After considerable downturn following the 2008 Economic crisis, the less-than-truckload (LTL) market continues to get better as freight volumes boom. In fact, Logistics Management publication is hailing the current cycle as “the roaring freight market of 2017-2018.”
Among the greatest contributing aspects is the ever-growing need from e-commerce as consumers turn increasingly more to online shopping– need that’s not anticipated to slow at any time quickly. Forrester predicts that online sales will account for 17 percent of all United States retail sales by 2022, up from a predicted 12.7 percent in 2017, points out Business Insider.
These record-level shipping volumes should be terrific news for the LTL shipping market … right?Not entirely.Increasing shipping demands have put substantial stress on carrier capability– even as crippling motorist lacks continue to swell. Paired with the higher-touch demands of e-commerce and mostly domestic delivery, standard LTL providers are not correctly oriented with devices and facilities to support this demand.The results are ongoing rate increases as providers have a hard time to enhance success amongst insufficient capacities and shipment delays.This has led LTL giants like UPS and FedEx to get choosier in picking the best-yielding freight for their bottom lines. Yet even as they’re declining much shorter and more out-of-the-way routes that are less rewarding– it creates chances for LTL operators to step in and get a larger piece of the marketplace pie, says Freight Scouts. So how can LTL carriers scale their capability to make the most of this– without substantial rate increases and fleet investments beyond their reach?The response isn’t in broadening your own properties, but in matchingthem with a reputable network of local provider partners.Why usage regional carriers?Using regional providers expands your capability to provide into markets across the nation, without the need to expand your core fleet. What’s more, they’re appropriate to providing the specialized services today’s shippers are searching for in home deliveries, à
la Amazon.From accelerated and same-day shipping choices to assembly and takeaway packing services, these affordable, outsourced options assistance provide you an one-upmanship to bring in shippers.Additionally, having a network of trusted local providers can enhance your capability to respond to risk.For example, if your system discovers an exception — such as a missed out on pickup– you can set up a local partner to quickly action in and make the shipment on time.The benefits are a clear win-win for you and carriers. Why aren’t more LTLs turning to regional carriers to supplement their operations?The primary difficulty has been in connecting these regional providers into the operations efficiently to allow the LTL provider to scale their regional delivery operations. To accomplish, this there requires to be a smooth data exchange between partners.How do you herd fruit flies?While local providers are known
for providing world class service at very affordable rates due to the fact that they understand their markets well, it can be a difficulty for LTLs to get in touch with them. There are a vast array of technology platforms and setups that make a true data exchange very challenging, taking substantial IT financial investment into each partner.The typical solution needs a local carrier to download an application on their phone that they will update upon shipment delivery. However, most regional carriers make deliveries for lots of different business– leading to lack of compliance updating apps.Fortunately, Banyan Technology’s Local Carrier option makes linking with and managing local providers fast, simple, and cost effective.Our distinct API connectivity platform allows your TMS system to connect with various local providers throughout the United States and Canada, through the platforms they use to do company. As regional providers update their own systems, Banyan shares those updates immediately– eliminating compliance issues.How is this an improvement over the conventional Electronic information interchange(EDI)technology?APIs allow live, two-way communication between you and your provider network, instead of EDI’s batch technique. This is both faster and more efficient when ranking, tendering and tracking freight.And Banyan has currently developed a connection with hundredsof regional carriers– so you begin accessing regional providers right away.Banyan is not a broker nor a representative for any provider, but a neutral innovation platform. We can share names of connected providers if you are seeking to broaden or develop a network, but you will own the agreements and the negotiations.If you have an existing network, we can review which providers are connected and recognize others to review their platforms and capabilities.Ultimately, Banyan normalizes the data feed throughout all carriers through a single API, delivering end-to-end exposure of freight motion within your system. This implies you can manage consistent, high requirements of carrier performance– from very first to last mile.Gain a competitive edge with Banyan Technology’s Local Provider option Secret benefits of our Local Carrier solution
consist of: Live, upfront, account-specific quote retrieval Automated tender demands Status updates, such as pickup and delivery Imaged file retrieval In-depth metrics and reporting To learn more on how your LTL operation can benefit from Banyan Innovation’s live connectivity solution to reach local carriers and boost success, click here to contact us.