Retailers and their suppliers face difficult challenges in today’s economy. Consumers are more demanding than ever, and mistakes are more damaging than ever. Transportation is a key component in providing superior service levels and satisfying customers, but retailers and suppliers are often unable to effectively collaborate on transportation.

Industrial manufacturers are being hit hard by the current economic conditions. Overall demand for manufacturing is down, profit margins are shrinking and manufacturers are looking for any way to reduce operating costs.

Here’s a recap of transportation news stories throughout the month: Intermodal Decline for First Time Since ’09. Intermodal freight declined in Q4 for the first time since 2009 on a year-over-year basis. In 2015, intermodal accounted for 48% of all rail shipments and increased about 2% for the full year.

Situation A North American producer of refractory bricks and mortars, with a network of over 30 plants and distribution centers throughout the U.S. and Canada, was concerned about their transportation strategy. The company was apprehensive about their total freight spend but didn’t know the best way to reduce costs.

SupplyChainDisruption.jpgSupply chain disruptions span from day-to-day risks like malfunctioning equipment to high-impact threats like natural disasters.

Big data has been a buzzword for some time, and for good reason. There are some pretty radical potential applications of big data, such as accurate demand forecasting or industry-wide real-time visibility. Oracle calls big data the “electricity of the twenty-first century – a new kind of power that transforms everything it touches in business, government and private life.” There are also many ways to use big data in freight transportation.

In a few years, 89% of companies will compete almost entirely on customer experience. “Options are no longer a privilege during the shopping experience,” says Christoph Stehmann, COO of Digital Commerce Solutions, Pitney Bowes. “Retailers must focus on offering diverse options in order to attract consumers throughout their shopping experiences.”

The driver shortage, government regulations, and rising operating costs are some of the biggest challenges facing the transportation industry. The number of drivers is quickly decreasing, and the remaining drivers are demanding a salary raise. Due to these challenges, higher shipping costs are anticipated.

A 2015 Logistics Management survey shows that only 35% of shippers are using transportation management systems as part of their overall supply chain management strategies. Companies that rely on spreadsheets and manual interactions with suppliers are spending a lot of time on functions that can be automated by a transportation management system. With a TMS, companies can be active in pursuing lower costs, faster lanes and productive solutions.

Choosing TMS, or a transportation management system for your company is a huge decision because there are a variety of providers and features. A TMS helps companies move freight efficiently, reliably and at lower rates. Implementing a TMS drives value by monitoring and evaluating processes, analytics and optimization. The technology routes drivers, schedules deliveries and reports business KPIs.

Last year turned out to be a great year for transportation. Rates stayed fairly even despite predictions that they would rise, trucking companies were able to make significant profits for the first time in years, and capacity was loose enough to meet demand.

Small and mid-sized businesses are no longer at a disadvantage to large corporations when it comes to moving freight. In the past, large businesses had more scale, budget and expertise. But, using the supply chain as a competitive tool, companies, no matter the size, can set the bar high by increasing accuracy, visibility and cost efficiency.

What’s the biggest transportation story of 2016? Transportation costs will rise and will continue to rise for the foreseeable future. 2016 can expect to be affected by 8 distinct transportation trends, and each either causes inflated rates or is a response to them.

The Global System for Mobile Communications Association predicts that there will be nearly 50 billion connected devices by 2025. This is almost ten times the predicted human population at that point. There’s no doubt that technology has forever changed business practices – and the supply chain is no exception.