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.

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.