Technology and advanced software-driven workflows promote efficiency within the transportation procurement process. That includes managing the entire shipment life cycle from arrival to port through drayage, storage, and delivery to a retailer or other distribution center. Shippers need to understand the value of working with an expert in drayage or intermodal shipping. It’s best to think about the top challenges in the transportation procurement process, how technology creates efficiencies, and a few ways dedicated management can improve the supply chain.
Shippers Still Experience Trouble Finding Available Capacity in Drayage and Storage
Disruption and problems plague the supply chain. As e-commerce expands following recovery from the pandemic, the need for efficiency remains a top priority. And for shippers, limited use of technology seems to be the common denominator. As further reported by William B. Cassidy of JOC.com, “Shippers are modifying their approach to bidding, using more short-term ‘mini-bids’ than ever before, and turning to technology to improve a process that often breaks down when market prices swing quickly, failing both shippers and their carrier partners.” There is an increased need for better asset management, including short-haul moves from ports to warehouses or distribution centers — in other words, drays. It all depends on the ability to streamline the transportation procurement process.
Increased Use of Technology and Clear Visibility Promotes Efficiency
Increased adoption of technology can be a game-changer for today’s shippers. With the right technology, it’s easier to manage:
- Freight bills
Of course, that all depends on determining which technology will work best for your company. That’s where leveraging third-party partnerships for freight brokerage, drayage truck services and warehouse storage can have the most significant impact.
How to Leverage Third-Party Relationships to Boost Shipping Execution
In today’s supply chain, it can be challenging to find the right third-party logistics provider (3PL) for each business, and even in the best of times, the transportation procurement process might still fail. However, shippers that know how to best leverage third-party relationships, including those with existing and new 3PLs, can streamline procurement. Rather than continuing to incur increased costs to ship freight, shippers in need of warehousing and drayage services should follow these steps to maximize the value of such partnerships:
- Look for a 3PL that specializes in your needs, including drayage and storage.
- Look for a 3PL that not only has the warehouse assets to store freight until a truck is available for inland transportation, but also has the truck brokerage division in place to secure that capacity on your behalf.
- Consider a partner that understands the nuances and costs within your transportation procurement process, as well as the opportunities for improvement.
- Focus on 3PLs that understand your specific needs and are willing to go the extra mile to promote efficiencies and reduce your total cost of ownership within logistics.
- Let the data show the value of the 3PL, identifying the best KPIs and using metrics to track performance, and ensure your partner is performing up to expectations.
- Ensure the 3PL uses advanced technology to maintain clear, concise communication with real-time push notifications and alerts.
Enhance Your Transportation Procurement Process by Working With the Right Partner for Drayage and Storage
Technology and asset utilization based on data significantly improves the transportation procurement process. And by using technology, it’s easier to avoid missteps in all transportation, including drayage or storage. Without technology, there is a great risk for error and a greater chance of late deliveries. Fortunately, shippers that leverage the right technology and partnerships can overcome the threat and thrive. Connect with Port City Logistics to learn more today.