Study: Industry Needs Better Transportation Management, Optimization
According to a recent survey of more than 400 logistics managers questioned by U.S. Xpress Enterprises, Chattanooga, Tenn., only 59% of shippers use performance metrics to manage freight costs and only 43% are currently running or planning to implement a transportation management system (TMS). The survey, which was conducted in conjunction with Peerless Research Group, Framingham, Mass., also shows a strong preference for dynamic optimization with nearly three-fourths of all shippers preferring that their carriers use present, actual shipping data rather than historic data to set their rates, with less than 1 in 5 favoring the use of historic or static data.
In terms of shipping timeframes, the survey confirmed the industry’s interest in just-in-time shipping, with 41% booking freight one day in advance and more than four in five scheduling three or fewer days ahead. The top strategies shippers use for controlling freight costs are consolidating shipments (60%), improving decision making and planning utilizing reporting (58%), working with fewer partners (53%), optimizing internal resources (52%), implementing or planning TMS (39%), adopting KPIs for carriers (38%) and working with more carriers (33%).