As You Manage Your Logistics and Supply Chain Activities: How Good Is Your Data?
Sep 7, 2022
Over the next couple of months I will be speaking at several different industry events. For example, this month I will be moderating a Keynote event at CSCMP’s Edge Annual Conference and then, a couple of weeks later, I will be on a panel at the Journal of Commerce’s Inland Distribution Conference. In October, it will be more of the same.
Personally, one of the reasons these activities are so valuable is because of the pre-event web calls with the resources that occur prior to the event. As we discuss what will be shared at the event, often times the resources will share some candid and “off the record” insights about what is really going on in their respective transportation sectors.
While the modal sectors (a.k.a. truck, rail, ocean, intermodal and air) are different, there are a couple of things that these resources agree on. First, every one agrees that now, more then ever, the carriers are continuing to invest in building their data generation capabilities. The reason for this is because they know that they need the data to improve their margins and return on assets.
The second thing that virtually everyone agrees with is the fact that there is a huge disparity among shippers about the quality of their data. While some shippers have great data, not so with a whole bunch of other shippers. As one senior carrier executive mentioned to me on one of the calls: “For carriers, time and space is everything. Yet relatively few shippers know how much space their freight consumes or how much time is spent on picking up and delivering their freight.”
With that thought in mind, another industry executive noted that if a shipper is truly committed to being a “shipper of choice” they need good and accurate data to be able to work with their carriers in addressing wasteful and inefficient practices that drive up the carriers “cost to serve” factor. For example, this executive noted that one of their larger customers was lamenting the fact that they are paying almost $100,000 per month in detention and demurrage charges but did not have the data to understand a) why they were getting clobbered with excessive detention and demurrage charges or b) what alternatives and options were available to them to reduce these charges.
Add it all up, and here is an important question for you: How good is your company’s transportation, logistics and supply chain data?
If you sense that there is an opportunity to improve the quality of the data that you're using to make decisions that impact your cost of freight and ability to serve your customers, then we’d love to have a conversation. We'll share how a great freight audit and payment process and technology like a world class Transportation Management System can provide great data and drive better business results.
And if you have some data and want to know how your truckload rates compare with others in the marketplace, contact our CS&S Truckload Brokerage.
Oh, one other note before closing. With a lot of shippers in the midst of preparing their freight budgets for 2023, the data that comes from freight audit and payment operations can be invaluable. That is why TranzAct has spent decades developing and refining the accuracy and quality of data that can be mined from our freight audit and payment system. If you’d like to learn more about the value of great data, we encourage you to get in touch. And don’t forget to check out our website for updates on important issues affecting your transportation and supply chain areas.
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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