Shippers increasingly look to technology: Study

HOLLAND, Mich. — Transportation technology company LeanLogistics says a recent carrier survey shows there’s an ongoing shift to more frequent procurement, coupled with a growing need for technology to offset hours.

The company surveyed a wide range of truckload and LTL shippers throughout North America. Of the 112 respondents, 71 percent indicated they’ve moved from an annual procurement to an ongoing, as-needed process. Nearly 52 percent indicated a shift to a lane-by-lane or region-by-region analysis.

Of the companies surveyed, 70 percent of executives believe technology can improve and streamline their transportation procurement events when used strategically as part of the process.

The irony is that executives in this space are slow to adopt new applications, with more than 80 percent indicating they still use manual methods.

“Procurement technology is trending similar to TMS,” said Chris Timmer, LeanLogistics vice-president of marketing. “Best of breed procurement technology should be considered as a strategic tool to drive cost savings and efficiencies internally and externally.”

He says technologies that streamline transportation procurement can reduce a basic 100 carrier, 1000-lane procurement event from the traditional 300-plus staffing hours to 40 hours or less, allowing cost savings to be realized in the process as well as on transportation spending.

The complete report, entitled An Evolution in Transportation Procurement Practices, can be accessed by clicking here.

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