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Schneider’s Mike Kukiela is passionate about logistics. Photo courtesy Schneider<\/p>\n
There are plenty of startup companies that say they can revolutionize logistics by using technology to make it more efficient. Yet there are many within the transportation and trucking industry already doing that. One of them is Schneider.<\/p>\n
That\u2019s right, the company you know for its ubiquitous orange trucks.<\/p>\n
\u201cWhen folks think of Schneider, they resonate to the orange assets on the van, dedicated or intermodal side,\u201d admits self-described \u201csupply chain geek\u201d Mike Kukiela, senior vice president of supply chain management at Schneider. \u201cWhat is a little less known is that we have an incredibly scalable logistics offering that is becoming the fastest-growing division of the company,\u201d offering third-party logistics, warehousing and value-added services to shippers.<\/p>\n
Kukiela\u2019s division goes even further, offering what is called fourth-party logistics or lead logistics provider (LLP) services. \u201cWe work with our customers and become somewhat part of their logistics staff. We can leverage our process and our technology to drive efficiency, create visibility, and reduce waste and inefficiencies and cost in their supply chain.\u201d<\/p>\n
Schneider was doing this long before anyone started using terms like 4PL or LLP. Years ago, it created its own transportation management system, called Summit. About five years ago, it converted to Oracle, and more recently started using MercuryGate as well as JDA (for warehousing) for its TMS needs.<\/p>\n
\u201cWe have tremendous insight into the order-to-cash process and the technology needs that shippers have.\u201d<\/p>\n
In surveying shippers, Schneider has identified three big challenges in the past few years:<\/p>\n
And of course, all those affect motor carriers. Supply chain visibility, from a carrier perspective, Kukiela says, \u201cis the track and trace and the ETA of when it\u2019s going to arrive.\u201d<\/p>\n
The need for scalability and flexibility is related to the boom in online and omnichannel commerce. \u201cThe supply chain needs to be completely agile and flexible to those needs,\u201d he says.<\/p>\n
Kukiela says that technology can address all these needs. \u201cIf a shipper has great technology, it allows them to provide more lead time to the carrier. When they don\u2019t, you see drivers waiting, orders being canceled, routes being changed midstream.\u201d<\/p>\n
While getting the right rate is part of it, he says, it\u2019s also about reducing waste, and that affects both shippers and carriers.<\/p>\n
\u201cIf you think how often a driver sits at a facility, that\u2019s waste. If you have a trailer pool and you can do it with half the amount of trailers, that\u2019s waste. [It\u2019s about] removing the need for there to be accessorial charges, because you\u2019re working with the customer to optimize their supply chain and help the carrier on their back end functions.\u201d<\/p>\n
The increased need for technological logistics solutions and third- and fourth-party logistics providers is a result of dynamic changes in the supply chain, Kukiela explains.<\/p>\n
Shipping patterns are completely changing due to an omnichannel marketplace, he says. \u201cTwenty years ago, you would see lots of full truckloads on the outbound; now you see a lot of less-than-truckload and parcel on the outbound, and you\u2019re seeing more full truckload on the inbound. You\u2019ve seen a complete shift in how freight is moved.<\/p>\n
\u201cWhat has not changed is there\u2019s still a great need for visibility\u2026 \u2018Where\u2019s my freight, when is it going to be delivered\u2019 \u2013\u00a0and a growing need for TMS services,\u201d says Kukiela. \u201cThe pace of innovation is incredibly fast, yet there remains a lack of adoption [of technology.]\u201d<\/p>\n
Some 65% of shippers are still not using a transportation management system, Kukiela says, citing data from the American Productivity & Quality Center. That means there\u2019s a lot of opportunity for 3PLs to help shippers create more efficient supply chains. He says that also benefits the carriers that haul their goods, with fewer delays and longer lead times.<\/p>\n
\u201cShippers that are not using a TMS are paying 8 to 10 times more in their overall distribution costs than customers currently using our platform,\u201d he says.<\/p>\n
Schneider works with customers to diagnose their current situation, their key needs, and adding the right technology into the supply chain.<\/p>\n
\u201cThe number one item most think they need right away is visibility,\u201d he says. \u201cYou hear a lot about shippers partnering up with visibility companies such as FourKites and Project 44 and Macropoint.<\/p>\n
\u201cI think all those guys provide a great service.\u201d However, he says, \u201cI think shippers have been slow to realize the value of the TMS. You get not only the visibility, but so much more. You can standardize and take some of the inefficiency out of the supply chain.\u201d<\/p>\n
Schneider walks customers through a four-step continuous improvement program:<\/p>\n
\u2022\u00a0Phase 1<\/strong> is tactical: Get the rules of engagement set up, establish KPIs.<\/p>\n \u2022 Phase 2<\/strong>: \u201cAfter 6 to 8 months, now with the data we can tell you, this is how your network is flowing. We look at mode shifts, core carriers, and develop a routing guide so when markets change there are secondary and tertiary carriers the shipper can go to. We\u2019re working with facilities to change operational requirements carriers find as a dissatisfier in recruiting and retaining drivers.\u201d<\/p>\n \u2022 Phase 3<\/strong>: \u201cThis is where you\u2019re really leveraging the data, to determine areas they can optimize their network from a strategic standpoint.\u201d Are imports coming into the right locations? Is multi-stop truckload an option? Can the shipper eliminate the high cost of expedited freight by increasing lead time in the supply chain?<\/p>\n \u2022 \u201cStage 4<\/strong> is really where we start looking at customers collaborating with other customers that have complementing networks. We might look at multi shipper bids, shared cross docks, putting two or three customers\u2019 freight on the same truck.\u201d<\/p>\n Without the right technology, Kukiela says, people working in a shipper\u2019s logistics department may only be able to cover a handful of shipments a day. \u201cWhen we implement that technology and take them through our phases of improvement, they go from two or three or four shipments per day to over 55 per day. This allows them to grow their business without adding tremendous costs in the supply chain.\u201d<\/p>\n Obviously, most motor carriers don\u2019t have the scale that Schneider does. But that doesn\u2019t mean that there may not be opportunities to be had. So we asked Kukiela for his advice for trucking companies that are interested in offering shippers more than just transportation.<\/p>\n For the smallest fleets, he says, \u201cI think the best approach is to partner up with their 3PL and really find their niche and get real sticky in that niche. When they have the critical density where they can go out on their own, they\u2019ll have the lessons from that partnership.\u201d<\/p>\n Doing your homework is also important for midsized or large carriers, he cautions. \u201cThe emergence of new brokers is always increasing, and with that comes the use of standalone technology. The only caution I would share is be smart \u2013 take small bites on these things. Everyone rushes to get technology without fully understanding the business processes \u2013 understanding the rules, the order-to-cash process\u2026 And you want technological expertise on your staff, because there\u2019s a large amount of learnings. There will be things you didn\u2019t realize in your previous environment.\u201d<\/p>\n by Deborah Lockridge<\/a><\/p>\n Source: https:\/\/www.truckinginfo.com<\/a><\/p>\n Fleet management is the use of a set of vehicles in order to provide services to a third-party, or to perform a task for our organization, in the most efficient and productive manner with a determined level of service and cost.<\/p>\n Fleet management activities are shown in the following graph 1:<\/p>\n Graph 1: fleet management activities<\/p>\n The proposal audit analyses and assesses all fleet management activities shown in the graph 1, and its main goals are:<\/p>\n With the information obtained, we\u2019ll elaborate a report that holds the overall status of the fleet management as well as the suggestions, recommendations and the measures to take in order to cut costs and optimize the fleet management activities.<\/p>\n CLICK ON THE FOLLOWING LINK TO DOWNLOAD THE PROPOSED FLEET MANAGEMENT AUDIT:<\/p>\n Contact:<\/p>\n Jos\u00e9 Miguel Fern\u00e1ndez G\u00f3mez<\/p>\n 34 678254874<\/p>\n info@advancedfleetmanagementconsulting.com<\/p>\nCan You Follow in Schneider\u2019s Footsteps?<\/strong><\/h3>\n
FLEET MANAGEMENT AUDIT<\/h3>\n
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