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What will 2019 bring for the trucking industry?

What will 2019 bring for the trucking industry? Will there be a capacity crunch, demand – supply imbalance? Will the rates increase or will they remain steady? What would be more cost effective – booking spot rates or negotiating contract rates? How will the changes in the trucking industry impact a shipper’s business?

Knowledge of the existing trends can also provide insight into what one may expect from the trucking industry in the coming year.

As the new year begins, all these questions and many more are on the minds of shippers. While no one can accurately predict the changes in the business environment or how the trucking industry will respond to those changes, deliberation on the current year’s performance can help form a more reasonable line of thinking. Knowledge of the existing trends can also provide insight into what one may expect from the trucking industry in the coming year.

Here’s a look at some of the crucial parameters of the trucking industry that can impact shippers.

Rates: According to an article in Logistics Management, the US trucking industry showed a rate increase at 6.2 percent. Long distance full truckload rates showed a growth rate of 7.8 percent in the first half of the year. Less-than-truckload rates increased at the rate of 7.4 percent. The report forecasts a rate increase of around 3.6 percent in the coming year.

A JOC.com article stated 3 differing opinions of what one can expect from the trucking market in terms of rates. It has a bullish rate increase prediction between 5 to 8 percent, a bearish rate hike forecast between 0 to 3 percent, and a median rate increase prediction in the range of 3 to 5 percent.

While there isn’t a consensus on by how much the rates could increase, given the forecasts, shippers might fare better by building in at least the average rate increase in their trucking budgets for the coming year.

While there isn’t a consensus on by how much the rates could increase, given the forecasts, shippers might fare better by building in at least the average rate increase in their trucking budgets for the coming year. These predictions and forecasts can also help them better negotiate their rate contracts with trucking companies or 3PLs.

Capacity: This is the holy grail of the trucking industry for both the truckers and the shippers. Availability of drivers and vehicles, manufacturing industry’s performance, and legal compliances laid down for the industry all have a bearing on carrying capacity. Capacity, in turn, has a strong impact on the rates. When there’s a capacity crunch, rates increase. When it is in surplus, rates decrease.

This increase in trucking volume may lead to capacity constraints in the coming year.

For 2019, according to this article in Reuters, the American Trucking Association (ATA) predicts a 2.3 percent increase in trucking volume every year from 2019 to 2024. This increase in trucking volume may lead to capacity constraints in the coming year. A contradicting view presented by JOC.com and Freightwaves.com, says that while earlier in the year, trucks utilization was at its full capacity, it has come down to 94 – 95 percent. The trend is expected to continue at the start of 2019.

The Freightwave article also points out that the capacity might also be influenced by the availability of drivers rather than the availability of trucks. So even if the vans are available, a shortage in capacity may be experienced due to the lack of drivers.

Given the unpredictable nature of the industry, for shippers who have regular freight, it would make better business sense to work with 3PLs or professional trucking companies instead of individual truck contractors or vendors with smaller fleets to avoid getting short supplied in the event demand increases.

The Economy: How the economy performs has a huge impact on the transportation industry. According to the GDP forecast shared at the Federal Open Market Committee meeting, as reported by The Balance, the GDP is expected to be 3 percent in 2018. In 2019 and 2020 it is predicted to be slightly lower at 2.3 and 2 percent respectively. The fall is being considered an outcome of the ongoing trade war with China. The trade war has also created some skepticism in the freight market.

However, the release also forecasts a decent growth rate for the U.S manufacturing sector. It pegs production to increase at 2.8 percent in 2018. A slight decrease in momentum in growth is projected in 2019 and 2020 with rates at 2.6 and 2 percent respectively. Even if the manufacturing growth rates slow down slightly, it is not expected to have too much of a negative impact on the local freight market.

The other trend that seems to be picking up and is expected to continue is shorter distance freight movement.

Apart from these factors, the other trend that seems to be picking up and is expected to continue is shorter distance freight movement. According to this article in Freightwaves.com which quotes Bob Costello, Chief Economist, ATA, “the average length-of-haul for dry van truckloads fell to just around 500 miles for the year-to-date period, down from an average of 800 miles in 2005”. The article highlights that this trend is being attributed to shippers basing their fulfillment centers nearer the customers.

Going by the reports and views expressed by industry experts, 2019 seems to look positive for the industry vis-a-vis economic performance and rates. Shippers may fare better by factoring in a freight rate increase. For both the vendors and the shippers, there may however be some ambiguity on capacity as it is to an extent dependent on the trucking industry’s capacity to attract professional drivers to fulfill the current shortage.

For a 3PL perspective on 2018 and what to look for in 2019, join us on February 20th at 2pm for our FREE 20 minute webinar, STATE OF THE (LOGISTICS) UNION . We’ll discuss the major concerns for shippers entering 2019, and what the next frontier in transparency will be. Click HERE to sign up today!

You can also speak to one of our experts and find out more about BlueGrace by filling out the form below or contacting us at 800.MYSHIPPING

Adam Blankenship, BlueGrace CCO, Talks Logistics With WFLA 970

On January 10, 2019 Adam Blankenship, the Chief Commercial Officer for BlueGrace Logistics was invited to share his thoughts on logistics, leadership and what make our industry tick with host Ryan Gorman at WFLA 970 in Tampa, Florida. Adam was able to give an overview of what BlueGrace does for our customers everyday and how a 3PL helps shippers decrease their freight costs and streamline their supply chain.

Listen to the podcast below to find out more about BlueGrace, what we do, what we believe in and how we are hiring in 2019.

Listen to “CEO Spotlight – Blue Grace Logistics” on Spreaker.

Urban Logistics is Growing

We are witnessing one of the most interesting times in the development of logistics. Shippers and Carriers alike are working towards creating, innovating, and performing all out (and much needed) overhaul of the way we look at delivering packages.

Online and legacy retailers both are encouraged to work with their logistics partners to not only overcome the upcoming challenges but to find bold new approaches to compete as well as survive.

While every step of the process is certainly important, shippers and carriers have been placing a greater emphasis on the last mile of the delivery. And why not? It’s projected that by 2030 more than 600 million more people will be living in urban environments where standard delivery via truck may not be an option. Couple that with the booming growth of online retail sales (e-commerce) and the last mile not only becomes a crucial element for distribution but it’s also a differentiator from the competition. Online and legacy retailers both are encouraged to work with their logistics partners to not only overcome the upcoming challenges but to find bold new approaches to compete as well as survive.

Deliveries are no longer about a simple A to B route. Urbanization has seen to that. With more people living in much more crowded areas, the complexity of deliveries is growing exponentially.

Freight movement across all modes are projected to grow by approximately 42 percent by 2040.

According to the DoT, “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.”

Growing Trends in Last Mile Deliveries

“Shortening the Last Mile: Winning Logistics Strategies in the Race to the Urban Consumer” was a white paper compiled by DHL and Euromonitor which has identified four growing trends that are shaping urban last mile transportation.

  • Localized Delivery
  • Flexible Delivery Networks
  • Seasonal Logistics
  • Evolving Technology

In addition to highlighting these trends, the paper also explains ways that companies can begin to embrace these new tactics and adapt their supply chain to the changing market while growing their competitive advantage.

There must be more public and private sector coordination in freight planning.

“‘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)

Growing Challenges

The white paper found that major urban settings can cause a variety of challenges for distribution including cost, decreased quality of service, as well as overall organizational strain.

Seasonal growth is a good example of this. Not only are major holidays a heavy load time for logistics but many stores run various promotions throughout the year which require extra personnel. The only issue being, these short-term surges in volume aren’t nearly as easy to predict.

“Urban customers’ demands for speed and convenience are forcing retailers to overhaul their warehousing networks, replacing centralized networks with local fulfillment and distribution infrastructure, which can require a more accurate balancing of inventory,” says DHL on the matter.

The Growing F.A.D

With the importance of urban and last mile deliveries growing, how can companies best take advantage these growing trends to overcome the impending challenges as well as stand out from the rest of the competition? In order to be more competitive, efficient, and an overall more successful company the DHL study suggests applying the F.A.D strategy which they described as the following:

(F)lexible or more elastic transport networks can include the more efficient use of available transport capacity in a market, to achieve higher load factors, bring down costs, connect more quickly to end customers, and reduce environmental impact, but can also imply the ability to move shipments more easily between different modes of transport such as bicycles and vans to improve connectivity.

(A)utomation can include a higher level of automated processing at fulfillment centers, but also the deployment of autonomous vehicles and robotics to bring down labor costs, increase productivity, and enhance services.

(D)ata management enhancements allow retailers and their logistics operators to better forecast and position inventory to reduce waste within their supply chain and achieve better availability of stock. It also provides greater visibility on inventory and transport flows, allowing logistics operators to more effectively manage routing and exceptions, and providing tracking to enhance the customer experience.

There is some variance as to which sectors you’ll need to place more time and energy into.

Now there is some variance as to which sectors you’ll need to place more time and energy into. “Effectively, not all three elements need to be managed as actively or invested in as equally.

Different markets, commodities, and operating environments, as well as competitive pressures, may require prioritization of one particular focus area over the others, or a more substantial investment in certain focus areas at the expense of others. For example, if courier shortages are the most pressing issue for one company, that company would need to funnel resources into making its networks more flexible and likely consider automating some of its processes as well. However, another company may be facing increasing pressure from its customers to narrow the delivery timetables offered to them, incentivizing management to consider investing in a data system with AI capabilities to help predict the most efficient windows,” says DHL.

Not only urban consumers, but all consumers will continue to demand solutions that make life both easy and convenient.

Not only urban consumers, but all consumers will continue to demand solutions that make life both easy and convenient. When it comes to their expectations cost, convenience, and flexibility will all be important factors to both the relevance and success of e-commerce companies, as well as transportation companies who will continue to haul the growing industry along.

At BlueGrace, our proprietary technology is designed to put the power of easy supply chain management and optimization back in your hands. Many of our customers prefer to integrate their systems or ERPs such as SAP or NetSuite directly with our BlueShip platform. Not only will this simplify your freight but it also provides usable data to build measurable KPIs and continuously improve your program. To speak to one of our experts, call us at 800.MYSHIPPING or fill out the form below.

Your Role in the Digitally Dominated Future

In 2018, the world is more connected than it has ever been before. With the advent and popularization of smartphones, we are able to instantaneously make connections all over the world in ways unimaginable just 20 years ago, before we knew the names Facebook, Twitter, and Amazon.

Today, these platforms not only heighten our social connections, but also our trade connections. With access to a smartphone and Wi-Fi connection, any individual almost any place in the world is able to participate in the international conversations on platforms like Twitter and receive goods purchased on e-commerce sites like Amazon within a matter of a couple days or in some cases hours.

With this increased connectivity, a new demand for trade between merchants and consumers all over the world has spiked

With this increased connectivity, a new demand for trade between merchants and consumers all over the world has spiked. Where such trade used to be dominated largely in a wholesale/business-to-business domain, now thousands of smaller merchants endeavor to connect more directly to their niche markets, utilizing platforms like Alibaba and Amazon.com to do so, increasing demand for companies, like BlueGrace, to handle the logistics.

Growing Pains

While the digital age is exciting for many reasons, it also means that there will inevitably be growing challenges, for individuals and companies alike; for companies, as they try to re-work the supply chain to accommodate a change in the trade landscape, and for individuals, as they arm themselves with skills and information to be competitive in a digitally dominated present and future.

with an evolving market, dynamic, data-driven, third-party logistics (3PL) companies like BlueGrace are in increasingly high demand, for their ability to navigate a changing trade landscape and help shippers optimize their operations processes.

Traditional logistics companies that once facilitated movement of commerce through the supply chain with standard practices slowly formed over a long period of time to support traditional commerce, many of which are still relevant to this day. However, with an evolving market, dynamic, data-driven, third-party logistics (3PL) companies like BlueGrace are in increasingly high demand, for their ability to navigate a changing trade landscape and help shippers optimize their operations processes.

As we stand at the precipice of this modern trade revolution, the next generation of the U.S. workforce is being encouraged to be strategic about how they position themselves in order to stay competitive in the digital future

As we stand at the precipice of this modern trade revolution, the next generation of the U.S. workforce is being encouraged to be strategic about how they position themselves in order to stay competitive in the digital future – a future that will look quite different from their parents’ generation’s youth. Technology companies are constantly making advancements in innovations like Artificial Intelligence (A.I.), Internet of Things (IoT), and blockchain, which are all being applied to automate and optimize traditionally manually operated processes, making manual labor jobs, spanning across industries, obsolete. But the result will be more of a shift in demand toward different kind of jobs and skill sets.

The Light at the End of the Tunnel

Before you fall into a depression about the future of jobs for the younger generation, take a look at the data from the “2019 Third Party Logistics Study: the State of Logistics Outsourcing,” which shows that though there is an increasing prevalence of automation, there are is increasing demand for individuals that understand how to strategize by utilizing such technological advancements, especially when it comes to the supply chain management industry.

There is a new market opening up for a more creative labor force that understands data, risk management, and planning – and due to that forthcoming demand, employers are paying competitive wages in order to attract and keep star employees. According to the survey, companies’ top reasons for looking externally for employees are a need for a new employee skill set to accommodate changes in strategy, updates in technology and innovation, and lack of “bench talent” (or internal employees) to move up into larger roles.

Join us in our excitement for the digital age

Employers at logistics companies like 3PLs are at the front of the pack in serving a new generation of clients that aim to be digitally-savvy by utilizing data to optimize their operations.

BlueGrace is hiring motivated people with unique skills, stimulating goals, and bold personalities to contribute to our diverse team of industry leaders. Our truly rare culture is built upon our team members’ individual strengths and talents, which serve as a rock-solid foundation for collaborative success. Visit our career page HERE to learn more on how to join our team!

BlueGrace Logistics 2018 in Review

2018 delivered some significant changes for BlueGrace Logistics. From new offices to charity events that helped others in so many communities, our amazing team made this year one to remember. We want to take some time to recap our biggest changes and our best memories of the year. 

CSO, Randy Collack Announces Retirement

Randy Collack, Chief Strategy Officer, has retired this year. Mr. Collack had been with BlueGrace since its inception in 2009. He oversaw several departments as the Chief Strategy Officer, including all Freight brokerage in the Tampa headquarters. Throughout his tenure with the company, Randy was responsible for the growth of the sales and operations departments, and was a critical component of the success BlueGrace Logistics has achieved to date.

We wish him the best in his retirement!

BlueGrace Takes 1st Overall At 2018 SportsFest

WE. DID. IT. In April, our outrageous employees beat 200 other companies and 4,000 other people at SportsFest 2018 and earned the #1 Company title at Corporate SportsFest! Can we get a WOOOO!? Congratulations to all BlueGrace employees who attended and competed in SportsFest 2018. SportsFest is always a wildly successful event that embodies team building, solid competition and fun. Exhausted, but ecstatic, our team returned home victorious and more engaged with both coworkers and customers. We’re extremely proud of our team and their drive to succeed! 

Opening Of Downtown Chicago Office

Mayor Rahm Emanuel joined BlueGrace Logistics to announce the company opening an office in downtown Chicago in May 2018. BlueGrace added 80 jobs at its new location in the iconic Chicago Board of Trade Building. The new office will continue to support the strong growth BlueGrace has accomplished since its launch almost 10 years ago. 

“The market we’re seeing now will be around for quite some time. We need to add a lot of capacity and a lot of professionals,” Bobby Harris, president and CEO of BlueGrace Logistics, said. Chicago “is a rich source of talent and resources, whether it’s truckload capacity or sales reps.”

Cats vs Dogs Raises 64,000 Pounds Of Food for Humane Society

Each year, BlueGrace female (Team Cats) and male (Team Dogs) employees compete against each other to see who can collect the most amount of pet food in total pounds. The food is then donated to a no-kill shelter to feed homeless animals in the community and used for pet owner assistance programs that benefit homebound and elderly residents on a fixed income. This year, the employees of BlueGrace collected over 60,000 pounds of food between Tampa & Chicago – reaching a new record for the contest on a location-wide scale.

The BlueGrace Webinar Series Is Introduced

BlueGrace began our new webinar series in February of 2018. With that announcement came 10 highly attended Webinars that offered valuable information from industry experts regarding everything from capacity issues, to freight data usage and visualization. Every attendee is offered a Free Supply Chain Analysis, utilizing BlueGrace’s proprietary data analysis tool, Vision. For a list of upcoming Webinars Click Here. Thank you to all that have attended in 2018!

CEO Bobby Harris Joins NUTC BAC

BlueGrace Logistics proudly announced that Founder and CEO Bobby Harris was welcomed as the newest member of Northwestern University Transportation Center (NUTC) Business Advisory Council (BAC).

Harris joined an esteemed group of senior-level business executives representing all modes of transportation. They meet regularly to discuss the latest NUTC research and to consider solutions to the economic, technical and social problems facing national, local and global transportation systems.

15,000 School Supplies

Each year, more and more children are sent to school without the materials needed to be successful. BlueGrace Logistics partners with local organizations to assist in helping that need with their “Backpacks of Hope” drive. The drive divides each office into teams who then compete to collect the most supplies. The winning team wins simply bragging rights or a fun prize of no monetary value, but the competition as well as desire to help those in need truly push the drive to success each year.

BlueGrace’s headquarters in Tampa, FL has partnered with Metropolitan Ministries for many years, and as the company has grown and added regional offices throughout the country, these offices have found local organizations and schools to partner with as well. Together everyone was able to donate a total of 15,381 supplies and 1,157 filled backpacks. 

Bobby Harris Named One Of Floridas Most Influential Business Leaders

BlueGrace Logistics CEO Bobby Harris was selected as one of Florida’s Most Influential Business Leaders on the Florida 500 – Florida Trend’s roster of the state’s 500 most influential business leaders spanning across more than 60 business categories and economic sectors.

The Florida 500 list is the product of a year-long research initiative by the editors of Florida Trend resulting in a personal, engaging look at the state’s most influential business leaders across major industries. The 500 executives were selected based on extensive contacts in regional business circles, hundreds of interviews and months of research, culminating in a highly selective biographical guide to the people who really run Florida.

Bobby is one of just 18 Transportation Executives chosen on the prestigious list of top business influencers throughout the entire state of Florida.

BlueGrace Logistics Becomes 6-Time Inc. 5000 Honoree

BlueGrace Logistics joined Inc. Magazine’s “Hall of Fame” as a 6-time Inc. 5000 Honoree. In 2012, BlueGrace was #20 on the annual list that ranks the fastest growing private companies in America – with 7,378% growth in just 3 years! Seven-Time Honoree, here we come!

BlueGrace Logistics Continues Chicago Growth Trajectory

BlueGrace is boosting its downtown presence from 8,000 sq. feet to 15,000 sq. feet and will grow its Chicago workforce from 40 current employees to 150 when the Board of Trade expansion is complete. BlueGrace also has an office in northwest suburban Itasca, where 60 employees are based.

The company’s prime Chicago Loop location matches perfectly with BlueGrace’s aggressive hiring approach aimed at attracting young sales professionals.

Here’s To An Even Better 2019!

We are so proud of how BlueGrace has continued to grow, prosper and help others in 2018! Thank you to all employees, partners and vendors for another successful year, and we look forward to a bigger and better 2019.

The Fine Line Between Deregulation and Operation

When it comes to regulations in the trucking industry, it’s something of a mixed bag. On an economical standpoint, the Motor Carrier Act of 1980 has given the industry free reign. On the other hand, the trucking industry is perhaps one of the most heavily regulated sectors in terms of safety, environmental protection, driver standards, and others.

the Trump administration is also reconsidering some of the regulatory strangleholds the government has over trucking and is leaning in favor of the truckers.

The Trump administration has also been a mixed bag for the industry. For shippers and manufacturers who rely on goods sourced from foreign goods, the tariffs and escalating trade war have made for a bout of white-knuckled planning. However, the Trump administration is also reconsidering some of the regulatory strangleholds the government has over trucking and is leaning in favor of the truckers. “This administration is looking at the regulatory environment a bit differently,” says Mark Rourke, executive vice president and COO of Schneider, the nation’s second largest truckload (TL) carrier. “We’re not seeing a lot of activity with new regulations.”

With President Trump now beyond his midterm, it’s worth taking a closer look at the regulatory environment surrounding trucking. There’s a fine line between too much regulation and not enough. While reducing regulations might make trucking companies more efficient, they could also encourage some unsafe practices. The tradeoff to that is that with more regulations, efficiency drops and rates go up, with shippers picking up the tab, of course.

Hard Hitting Regs

Of the numerous regulations that are out there, there are some that stand out more than others. The biggest of them include the Electronic Logging Device (ELD) the Hours of Service (HoS) and the age restriction that locks out aspiring truckers under the age of 21.

Given that the mandate has also begun to tighten capacity even further, it also encourages shippers and carriers to work more closely together in order to increase operational efficiency.

The ELD mandate has been one of the hardest to deal with this year and has caused a great deal of productivity loss for shippers as enforcement went into full swing. While it was originally intended to keep truckers honest on the HoS ruling by removing paper logs it hasn’t been a smooth transition. “After months of issuing warnings, state enforcement personnel began issuing stiff fines for HOS violations last spring. The result, executives say, is between 3% and 8% lost productivity due to the elimination of cheating,” according to Logistics Management. Evening out the playing field with ELDs does have some advantages. It encourages carriers to plan routes more efficiently so as to make their deliveries on time, this is especially important when you consider that some companies are threatening penalties for tardy drivers. Given that the mandate has also begun to tighten capacity even further, it also encourages shippers and carriers to work more closely together in order to increase operational efficiency.

Fine Tuning the HoS

While it has taken some time, ELD compliance has reached almost 99 percent across the entire industry. The biggest gripe truckers have, however, isn’t with the ELD but with the Hours of Service ruling. This is especially true for agricultural, seasonal deliveries, logging, and other select commodities.

With that being said, Washington is looking to tweak some of the HoS terms in order to make it a bit more bearable. According to Logistics Management, there are four main areas, in particular, they are considering amending.

  • Expansion to the current 100 air-mile “short-haul” exemption from 12 hours on-duty to 14 hours on-duty in order to be consistent with the rules for long-haul truck drivers.
  • Extending the current 14-hour, on duty limitation by up to two hours when a truck driver encounters adverse driving conditions.
  • Revising the current mandatory 30-minute break for truck drivers after eight hours of continuous driving.
  • Reinstating the option for splitting up the required 10-hour off-duty rest break for drivers operating trucks that are equipped with a sleeper-berth compartment.

There is also an unintended side effect of the HoS and ELD mandates. Now that most of the entire trucking industry is on the same schedule, there aren’t enough safe places for truckers to park when they’ve run out of drive time. It’s actually gotten bad enough that many carriers are subsidizing their drivers to utilize paid parking at truck stops. These spots can range anywhere from $5 to $20 a night and while that’s not so bad for short trips, long-haul truckers could be shelling out a lot of extra cash to maintain compliance.

The Trucking Age for the Modern Age

The pool of truck drivers is drying up and it’s only getting shallower as more truckers hand in their keys and take to retirement. The Department of Transportation has announced that they will begin a pilot program which will allow drivers under the age of 21 to operate an 80,000 pound truck for interstate commerce.

Given that these youths would be behind the wheel of a 40-ton vehicle, there are more than a few safety advocates who believe this isn’t a good idea.

“The statistics are clear,” says Todd Spencer, president of the OOIDA. “There really isn’t any question that younger drivers are more likely to crash and be involved in serious incidents.” Given that these youths would be behind the wheel of a 40-ton vehicle, there are more than a few safety advocates who believe this isn’t a good idea.

The age restriction has been in place since 1935 and for the most part, no one has argued with the logic. However, the Trump administration is pushing hard to get this particular regulation removed and many don’t agree with it. However, there are some in the industry who think there can be some ways to ease new drivers into handling a rig, without just pushing them straight out of the nest. Handling the first and final mile of driving could give them the opportunity to experience freight handling without giving them total control of the rig from start to finish.

For better or worse, there will be some changes coming to the trucking industry. While these regulations have been put into place with safety in mind, have they reached the point where they’ve hindered operations? At what point does regulation get in the way of an enterprise?

Festive Cheer and Cargo Theft Go Hand in Hand During the Holidays

The holidays bring three main things for the shippers – festive cheer, increased business, and high risk of cargo theft. While increased business orders and sales are the reason to rejoice for shippers, the equally high probability of having their cargo stolen during transit tends to dampen the festive spirit. But given the season and business needs, cargo theft during the holidays is unavoidable.

Tis the Season

According to LPM Insider, businesses in the U.S. lose around $15 to $30 billion dollars each year. This figure too is on the conservative side as quite a few incidents of cargo theft go unreported, it further reports.

Do we just let the robbers rob us of all the hard work that we and our teams put in to getting holiday shipments out, or is there something we can do to safeguard our business interest and our shipments?

Among the various commodities being shipped during the holiday season, products that cannot be tracked and food and beverages shipments tend to be targeted most by cargo thieves. This doesn’t mean that shippers of other commodities or bulky products can rest easy. Cargo theft is a reality for most during the holiday seasons, so much so that there are reports of gift packages being stolen from front porches. Do we just let the robbers rob us of all the hard work that we and our teams put in to getting holiday shipments out, or is there something we can do to safeguard our business interest and our shipments?

Preventive Measures

If we treat cargo theft like any other business or operational risks, we might be in a better position to deal with such incidents and mitigate their impact on our business during the holidays.

Here are some measures that the shippers, truckers, and warehouse operators can take to minimize theft during the festive season.

  1. Pre-plan shipment deliveries: While it might not be possible to completely avoid making a shipment delivery during the holiday season, it would be helpful if shippers and their transportation providers could work out a plan to deliver high-value shipments before the festive mood kicks in. This can, to an extent, minimize the risks of cargo theft.
  2. GPS enabled vehicles: Transportation providers should install GPS trackers in their vehicles to be able to effectively track the shipments until it reaches the final place of delivery. If the vehicle is tracked, any irregular stoppages or route that has been taken can be noted and inquiries can be made with the driver as soon as there is any deviation. Knowing that the vehicle is being tracked and that they can be held responsible, the drivers will also be more cautious while making unscheduled stoppages or leaving the vehicle unguarded for a long time.

    Third-party service providers, such as BlueGrace, are professional and value their market reputation. They have checks and balances in place to avoid cargo theft or any other risk to the shipments while it’s in their custody.

  3. Vetted service providers: When appointing services providers, shippers should properly vet them and do a thorough reference check. Third-party service providers, such as BlueGrace, are professional and value their market reputation. They have checks and balances in place to avoid cargo theft or any other risk to the shipments while it’s in their custody.
  4. Hire additional manpower: This point is especially for warehouse operators. During the holiday season, staff strength tends to be low. Try to get additional workers and guards for the warehouses to cover the operations and security posts during the holidays before the season sets in.
  5. CCTV cameras: Equip your warehouses with CCTV cameras to monitor the warehouse at all times. Be sure to place cameras in a position that all the entry and exit points are covered.
  6. Alarms: Installing burglar alarms in vehicles and warehouses, will work as an additional security measure and assist in warding off thieves.
  7. Locks: Even though this is one of the most basic security measures, it is necessary to reiterate it here. Check to be sure all locks on truck shutters and warehouse entry and exit points are sturdy and in working condition. Train your staff to double check the locks after the truck or the warehouse has been locked.
  8. Train your staff: Train your truck drivers and warehouse staff to be able to detect suspicious activity and people lurking around the shipment. If the staff is trained to notice any such activity around the shipment, they can be on their guard or take measures to protect the shipment. Drivers should also be trained to avoid parking the trucks in unsupervised areas or in places where the risk of theft is high. If there’s a helper traveling with the driver, both of them can take turns to watch over the vehicle when making a stop for refreshments or rest.

Year-round Security

While incidents of cargo theft increase during the holidays, making the safety of employees, customers, business partners and security of the shipments in your custody a company culture and a year-round process is crucial. When this becomes a business practice, preparing for the holiday shipment delivery won’t seem like such a huge task and will also ensure that your employees are well prepared to deal with any such situation.

Different Freight Types, Different Risks and Rewards

When it comes to running your business, it can be difficult to identify points of improvement, leading you to believe that things are as good as they can get, but in a climate of rising logistics costs, making sure that your operations are running as smoothly and efficiently as possible, can mean the success or failure of your business.

Ground transportation is a cost faced by almost every shipper in every industry, and quite a significant one, yet many shippers aren’t paying enough attention to how their ground transportation spend is being allocated, or don’t realize that there are different ways to approach it. In this article, we will break down a major factor that affects transportation costs: the differences between less-than-truckload (LTL) and full-truckload (FTL) services. We will break down those terms, what they mean for your business, and give two examples of how BlueGrace helped clients that were operating with less-than-ideal business models save hundreds of thousands on their ground transportation costs.

Yes, the perceived cost savings associated with sharing a truck with five other shippers is tantalizing, and a legitimate notion, but it’s not everything.

LTL has gained a reputation of being a more efficient, cost-saving method of transporting freight. It can be thought of like carpooling for cargo; if two people are going the same place, why not double-up and go in one car, splitting the cost savings? Translating that idea into a business scenario, if you’re a small-to-medium sized business, you likely do not have enough product going to one destination to fill up a truck’s full trailer, so LTL can seem like a cost-saving no-brainer, but unfortunately, it’s not quite so cut-and-dry. Yes, the perceived cost savings associated with sharing a truck with five other shippers is tantalizing, and a legitimate notion, but it’s not everything. There are other factors to consider when deciding between LTL and FTL, and there is no, one-size-fits all approach.

Potential Downsides of Utilizing LTL

Timing: By nature of LTL, there are multiple stops along the route that means longer lead times and may cause delays in the supply chain. So, if you are aiming to minimize transportation time, which everyone is in the logistics world, then you are making a sacrifice.

If your company operates in the realm of e-commerce, it would be prudent to examine the costs associated with the loss of business that your business suffers due to potentially longer LTL delivery times, and evaluate what options would open up if you were able to reduce your transportation times by a period of days.

For some shippers, timing is absolutely critical. The obvious examples are perishable products, like fresh produce and pharmaceutical products, which cannot sit for long periods of time in untempered conditions. But now, other “non-perishable” products, like apparel, electronics, and non-perishable food products are becoming time-sensitive in the e-commerce driven world, with monoliths like Amazon now offering same- and one-day shipping options, which have set a standard in the minds of consumers to receive products quickly. If your company operates in the realm of e-commerce, it would be prudent to examine the costs associated with the loss of business that your business suffers due to potentially longer LTL delivery times, and evaluate what options would open up if you were able to reduce your transportation times by a period of days.

Damage: Another common problem associated with LTL transportation is the higher occurrence of damage to cargo. Due to the frequent stops and touch points along routes, in which cargo is being loaded and unloaded from the trucks, freight generally incurs more damage on LTL trips than on FTL trips. For hardier freight, some light damage to exterior packaging is unlikely to be of major consequence, but for shippers dealing in more delicate products, delivering damaged product could mean having to refund a customer for the full price paid for the product, the burden falling on you. If your product is not easily damaged, this may not be an important factor, but if your product is damaged frequently or even occasionally, calculate the average cost that you end up paying to make up for damages per quarter, and then comparing to how much it would cost you to instead opt for FTL, which would result in significantly less damage. Which cost is higher in the end? It will depend on your particular business.

It’s not an easy task for shippers. At BlueGrace, we work with shippers on a case-by-case basis to help determine strategies that fit business’ specific needs. Our digital platform, BlueShip®, takes all of a company’s attributes into account to identify which options result in minimized costs and maximized profits. In the case studies, for example,“Private Equity Group & Transportation Cost Reduction,” and “Manual Process Reduction & TMS Integration for Restaurant Industry,” we dive into each case, exploring how BlueGrace helped two different clients with similar needs rethink their supply chain strategies that were giving them less-than-optimum results.

The routing guide left out multiple states that certain carriers could not go to. Because of this issue, the supplier was receiving chargebacks from distribution centers on a regular basis.

In the first case, a private equity group (PEG) was using proprietary enterprise resource planning (ERP) system to allocate resources and make business decisions. After analyzing the company’s situation, it turned out that the ERP was not suited for the client. The routing guide left out multiple states that certain carriers could not go to. Because of this issue, the supplier was receiving chargebacks from distribution centers on a regular basis. Once BlueGrace helped them downsize their carrier network to a more tailored group of carriers, it saw a 12 percent reduction in transportation costs and $300,000 in annual savings.

In the second case, a restaurant supplier was having difficulties managing their current in-house ERP system. They had looked at 3PL solutions in the past, but couldn’t find a solution that suited their needs, causing them to continue to incur chargebacks frequently, dinging their bottom line significantly over time. After the implementation of BlueGrace’s systems, the supplier was able to straighten out their supply chain and avoid chargebacks, saving them 12 percent in hard costs totaling at $468,000 in one year.

Do You Understand Your Business’ Needs?

At BlueGrace, we understand that every business has specific needs.We would love to learn what matters most to you in this aspect of your business. Contact us at 800.MYSHIPPING or fill out the form below to speak to one of our freight experts today, and learn how you can optimize your supply chain, minimize costs, and maximize your company’s bottom line!

BlueGrace CEO Bobby Harris Named One of Florida’s Most Influential Business Leaders

BlueGrace CEO Bobby Harris Named One of Florida’s Most Influential Business Leaders

SEPTEMBER 25, 2018 | BlueGrace Logistics CEO Bobby Harris has been selected as one of Florida’s Most Influential Business Leaders on the Florida 500 – Florida Trend’s roster of the state’s 500 most influential business leaders spanning across more than 60 business categories and economic sectors.

The Florida 500 list is the product of a year-long research initiative by the editors of Florida Trend resulting in a personal, engaging look at the state’s most influential business leaders across major industries. The 500 executives were selected based on extensive contacts in regional business circles, hundreds of interviews and months of research, culminating in a highly selective biographical guide to the people who really run Florida.

Bobby is one of just 18 Transportation Executives chosen on the prestigious list of top business influencers throughout the entire state of Florida.

BlueGrace would like to officially congratulate Bobby on this much deserved honor!

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About Bobby Harris

Bobby Harris is the founder and CEO of BlueGrace Logistics, a North American 3rd party logistics firm headquartered in Tampa, FL. BlueGrace has an industry-wide reputation for its high-performance shipping technology, innovative culture, being privately held, and hyper-growth since its inception in 2009. BlueGrace has an industry-wide reputation for its high-performance shipping technology, innovative culture, and hyper-growth since its inception in 2009. In 2012, INC 500 named BlueGrace the 20th fastest growing company in the United States, and in 2014, Bobby won Ernst & Young’s Entrepreneur of the Year. In July of 2018, Bobby was welcomed as the newest member of Northwestern University Transportation Center (NUTC) Business Advisory Council (BAC). Mr. Harris is a member of YPO, and proudly supports the Humane Society of Tampa Bay as a member of the Advisory Council and is an advisor for the Tampa Bay Partnership.  He earned a B.A. in Psychology from the University of South Florida.

 

About Florida Trend

Florida Trend business magazine is read by 250,000 influential business executives, civic leaders and government officials each month. Its award-winning reporting covers business news, executives, key industry sectors, regional news and lifestyle. E-newsletters cover breaking news, movers and influencers, real estate, health care, education and small business. Floridatrend.com attracts over 100,000 unique viewers monthly.

The Florida 500 list is the product of a year-long research initiative by the editors of Florida Trend resulting in a personal, engaging look at the state’s most influential business leaders across major industries. The 500 executives were selected based on extensive contacts in regional business circles, hundreds of interviews and months of research, culminating in a highly selective biographical guide to the people who really run Florida.  A variety of sources were used to produce the list, including input from executives of economic development organizations, professional associations and others who know their communities, industries and the state well.

 

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. Backed by a $255 million investment by private equity firm Warburg Pincus, the company operates 12 locations nationwide and is headquartered headquartered in Tampa, Florida. For more information, visit www.mybluegrace.com.

 

BlueGrace VP Randy Ofiara on WGN Radio

The news for the week was Tesla, but isn’t it always? This time the discussion was around Elon Musk’s comments about being in “logistics hell” and his company’s inability to get the now finished electric automobiles delivered on time. On Wednesday, September 19th our VP of Enterprise Sales, Randy Ofiara was invited to speak on WGN Radio in Chicago. He shared his expertise on why Tesla and other freight shippers are having difficulties meeting shipment deadlines due to the capacity crunch we are witnessing currently. Driver shortages, tariffs and government mandates are impacting shippers like never before.

Click HERE to listen to the podcast on the WGN website. The logistics discussion starts at the 7:30 mark. Take some time to listen to why the experts at BlueGrace are on top of the industry for you, helping you simplify your shipping everyday.

Even with the capacity crunch in full swing for all types of industries, there is still pressure to curb costs, but there is no reason to fold under the pressure. There are plenty of opportunities to save on costs waiting to be revealed. All it takes is a hard look at your business model.  To speak to one of our freight experts, call us at 800.MYSHIPPING or fill out the form below. 

6 Reasons Why We Must Appreciate Truck Drivers All Year

Every year, from September 9th to 15th, we celebrate Truck Driver Appreciation week to thank the 3 million plus professional truck drivers in the country for their tireless service to the nation and all of its people.

While as an industry we have earmarked a specific week in the year to acknowledge the great work these professionals do for us, appreciation for their work should not be limited to seven days in a year. It should be a part of how we interact with them day in and day out all year round.

Six Reasons to Thank and Appreciate Truck Drivers Every Day of Every Year

#1. They drive the economy – Road transportation makes it possible for us to reach our end customers with ease and on time. Our truck drivers deliver the goods and commodities that we or our business require on a day to day basis to function with efficiency.

#2. Truckers facilitate other modes of transportation – Over the road transportation provides the link to sea, air, and rail transport. Our truck drivers deliver our goods to the terminals where they can be loaded on ships, cargo planes, or trains for further transportation. Road transportation managed by our truckers is what makes international trade and global movement of goods possible.

#3. Truck drivers keep our roads safe – By following all rules and regulations set for safe driving irrespective of how long they’ve been on the road, truck drivers ensure that the roads are safe for the other drivers and pedestrians. They are the monitors and the guides on the road.

#4. They’re always at work – Torrential rains, rough storms, heavy snowfall, or hot summer days, nothing can stop truck drivers from getting on the road and working. They’re working even when the roads are closed due to rough weather and all of us are sitting beside our fireside enjoying a day off from work with a hot cup of coffee or chocolate.

#5. They provide the calm in the calamity – When entire cities get washed away in storms or collapse due to earthquakes, truck drivers are the first to offer their services to go to the affected areas with food, clothing, medical aid, and other support. If required, they also help evacuate the people to safety, even if it means putting their own life at risk.

#6.  They stay away from their families for many days – Truck driving requires drivers to be on the road for days, sometimes even weeks at a time. To ensure that our lives and businesses continue to function without any hassles, the drivers often miss out on special occasions of their loved ones – wedding anniversaries, children’s birthdays, holidays, and other functions where their families may need their support or presence. For this devotion to their jobs, we must thank not only the truck drivers but also their families who support them in fulfilling their duties efficiently and effectively!

Take Time to Thank The Trucker Community!

As a part of the freight and logistics industry, we at BlueGrace Logistics would like to thank the truck driver community for the work they do to keep our business operating seamlessly and efficiently and for keeping our customers happy with every trip they make! Here’s a big THANK YOU to the drivers who keep our lives moving!  

Chicago — not just a hub, a high-tech logistics magnet

“No one’s coming to save us,” Bobby Harris, president and CEO of BlueGrace Logistics, tells shippers. He’s talking about the tight-capacity, high-priced, surface transportation market, which he expects will continue until late 2019. One BlueGrace solution — it is going to Chicago to hire help. (Above: Chicago, with Lake Michigan.) Photo credit: Shutterstock.com.

William B. Cassidy, Senior Editor | Jun 07, 2018

Chicago draws logistics business like Hollywood draws actors, or a lamp draws moths. The city’s importance as a logistics hub predates even Mrs. O’Leary’s cow, blamed, rightly or wrongly, for starting the fire of 1871.

As the United States and its people moved west, Chicago became the crux in America’s railroad backbone. Today, Chicago still is the most important rail center in North America, but it’s also a high-tech logistics hothouse.

“There’s just such a surplus of talent there, at a time when we’re looking for a lot of talent,” Bobby Harris, president and CEO of BlueGrace Logistics, said shortly after BlueGrace opened an office in downtown Chicago in May.

“The market we’re seeing now will be around for quite some time. We need to add a lot of capacity and a lot of professionals,” he said. Chicago “is a rich source of talent and resources, whether it’s truckload capacity or sales reps.”

Third-party logistics providers (3PLs) such as BlueGrace will need resources to guide shippers through the tightest, costliest freight market since the early 2000s. Harris’s advice to shippers: “Whatever you think you’re doing really well, think another step.”

At this point, “everyone knows capacity is tight,” Harris said in an interview. “The question is how long will it be this way? My belief is that it’s going to be a tight market, in truckload and less-than-truckload [LTL], into late 2019.”

Chicago — a booming logistics sector since mid-2000s

Since the mid-2000s, Chicago has experienced a logistics explosion, with non-asset, 3PL, and technology companies large and small opening shop and tapping a young, tech-savvy workforce.

Coyote Logistics, now part of UPS, and Echo Global Logistics were both founded in 2006 and now are billion-dollar-plus 3PLs. Along with several other Chicago 3PLs, they are the original third-party logistics “disruptors.”

Tampa-based BlueGrace is part of the tech-based logistics community that has grown rapidly over the past 10 years. The 3PL has been on the Inc. 5000 list of fastest-growing firms five times, including last year, ranked at 3,744.

Harris founded BlueGrace as a technology firm in 2007. Previously, he was a franchisee with freight forwarder United Shipping Solutions and worked at LTL trucking companies Southeastern Freight Lines and Yellow Transportation.

In 2012, BlueGrace ranked 20th on the Inc. 5000 list, with a three-year growth rate exceeding 7,000 percent. Last year, Bluegrace grew at a three-year rate of 79 percent, with $188.1 million in revenue in 2016, according to Inc.

That year, Bluegrace got a $255 million infusion of cash from private equity firm Warburg Pincus. The investment helped the 3PL expand in its core LTL trucking market and buy back franchised BlueGrace operations.

“We brought back virtually most of our franchises with the exception of a few,” Harris said. “We’re 95 percent direct-owned now.” In Chicago, BlueGrace’s new office is in the Chicago Board of Trade Building, a landmark skyscraper.

Eighty new hires will staff the office, which opens July 9. “We expect to make continuous investment [in the office] and we’re bullish on it. There’s a reason some of the biggest and most successful logistics firms are in Chicago.”

One reason is some of the biggest and most successful users of logistics services are there too. McDonald’s this Monday opened a new $250 million, 550,000-square-foot headquarters building in Chicago’s West Loop.

Online grocer Peapod on Tuesday opened its new headquarters at 300 S. Riverside Plaza in the West Loop, next to the Chicago River, relocating all of its corporate employees from the northern suburb of Skokie, Illinois.

‘Silicon Prairie’

Some 3PLs have made similar leaps. Several years ago, LoadDelivered Logistics relocated from North Grove, Illinois, to downtown Chicago. LoadDelivered founder Robert Nathan called the area “Silicon Prairie.”

Facebook and Google both plan to add more than 100,000 square feet to their Chicago offices and hundreds of workers, according to Built in Chicago, an online community for technology entrepreneurs, and the Chicago Tribune.

The tech giants compete with logistics companies for the same base of young, educated, technology workers. In Chicago, “We’ll have new hires out of college, and we’ll get supply chain professionals with experience,” said Harris.

They’ll need that experience, he suggested, in the year to come.

Harris foresees “continual tightening” of surface transportation capacity. “We’re entering produce season, we’re looking at hurricane season. We don’t see anything that’s going to relieve capacity in the next calendar year.”

He pointed to the Institute for Supply Management’s monthly indices, which showed the US economy expanding both in services and manufacturing in May. The good news is “we’re not finding the monster under the bed.”

Shippers need to put finding capacity “up on the top,” Harris said. “We’re getting a lot of business from people who just can’t get what they need and they’re worried about how it will look over the summer and next winter.”

“No one’s coming to save us,” he said. “We’re going to have to deal with this market for a long time. More drivers, that’s not going to happen, and automated trucks are way too far in the future in this time frame.”

Even so, for 3PLs and carriers, “there’s a lot of opportunity,” he said. “The very good firms will do exceptionally well, smaller firms with fewer resources not as much.” The question for shippers, he said, is “how to optimize what we do.”

Copyright © by The Journal Of Commerce. All rights reserved. No part of this document or the related files may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording, or otherwise) without the prior written permission of the publisher.

Ready to apply? Visit https://mybluegrace.com/careers/working-at-bluegrace/ to check out all available positions nationwide.

BlueGrace Logistics Opening Office In Chicago And Adding 80 Jobs

FOR IMMEDIATE RELEASE

MAY 14, 2018

 CONTACT:

Michelle Damico michelle@michelledamico.com 312.423.6627

BLUEGRACE LOGISTICS OPENING OFFICE IN CHICAGO AND ADDING 80 JOBS

Access to Talent and City’s Status as Global Transportation Hub Key Drivers in Innovative Logistics Company’s Decision to Locate in Chicago

CHICAGO,ILLINOIS — Mayor Rahm Emanuel today joined BlueGrace Logistics, a nationwide third-party logistics (3PL) provider, to announce the company is opening an office in downtown Chicago. BlueGrace plans to add 80 jobs at its new location in the iconic Chicago Board of Trade Building. The new office will open July 9, 2018 and support the continued strong growth BlueGrace has accomplished since its launch nine years ago.

“Innovative businesses choose to grow and invest in Chicago because they recognize the unparalleled strength of the city’s talent and transportation networks,” Mayor Emanuel said. “BlueGrace Logistics is a welcome addition to the city’s innovation ecosystem and I look forward to watching them thrive in their new home in the city of Chicago.”

“The unique layout of the existing office fits the BlueGrace culture of high energy and pursuing outrageous goals.” said Bobby Harris, President and CEO. “The Midwest area is rich with young, college-educated talent, and Chicago is already an elite spot for the logistics industry. The proximity of public transportation and all of the other amenities of downtown Chicago alongside this location made this an easy and logical choice for our business growth strategy to recruit, hire, and train the best and brightest young talent available.”

Mark Ford, COO of BlueGrace Logistics, who will manage the employees in the downtown Chicago office, commented: “As complexity increases, more companies are turning to 3PL’s for their industry expertise and ability to provide access to many different carriers, routes, and modes of transport at competitive prices. To stay competitive, 3PL providers will continue to evolve, and innovation and technology will play a key part in their success. BlueGrace is exploding with growth, and Chicago is the epicenter of the 3PL community, so it is only natural that we significantly increase our investment in human resources in this city and make a long-term commitment to the area.”

BlueGrace plans on hiring 80 new employees to fill the Chicago office in the next 12 months. These sales professionals will support the company’s operations nationwide. The company is headquartered in Tampa, Florida and has 10 regional offices across the United States.

About BlueGrace Logistics:

Founded in 2009, BlueGrace Logistics is one of the largest third-party logistics (3PL) providers in the United States.  With over 500 employees and working with over 10,000 customers to provide successful shipping solutions, the company has achieved explosive growth in its nearly 10-year operating history.  Backed by a $255 million investment by private equity firm Warburg Pincus, the company operates 11 locations nationwide, and its headquarters are in the sunny Tampa Bay area of Florida.

Mayor Rahm Emanuel

Bobby Harris, President and CEO

BlueGrace Logistics At SAPPHIRENOW 2018

As a leader in your company, are you getting the supply chain business intelligence and data you need? If not there is a way to get that much needed data and even cut costs in the process with a 3PL (Third Party Logistics) integration with SAP.

BlueGrace Logistics has exhibited at SAP SAPPHIRE for the last 3 years and spoken with executives from all types of industries. Many of the people told us it was either very difficult or incredibly time consuming to get the vital data they need from the supply chain and transportation departments within their organizations. As a 3PL, it is our responsibility to arm the executive suite with the data and business intelligence needed to make better business decisions regarding supply chain and freight.

With our proprietary freight data analysis, we set ourselves apart from other transportation management providers. Our systems take your current freight data and enable our team to get an inside look at what your team may be missing. Opportunities to simplify and save are not hidden anymore.

What Types Of Services Does BlueGrace Offer?

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

Let’s Talk More At Booth #927

BlueGrace Logistics will be joining other leading technology providers in Orlando at the Orange County Convention Center June 5-7 for the SAPPHIRE NOW 2018 trade show. At this show, BlueGrace will be discussing how we integrate your freight with SAP to simplify your businesses transportation systems.


FREE BONUS FOR ALL SAPPHIRE NOW ATTENDEES!

Not only can we integrate your freight into SAP, we can use that data to optimize your entire supply chain. The first 25 registered attendees to Booth #927 are eligible for a Free Supply Chain Analysis and Optimization Study, using your current data. We will be able to review our results at the show with you and your team.

YOUR FREE ANALYSIS INCLUDES:

  • Daily/Weekly Consolidation Report
  • Cost per: lb/mile/
  • Cost per SKU, PO
  • Freight cost as a percentage of goods
  • Center of Gravity study
  • Carrier spend breakdown
  • Mode Spend Breakdown
  • Cross Distribution Analysis

Fill Out The Form Below To Let Us Know You Will Be Attending and Receive Your FREE Supply Chain Analysis and Optimization Study At The Show!

BlueGrace Takes 1st Overall At 2018 SportsFest

At BlueGrace, Core Value #3 is “Pursue Outrageous Goals.” Working as a TEAM to pursue these goals is one of the most important dynamics of our company culture; from the way we come together to ensure our customers always have an excellent experience to way we band together to hold one of the largest pet food drives in the country to benefit our furry friends at Humane Society of Tampa Bay, our teamwork is evident. BlueGrace has been bringing our game faces to St. Pete Beach to compete at Corporate SportsFest for the past 8 years in a row, and the goal was always the same – to be #1 out of 200 companies. Core Value #3: Pursue Outrageous Goals.

SporstFest competitive events include volleyball, corn-hole, a surf ‘n turf relay race, dodgeball and tug of war. What may seem like a day of fun in the sun quickly proves to be a challenge reserved for the competitive heart – with the heat, sand and continuous rounds to compete in, there’s definitely no time for sun bathing! As always, our employees had one thing in mind: getting that #1 spot and showing everyone else what we’re made of. We put on our BlueGrace Gear, repped our #LetsDoThisSHIP hashtag, and brought our a-game to the beach!

1st Place Overall for 2018!

WE. DID. IT. Our outrageous employees beat 200 other companies and 4,000 other people at SportsFest 2018 and earned the #1 Company title at Corporate SportsFest this year! Can we get a WOOOO!? Congratulations to all BlueGrace employees who attended and competed in SportsFest 2018. With 200 Tampa Bay companies participating and over 4,000 competitors, SportsFest is always a wildly successful event that embodies team building, solid competition and fun. Exhausted, but ecstatic, our team returned home victorious and more engaged with both coworkers and customers. We’re extremely proud of our team and their drive to succeed! Congratulations to all of the other finalists that competed this year, and kudos to all that participated in Corporate SportsFest 2018!

Checkout our 2018 team video!

Want to join our team?

BlueGrace Logistics is hiring and we want you to join our team! From Sales and I.T. to Finance and Customer Support, we have a position for everyone! Visit http://mybluegrace.com/careers for more informatio

Choosing the Right 3PL to Align with Your Business Strategy

Most shippers don’t spend much time worrying about who is driving the trucks carrying their goods, but choosing a 3PL with the right carrier network makes all the difference when your business is expanding. B2B and B2C networks are increasingly determined by where the customer is, rather than a companies’ geographical location. With more business moving to online, you need to be prepared to meet your customers where they are. 

When your customers need change, you want to be able to say “yes.” But logistics is a complicated business and when you are examining your choices, there are some factors to consider.

The first step is to understand your internal requirements – consider what your specific needs are before looking for a 3PL. Questions to ask include, what modes of transportation and what services you will need? What volumes do you plan to ship and where? Do you have specific security or visibility requirements? Are your shipments time-sensitive? The list goes on… Despite their expertise, 3PLs are only as useful as their knowledge of your business and customer requirements. 

The right 3PL will also have a network density that connects you with the right carrier, at the right location and with the right capacity and expertise.

Start with Carrier Partnerships

Whether you are shipping intra-warehouse or last-mile, it’s important that your 3PL  has the capabilities to make it happen. Two considerations are technology and partnerships.  

Shippers should look for a partner that allows them to quote, track and control invoicing for their LTL and FTL shipments, across a nationwide carrier network. Because your shipping partner is responsible for integrating different shipments, they are responsible for implementing technology that provides visibility to your shipment across their network of trucks and more. 

The right 3PL will also have a network density that connects you with the right carrier, at the right location and with the right capacity and expertise. With capacity being tight these days, partnering with the right 3PL will increases the chances that your time-critical shipments will be delivered on time and at a competitive price. That means, if you have warehousing and delivery needs in Houston, your 3PL  should have vehicles available to accommodate those needs, and quickly. 

Door to Door deliveries

Not all trucking companies handle door-to-door deliveries and some don’t have to. What matters is that your 3PL is partnered with carriers that offer fleet capabilities that meet your needs. For your urban customers, the trucking company might need to deploy a fleet of smaller trucks or even vans. If your requirements are FTL B2B shipments, you need a trucking company with that sort of capacity. For many shippers, their requirements fall in-between, or into the ‘all-of-the-above category.’ In those cases, your 3PL needs to have a range of carriers available to facilitate your business. 

Experience matters

Shippers should ask themselves if their 3PL understands their business and customer base. For example, a company shipping high-value electronics, will want to check with their 3PL about security protocols. Are trucks secured? Is there a system in place to alert management when drivers divert course? Proactive 3PLs will have systems in place so that your customers can rely on you in turn.  

Shipping disruption is an unfortunate reality in the business, ranging from weather disruptions to dock strikes. The right 3PL will have a plan in place to make sure that you are taken care of. 

Do the services match the requirements?

Some 3PLs specialize in specific modes of transportation, commodities, dealing with regulations and origin/destinations. Others are generalists. Make sure that you ask potential 3PLs if they have experience handling the cargo that your business will be shipping. The right partner for your business will be able to walk you through the different steps required, allowing all parties to agree on the correct protocols and procedures.  Reviewing a 3PLs Case Study library can help you better understand their expertise.

How many modes?

There are four common modes – ocean road, air, and rail. Many 3PLs will offer “intermodal” services, but if they don’t have the size and experience to properly manage that freight in-transit, they are essentially handing off responsibility to another party. 

To avoid this uncertainty, make sure your 3PL works with established rail and intermodal carriers. That way, you get the most options. Offering a variety of modes that let shippers choose slower transit times when possible, which lowers costs. On the flip side, if you need something shipped fast, having a 3PL with a dedicated expedite team will help to ensures that your shipment gets where it’s going, in the time it needs to be there.

How’s their customer service? 

This might seem too obvious to print, but it’s important to distinguish between friendly phone conversations and 3PLs that can get you the information you need when you need it. If there’s a disruption or other events along the shipment chain, you need a 3PL that can reach out proactively to help you make the necessary adjustments on your end. There will always be disruptions, but that doesn’t mean they need to put you on your back heels. 

Customer service is also about finding a 3PL that’s willing to take the time to help you set up the right solution. If your business is experiencing sudden growth, you might not have all the answers.

Is your 3PL BlueGrace?

At BlueGrace, our freight specialists work with you every step of the way to understand your requirements and set up a solution that’s tailored to your needs. BlueGrace provides scalability for growing companies to achieve their goals without labor or technology investments. With a fully built-out national network and global partners, BlueGrace makes it easier than ever to reach your markets in an efficient and cost-effective manner. Our expertise and processes provide clients with the bandwidth to operate efficiently and drive direct cost reduction, backed by procurement and dedicated management. For more information on how we can help you analyze your current freight issues and simplify your supply chain, contact us using the form below: 

The Importance of Customer Care in The Age of Automation and AI 

We’re approaching a new age. Not just in technology, but in our mentality towards that technology. Self-driving cars are no longer just a concept but are in the pre-production testing phase. Robots are less novelty and more integral to many aspects of our lives and our jobs. Simply put, we’re approaching a new age that might see a lot less need for human interaction.   

Though they may be intuitive and programmable, robots aren’t capable of handling every aspect of a job.

Many industries, not just the freight and logistics sector, have voiced some concerns about the integration of robots in the workforce. Truck drivers might take a back seat to an automated rig, at least for the highway stretches. Logistics planners might sit on the sideline while an AI constructs the hypotheticals and maps out the best route from A to B. When you consider it like that, it seems as though there might be a good reason to panic about the encroaching robotic workforce. Though they may be intuitive and programmable, robots aren’t capable of handling every aspect of a job. In fact, there are a few areas where they fall drastically short of the mark.   

Human Core Capabilities  

Despite what Isaac Asimov had to say about the matter, there are three areas in which robots simply can’t hold a candle to a human counterpart. These “core capabilities” are creativity, community and empathy. Robots aren’t designed to feel human emotion. They can’t understand when a customer is frustrated by a missing or damaged piece of freight.

Sharing Economy 

People will change their view of asset ownership, something that has been more or less hardwired into previous generations. For those that own assets, they want to get the most out of them. For those that don’t, they want to be able to access them instantly, without the need to ever own them. To make this easier to understand, consider Uber for a moment. The vehicle owner can take their asset and use it to make some extra money by giving rides. The users simply have to tap a few buttons on their phone, and a ride is summoned, ready to take them to their destination without the need to own a vehicle themselves. This is a perfect example of the Sharing Economy.  

Empathetic Businesses 

With automation growing, we’ll see a shift in the sharing economy into the empathy economy. This empathy economy will be more focused on matching humans or businesses with a need for empathetic services to those who are willing to offer them, according to the World Economic Forum 

True empathy isn’t easy, but it’s the most powerful expression of humanity. In a world full of robots, empathy can only become more valuable

“It’s cliché to say that empathy is in short supply today because every generation probably has the same sentiment. The good news is that automation will force humans to be more human and the empathy economy will create opportunities for humans to monetize a unique capability. True empathy isn’t easy, but it’s the most powerful expression of humanity. In a world full of robots, empathy can only become more valuable,” says WEForum.

Companies will need to find the balance between automated production and workers, with the softness of human emotion and customer service. Customer service specialists and the “white glove” treatment of customers will be the true differentiator between competitors in the field. The stronger the empathetic match between company and potential customer, the more likely it is that they will become a regular client.   

The Human Element 

In many regards, we look for other people to not only help us with our problems but also to understand what we’re going through. Humans will always be the best in understanding emotions. We understand how frustrating it can be to be put on hold or left with questions and seemingly no answers. It’s that human connection that is vital for businesses.  

While many businesses understand this, that’s not to say that they won’t automate at least some of their customer service elements. Well, augment might be a better word 

They all do that in the name of efficiency. However, it will be important for them and us as customers, to keep the human connection alive and well. Amazon’s Grab-and-Go is a perfect example of this. The concept is that customers don’t need to go through checkout or interact with a cashier. Simply grab the items they want and have Amazon automatically track and charge the “purchases.” While this drastically removes much of the human element, the Amazon Grab-and-Go stores are also staffed with human workers who can help answer any questions and guide customers through the process. In other words, there will always be a need for human interaction in any business environment. Human-based customer service is and will continue to be the cornerstone for building a strong business.  

Treat customers as people and not just another line in the profit margin and your business is golden.  

While data services are certainly a must, they are also becoming the norm in the logistics and freight industry. Real-time data and high-end visibility used to be a selling point, now it’s simply an expectation. Customers want to know where their products are and when they can expect them to arrive. They want a simple and easy to use system that gives them the comfort and security of knowing that they have made the right choices for optimizing their supply chain. Nonetheless, despite all the efforts and advancement of different technologies, it will be the mutual understanding created by the human empathy that will solve problems. Treat customers as people and not just another line in the profit margin and your business is golden.  

Working with a 3PL like BlueGrace

BlueGrace provides scalability for growing companies to achieve their goals without labor or technology investments. With a fully built-out national network and global partners, BlueGrace makes it easier than ever to reach your markets in an efficient and cost-effective manner. Their expertise and processes provide clients with the bandwidth to operate efficiently and drive direct cost reduction, backed by procurement and dedicated management. For more information on how we can help you analyze your current freight issues and simplify your supply chain, feel free to contact us using the form below:

BlueGrace Logistics Awards 2017 Innovator of the Year to project44

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

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

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

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

 

About project44

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

Learn more:

 

About BlueGrace Logistics

Founded in 2009, BlueGrace Logistics is one of the fastest growing leaders of transportation management services in North America. As a full-service third-party logistics provider (3PL), BlueGrace helps businesses manage their freight spend through industry leading technology, high level freight carrier relationships and overall understanding of the complex $750 Billion U.S. freight industry. BlueGrace is headquartered in Riverview, Florida with over 12 corporate locations across the U.S. For more information, visit www.mybluegrace.com.

 

Retailers Say Don’t Let Your Freight Be Early Or Late

The transportation industry is perhaps one of the most daunting when it comes to rules and regulations. Hours of Service and Electronic Logging Devices are just a few of the most recent roadblocks to come up recently. Merely staying in compliance with these new regulations can be a costly endeavor. What’s worse is that being caught out of compliance could mean penalties, fines, or even a trucker losing their job.

As if all that wasn’t bad enough, truckers and freight forwarders have to balance all of that on top of growing customer expectations. WalMart, in particular, is starting to crack down on deliveries with their OTIF program. Kroger, another heavy-hitting retailer, is also beginning to levy penalties on tardy shipments. Missing the delivery window could mean hefty fines for carriers. However in this case, missing the delivery window doesn’t just mean being late, but even arriving early could prove costly for carriers.

Tardy Carriers Will Pay the Price

Retailers are warning retailers that disputes simply won’t be tolerated. On Time. In Full. Or Else.

WalMart can be rather ruthless when it comes to their profit margins, but other retailers are starting to rally to the call, creating an unforgiving environment for errant carriers. Retailers expect their loads to be packaged properly, delivered in full, at the designated time. To that end, retailers are taking a very defensive stance over their new initiative, warning retailers that disputes simply won’t be tolerated. On Time. In Full. Or Else.

Wal-Mart has signaled it could do more than levy fines if problems persist. Charles Redfield, executive vice president of food for Wal-Mart U.S., told suppliers they could also lose shelf space if they don’t solve their delivery issues, according to people in attendance at a supplier meeting earlier this year. “Retailers can threaten suppliers with loss of promotional space in stores”, analysts said, according to the Wall Street Journal.

In the few short months that the program was unleashed upon carriers, WalMart has already been dishing out the penalties. For example, late or missing freight could cost a carrier up to 3 percent of its value. Early arrivals are no less forgiving due to the fact that they create an overstock. This overstated Just In Time philosophy keeps the shelves full and the WalMart customers spending, which is all well and good for WalMart as it means they can run with the big dogs like Amazon.

it’s likely only a matter of time before more retailers jump on the no-nonsense bandwagon.

“Wal-Mart executives say a more-precise delivery window keeps shelves stocked and the flow of products more predictable, while reducing inventory—all of which are increasingly important to the retailer as it invests heavily to compete online. The change could create $1 billion in additional sales over time, they said. “We hope we don’t have to collect any fees from suppliers. We would much rather have all the product we ordered on time,” said Wal-Mart spokesman Kory Lundberg,” the WSJ adds. While Kroger is seemingly more lenient, simply charging a flat $500 for late shipments, it’s likely only a matter of time before more retailers jump on the no-nonsense bandwagon.

Carriers Feeling the Pressure

These new policies will be costly for carriers for more reasons than just the fines.

These new policies will be costly for carriers for more reasons than just the fines. Simply implementing the procedures and equipment necessary to hit that 95 percent compliance mark could prove to be too much for smaller carriers. While bigger carriers can just add some new factory processes to help with packing and loading, smaller carriers don’t always have that luxury. Many new carriers are just hoping to break even for their first few years of operation until they can build both a steady reputation as well as a customer base.

Furthermore, WalMart and Kroger’s steadfast approach to “no excuses” will mean that carriers can be slapped with a fine for circumstances that are beyond their control. Anything from heavy traffic and construction work that causes serious delays to severe weather events that makes travel all but impossible will all have a negative impact on carriers. Conversely, what happens if a carrier does happen to show up early? Is it better to take the financial hit for the early delivery or shell out for extra meals and more time on the road for the driver?

There’s also the concern that drivers might take it upon themselves to exceed the daily drive limit to ensure their delivery is on time. Not only is this dangerous, not to mention illegal, but soon driver’s won’t even have that as an option when the ELD mandate goes into effect this December.

The Bitter Citrus Industry

A growing concern over these new on-time delivery policies is what it will mean for Florida’s citrus growers. As both Walmart and Kroger are considerable retailers of foodstuffs and produce, that makes them some of the biggest customers for such items. As Florida citrus groves have not only been ravaged by HLB for several years, but hurricane Irma caused some considerable damage.

“Andrew Meadows, a spokesman for Florida Citrus Mutual, a trade organization for growers, predicts growers statewide will end up losing more than half of this year’s crop to Hurricane Irma. The Florida Commissioner of Agriculture has estimated the cost of Irma to Florida’s farm sector at $2.5 billion, with projected losses to citrus producers the worst of any sector, at $760 million,”according to an article from Marketplace.

Suffice it to say, this policy might create better profit margins for retailers, but it’s not going to make them any friends among the carrier community.

This puts both the growers and their carriers in a serious predicament. As much of the damage won’t be fully realized for another two years at least, making guesses on shipments is a dangerous gamble. Guessing too low means crops left unsold which is money wasted. Guessing too high, however, means that carriers won’t be able to make full deliveries which means the fines will get passed down the line back to growers. In either case, it’s a lose lose for an industry that’s already in danger. Suffice it to say, this policy might create better profit margins for retailers, but it’s not going to make them any friends among the carrier community. As the regulations begin to tighten from both retailers (who will undoubtedly add more to the list) as well as the ELD mandate, we’ll have to wait and see how carriers respond to the growing pressure.

Do You Need Help With OTIF Issues?

A 3PL, such as BlueGrace, can help your business overcome the challenges of OTIF and other supply chain issues. If you have questions about OTIF or just how to simplify your current transportation program, contact us via phone at 800.MY.SHIPPING or using the form below, we are here to help!

E-commerce Returns Are A Major Challenge To Retailers

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

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

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

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

Some Companies Are Looking Askance At Those Costs

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

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

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

What Changed?

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

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

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

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

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

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

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

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

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

Streamlining the Process

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

The logistics experts at BlueGrace review historical shipping data to increase profit, cut labor costs, and keep the online customers loyal to brands by streamlining both the buying and returns process that underpins e-commerce in 2017. It’s important to understand and analyze returns to the granular level, leveraging that data to streamline future returns and ultimately, make sales more profitable. BlueGrace Logistics offers complete, customized transportation management solutions that provide clients with the bandwidth to create transparency, operate efficiently, and drive direct cost reductions. For more information on how we can help you analyze your current freight issues, feel free to contact us using the form below: