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3pl

Urban Density, Changes in Technology and Last Mile Delivery: What Can Cities Do?

 

With the rise of e-commerce and technological improvements in transportation, like autonomous vehicles and increasing urban density, we are witnessing a historic transformation in our cities. Future trends in freight movement is a “hot topic” in policy and supply chain circles.

With so many changes ahead,  a key question emerges: Can cities cope?

Daimler recently made headlines with the launch of its “all-electric Fuso ecanter truck” in New York City. The vehicle will be rolled out in other US, European and Japanese cities in the next two years, with UPS as the first commercial partner with the truck. Toyota released a hydrogen-fuelled semi-trailer that currently hauls cargo between the ports of Los Angeles and Long Beach without producing tailpipe emissions. This pilot is part of a longer-range plan by the Port of LA to reduce emissions. Urban planners in Dallas are examining the possibilities for the “hyperloop” in their city, “a futuristic mode of travel that would use levitating pods to shuttle people and goods across hundreds of miles in minutes.” With so many changes ahead,  a key question emerges: Can cities cope? What can cities do to stay on top of change?

Here are five “takeaways” on the topic.

1.   Understanding the Nature of Change is Key

Many predict that the U.S. economy will double in size over the next 30 years. The nation’s population is expected to rise from 326 million in 2017 to 390 million in 2045. More and more, Americans will live in congested urban or suburban sprawls called “megaregions.” Less than 10% of the country’s population will live in rural areas by 2040. This is a stark contrast to the 16% of Americans who lived in the countryside in 2010 and 23% in 1980.

This trend means more “everything”.

The surge in population and economic growth brings with it escalating freight activity. Freight movement across all modes are projected to grow by approximately 42 percent by 2040.This trend means more “everything”. More pressure on roads and transit lines by commuters, more parcels delivered, particularly with the meteoric rise of e-commerce.

One special concern is “the last mile.” The last mile is the final step in the delivery process. The last leg of the delivery process is when an item (or person) moves from distribution facility (or transit point) to end user (home). The length of the distance can vary from a couple of city blocks to 100 miles. This video from the Ryerson City Building Institute clearly shows the effects of the “last mile” on commuters – in this case, in the Greater Toronto Area.

Some of the challenges involved with the last mile are:

  • increased traffic congestion and traffic accidents
  • Noise, intrusion, the loss of open spaces to transport infrastructure projects
  • Environmental and social (public health) impact from local pollutant emissions
  • Illegal parking and resting, idling vehicles
  • Problems experienced by vehicle operators when operating in urban areas
  • Parking and loading/unloading problems including finding road space for unloading; fines, and handling
  • Parcel Theft

2. Cities Must Take Notice

Cities have long been concerned with capacity thresholds for commuting and predicting traffic flow. The new topic of “last mile” in the supply chain must now receive greater notice. We are moving away from discussion on “smart commuting” alone. While still important, traditional topics like carpooling and promoting public transit are giving way to issues such as digitalization and automation (think ride-hailing and autonomous shuttles).

3. Business Concerns Must Factor Into Urban Logistics (alongside Sustainability and Livability Goals)

Furthermore, it must be recognized that economic activity in urban areas depends on the movement and delivery of goods through freight carriers. City and traffic planners must be made aware that urban settings can be inhospitable places for freight deliverers. There must be more public and private sector coordination in freight planning. “Cities can shape markets to focus private sector attention and invest on the needs of cities and the people who live in them by mobilizing infrastructure, talent, and other assets to support the right kinds of AV-based solutions,” was one of the conclusions in “Taming the Autonomous Vehicle: A Primer for Cities (Bloomberg Philanthropies and the Aspen Institute) .

Business goals must be incorporated into the dialogue alongside the goals of community sustainability and livability

How freight distribution processes can be integrated into metropolitan transport, land use, and infrastructure planning is a balancing act.  Business goals must be incorporated into the dialogue alongside the goals of community sustainability and livability. An efficient and future-forward freight system will support and attract new industry for the respective area.

4. A Variety of Solutions Will Likely Be the Answer

Some of the most popular solutions include advances in technology. Transportation technology growth is very exciting, much of it spurred by seeking solutions to urban density, commuting and freight patterns.  Other solutions are more “old-fashioned” or even a return to basics. Mixing traditional and emerging technologies is the way ahead:

  • Use of electric vehicles (EV) –“sustainable mobility”
  • Autonomous vehicles and drones
  • Human-powered delivery vehicles – Cargo-bikes, pedal trucks, and pushcarts
  • Amazon lockers in commercial venues (drop-off points)
  • Vehicle access restrictions based on time and/or size/weight /emission factor/fuel type of vehicle and bus lanes
  • Curbside pickups
  • Load consolidation or co-loading
  • Truck platooning
  • Night-time deliveries, relying on “quiet equipment” and driver training
  • “On-Road Integrated Optimisation and Navigation,” or route optimization, such as introduced by UPS as a big data solution to analyze parcel operators’ daily multi-stops
  • Innovative 3PL solutions like BlueGrace’s proprietary technology, “designed to put the power of easy supply chain management and optimization back in your hands”.

A BlueGrace Case Study In Action

Recently, an e-commerce furniture business in Portland, Oregon found it had outgrown its 3PL’s manual logistic capacity, due to heavy e-commerce volumes. When this company looked to BlueGrace for ways to improve its supply chain, it was discovered that they would benefit from opening another warehouse in the Northeastern area of the US. An alternative distribution solution lowered freight costs and decreased transit days.

For the last mile to be facilitated, there must be easier access to customers and shorter distance between the hub and home.

The idea of re-examining distribution is part of a larger process of change. For instance Amazon, FedEx and UPS are creating/investing in nationwide networks of distribution and fulfillment centers. “Warehouses like these are becoming a way of life for many urbanites,” reports the Wall Street Journal. This trend is already bringing new life to formerly “sleepy towns” like Tracy, California and Kenosha, Wisconsin. For the last mile to be facilitated, there must be easier access to customers and shorter distance between the hub and home.

Make your Last Mile work. Talk with a BlueGrace Logistics expert today!

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

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

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

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

How Identity Theft Could Mean Cargo Theft

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

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

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

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

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

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

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

Cargo Theft Rates are Falling, but the Cost is Rising

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

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

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

What Happens to Cargo Theft Rates when Identity Theft Rises?

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

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

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

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

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

 

 

The Growing Need For Expedited Freight

Consumer expectations are changing. While this doesn’t come as a shock, the rate at which they are changing is picking up tempo. As eCommerce giants like Amazon and Alibaba continue to push the envelope, consumer expectations change as a result.

Today, the market has an expectation of “buy it now, wear it now.” While online shopping used to be a novelty, now it is the norm. With the advent of Amazon Prime offering a two day delivery for most products, people simply aren’t content to wait. While that’s great for consumers, it creates a significant shift in the way we look at logistics.

Disruptive Factors to Logistics

There are many speculations on what the most disruptive factors in logistics are. Some will point at ports, mega ships, and increased regulations. Others will say it’s the shortage of qualified drivers that are causing the most issues. CEO of FedEx Ground, Henry Maier, says it’s the next person to place an order through Amazon Prime. The “unparalleled and unprecedented growth” of e-commerce has created a “landscape of continuous change” that is rewriting the transportation playbook, Maier said.

Shippers need to be able to respond quickly to meet customer demand.

FedEx isn’t the only company that’s feeling the shift. “Think about the way things used to be on the parcel side,” Jack Holmes, president of UPS Freight, said. “Our business used to run right up to Christmas and then get very soft for six weeks. Now that (post-holiday) period is one of the most challenging for us.” Shippers need to be able to respond quickly to meet customer demand which means they need carriers that can meet their needs. That expectation and demand are only going to continue to grow as time goes on.

More About The Challenges

shippers need to not only be smarter about how they handle logistics, but they need to be smarter about how they handle their customers as well.

More than simply responding quickly, shippers need access to carriers that can suit their needs. Having trucks with lift gates, for example, is necessary for urban and suburban deliveries. Not only does this mean quicker deliveries but also a better service. Service, after all, is key in today’s market. Not only do consumers expect near instantaneous deliveries, but they have many platforms to express dissatisfaction should a shipper fail to perform. Therefore, shippers need to not only be smarter about how they handle logistics, but they need to be smarter about how they handle their customers as well.

The Growing Need for Expedited Freight

The holiday and the post-holiday season can become the most frantic for shippers and carriers alike. As holiday shoppers go on a spending spree, delivery times tighten as does available capacity. As a shipper, it’s important to have access to a reliable network of expedited carriers. Getting your products where they need to be, when they need to be there. So what do you do when you’re in a bind and need to have something shipped yesterday? Call BlueGrace Logistics.

 Why BlueGrace?

BlueGrace is an award-winning, full-service Third Party Logistics (3PL) provider that helps businesses manage their freight spend through industry-leading technology with a large network of established carriers to customers across the country. Sure, lots of firms may claim that, but what really sets us apart is our passion for supporting your success in this complex $750 Billion U.S. freight industry.

Our expedited freight services are second to none.

Our expedited freight services are second to none. 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 is tracked by Macropoint, so you always know where your freight is located.

 

 

 

 

How Shippers Should Already Be Prepared For The Holiday Season

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

This is the season that can make or break shippers.

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

Plan For Unexpected Events

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

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

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

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

Compete With Larger Shippers

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

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

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

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

Reflect On The Past

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

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

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

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

Are You Ready? The Holidays Are Coming

Prepare your business now for the holiday madness!

 

 

A Brief Explanation Of Freight Classing For Engines

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A part of BPO, business process outsourcing is the transportation of product. A manufacturer can make the best, fastest engines in the world, but then a reliable transportation partner will be needed to help get this shipment from point A to point B. There are many issues with FBAP or Freight Bill Pay and Audit when it comes to the classification of products. Here is a short explanation on getting the proper NMFC code and freight class for engines and transmissions.

There are over 10 different NMFC codes for various engine types that can cause confusion during the initial stages of the shipping process.

Internal combustion engines are a highly complicated and valuable piece of machinery to ship; with over 10 different NMFC codes for various engine types that can cause confusion during the initial stages of the shipping process. These engines fall under a specific NMFC code though (NMFC 120800) and require you ship them in certain conditions. You need to ask yourself quite a few questions and discuss them with your shipping representative before you ship your engines. This could determine the shipping cost and freight class of your shipment.

Questions you should ask include:

  • Is the engine new or used?
    A used engine must not work and can only be used for salvaging or reconditioning. If the engine is repaired or refurbished, it qualifies as new. Used engines fall under a different NMFC code and freight class.
  • Is the engine drained of all liquids?
    The engine is not allowed to be shipped until it is drained of all liquids, except those necessary to prevent rust, corrosion or other damage.
  • How is it being packaged?
    The way the engine is packaged is another factor in determining the freight class. The simple difference between mounting on a wheeled shipping carrier and shipping on racks or cradles can create a large difference in freight rates.
  • What is the released value of the shipment?
    The released valuation is another large factor in determining the freight class of engines and must be given at the time of quoting, as well as notated on the bill of lading.

These guidelines only apply when shipping internal combustion engines, NOI, so it is important to make sure you have all the correct information before you book your shipment.

If you have specific questions about your engine shipment, please contact a qualified shipping representative today at 800-697-4477. We also have freight class experts available to answer your NMFC and freight class questions. Looking to book your engine shipment? Request an engine shipping quote today!

BlueGrace Logistics Is The Preferred Shipping Partner of the Tampa Bay Lightning

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The Tampa Bay Lightning have announced a partnership with BlueGrace Logistics, a national freight shipping company based in Tampa. The three-year agreement names BlueGrace as “The Preferred Shipping Partner of the Tampa Bay Lightning”.

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

 

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How is your 3PL delivering on their proposed solutions?

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“If you sell on price, you lose on price.” is typically a line that is used inside the walls of BlueGrace. Price is a very important factor in transportation in this trillion dollar industry where there is billions of dollars of waste. Inefficient supply chain consultation, technology, and pricing keeps companies from not growing as fast as they should, and keeps business top line revenue down. In our recent blog “Keep the main thing, the main thing” we told you how keeping your focus on your business should be the most important thing and to leave transportation to the experts. We have seen some lacking proposals from competitors in our space. We want to give you a few pointers in what to look for in a transportation management proposal.

Does the proposal focus on your needs?

In the lead up to this proposal there should be needs you current do not have such as reporting, business intelligence, claims management, auditing, GRI management, as well as others. If these items or others business issues were brought up in the initial talks then they should be on the proposal.

Are solutions proposed explained in how they will be executed?

Companies can say they can do anything and numbers can be bent to make sense. The entity that needs to understand how these numbers and solutions proposed made the proposal page are the business owners and stake holders. Make sure you have a clear understanding of how everything is supposed to take place and when. This takes us to our next suggestion.

Is there a timeline?

9 times out of 10 changing transportation providers is not easy. Large clients have business systems and processes in place. It is up to the 3pl to figure out how to fit those systems to make transportation a seamless business function, rather than a burden. When the proposal is delivered there should be a timeline of when and what happens. Is there an integration schedule? When are the 3pl implementation representatives or IT employees supposed to be on site at your location? When is the “go-live” date? These are a few of the very important items to make sure a 3pl can deliver on a proposed solution.

The focus should be on the business

These are a few very important factors in grading a transportation proposal. The focus should be on the business and the business should understand everything that is going to happen and how the 3pl got there. BlueGrace prides itself on delivering proposals and making them happen. Reach out today to learn how we can become a supply chain partner today.

 

XPO Logistics to Acquire Con-way

On September 9th, in a $3 billion dollar transaction, XPO Logistics, Inc. and Con-way Inc. announced a definitive agreement for XPO Logistics to acquire Con-way. Enhancing XPO’s range of supply chain solutions and becoming the second largest less-than-truckload (LTL) provider in North America, the transaction will also expand the company’s global contract logistics platform. XPO will also capitalize on synergies from the combination with Con-way’s managed transportation, truckload and freight brokerage businesses.

Headquartered in Ann Arbor, Mich., Con-way is a Fortune 500 company with a transportation and logistics network of 582 locations and approximately 30,000 employees serving over 36,000 customers. All of the acquired operations – Con-way Freight, Menlo Logistics, Con-way Truckload and Con-way Multimodal – will be rebranded as XPO Logistics.

XPO will remain asset-light, with asset-based operations accounting for about a third of sales.

Bradley Jacobs, XPO Logistics Chairman and CEO, will retain these positions and lead the combined company. Douglas Stotlar, Con-way’s president and chief executive officer, will serve in a limited role as an independent advisor to the combined company through the first quarter of 2016.

Bradley Jacobs, XPO Logistics Chairman and CEO, said, “Our opportunistic acquisition of Con-way will make XPO the second largest provider of less-than-truckload transportation in North America, a $35 billion market. LTL is a non-commoditized, high-value-add business that’s used by nearly all of our customers. Con-way is a premier platform that we will run with a fresh set of eyes as part of our broader offering. Importantly, we’ll gain strategic ownership of assets that will benefit our company and our customers during periods of tight capacity.

Douglas Stotlar, president and chief executive officer of Con-way, said, “This landmark transaction provides immediate cash value for our shareholders and reflects the outstanding contributions of our employees over our 86-year history. The combination will mean more services for our customers, more miles for our drivers, and more career opportunities for our employees as part of XPO’s global organization. We look forward to working with the XPO team to complete the transaction and ensure a smooth transition.”
With XPO and Con-way boards of directors unanimously approving the transaction, it’s expected to finalize in October of this year.

Business Boondoggle: Multiple Business Units with Unaligned Transportation Strategy.

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Businesses with multiple units employing different processes for the same task are NOT running lean or effective. It’s easy to get this way. Start-ups enjoy rapid success. Acquisitions are made. Technology is rapidly evolving. The skill set of the workforce changes. The result of which is that you end up using multiple systems, processes and even vendors to solve a single business problem. The business implications are far reaching and too often the executive suite or business owners are not privy to them.

Even when a need and benefit are identified, execution requires more complexity.

Whereas there is often a technology solution to the business problem or problems to increase efficiency and streamline productivity, it is not always understood. Technology often involves a subject matter expert in both the innovation and the problem it is intended to solve. Technology solutions are often misunderstood. More often than not – the business problem itself is misunderstood. Even when a need and benefit are identified, execution requires more complexity. This could include infrastructure, capital investment, training and most of all – change management. Poor Change Management is the single greatest threat to technology innovation and implementation.

During the sales process there are typically multiple detractors. They can come from all over the organization. “I do not like change,” Is the statement sales people hear most often. However, change is key to helping businesses run effective and lean. Change is critical to staying ahead of competition. And most of all change is inevitable, and should not be left alone in the hands of anyone not directly and greatly affected by the outcome.

Here are key issues facing businesses not already benefiting from a transportation and technology provider

  1. Visibility and Reporting. Without technology visibility is the hardest thing to management. Many shippers that do not utilize transportation technology typically have no key performance indicators nor know if their locations utilize a LCC (least cost carrier) program. BlueGrace is able to build a hierarchy to have each location reportable to a top tier level. Reports are limitless and business specific. Reports are built to see items like if your end users are choosing the least cost carrier or not, what is your price per pound or percentage of freight as a sale cost, and how those items are trending.
  2. Not negotiating pricing or GRI’s with full buying power: When a business has multiple units shipping with a number of different carriers and different rate structures the full price negotiation power of the organization is not being used. The pricing is being determined on a pure location spend basis and based on the skill and knowledge base of the decision maker on site at each location. BlueGrace takes all of the information from all of the locations and brings it to our key partner carriers to get tariffs for the entire organization to use. This makes things such as GRI (general rate increase) and KPI (key performance indicator) management so much easier.
  3. Consolidated Billing and Invoice Audit. When multiple business units manage their own freight and price negotiation this means there are freight bills flying around at a fast pace. If a bill goes to the individual unit to be approved, and then sent to corporate for payment how long does that process take? With a number or different carriers and billing times and schedules this has to be a business boondoggle. BlueGrace sends one consolidated invoice per week. This can be sent to multiple end users and is customizable. We also pre audit these bills to also save you time rather than having to perform this practice yourself.

 

These are a FEW of the issues facing businesses with multiple units doing multiple different processes. Please reach out today so we can help you run your business more profitably and effectively. This is our main thing.

 

Is Looming Dimensional Freight Pricing as scary as it seems?

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Is Looming Dimensional Pricing as scary as it seems?

 

The simple answer is no, it’s not. More and more carriers are moving away from NMFC codes and the NMFTA classing system all together. It started with Central Transport and has now moved to carriers like Shift Freight, UPS, Fedex, and YRC. These carriers have also invested in equipment to help determine the total density. The equipment is called a dimensioner and Shift Freight uses the Freightsnap model. I once heard a customer say in dealing with a re-class issue “The dims don’t lie.” Meaning if you run the true dimensions and weight of the shipment in a density calculator 99 times out of a 100 that class will be fine with the carrier. You can obtain BlueGrace’s proprietary density calculator found here. Re-classification is the number 1 issue when it comes to either secondary or increased carrier charges that differ from the original quote. Dimensional Pricing will force shippers to reduce waste in packaging and space. It will also help carriers to better utilize the space in their equipment as well as better planning in daily pickup / delivery manifests. If you are starting to see more secondary charges please read our blog about our audit process or request an account with BlueGrace today!

Con-way Freight’s New President

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In June, Con-way Inc. announced Joe Dagnese as the new president of Con-way Freight, succeeding W. Gregory Lehmkuhl.

A 32 year veteran of the transportation and logistics industry, Dagnese served as the president of Con-way Truckload prior to this role, getting his start at Con-way in 1995 when he joined Menlo Logistics.

What are you wasting by not auditing your freight invoices?

At BlueGrace we make it our business to audit every invoice before it gets billed. To maximize the value our services provide, we research all invoice discrepancies and identify as either customer, carrier, or internal error.

If it is determined that the carrier has billed us in error, we dispute directly with them and a corrected invoice before we billing our customers. In the event it was caused by an internal error, we correct the error and adjust the invoice to the quoted price before the customer receives the bill., we will send that invoice at your quoted price. When there is a customer error, we inform you of the carrier findings, justification and educate you on how to avoid costly mistakes in the future. Should you dispute the findings, we provide you the opportunity to dispute with the proper paperwork, pictures, etc. and advocate on your behalf.

Failure to audit your invoices and hold your carrier’s accountable can result in thousands of dollars of annual waste. Here’s a recent, real life example:

If you were to ship, for example, 20 LTL shipments per a week, it could take 5 minutes each shipment to audit. The median salary in the United States is $33k a year. This means by BlueGrace professional auditing your shipments and letting you run your business we save you $26.45 a week in actual money as well as an hour and forty minutes in time. We provide this auditing service as an added service to our customers at no added charge. We can also provide data analysis of your current provider transportation costs to either validate or advise on if you are getting the most competitive rates possible. We also report on these audit savings in quarterly business reviews as you can see in the slide below:

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To learn more about our services email contactus@mybluegrace.com or call 800-697-4477 today

National Dog Day 2015

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Happy National Dog Day

An Announcement Regarding BG Cats v. Dogs

Every year BlueGrace Logistics holds a Cats. vs. Dogs pet food donation rally. It is girls vs. guys and all in good fun. The real winners at the end is the animals. Last year as a company we donated over 44k pounds of pet food to the humane society of Tampa Bay. You can read about it here:

Humane Society of Tampa Bay

The twitter has tag to the follow the smack talk is #catsvsdogs15

The contest runs from 8-17 through 9-28.

If you or anyone you know would like to contribute please feel free to reach out to us at 800-697-4477

Panama Canal Expansion

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In June, The Panama Canal Authority announced testing of the first gates on the Atlantic Ocean side of the waterway. Extending over four months, this step brings the Panama Canal expansion project to 90% completion.

“This event highlights the magnitude of what we have been working on for the past seven years,” said canal administrator Jorge Quijano. “Filling the locks with water is the culmination of arduous years of labor and the realization that we are within arm’s reach of the completion of one of the most impressive infrastructure projects of our time.”

The canal has encouraged investments for deeper channels in East Coast ports, such as Miami, New York/New Jersey, and Baltimore. Port Authorities expect larger vessels with more cargo to be calling in these locations.

BlueGrace Logistics Places #2775 in the 2015 Inc. 5000!

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BlueGrace Logistics has one again placed in the Inc. 5000 List of America’s fastest growing companies. This year BlueGrace came in at #2275 after placing #2274 in 2014, and #20 in 2012. We could not do this without our customers, franchisees, partner groups, employees, friends, and family. Our #3 core value is “Pursue Outrageous Goals” and we will continue to strive to be on this list year after year.

 

Please find a link to the Inc. 5000 posting here

Must Arrive By Delivery Date Dilemma: A BG Case Study

SCENARIO:

Tremendous growth leads to challenges related to the distribution of this rapidly expanding health and beauty products distributor. With much of their business moving toward “big box” retailers, the need for carrier management would be required to fulfill the commitments made to their clients. The true cost of doing business seemed more complex than fulfilling orders.

 

MUST ARRIVE BY DILEMMA (MABD):

With vendor scorecards dwindling, and charge backs against purchase orders mounting, the need for a better solution was apparent. From numerous carrier meetings, to drive on time compliance, to costly upgrades in service levels, the trend continued to show little improvement. Lead times were not an issue, and inventory levels were manageable, yet carriers could not seem to comply with the Must Arrive By Date (MABD) displayed on the BOL. Purchase orders were being shipped with ample lead time and in most cases, early with guaranteed service at a premium. Even with upgraded service, the carriers would refuse to refund the charges since they were delivered “on time”, per the standard transit. BlueGrace began by analyzing the data and scorecards to determine root cause of the issue, and set a baseline for current state performance. Next, an assessment of ERP integration capabilities was performed. Through minor customization, the potential for real-time connectivity to BlueShip TMS was an opportunity. This connection would allow BlueGrace to receive incoming orders from specific clients and apply custom business rules to achieve the Overall goal. No matter when the order was received, BlueShip would effectively route the “Best Value Carrier” AND provide the most optimal ship date. This meant that each order, once approved within the ERP, would be rated and routed; with a Wal-Mart approved carrier, at the lowest cost, with standard service and shipped on the day that would best fit that carrier’s network to allow for a delivery within the specified MABD window. Our client showed a 90% reduction in charge backs within the first 60 days of implementing this program. Combined with the dedicated support at BlueGrace proactively tracking each flagged order, the company received the best scorecard performance in recent history.

 

FREIGHT COST ALLOCATION:

The next phase consisted of reviewing what the true cost of each order was when freight cost was allocated. BlueGrace analyzed the average freight cost as a percentage of sale. This percentage was incorporated into the product cost to determine pricing to the end customer. BlueGrace knew there was opportunity to drill down and allocate a freight cost not only at the customer level, but the customer location, customer location type (Direct to Store or Distribution Center) all the way down to the SKU level. Since freight cost was not passed to the client, this would either show a net margin loss or show opportunities to reduce the freight cost allocation to become more competitive. The result highlighted regions that were more costly to ship to, products that did not have enough margin potential to validate shipping cost and insight into regions of the country that would benefit from an additional warehouse location.

Continued Growth:

BlueGrace provides scalability for growing companies to achieve their goals without labor or technology investments. Our expertise and processes provide our clients with the bandwidth to operate efficiently and drive direct cost eduction through our procurement and dedicated management.

Education vs. Experience – by Dusty King, Franchise Owner of BlueGrace Atlanta Northeast

I believe I suffer from a wonderful condition called ADHD… like most entrepreneurs do. Either that or I’m as stubborn as my wife says I am.

I decided from a very early age that school and the classroom were not for me and I couldn’t be convinced otherwise. Not that my parents, teachers, and counselors didn’t try I just was’t hearing it! At the time I couldn’t find any reason why I needed to be sitting in a classroom learning (X-Y+Z = 3) or memorizing the elements on the periodic table.

I felt these formulas and theories did not apply to my quest of owning a business. Whether this was a correct way of thinking is another topic in itself.

I never envisioned myself climbing the corporate ladder. I always planned on building my own ladder and didn’t need to climb someone else’s to get to where I wanted or needed to be. When I get an idea and know the direction I want to go there is no force on this planet that will sway or derail me. It’s just how I’m wired. Not everyone’s path is the same. There is no “right” or “wrong” path to take in my opinion.

In bypassing the college route, I had a much earlier start in the s0-called “real world” than if I had gone to college and partied for 4 years. This is how I envisioned college.

I had done enough partying in high school for a life time and it was time to start working, making money and gaining real world working/business knowledge that would benefit me when the opportunity came to start my own business.

I knew I would benefit more from “real world” experiences over sitting in a classroom for four years being lectured about them. I am a hands-on learner, and the only way for it to stick was to learn from my mistakes.

To me, each job I worked was like earning credits toward earning my “major” in business. The opportunities were about learning the business and thinking of ways to do the job better as if it were my own.

I didn’t work for paycheck, I worked to live the dream… I worked to learn how to become an entrepreneur. The older I get, my thirst for knowledge grows tremendously. There is a part of me that wishes I would have pursued an education at an earlier age and one of my goals is to do so in the future. I am not one who shuns education alltogether. In fact, I have placed education on a very high pedestal and will do everything in my power to put my children on the path to a higher education when their time comes. I guess I was just a unique case.

The biggest thing I lacked from not going to college was building strong organization, time management & processing skills that I ended up having had to learn the hard way. This is an aspect of business that I lacked for some time.

If you’re trying to decide what path you should take to live your dream (whatever that may be), I would say think long and hard about it. Entrepreneurship is hard enough as it is, so don’t set yourself back to the beginning if you don’t need to.

There are VERY valuable skills that one develops at college outside of the classrooms and books. Life has a funny way of showing these things and they become clearer as you get older. To be an entrepreneur, you must realize that you’re going to have to be more driven and self-reliant than ever. Skipping college doesn’t mean that your education is over, it’s really just the beginning. So take every opportunity to learn from your peers and take it upon yourself to self-educate and stay ahead of the curve. Be creative and listen to those around you.

You CAN do it, it’s just gonna take a little more fine tuning on your own. But again everyone is different and no one knows YOU like YOU do. At the end of the day you are accountable for your decisions and no one else.

Dusty King, franchise owner of BlueGrace Atlanta Northeast
Dusty King, franchise owner of BlueGrace Atlanta Northeast

Tampa Ranks as Third-best U.S. City to Find a Job

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A recent article that appeared in the Tampa Bay Times shared a report from Wallet Hub that ranks Tampa as the third-best city in the country to find a job in 2014.  This is great news as Tampa is coming out of the recession that hit the area so hard.

Headquartered in Riverview, right outside Tampa, BlueGrace calls Tampa Bay our home. Our local economy is bouncing back and we’ve been seeing signs of this throughout our business. In the last year, BlueGrace has continued to grow and with that growth has come new positions to be filled. We’ve started out the year strong with welcoming 35 new hires to the BlueGrace team here in Tampa. This growth will continue in an upward trend as the year progresses.

We currently have openings for Systems Engineer, Carrier Invoicing, Account Receivable, Customer Loyalty Representative, Corporate Paralegal, National Sales Representative, Enterprise Development Manager and Enterprise Development Representative. If you’re interested in any of these positions, you can email your resume to careers@mybluegrace.com or visit the Careers section of our website.

BlueGrace Scheduled to Host Talent Acquisition Blitz (TAB) in Chicago, February 24-25

BlueGrace Logistics, one of the fastest-growing logistics services firms in the country, is enhancing our presence in the Chicago area.

To support our hyper-growth, we are opening an office in Oak Brook, IL, a suburb of Chicago. The BlueGrace Talent Acquisition Blitz (TAB) in Chicago will take place February 24-25, in an effort to scout new recruits to join our team.

BlueGrace President and CEO, Bobby Harris, is expected to be in attendance to meet with prospects and hand select the top candidates to help grow the Chicago office. TAB will be held at our Chicago headquarters: 700 Commerce Drive in Oak Brook.

We will be looking to fill 20 positions, including sales, truckload operations, customer service and management positions. All new hires to join our Chicago team will receive a $1,000 signing bonus!

Candidates can submit their resume via email to careers@mybluegrace.com, as well as request information about the company by visiting www.mybluegrace.com/bluegrace_careers.

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