Are economic conditions improving? Multiple indicators, from a recovering housing market to tax code changes that offer advantages to entrepreneurs, suggest this is the case, potentially leading to increased spending and, ultimately, a need for more freight movement.
David Roush, President of KSM Transport Advisors, who recently penned "Network Analysis Takes on More Importance" for Transport Topics, observes that business may be looking optimistic for trucking, at the same time emphasizing the increasing value of technology and data analysis in the present-day transportation management industry.
“The analytic tools on the market today, and the intelligence derived from the use…make it possible for fleets to make intelligent data-driven decisions about customer and lane profitability,” says Roush, noting that these tools give carriers insight into their inbound financials and help them ascertain earnings associated with the various facets of their business.
The Evolving Client-Carrier Relationship
Contemporary shippers, says Roush, have departed from conducting business based strictly on long-standing personal connections, instead using complex, academia-based models to manage their spending; to compete, carriers must, likewise, apply smart math for pricing and capacity allocation, and still ensure superior service.
Roush suggests shipping companies use the present positive direction of the trucking industry as an opportunity to become better customers by recognizing the give-and-take nature of the client-carrier relationship (rather than focusing wholly on low numbers), saying, “Anything shippers can do to support drivers, minimize delays and increase efficiency will bode well…as fleets use analytics to select and price their freight.”
Read the full article at ksmta.com
David Roush is President of KSM Transport Advisors, LLC, part of the Katz, Sapper & Miller Network. With 30-plus years of experience, David’s focus includes freight networks, financial management, operational metrics and optimization strategies. Connect with him on LinkedIn.