The Freight Industry is Seeking Cutting Edge Technologies.

by Brad Hollister

We almost all know that freight shippers are challenging. Manufacturers and Warehousing companies want their freight picked up and delivered at the right time and to the right place repeatedly. Supply Chain Managers expect shipments to be transported with out damage, although complying with security regulations as well as customer mandates. They need reporting capabilities, online access to data, and superior customer service.

In addition, Supply Chain Executives should have the ability to locate their freight shipments along every step of the supply chain, as well as allow Warehouse dispatchers to track and make changes freight shipments although in transit. Satisfying their end users takes rigorous dedication to excellence, so shippers, in turn, expect it of their carriers and third-party logistics providers.

Providers increasingly turn to technology to meet, and with hope exceed, the expectations of these demanding shipper customers. The efficiencies introduced through technological integration creates an interesting dilemma: should providers spend time and resources to develop internal technologies to handle everything from cube optimization to supply chain visibility, or do they partner with niche technology organizations to supply such services?

Many supply chain technology companies have emerged which continually develop cutting edge technologies. In reality some third party logistics firms (3pl's) also as carriers have made recent acquisitions of technology businesses and in fact have developed their own subsidiaries offering technologies services. These companies view their proprietary technology expertise as a competitive advantage.

More and more commonly, logistics companies and freight carriers are choosing to garner the latest technology expertise from third-party technology vendors. These providers outsource technology development for the same reasons their shipper customers outsource supply chain functions -- to focus on core capabilities, and cut down on internal resources required to develop, maintain, and also upgrade technology capabilities.

Most third party logistics brokers have reported a huge growth of technology vendor partnerships as a major part of their business. These Third party logistics providers have increasingly been implementing a global data center which will connect all customer shipment information with freight carriers and cargo service providers logistics partners worldwide. This level of efficiency only introduced through technology improves data quality management and offers better customer visibility during all steps in the supply chain. Undoubtedly, these types of transportation companies credit their efficient supply chains towards the ability of linking internal pc system and the offering of visibility to virtually all of their shipping clients in a extremely secure environment.

The majority of transportation firms believe that such innovative transportation technologies are not able to be created in house by additionally the most technologically qualified personnel without the aid of outside transportation technology firms. These technology vendors provide third party logistics firms 3PLs and freight carriers with warehouse management and inventory control systems as well as automated technologies which communicate with one another via SOAP or XML frequencies which help to pick inventory more quickly and accurately. These same technologies and other similar technologies not only help to improve efficiencies for large manufacturers and fortune 500 companies, but also for small freight carriers and owner operators to offer better dispatching, load planning, and routes to optimize fuel prices for example.

It's challenging to argue that growing shippers demands have elevated the specifications for efficiencies in logistics services from third party logistics firms too as freight carriers and also owner operator truck drivers. The reason that third party logistics firms and freight carriers have so much interest in these cutting edge technologies is simple. Manufacturers and also Supply Chain Professionals are demanding a lot more services like reporting, tracking, and significantly a lot more during the freight shipment process inside the supply chain along with far better freight access from the freight marketplace. Supply Chain technology vendors are a logical fit for some shippers because these kinds of technology companies offer the ability to outsource most of the work in developing, training, and maintaining such essential systems. These kinds of firms can also modify existing technologies offerings to make sure a best, custom fit an ensure that maximum efficiency is achieved in each supply chain.