Transportation is one of the most important elements in determining an organization’s overall logistics costs. Companies are constantly trying to figure out the most efficient and cost-effective way to get their products from Point A to Point B. What factors and trends determine the best way to deliver your products? What factors influence freight demands?

Carriers apply a General Rate Increase (GRI) to all or specific trade routes in order to balance the costs of their business. The rate increase is deemed necessary by carriers in order to provide paramount services, compensate labor, improve equipment and advance operations. A handful of carriers have recently raised their rates and it is expected that more carriers will announce a GRI soon.

How Does My Tree Get to Me?

Even if you’re not familiar with the term omnichannel, I’m sure you have enjoyed the perks of it. Just remember the last time you saw a product online, scanned its barcode for online price-comparison and then ordered it from a website for a substantial discount. Or when you have chosen an item online and then stopped at a nearby store to buy it so that you can ask questions and receive support. This is all part of the omnichannel game that most retailers are playing.

Third Party Logistics (3PL) companies started to spring up in the 1980s as a viable method of outsourcing logistics needs. 3PLs make it easy for large companies to get rid of various functions and assets. This is made in order to focus more heavily on their core business objectives. A 3PL can save your company millions of dollars and time, allowing you to dedicate more resources to your essential initiatives.

Holiday shopping is in full swing! Consumers spend $12.3 billion at brick-and-mortar stores on Thanksgiving Day and Black Friday, plus billions of dollars throughout the holiday season online and in stores. Manufacturers and retailers have to optimize planning strategies all year long for their supply chain in order to effectively meet holiday demand.

For the Thanksgiving holiday weekend, thousands of cars will be on the road as people throughout the US travel to be with friends and family. About 91% of Thanksgiving trips are made by car. What does that mean for carriers? Hours added to travel time.

PLS Logistics Services is actively recruiting experienced freight brokers for the Freight Broker Agent Program. Maximize your earnings and build your business with our program!

Stay busy moving freight, not doing paperwork. Carriers need to focus on hauling freight and less time with back-office busy work. Join the PLS carrier network program to ensure you have a streamlined back-office with consolidated billing. Every minute you spend searching for loads is wasted revenue. Our simple technology and high shipping demand will keep your fleet focused on generating revenue.

With the popularity of mobile devices, consumer behavior has changed dramatically. Consumers have moved past the committed early adopters and entered the fast-followers phase with technology being the driving force. Smartphones and tablets are powerful tools that are selling fast and easily taking over the PC market.

Truck driver pay has increased 17% over the last two years and will continue to climb. Truck drivers haven’t seen pay raises in years. They’re now demanding more money, and carriers must oblige.

The transportation industry faces a unique problem in today’s economy: hiring new drivers. Most current truck drivers are approaching retirement, and few people are willing or able to replace them. This means that freight carriers must start getting creative and investing heavily in the ways they recruit new drivers. There are many ways to recruit, but there’s a common theme in all of them. Jeff Stoicheff, Senior Vice President of Human Resources at Penske Logistics, sums it up well when he says, “It’s about respect; good pay and benefits; safe, reliable equipment; and home time.” A freight carrier must appeal to these driver needs to be a competitive recruiter.

According to the DOT, logistics is defined as “the cost-effective process of planning, implementing and controlling the efficient movement and storage of goods from the point of origin to the end-user.” They define transport as “the movement of products and people from one point to another via air, sea, road, and rail.” Transportation and logistics have become an integral part of how businesses operateand run their supply chain today. Here are five facts about the logistics and transportation industry:

Less-than-truckload rates are on the rise. LTL carriers, Conway Freight, UPS and ABF Freight Systems, have recently announced general rate increases that will hit customers in the coming months. This is the second time this year that general rate increases were announced (Read our post about the April GRIs, LTL Freight Carriers announce General Rates Increases).