The 2017 21st Annual Third-Party Logistics Study shows that shippers and their third-party logistics providers continue to move away from primarily transactional relationships and toward meaningful partnerships. Since the study began 21 years ago, researchers have seen the continued improvement in the strategic nature of relationships between shippers and third-party logistics providers.
This year’s survey suggests 3PLs and their customers continue to improve the quality of their relationships. Both parties—91% of 3PL users and 97% of 3PL providers—reported that their relationships are successful and that their work is yielding positive results.
CSCMP 2014: Dr. Robert C. Lieb 2014 3PL Provider CEO PerspectiveAlen Beljin
Dr. Bob Lieb, professor of supply chain management at Northeastern University, is author of the 21st Annual Survey of Third-Party Logistics Provider CEOs, sponsored by Penske Logistics The studies revealed that 3PL CEOs are confident about the current state and future revenue growth of their companies and the regional 3PL industries. The annual surveys, which this year included the CEOs of 27 of the world's largest 3PLs, found that approximately 75 percent of the companies involved in the surveys were profitable in 2013. North American and Asian-Pacific CEOs forecasted three-year company growth of 10.77 percent and 16.2 percent, respectively. European CEOs forecasted 8.33 percent growth over the same period.
TCI Express is headquartered in Gurugram, established in the year 1996 by the name of TCI XPS as a division of erstwhile Transport Corporation of India Ltd (TCIL) to cater to the express cargo logistics needs of its existing and potential customers.
The Company has been separated from TCIL and renamed TCI Express Ltd effective from April 1, 2016, after positioning itself as an end to end express distribution specialist in a time-bound manner via surface transport.
This is a report I did for my Corporate Communications class at the Fashion Institute of Technology, showcasing the competition and trends in the airline industry.
The 2017 21st Annual Third-Party Logistics Study shows that shippers and their third-party logistics providers continue to move away from primarily transactional relationships and toward meaningful partnerships. Since the study began 21 years ago, researchers have seen the continued improvement in the strategic nature of relationships between shippers and third-party logistics providers.
This year’s survey suggests 3PLs and their customers continue to improve the quality of their relationships. Both parties—91% of 3PL users and 97% of 3PL providers—reported that their relationships are successful and that their work is yielding positive results.
CSCMP 2014: Dr. Robert C. Lieb 2014 3PL Provider CEO PerspectiveAlen Beljin
Dr. Bob Lieb, professor of supply chain management at Northeastern University, is author of the 21st Annual Survey of Third-Party Logistics Provider CEOs, sponsored by Penske Logistics The studies revealed that 3PL CEOs are confident about the current state and future revenue growth of their companies and the regional 3PL industries. The annual surveys, which this year included the CEOs of 27 of the world's largest 3PLs, found that approximately 75 percent of the companies involved in the surveys were profitable in 2013. North American and Asian-Pacific CEOs forecasted three-year company growth of 10.77 percent and 16.2 percent, respectively. European CEOs forecasted 8.33 percent growth over the same period.
TCI Express is headquartered in Gurugram, established in the year 1996 by the name of TCI XPS as a division of erstwhile Transport Corporation of India Ltd (TCIL) to cater to the express cargo logistics needs of its existing and potential customers.
The Company has been separated from TCIL and renamed TCI Express Ltd effective from April 1, 2016, after positioning itself as an end to end express distribution specialist in a time-bound manner via surface transport.
This is a report I did for my Corporate Communications class at the Fashion Institute of Technology, showcasing the competition and trends in the airline industry.
White Paper: Innovation in TransportationIdeaScale
In this white paper, we discuss the four most pressing areas in transportation that require industry-wide innovation and how the crowd can be a resource to solve concerns in these areas:
- Traveler Experience
- Costs
- Security and Safety
- Technology
Driver Turnover & the Advent of Autonomous Vehicles in TruckingChristopher Ferrell
The national rate of driver turnover in the long-haul segment has remained near or exceeded 100% annually for several decades now. The ATRI and IHS both agree that significant impact on the trucking industry arising from autonomous trucks within the U.S. is likely decades away. Motor carriers stand to benefit in a number of ways by acknowledging that there are accessible measures that should be taken in the interim in order to improve operations. They can take advantage of the appeal surrounding the development of autonomous truck technology, improve the work-life experience at their firm, and become more profitable.
Snapshot report - Sustainability in TruckingJennifer Wong
In August 2020 Convoy surveyed over 440 small and mid-sized trucking companies across the United States to collect a snapshot of sustainability in trucking. Survey participants include dispatchers for fleets and owner-operators. All the results are self reported by the participants. This report is data from over 31,787,562 miles driven in July.
Although there is high demand for road freight services in the U.S., the chance for profitability is far from guaranteed. Numerous obstacles challenge trucking companies including a large volume of private fleets and operating costs that exceed 85% of revenue even for the strongest companies.
The State of Logistics Outsourcing; 2010 Third Party Logistics StudyDennis Wereldsma
This 2010 15th Annual Third-Party Logistics Study, based
on research conducted in mid-2010, examines the
current state of the global market for 3PL services, and
explores in depth issues surrounding total landed cost
calculation. The report also considers supply chain
issues, including the role of 3PL s in two vertical markets,
Life Sciences and Fast-Moving Consumer Goods.
The State of Logistics Outsourcing; 2009 Third Party Logistics StudyDennis Wereldsma
This report presents findings from the 2009
Fourteenth Annual Third-Party Logistics
Study, conducted in mid-2009. This study
examines the state of the global market
for 3PL services and explores key issues
affecting the industry: economic volatility,
the IT capability gap and the challenges of
supply chain orchestration.
A supply chain consists of all parties involved
directly or indirectly, in fulfilling a customer request. The supply
chain includes not only the manufacturers and suppliers, but also
transporters, workhouse, retailers and even customers
themselves. Within each organization, such as a manufactures,
the supply chain includes all functions involved in receiving and
filling a customer request. These functions include, but are not
limited to, new product development, marketing operations,
distributions, finance, and customer service. Supply chain
management (SCM) is the management of an interconnected or
interlinked between network, channel and node businesses
involved in the provision of product and service packages
required by the end customers in a supply chain. Supply chain
management spans the movement and storage of raw materials,
work-in-process inventory, and finished goods from point of
origin to point of consumption. It is also defined as the "design,
planning, execution, control, and monitoring of supply chain
activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand and measuring performance
globally.
The importance of the Car hauling industry for safe and efficient vehicle transportation is Ongoing transformative changes in the car-hauling industry due to advancing technology and changing consumer demands. Explore the emerging trends and innovations shaping the future of car hauling.
It is important to understand the role of transporting vehicles from manufacturers to dealerships and consumers. We explore the advancements in technology driving transformative changes, meeting increasing consumer demands, safe and efficient vehicle transportation, and future-shaping trends and innovations in the car-hauling industry.
State of Transportation: Where Are We on the Vision of Automation? - 7 NOV 2012Lora Cecere
For the purpose of this report, transportation management is defined as technologies that automate and improve decision making in domestic and international logistics.
This report is based on a quantitative study conducted between August 16th, 2012 and October 9th, 2012. The summary reflects responses from 75 respondents from 55 companies active in transportation freight decisions. The goal of the study was to understand how business complexity and maturity have affected the deployment and development of supply chain technologies to improve transportation management. The study contrasts the views of line-of-business transportation solution users and providers of the technologies.
The quantitative study results are enriched with insights from Supply Chain Insights’ work on supply chain ratios and interviews with business leaders to validate and clarify the results.
Connected Shipping: Riding the Wave of E-CommerceCognizant
Digital platforms, applications and processes are rapidly changing how shipping and transportation companies operate. Our primary research study confirmed that while acknowledging the importance of a Web-based business model, many shipping companies are proceeding cautiously. Based on our analysis of the e-commerce market and the approaches that some companies are taking, we have defined a maturity framework to help shippers better assess their current capabilities and plan ahead.
White Paper: Innovation in TransportationIdeaScale
In this white paper, we discuss the four most pressing areas in transportation that require industry-wide innovation and how the crowd can be a resource to solve concerns in these areas:
- Traveler Experience
- Costs
- Security and Safety
- Technology
Driver Turnover & the Advent of Autonomous Vehicles in TruckingChristopher Ferrell
The national rate of driver turnover in the long-haul segment has remained near or exceeded 100% annually for several decades now. The ATRI and IHS both agree that significant impact on the trucking industry arising from autonomous trucks within the U.S. is likely decades away. Motor carriers stand to benefit in a number of ways by acknowledging that there are accessible measures that should be taken in the interim in order to improve operations. They can take advantage of the appeal surrounding the development of autonomous truck technology, improve the work-life experience at their firm, and become more profitable.
Snapshot report - Sustainability in TruckingJennifer Wong
In August 2020 Convoy surveyed over 440 small and mid-sized trucking companies across the United States to collect a snapshot of sustainability in trucking. Survey participants include dispatchers for fleets and owner-operators. All the results are self reported by the participants. This report is data from over 31,787,562 miles driven in July.
Although there is high demand for road freight services in the U.S., the chance for profitability is far from guaranteed. Numerous obstacles challenge trucking companies including a large volume of private fleets and operating costs that exceed 85% of revenue even for the strongest companies.
The State of Logistics Outsourcing; 2010 Third Party Logistics StudyDennis Wereldsma
This 2010 15th Annual Third-Party Logistics Study, based
on research conducted in mid-2010, examines the
current state of the global market for 3PL services, and
explores in depth issues surrounding total landed cost
calculation. The report also considers supply chain
issues, including the role of 3PL s in two vertical markets,
Life Sciences and Fast-Moving Consumer Goods.
The State of Logistics Outsourcing; 2009 Third Party Logistics StudyDennis Wereldsma
This report presents findings from the 2009
Fourteenth Annual Third-Party Logistics
Study, conducted in mid-2009. This study
examines the state of the global market
for 3PL services and explores key issues
affecting the industry: economic volatility,
the IT capability gap and the challenges of
supply chain orchestration.
A supply chain consists of all parties involved
directly or indirectly, in fulfilling a customer request. The supply
chain includes not only the manufacturers and suppliers, but also
transporters, workhouse, retailers and even customers
themselves. Within each organization, such as a manufactures,
the supply chain includes all functions involved in receiving and
filling a customer request. These functions include, but are not
limited to, new product development, marketing operations,
distributions, finance, and customer service. Supply chain
management (SCM) is the management of an interconnected or
interlinked between network, channel and node businesses
involved in the provision of product and service packages
required by the end customers in a supply chain. Supply chain
management spans the movement and storage of raw materials,
work-in-process inventory, and finished goods from point of
origin to point of consumption. It is also defined as the "design,
planning, execution, control, and monitoring of supply chain
activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand and measuring performance
globally.
The importance of the Car hauling industry for safe and efficient vehicle transportation is Ongoing transformative changes in the car-hauling industry due to advancing technology and changing consumer demands. Explore the emerging trends and innovations shaping the future of car hauling.
It is important to understand the role of transporting vehicles from manufacturers to dealerships and consumers. We explore the advancements in technology driving transformative changes, meeting increasing consumer demands, safe and efficient vehicle transportation, and future-shaping trends and innovations in the car-hauling industry.
State of Transportation: Where Are We on the Vision of Automation? - 7 NOV 2012Lora Cecere
For the purpose of this report, transportation management is defined as technologies that automate and improve decision making in domestic and international logistics.
This report is based on a quantitative study conducted between August 16th, 2012 and October 9th, 2012. The summary reflects responses from 75 respondents from 55 companies active in transportation freight decisions. The goal of the study was to understand how business complexity and maturity have affected the deployment and development of supply chain technologies to improve transportation management. The study contrasts the views of line-of-business transportation solution users and providers of the technologies.
The quantitative study results are enriched with insights from Supply Chain Insights’ work on supply chain ratios and interviews with business leaders to validate and clarify the results.
Connected Shipping: Riding the Wave of E-CommerceCognizant
Digital platforms, applications and processes are rapidly changing how shipping and transportation companies operate. Our primary research study confirmed that while acknowledging the importance of a Web-based business model, many shipping companies are proceeding cautiously. Based on our analysis of the e-commerce market and the approaches that some companies are taking, we have defined a maturity framework to help shippers better assess their current capabilities and plan ahead.
Lora Cecere takes us through the market research and explains what the data is saying while panelists offer insight into how their businesses are responding.
The Predictive Business | OPTIMUS 2015 AtlantaORTEC US
SAP's leading domain expert on Cloud, business and social networks, supply chain, outsourcing and strategy shows us how Predictive Commerce is the future of the enterprise and beyond.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Exploring Patterns of Connection with Social Dreaming
Mitigating the Driver Shortage Crisis
1. Goos Kant, PhD, Member of the Board, Transportation Strategist, ORTEC
Page Siplon, CEO, TeamOne Logistics
Michael Nischan, CDS, CCSP, VP, Transportation and Logistics Risk Control, EPIC
Mitigating the Driver Shortage Crisis
2. 1 ORTEC Mitigating the Driver Shortage Crisis
NOTE: On Tuesday, December 16, 2014, President Obama signed the FY 2015 Omnibus Appropriations Bill into law, officially
suspending the two restrictions on the use of the 34-hour restart. As a result, the requirement for two periods of 1 a.m. to 5
a.m., and the limit on using the restart more than once every 168 hours, is no longer enforced. Motor carriers may now follow
the restart rules that were in effect prior to July 1, 2013.
Trucking Talent Crisis…How Did We Get Here?
Transportation is a crucial element in the supply chain to deliver the right goods on time to the right customer. Due to increasing service
requirements, traffic, and increasing legislation, it becomes more challenging to remain efficient. According to Yahoo Finance, higher driving
costs and lower pay have contributed to a truck-driver shortage that will likely to worsen in the coming years. The American Trucking
Associations (ATA) estimates the U.S. is short 30,000 truck drivers and that number is expected to surge to 239,000 by 2022. Why? One
reason is in July 2013, new federal hours-of-service rules went into effect, and the key provision was a limit to the use of a 34-hour "restart.”
Drivers are limited to a weekly on-duty period of 60 hours, or a 70-hour limit if operating at least one truck seven days a week. A driver can
reset this cap to zero if they take 34 consecutive hours off, as noted in the FY 2015 update above. However, according to a survey from the
American Transportation Research Institute (ATRI), more than 80% of motor carriers have experienced a productivity loss, with nearly half
saying they require more drivers to haul the same amount of freight. Additionally, there is a huge challenge to obey the federal rules while
staying competitive in the market from a pricing perspective.
Why the Scarcity of Drivers?
Trucking companies are refusing hundreds of truckload shipments every day because they don’t have drivers. The amount of revenue lost by
carriers, and the overages paid by shippers for not using their primary carriers is staggering. Here are several reasons for this scarcity:
• Truck driving can be unpleasant. With extensive time away from home, the stress of traffic, and varying demands of the
shipper/receiver/carrier, and pay is often relatively low.
3. 2 ORTEC Mitigating the Driver Shortage Crisis
If you want a balanced life, I think you have to get home most nights. Haulers do not
have a balanced life.
~Jack Paulden, Commercial Truck Driver
• Government regulations, including driver hours-of-service limits, electronic monitoring of driver logs, etc. A cap on the number of days that
drivers can work, and a relocation of dis-tribution centers closer to customer bases, make deliveries more frequent, yet less profitable for
drivers, according to USA Today, May 18, 2014.
• During the recession, many drivers left the industry and found other professions. Post-recession, drivers can find better pay and more time
at home with employment in the re-covering construction and housing industry.
• Difficulty attracting new talent. Younger drivers expect mobile technology allowing real-time communications as well as diagnostic tools
for their trucks.
• Studies indicate that the overall US workforce will consist of 40% millennial age workers by 2020. Research by ATRI shows that the rate of
these age workers in the trucking industry continues to decrease, posing a troubling combination of trends for the trucking industry.
• Commercial Driving Licenses are not obtainable until age 21, and almost all insurance agen-cies will not cover driver without at least
2-years of experience, most wanting to see 3-4 years. This means potential workers coming out of technical high-schools or college
certifi-cate programs at age 18-19 are unable to directly enter the trucking workforce, and find employment elsewhere.
Trucking companies are providing paid training and signing bonuses, yet are still unable to reduce turnover rates. Pay rates for drivers are
rising, but those costs are passed on to shippers in the form of higher freight rates, and then to the products they ship. As a result, shippers
are often frantically searching for carriers to haul their loads. Carriers in turn do not have enough drivers and continue to leverage 3PL freight
brokers to identify anyone who can transport their loads.
Service is suffering on all fronts. Since high pressure exists to optimize the production or warehouse logistics on one side, and similar
pressure from customer demands on another side, transportation becomes squeezed in between the two. This may even lead to impossible
input or very critical situations, resulting in violations in practice. The stress on drivers puts their safety and security at risk and threatens the
transportation industry’s reputation.
Focus and Investment in “Human Infrastructure”
Logistics is complicated. It requires many modes of transportation, complex systems, and billions of dollars of infrastructure investment to
move our products and freight to every corner of the globe. However, at its core, sitting behind those complex systems, and driving the trucks,
trains, boats, and planes are people. This “Human Infrastructure” is beginning to gain more attention and companies are now leveraging their
workforce as a true competitive advantage more than ever before.
4. 3 ORTEC Mitigating the Driver Shortage Crisis
The required collaborative nature of the logistics industry has enabled the rapid growth of Third Party Logistics (3PL) providers for many
years to what was estimated by Armstrong & Associates in 2014 to be over a $154 Billion industry in the U.S. alone. This model of shippers
and manufacturers laser-focusing on their core business and leveraging other experts (i.e. 3PL’s) to handle logistics functions has naturally
begun to extend into the “human” side of the business as well.
The troubling trends discussed previously regarding driver shortages, and the evolving needs of a younger, more technology enabled
workforce will demand employers be increasingly creative and flexible in order to remain competitive in tomorrow’s economy.
To this end, shippers and manufactures are frequently considering the benefits of a dedicated transportation service which can create much
needed reliability in moving their goods via truck. This dedicated fleet service is most often provided or managed by a 3PL. In addition to the
care and value of the truck, the drivers themselves must now also be managed and treated with the same level of importance as the truck
itself, if not more.
One welcome development in this regard is 3PL’s providing a dedicated truck service and shippers with an existing private fleet of company
trucks are now often either hiring a driver manager to focus on driver quality of life and needs, or partnering with a company specializing in
logistics work-force management and solutions. Workforce focused service providers are often referred to as Fourth Party Logistics
Providers (4PL’s) and work in seamless concert with the control of the day-to-day logistics operations managed by the 3PL or shipper.
By creating this focus on driver importance, wellness, unique and consistent training requirements, special logging and paperwork demands,
companies will greatly increase productivity, safety and driver retention while reducing healthcare costs and workers compensation
premiums. This “driver friendly” environment created through partnership has been shown to be a powerful and effective tool in differentiating
shippers and manufacturers, and resulting in improved recruiting and retention of safe, qualified, and reliable drivers and logistics workers.
In all, this translates into a more reliable supply chain with products arriving on time with minimal interruption making our national economy
more stable.
Leveraging Transportation Optimization
Many shippers and transportation companies severely underestimate the importance of an efficient transportation strategy. To remain
competitive and grow, companies must take a deeper look at the end-to-end distribution and transportation network. At a strategic level,
consider a redesign to better respond to current conditions and costs. At a tactical level, develop a methodology to continuously re-evaluate
the supply chain and transportation network to adopt optimal structure and routes. At an operational level, construct optimal routes daily to
achieve optimized resource utilization. We describe the steps in more detail below.
5. 4 ORTEC Mitigating the Driver Shortage Crisis
Step 1: Develop A Transportation Strategy
By using supply chain modeling technology companies can create a business model for their entire supply chain network, incorporating
alternate transportation options and key variables such as cost, time, capacity, and delivery parameters. Typical methods at a strategic level
include optimizing the amount and size of DCs, reassigning the right inventory at the right DC, and assigning the right customers to the right
DCs. The impact of transportation synergy between DCs and/or hubs is important to consider when centralizing transportation planning. The
desired fleet mix and their ideal home base is very relevant.Typical evaluation steps:
• Build a baseline to visualize and assess the current situation, and consider alternative modes of transportation.
• Select whether or not to outsource certain lanes and when to use private fleets. Fleet optimization enables businesses to create multi-stop
routes with the right fleet mix. This balances optimizing fleet size, while identifying efficient multi-stop vehicle routes and maximizing the
utilization. TNT Express, for example, has reconsidered the entire European DC and line haul structure given the impact of the driver crisis
and the change in volume.
Step 2: Tactical Transportation Optimization
Companies like Walmart, Coca-Cola and Restaurant Technologies Inc., have developed a transportation optimization strategy and then
executed it brilliantly. At a tactical level, the infrastructure and assignment of inventory and customers to DCs are given, and delivery
schedules made for the coming period with the right fleet mix. The objective is to optimize the desired frequency, delivery days, and volumes
for each delivery address, while obeying the minimum and maximum stock levels and minimizing the overall supply chain costs. These costs
include: inventory cost, transportation cost, and workforce cost both at the DC and the customer.
For customers with seasonal, weekly, or daily patterns, there are a lot of opportunities to balance the workload over these periods. Typical
savings are about 5 – 10% cost reduction per volume, and much better utilization of resources. These are resources at both the DC and
receiver, and drivers as well. Avoiding peaks leads to lower stress levels and more convenient schedules for the drivers, less overtime and a
reduction in outsourcing cost. Coca-Cola has seen very positive results in reviewing their schedules at a tactical level. This not only involves
driver schedules, but mobile workforce schedules as well, including sales reps and merchandisers. Streamlining this entire process, while
fulfilling the service requirements, improves both customer and employee satisfaction, while also contributing to the financial targets of the
company.
Step 3: Operational Optimization
At an operational level, routes need to be constructed daily, or in real-time, taking all requirements and conditions into account. Typically, this
includes capacity and time window restrictions, but the optimizer should also take working time directive and driving time legislation rules
into account. These rules not only influence the amount of rest a driver must have on individual days, but due to the new federal
hours-of-service rules, it is important to obey the 70-hour-a-week cap. In addition, drivers can have contracts for a minimum/maximum
6. 5 ORTEC Mitigating the Driver Shortage Crisis
Thus, the payment of overtime is reduced significantly by balancing the usage of the drivers. Complying with labor rules and taking the right
driving and stop time into account, leads to more accurate schedules for the drivers, increasing their satisfaction level and decreasing stress.
Considering forecasted and actual traffic jams, weather and road conditions, contributes to more on-time arrivals, and improves both user
and driver experience without adding cost.
Step 4: Align the Supply Chain
During execution, ad hoc changes can enter the schedule. Typically, this can be rush pick-up orders to be assigned to the right truck, or
dealing with a traffic jam. Rapid response is required to meet the agreed service levels without introducing extra operational
costs. The planner should be informed at an early stage about estimated arrival times, in particular, those
related to the agreed time windows.
The user should have the capabilities to apply meet-and-turn or
drop-and-hook opportunities, and to get proposals to assign unplanned
pick-up orders to the right resource. Apps or portals about the schedule
should inform drivers, customers, management, and DCs, aligning this part
of the supply chain. Results? Respect the driving time legislation and
maximize customer service without losing efficiency.
Use Technology to Attract & Retain Talent
There are clearly strong benefits for optimization:
• Compliance to routes, DOT rules/regulations, etc. is accomplished by reviewing the expected driving and stop time, including
expected traffic congestion and other aspects. Thus, more reliable and feasible tasks are assigned, yielding an increase in employee
satisfaction.
• Optimizing drivers allows them to do more with less. Typical cost savings are at least 5%, with an average of 10% when considering the
optimization more at a tactical level.
• Servicing the customer, not over servicing. Using the overview in dashboards, KPIs and SLA-agreements with customers, a trade-off can be
made between service and associated cost.
• Providing drivers a better lifestyle – smartphones to communicate with (face time) and routes that get them home every day.
7. 6 ORTEC Mitigating the Driver Shortage Crisis
Case Study: Restaurant Technologies Inc.
Restaurant Technologies Inc. helps more than 10,000 McDonald’s restaurants serve up America’s favorite French fries by keeping their
cooking oil clean and managing its disposal. With over 20,000 restaurant customers, Restaurant Technologies needed to optimize its truck
routing, reduce distribution costs, improve customer service and streamline technology integration for drivers with handheld devices.
Even with having higher than average driver retention, the driver shortage crisis is also a major concern for Restaurant Technologies. With a
dedicated fleet of trucks, the delivery equipment is highly specialized. This requires CDL drivers who are trained specifically for this
equipment. As a growth company, it is imperative for Restaurant Technologies to recruit, hire, and retain their driver staff.
With the help of the ORTEC team, Restaurant Technologies reduced cost of delivery by 15% and significantly improved customer service
ratings. By optimizing their distribution, they could leverage their extra capacity and invest in growth. Since partnering with ORTEC,
Restaurant Technologies has increased their customer base by almost 50% and significantly increased their serviceable distribution network.
As Restaurant Technologies continues to grow, so does their need for safe and reliable driver talent. As new markets and established
markets grow at different rates, the need for drivers fluctuates between distribution centers. With the help of ORTEC, Restaurant Technologies
route planning department, continuously adjusts serviceable markets in order to meet the demand of their growing customer base. By
investing and leveraging the ORTEC optimization software, Restaurant Technologies continues to grow and provide top notch customer
service.
Conclusions
1. Companies need to re-think and re-design their supply chain transportation strategy. This should also include a review with a “workforce
centered perspective” which might include length of routes, geographic location of depots and DC’s and their surrounding pools of
workers, quality of trucks and equipment.
2. Companies must recognize that truck drivers are the face of the company – brand ambassadors – and the attraction of a needed younger
workforce will require the deployment of updated technology and integration of optimization programs.
3. Shippers and manufacturers should continue to consider partners to manage essential ele-ments of their logistics operations. This should
also now include their logistics workforce, and particularly commercial truck drivers, as a focused and important area of investment.
8. 7 ORTEC Mitigating the Driver Shortage Crisis
References
1. Yahoo Finance, “Here's The Real Reason Why The Trucking Industry Is Running Out Of Drivers,” Business Insider, August 17, 2014
2. Stifel, “What Lies Ahead In The Transportation And Logistics Industry? Conference Call Takea-ways,” Transportation & Logistics, July 13,
2014
3. USA Today, “Limits on truck drivers’ hours roil industry,” Paul Davidson, May 26, 2014
4. The Guardian, “I am a commercial truck driver in the US,” Jack Paulden, July 11, 2013
5. ATRI, “ATRI Study Identifies Significant Operational and Economic Impacts From New Hours-of-Service Rules,” November 18, 2013
6. ORTEC. “Top 10 Reasons to Optimize Transportation Planning,” White Paper, 2014
About ORTEC
ORTEC is a leading provider of advanced analytics and predictive commerce solutions. Our team specializes in helping companies meet big
data analytics challenges in the areas of fleet routing and dispatch, vehicle and pallet loading, workforce scheduling, demand driven
transportation forecast-ing, dynamic network planning, and warehouse control. ORTEC offers both Windows and SAP® certified and
embedded solutions in the cloud. ORTEC solutions also integrate with and compliment strong relationships with industry partners in ERP,
Mobile/Telematics & S&OP. In addition to having the honor of being named winner of the 2012 Franz Edelman Award for Operations Research
Excellence with TNT Express, ORTEC recently won awards from Computerworld, Supply Chain Brain, Consumer Goods Technology, GBC Health
and InfoWorld. ORTEC has over 2,000 customers and 750 employees worldwide.