{"id":12146,"date":"2021-08-19T16:40:55","date_gmt":"2021-08-19T14:40:55","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=12146"},"modified":"2021-08-19T16:40:55","modified_gmt":"2021-08-19T14:40:55","slug":"digitizing-freight","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2021\/08\/19\/digitizing-freight\/","title":{"rendered":"Digitizing Freight: What Does It Mean For Your Fleet?"},"content":{"rendered":"

Graphic: HDT<\/i><\/span><\/p>\n

Tapping digital technologies improves visibility for shippers and brokers and quality of life for drivers.<\/b><\/span><\/p>\n

The digitization of freight is a syllable-heavy phrase that gets tossed about in trucking and logistics circles these days. But what does it really mean? And how does the process it defines affect the movement of freight \u2014 and your fleet?<\/span><\/p>\n

To find out, HDT spoke with several fleets of varying sizes and operational profiles about how they are leveraging digital technology to better master the flow of freight that drives their businesses.<\/span><\/p>\n

But for starters, executives at several providers of digitized freight services and solutions offer thoughts on what they think is critical to fleets when it comes to this burgeoning automated technology of visibility and interaction.<\/span><\/p>\n

\u201cFleets that aren\u2019t working toward greater digitization of freight transaction processes\u00a0will struggle to compete and be profitable\u00a0in the coming years,\u201d says Doug Schrier, senior vice president of strategy for Transflo. \u201cThe supply chain and all of the parties within it are quickly moving toward digitizing all of the various processes by building integrated connections and reducing friction between various parties. Carriers, shippers, and freight brokers in business today will soon no longer have manual processes and paperwork.\u201d<\/span><\/p>\n

As Greg Hastings, DAT Freight & Analytics\u2019 vice president of strategy execution, says, \u201cvisibility is unlocking efficiency for every player in the supply chain.\u201d<\/span><\/p>\n

\u201cCarriers\u00a0can plan their stops, reduce wait times, maximize hours of service, adapt\u00a0delays, and book the next load earlier with real-time location tools like\u00a0predictive ETA,\u201d Hastings adds. \u201cBrokers can identify and address incidents early, plan, and\u00a0line up reloads for carriers, and keep their customers up to date on the\u00a0location of their freight. Shippers can plan inventories and service levels more\u00a0efficiently. And everybody benefits from fewer check calls, time spent trying\u00a0to locate a particular shipment, and disputes over accessorials or penalties.\u201d<\/span><\/p>\n

Jason Eversole, VP of carrier operations for FourKites, puts it succinctly: \u201cAchieving true visibility into our interconnected supply chains \u2014 from unexpected weather or port closures to border crossing times and unpredictable performance of your once-familiar lanes \u2014 can only be achieved by a fully connected ecosystem.\u201d<\/span><\/p>\n

\n

\u201cThe digitization of freight means the reimagination of the entire freight marketplace.\u201d \u2013 Joel Gard, Xpress Technologies<\/span><\/p>\n<\/div>\n

Transflo\u2019s Schrier also points out that a key reason that fleets move toward digitization and back-office automation is \u201csimply to help their employees. From in-office personnel to the drivers on the road, digital processes help them do their jobs easier, more efficiently, and with fewer headaches and frustrations. Fleets have seen digitization improve their engagement with drivers. And we\u2019ve seen it help boost drivers\u2019 pay by helping them better track miles and spend more time behind the wheel \u2014 and less time performing non-driving tasks.\u201d<\/span><\/p>\n

When carriers also do logistics<\/span><\/h2>\n

Something else compelling about the digitization wave is that many nationwide carriers with logistics capabilities have become providers of digital solutions, both to themselves and to the various carriers they interact with on loads.<\/span><\/p>\n

Take Omaha, Nebraska-based Werner Enterprises and its recently launched Carrier’s Edge. The asset-based logistics provider built the self-service carrier portal as part of its longstanding relationship with Trucker Tools, a provider of trip planning, shipment visibility, predictive freight matching, and automated booking solutions.<\/span><\/p>\n

Carrier\u2019s Edge, part of the larger Werner Edge technology program, is designed to increase visibility and streamline communications for Werner\u2019s qualified alliance carriers. Through the portal, a carrier gains immediate visibility to Werner freight and beyond. Carriers can book loads at the touch of a button, maintain preferences, view tracking information, buy or sell equipment, and communicate directly with Werner staff. Providing 24\/7 access, the portal also offers \u201csmart\u201d recommendations based on preferences, previous offers, and loads.<\/span><\/p>\n

\"Digitizing<\/span>
\n

Digitizing data helps identify wasted time. \u201cIf you can pinpoint where the wait is, you can eliminate it,\u201d says Penske Logistics\u2019 LeAnne Coulter. \u201cAnd if you can know availability and have visibility, you can address drivers\u2019 requests for home time.\u201d Photo: Penske Logistics<\/span><\/p>\n<\/figcaption><\/figure>\n

\u201cCarriers rely on real-time visibility and data to improve their operations and keep trailers full and moving,\u201d says Werner CEO Derek Leathers. \u201cWhile our carriers rely on Werner\u2019s customer service and personalized approach, they also desire a portal that will allow them to self-service when it\u2019s convenient for them, whether that be after hours or in a time crunch.\u201d<\/span><\/p>\n

Another example is J.B. Hunt Transport, which continues to add to its J.B. Hunt 360 platform, launched in 2014 as a self-service freight transportation management tool for customers. In 2017 the Arkansas-based transportation and logistics company added Marketplace to the platform to connect its shippers and carriers. And just recently, it added an integration KeepTruckin\u2019s Smart Load Board. The integration will provide greater visibility into capacity and offer carriers freight opportunities that better align with their operations, according to the company\u2019s announcement. The KeepTruckin Smart Load Board, launched last fall, gives users access to loads from other companies in the freight-digitization and load-matching arena, such as Echo Global Logistics, Uber Freight<\/a>, and Convoy.<\/span><\/p>\n

For U.S. Xpress<\/a>, \u201cthe digitization of freight means the reimagination of the entire freight marketplace,\u201d says Joel Gard, president of Xpress Technologies, a division of U.S. Xpress. \u201cWe\u2019re building technology solutions that exceed the demands of our shippers, empower our drivers, and serve our third-party carrier partners.\u201d<\/span><\/p>\n

Xpress Technologies, says the Chattanooga, Tennessee-based company, is a \u201creimagining\u201d of its brokerage segment, building and scaling a digital freight marketplace that benefits both carriers and shippers.<\/span><\/p>\n

Gard sees digitization as covering \u201ceverything from creating a best-in-class driver experience, by optimizing routing around the driver and their preferences, to building next-generation tools for shippers to tender freight to us with confidence.\u201d<\/span><\/p>\n

Eye on the future<\/span><\/h2>\n

Damien Hutchins is co-founder of Rollzi, a Bloomfield Hills\u200b,\u00a0Michigan-based truckload carrier, which he says is being \u201cbuilt from the ground up with an eye towards the future.\u201d Rollzi launched early this year focused on West Coast freight and currently fields four trucks.<\/span><\/p>\n

\u201cWe not only understand the current landscape of technology, but we also look around corners to forecast which products and features are coming to position ourselves for future opportunities,\u201d Hutchins says.<\/span><\/p>\n

\n

\u201cThe idea is to strike a balance between operational excellence and leveraging digital freight tools. Without the operational strategy to leverage those tools, they are just convenient bolt-ons to existing processes.\u201d \u2013 Damien Hutchins, Rollzi<\/span><\/p>\n<\/div>\n

Before starting Rollzi, Hutchins was working for a digital freight brokerage. There, he says, he saw \u201ca massive opportunity for asset-based carriers to take advantage of the trucking technology products coming to market. We\u2019ve been using technology from day one, and every decision we make in the business aligns with that idea of leveraging technology.\u201d<\/span><\/p>\n

Paper Transport Inc. (PTI), a for-hire carrier offering regional truckload, dedicated truckload, intermodal, and logistic services, has experienced enviable growth since its launch in 1990, especially in the last five years. The De Pere, Wisconsin-based company employs 920 CDL drivers, engaged mainly in serving its over-the-road and dedicated operations.<\/span><\/p>\n

\u201cWe have different divisions, but [when it comes to freight-matching] they are all on the same page, so to speak,\u201d says Julie Decker, PTI\u2019s project and development manager. \u201cOur planners make matches between loads, drivers, and equipment across our system.\u201d<\/span><\/p>\n

But as the fleet operation grows \u2014 and ever more data points must be sorted through \u2014 planners may not always formulate the best solutions. The goal is to arrive at decisions that account for the needs of shippers and brokers as well as the concerns of PTI drivers, and digitization can help make that happen.<\/span><\/p>\n

From linear to nodular<\/span><\/h2>\n

\u201cDigital freight-matching is a subset of the digitization of the supply chain,\u201d explains LeAnne Coulter, VP of freight management for Penske Logistics. The Reading, Pennsylvania-based firm provides supply chain management and logistics services\u00a0on four continents. \u201cSupply-chain stakeholders join in this ecosystem, where digitizing data can help each party work together to improve efficiency and visibility to their end customers.\u201d<\/span><\/p>\n

The players in this digital world include motor carriers, brokers and 3PLs, warehouse providers, shippers, and suppliers and vendors of the shippers.<\/span><\/p>\n

\u201cWe\u2019re now seeing efforts to connect more loads to go downstream to link the supplier\u2019s suppliers,\u201d she points out.<\/span><\/p>\n

Coulter says the purpose of bringing them all together \u201cis to change from a linear to a nodular freight distribution so that decisions can be made collaboratively versus needing to move them through silos along a chain.\u201d<\/span><\/p>\n

\"Before<\/span>
Before co-founding Rollzi, Damien Hutchins worked for a digital freight brokerage, where he saw \u201ca massive opportunity for asset-based carriers to take advantage of the trucking technology products coming to market.\u201d Photo: Rollzi<\/span><\/p>\n<\/figcaption><\/figure>\n

Indeed, just about five years ago, the discussion around digitization of freight mainly revolved around digital freight-matching, what many referred to as \u201cthe Uberization of freight.\u201d Uber itself got into the business in 2017. But today we\u2019re talking about much more.<\/span><\/p>\n

Freight-matching is a piece of the digitizing strategy at Rollzi. \u201cIt doesn\u2019t end there,\u201d says Hutchins. \u201cWe aggregate data points from our tools to make decisions based on data and leverage applications that help streamline operations.<\/span><\/p>\n

\u201cOur goal is a \u2018tech stack\u2019 that automates as much of our processes as possible and reduces manual tasks,\u201d he continues. \u201cHow the solutions are deployed is often more important than the solutions themselves. It\u2019s more than just picking the right system. We look to providers for features like workflow integration and robust APIs.\u201d API stands for application programming interface, a software intermediary that allows two applications to \u201ctalk\u201d to each other, he explains.<\/span><\/p>\n

Historically, he says, trucking\u2019s shipment selection and pricing process relied on domain knowledge or driver biases. \u201cBy contrast, collecting data allows us to make better decisions more quickly, and to optimize them for our own strategic priorities,\u201d Hutchins says.<\/span><\/p>\n

Rollzi also develops its own tools and algorithms to reflect the carrier\u2019s specific market strategy.<\/span><\/p>\n

\n

\u201cThe greater visibility also helps us get drivers home on time and as often as possible, which increases their satisfaction with PTI.\u201d \u2013 Julie Decker, Paper Transport<\/span><\/p>\n<\/div>\n

All told, Hutchins views digitized-data solutions as an avenue to \u201cdeliver rate stability, low shipping cost and incredible service. The idea is to strike a balance between operational excellence and leveraging digital freight tools.\u201d Delivering on rate, cost, and service requires digital freight tools, he says. \u201cBut without the operational strategy to leverage those tools, they are just convenient bolt-ons to existing processes.\u201d<\/span><\/p>\n

People first<\/span><\/h2>\n

U.S. Xpress started its technology transformation a couple of years ago when it began hiring people with deep tech experience, across both the trucking industry and others, to develop proprietary solutions, Gard explains.<\/span><\/p>\n

\u201cAs more venture-backed digital disruptors were entering the trucking industry, particularly on the non-asset or asset-light side of the business, we knew we had to find ways of building modern, digital offerings that would allow us to scale rapidly,\u201d he says.<\/span><\/p>\n

\"U.S.<\/span>
\n

U.S. Xpress digital initiatives are aimed at enhancing everything from driver satisfaction to dynamic pricing, with technology that balances the need of the shipper with the needs of drivers. Photo: U.S. Xpress<\/span><\/p>\n<\/figcaption><\/figure>\n

These digitizing efforts led to incubating business units that are now in the marketplace: Variant, its digital over-the-road fleet, launched in 2019, and Xpress Technologies, its brokerage unit, launched in 2020.<\/span><\/p>\n

\u201cWhile still in the early chapters of our digital journey, we\u2019re already seeing success in the number of seated trucks and operating performance of Variant and improved financial performance of our growing brokerage business,\u201d Gard says. \u201cIn addition, our dedicated offering leverages the combined technical advantages of Variant and Xpress Technologies.\u201d<\/span><\/p>\n

In addition to the technology teams it built to develop proprietary solutions, the company has also formed partnerships with \u201cexternal organizations that are helping to drive the industry forward.\u201d And as a \u201cdata-driven organization,\u201d he says, U.S. Xpress has integrated artificial intelligence and machine learning across its tools to make \u201csmart\u201d decisions.<\/span><\/p>\n

\u201cWithin Variant, we have reimagined the entire fleet orchestration and driving experiences,\u201d he says. \u201cWithin Xpress Technologies, we are overhauling an analog, highly transactional operating model and replacing it with proprietary technologies that create a more encompassing business enablement platform for carriers and shippers alike.\u201d<\/span><\/p>\n

According to Gard, key digital-based initiatives launched at U.S. Xpress are aimed at enhancing everything from driver satisfaction to dynamic pricing:<\/span><\/p>\n