The current trends in the trucking industry are staggering. New estimates show the industry is short more than 35,000 drivers and growing. And capacity constraints, a direct cause of the driver shortage, continue to plague companies even though freight shipments are up more than 13 percent since last year. Also on the rise, more than seven percent year-over-year, are truckload rates.
While these trends continue to impact the industry, shippers need to continue moving their freight any way possible. When more than 80 percent of U.S. communities rely on trucks to deliver their everyday goods, these numbers become an even bigger cause for concern.
Most companies use a mix of their own fleet (private or dedicated) and common carriers to get their goods to their customers. While this is standard practice there are many questions fleet managers need to ask themselves.
Are you taking advantage of all available lanes when planning your daily shipments? Can loads be combined to get the most out of the cost to ship? Are you using all the available capacity you are paying for? Are you optimizing your transportation spend?
A recent survey of Fortune 500 companies by the Global Supply Chain Institute at the University of Tennessee’s Haslam College of Business, found that 76 percent of companies are using a mix of fleet and common carriers to deliver outbound shipments. Furthermore, 27 percent of these companies don’t have a process to assign shipments to their fleet or common carrier; and 53 percent don’t use a routing tool to optimize their fleet.
Given the survey results, it was easy to see businesses needed a flexible solution to maximize and optimize their transportation network. Current solutions can optimize a fleet or common carriers, but not both. Others don’t take into account variables such as fixed costs, lane rates, fuel expenses, backhauls, or capacity.
This is why I’m excited to announce the launch of the first ever automated technology tool – Ryder TranSync™ – for new and existing users of Ryder Dedicated Transportation Solutions or Transportation Management solutions. Load-by-load, this patent-pending, automated technology tool compares common carrier costs with your fleet costs, taking into consideration all the variables.
Not only is freight delivered on-time, but businesses get an optimized transportation network to the lowest effective operational cost. Moreover, businesses receive from Ryder a new dashboard of intelligence and analytics allowing them to make better decisions. Through this new information, businesses will be able to right-size their fleet, get increased visibility into their network and mitigate the driver shortage and capacity constraints.
Most of all, this new automated technology tool can maximize a company’s transportation spend.
We are proud to be the first to bring this technology tool to the transportation industry. If you’re a new or existing user of Ryder Dedicated or Transportation Management solutions, I welcome you to learn more about Ryder TranSync™ by visiting our website.
Authored By John Diez, President of Dedicated Transportation Solutions (DTS) at Ryder. He is responsible for setting the strategic direction of DTS, which combines vehicles, drivers, and administrative services with drivers and additional value-added services, all dedicated to a specific customer.