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Stay ahead of the latest trends in logistics and transportation

Industrial distributors are beginning to see the potential of proper transportation management, how it can add much-needed value throughout their supply chain, and how it can address some of their toughest challenges. The challenges distributors face are unique, but the effects of these challenges are representative of the difficulties many are having in the broader industrial sector – restricted supply, plummeting demand, dropping revenues and out of control operating costs.
Transportation is coming to the forefront of shippers’ cost reduction, efficiency and operational strategies due to its oversized contribution to supply chain costs. Inbound transportation is particularly inefficient and costly, eating up 3.6% to 5.2% of a company’s total annual sales.
The Federal Motor Carrier Safety Administration’s (FMCSA) hours of service (HOS) rules have been controversial and complicated. A lot of talk has surrounded the HOS regulations, and whether they will become a rule again or not is up in the air. However, it appears the HOS rules have been dealt a decisive blow. Truck drivers and carriers said the rules were unnecessary and costly. FMCSA and safety advocates said the HOS rules were a step in the right direction for highway safety. Neither side has been able to factually prove their point yet. As a reminder, the 34-hour restart provision was the most controversial part of the 2013 HOS update. The 2 main components of this provision are: Two periods of 1:00 a.m. – 5:00 a.m. had to be included within the mandatory 34-hour restart period One restart per week
What is Partial Truckload Shipping? Partial truckload, or volume LTL, is a mode used by shippers looking for faster transit times, less handling and lower costs. Partial truckload shipments are used by shippers whose freight is less than a full truckload, but more than an LTL shipment. The exact amount of freight needed for a partial truckload shipment depends on the weight, linear feet and service requirements.
Rail transportation has historically been cheaper and slower than over-the-road (OTR) transportation. It’s a valuable service for raw materials, freight that is not time-sensitive or freight that is expensive to haul. As OTR costs rise, many shippers look for new opportunities to reduce overall transportation spend, and despite the current rise in rail costs, intermodal is a practical alternative.
Non-Manufacturing Grows for 72nd Straight Month. The Institute for Supply Management (ISM) reported that non-manufacturing activity continues to point towards growth. ISM uses the NMI index to measure non-manufacturing growth and found the economic activity in the non-manufacturing sector continued to grow especially in finance/insurance, real estate/rental, agriculture, health care and public administration.
What is resilience in supply chain management? Supply chains are diverse and complex, so are the potential risks that could disrupt them. A good supply chain management strategy invests in resilience. Resilience refers to the time it takes supply chains to predict and avoid risk, as well as respond and recover from costly disruptions. how to supply chain management strategy75% of companies experience at least one major supply chain disruption a year.
Only 23% of companies have a big data strategy, which isn’t surprising, considering there’s an estimated 2.5 quintillion bytes of data created each day. It’s impossible to analyze it all, but leveraging big data in transportation and logistics can enhance operations and elevate the bottom line.
Automated_Trucks.jpgTraffic and population growth create demand for new roads, but most regions don’t have space or money to build new infrastructure. Today’s concerns over infrastructure, traffic congestion, energy use, and safety are being addressed by new transportation-focused technology.
It’s a difficult economy for industrial distributors. Industrial demand is down – in Q4 of 2015, manufacturing orders were down 20% YoY. Amazon’s low prices and convenience make it difficult to compete. The drop in oil prices, cheap imports, and the strong U.S. dollar all affect manufacturing output, which leads to lower revenues for distributors.
Customer demand and connectivity are high, and retailers are struggling to keep up with the competitive omnichannel environment. Supply chains are shifting in order to accommodate the rapidly changing landscape for the way people buy and the way goods are moved.
Shippers are able to manage the challenge of transporting temperature-sensitive goods; from farm produce to fresh flowers, thanks to refrigerated shipping trailers. Refrigerated trailers can remove or pump heat or create a cool environment for products to be transported in. Refrigerated trailers are designed to maintain the pre-cooled cargo temperature. Maintaining the temperature in a refrigerated shipping trailer, or reefer, is necessary in order to not compromise the product. Failing to maintain the proper shipment temperature can result in serious consequences like wasted or damaged products and sunken costs.
Intermodal transportation prepares for a surge in freight volume due to the driver shortage, increased demand, heightened government regulations, environmental issues and the damaged highway infrastructure.
Less-than-truckload (LTL) transportation, inbound and outbound, can be a complex and expensive process for many companies. Moving LTL freight requires a different approach than moving truckload freight. Without the proper technology and manpower in place, it can be difficult to know where to start implementing cost-saving strategies, and if those strategies are effective.

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