look forward to working with FMCSA to strengthen the program

If the FMCSA does decide to implement the suggested changes, then we can expect a more or less total overhaul of the CSA rating system. Now carriers with a mediocre level of safety performance can’t rely on poorer carriers to make them look good. Simply put, everyone is going to have to step up their game and start pulling their weight, safely.

Carriers with a mediocre level of safety performance can’t rely on poorer carriers to make them look good

In addition to providing more accurate and reliable data, carriers will also be able to get a better understanding of their score as well as how to improve it.

 

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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!

Get A Quote TODAY for Volume LTL
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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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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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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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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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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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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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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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A Change of Plans: Reevaluating A Company Supply Chain

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Sales and Operations Planning (S&OP)

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

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

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

The Creation of Internal Conflict

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

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

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

Learning the Best Practice

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

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

Changing the Game

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

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

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

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

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

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

 

 

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Mosaic VP Joins Leadership Team at BlueGrace

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Sean Butler Announced as New Chief Human Resource Officer

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

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

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

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

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

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

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

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

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

 About BlueGrace Logistics:

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

 

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Empathy in the Workplace – Why BlueGrace is Successful!

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

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

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

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

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

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

The End of an Era

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

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

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

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

When Process Comes Before People

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

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

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

Building a Team

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

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

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

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

This is why empathy is so very important.

BlueGrace Logistics and Empathy

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

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

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

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

 

 

 

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Fast Facts & Predictions About ELDs – Infographic

Countdown to the ELD Mandate

The time to plan for the ELD Mandate is now!

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

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

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