As with most industries this year, many of the trends we are seeing involve technology and using data. This is no different for the transport management and freight sectors within the logistics industry. We live in a time when businesses need to adapt to survive, and so taking note of what is happening around us is important. We take a look at some of the trends we can expect to see this year.
Decline in Spot Rates
The trucking spot rate reacts to available supply and demand, and it is also changing in the wake of trends affecting the industry. As demand continues to change, reflecting limited transportation capabilities due to the coronavirus and its potential association with an unknown mode of transmission, we can expect to see spot rates changing.
Increased Use of Cloud-Based Systems
One of the biggest transportation management trends for this year will revolve around the increased adoption of cloud-based technology. Leveraging a software-as-a-service (SaaS) model, cloud-based technology is able to provide companies with unlimited scalability and a hassle-free way to make use of innovative IT resources.
Shippers Will Begin Recovering from the U.S. Trade War
The ripples of the trade war between China and the U.S. were felt globally, however the issues and fears are starting to ease and a new trade agreement has been reached. In the future, in order to avoid similar problems, it will be essential for businesses to make use of Transport Management System (TMS) software to make informed decisions that are based on facts derived from data, and not political uncertainty and promises.
Automation Will Improve Efficiency
We can expect to see automation in all areas of the supply chain this year, and for good reason. Load tendering automation will be big in 2020, helping shippers to improve their efficiency and maintain balance. Automation helps businesses by opening doors to faster processing of data which aids in routing shipments more effectively. It also recognizes when spot rates are more cost-effective than contracted freight rates, allowing for improved cost-savings.
The top transport management trends will continue to change, but the leading ones are simple, ranging from more technology in freight management through a shift towards outsourcing-preferred management methodologies. The freight market will also continue to change this year, which will mean that shippers will need to implement processes and technologies that will increase their productivity, efficiency and savings. TSI’s self-developed technology gives you a complete view of your supply chain, making it possible to anticipate change and adjust to it in a shorter period of time. It integrates fully with your current business and our experts are on-call to help you whenever you need it. Send an email to firstname.lastname@example.org to find out more.