As a leading provider of TMS and Logistics Services for small and medium-sized shippers across America we have consulted with hundreds of Supply Chain Leaders over the years. One of the common questions we are asked is, “Why should I care that everything is in a Single-Platform?”
There is no doubt that COVID-19 has had a very real impact on our economy and shippers. The U.S. gross domestic product (GDP) fell an annualized rate of 32.9% in the second quarter of 2020. This is the largest decline on record, surpassing the financial crisis of 2008 which was 8.4%.
So, you’ve decided a TMS is right for your business. Now what? If you search “Transportation Management System” on Google, you will get over 900 Million results. Choosing the best solution out of so many options is no small task.
We are living in unprecedented times. The COVID-19 Pandemic has impacted every person and business in the United States. In a matter of weeks, we have been forced to adapt to a “new normal,“ and shippers are no different. Many of the shippers we partner with at Dynamic Logistix are considered essential businesses, which means that they must find a way to adapt quickly and still deliver service to their end customers.
Traditionally value is measured by rates. On the surface this makes sense, if you can control your rates, you can control your freight spend. However, should your goal be to ship your products for the lowest rate, or the lowest cost? Rates tend to increase over time, but there are multiple ways to reduce costs.
The COVID-19 pandemic is, unfortunately, a Black Swan Event, effecting the freight economy in ways that could not have been forecasted. A quick look at the OTVI (Outbound Tender Volume Index), which measures tendered contracted outbound volume, highlights the sudden swing in volume over 45 days between March and April. Load volumes have decreased at twice the speed they rose last month.
Is Now the Right Time for a TMS?
Contrary to popular belief, technology is not the solution to every problem. We have heard horror stories about prospective clients investing valuable resources into technology only to see their problems get worse. How can this be?