Freight management is crucial for companies around the globe. Effective freight management reduces delays for consumers, helps companies offer Amazonesque shipping benefits and much more. Shippers that wish to succeed in 2019 need to know the top trucking and freight management trends for 2019 and how they will affect shipping practices, global trade, last-mile, and even drivers.
Strategy Redevelopment to Meet Global Trade Challenges Will Be Among Top Supply Chain 2019 Trends
According to Talking Logistics with Adrian Gonzalez, companies are looking for ways to redefine strategies to address global trade challenges. For example, Brexit and uncertainty regarding tariffs will contribute to more negotiations and instability. Although domestic shippers have a safety net against Brexit, it could still lead to problems with obtaining products manufactured, including components, in Britain, and similar effects may occur due to new tariffs.
One of the biggest threats to shippers relating to strategy redevelopment will involve the effect on the U.S. agriculture industry. Farmers face problems with subsidies and inability to sell crops to China and other countries due to tariffs, and this will translate into trouble for the agricultural industry. Even though farmers grow produce and textiles, they play a vital role in encouraging economic growth. In other words, stagnant farming will reduce the amount of capital poured back into local economies, and given the state of the U.S. economy, small economies contribute to the successes and failures of the country’s economy.
How To Determine Freight Class: Density Calculator & Printable Resource
Companies Will Opt for a “Single Window”
A significant freight management trend to expect in 2019 will focus on the use of a “single window” into logistics and operations. This concept has another name—the single pane of glass, and it is a common goal for many industries beyond logistics, such as facilities management, health care, and education. The principle behind the concept is to give managers and upper-level staff access to all information from a single platform. In other words, integrated platforms will reduce problems with visibility, and paired with the use of analytics, and shippers can leverage such platforms to derive new insights and improve operations.
Crowdsourcing of Last-Mile Will Is Among Top Freight Management Trends
The crowdsourcing of last-mile logistics is expected to continue as companies develop app-based trucking schedules and fleets. Also known as the Uberization of trucking, crowdsourced trucking will effectively give shippers access to private fleets and individual drivers, reducing strain caused by the capacity crunch and driver shortage. As noted by SelectHub, the truck driver shortage will continue to grow in severity, resulting in a deficit of approximately 75,000 drivers needed by the end of 2019, so shippers must start thinking about how to expand their networks now.
On-demand tracking will cushion the blow of increasing spot rates. As explained by Matt Snider via Breakthroughfuel.com, the use of on-demand trucking capabilities will help shippers navigate the high costs of spot rates. However, better analytics and forecasting will further reduce expenses as shippers learn more about what to expect, reducing the use of spot trucking in the first place.
Companies Will Begin to Implement the Power of Blockchain-Based Technology
Blockchain-based technology is one of the most exciting areas to watch out for in 2019. Companies are in the process of developing blockchain-based solutions for holistic supply chain management. This will dramatically reduce compliance violations, enhance trust between companies, streamline payment processing, and reduce compatibility issues between systems. ShipChain is already well on track to developing a platform for use in logistics to manage supply chain processes, and the platform will enable faster integration with existing systems, helping companies take advantage of all new technologies.
What Does It All Mean?
Trucking will expand in 2019 as shippers look for new ways to meet the capacity crunch, but the continued growth of e-commerce will still lead to capacity problems. Effective freight management and working with carriers are the only ways to secure available capacity and meet consumers’ increasing expectations for no-cost delivery. Fortunately, Cerasis has the tools and resources to help shippers leverage the latest freight management trends in their operation.