[Stayontopoftransportationnews:[Stayontopoftransportationnews:Get TTNews in your inbox.]
In a sector as varied as freight transportation, the operational needs and priorities of individual trucking businesses significantly differ from one another, reflecting the complex tapestry of the industry.
Consequently, the transportation management software (TMS) utilized by motor carriers and logistics firms must be tailored, as a one-size-fits-all solution is simply not adequate for every unique operational framework.
To address this challenge, TMS vendors are actively developing specialized features and enhancing configurability that enables trucking companies across diverse industry segments to meet their distinct requirements more effectively.
“The transportation industry comprises numerous niche markets, each necessitating specialized solutions,” explained Tom McLeod, CEO of McLeod Software.
McLeod Software CEO Tom McLeod at the company’s user conference in Phoenix in 2023. (Seth Clevenger/Transport Topics)
The varied data points, integrations, and optimizations related to different modes and commodities indicate that not all TMS solutions will be suitable for every operational scenario, according to Ben Wiesen, president of Carrier Logistics Inc., a TMS provider concentrating on the less-than-truckload sector.
“If you are craving authentic Greek cuisine, you would naturally choose a Greek restaurant rather than a French bistro,” Wiesen humorously illustrated.
Some TMS developers have concentrated on providing comprehensive solutions tailored to the specific requirements of particular industries, while others have emphasized creating configurable products that adapt to each individual customer’s needs.
“The ability to configure solutions is far more important than customization,” emphasized Jay Delaney, director of product management for Magnus Technologies. “Customization often results in delays; configurability allows users to modify software functionality on-the-fly, resulting in significant time and cost savings.”
McLeod Software has made substantial strides to reduce the need for excessive customization by enhancing configurability, a factor that has drawn interest from Pamela Wills-Ward, chief people and strategy officer for third-party logistics provider MW Logistics.
Configurability can also be more cost-effective than customized solutions.
“Maintaining customized solutions incurs high costs; every software update necessitates corresponding custom updates, which can be cumbersome,” explained Hans Galland, CEO of BeyondTrucks.
Kelly Williams, vice president of enterprise product management at Trimble, stated that configurability enables logistics providers to deliver software upgrades more rapidly and efficiently.
“Moreover, we can ensure these updates have a positive impact on the broader movement of goods, affecting hundreds of carriers simultaneously,” she added.
Trimble offers a range of configurable TMS products as part of its technology portfolio for the transportation industry. (Seth Clevenger/Transport Topics)
Finding Commonalities
Despite the trucking industry’s segments often operating under different terminologies and priorities, they tend to share common workflows, including the processes of order receipt, capacity identification, load dispatching, status monitoring, and invoicing.
“These elements are fundamental to the overall movement of goods,” Trimble’s Williams commented.
Trimble prioritizes integrations that leverage common workflows while providing the flexibility required for niche markets. Users have the option to toggle data fields on or off, allowing them to highlight what is crucial for their operations.
While TMS functions remain consistent across niches, the approach to accomplishing these tasks greatly varies, similar to the diverse methods with which cars, horses, or airplanes achieve transportation, according to BeyondTrucks’ Galland.
“In over-the-road transport, order entry might be as simple as an electronic data interchange connection into a shipper, or it could involve a carrier placing a phone call or receiving an order by email,” Galland remarked. “The initiation of transportation is highly sector-specific and requires specialized handling.”
TMS for Bulk Carriers
In bulk fuel and chemical sectors, order generation often hinges on continuous monitoring of inventory levels within storage tanks. Timing is particularly crucial due to the capacity limitations of these bulk storage configurations.
“If a delivery occurs too early, the tank may not accommodate it, but failing to deliver on time could force a pump or manufacturer to halt operations,” explained George Thellman, director of business development and strategic relations for TrueTMS, which developed the TrueLiquid TMS specifically for bulk carriers.
Tank truck carrier Western States Oil uses the TrueLiquid TMS designed specifically for bulk haulers. (Western States Oil)
The petroleum sector frequently encounters shifting allocations and pricing structures that necessitate quick adaptations, as noted by Scott Swain, a manager with Western States Oil, a wholesaler and transporter of petroleum products.
TrueTMS seamlessly integrates with the fleet’s electronic logging device systems and pricing data from suppliers to enhance forecasting and scheduling processes.
“When requiring changes to driver loads or adjusting terminal allocations due to pricing or supply circumstances, our system can facilitate that modification in as little as 20 seconds,” Swain highlighted.
Moreover, bulk carriers necessitate a TMS that accommodates specific needs such as multi-compartment loading, tank washing, heel management, temperature regulation, and compliance with hazmat standards.
“Detailed load records are crucial, and stringent process guidelines must be in place to avoid order cross-contamination,” Magnus’ Delaney stressed.
In this sector, the nature of the commodity largely determines logistics, equipment usage, and driver qualifications.
“A general TMS isn’t tailored to the specifics of what’s being transported or the assets utilized,” Thellman of TrueTMS stated.
Hazmat shipments introduce additional driver requirements, including specific certifications and compliance with regulations, which can involve prohibiting facial hair for gas mask use.
“We store this data on driver profiles. If a driver does not meet those conditions, planning for that load cannot proceed until an eligible driver is available,” Thellman explained.
Serving the LTL Industry
Monitoring and visibility are critical for most carriers but pose greater challenges in the less-than-truckload (LTL) sector, amplifying TMS demands.
“Each shipment must transition across multiple legs to reach its destination,” noted CLI’s Wiesen. “A shipment might travel through numerous cross-docks on different trucks, even if its lifecycle is short, often with many LTL moves being next-day deliveries.”
Magnus’ Delaney remarked that an LTL carrier’s TMS should incorporate load planning screens so dispatchers can consolidate orders into efficient pickup and delivery routes while also enabling cross-docking and maintaining visibility.
“To achieve this, fleets need to scan freight at every stage—from unloading the trailer to staging it at the cross-dock or warehouse and finally reloading onto the next trailer. An integrated mobile driver application that supports barcode scanning and documents exceptions is essential,” Delaney emphasized.
With the rise of e-commerce, the demand for residential LTL deliveries has surged, according to Nathaniel Klein, chief operating officer for Sun Logistics, which specializes in LTL and first- and final-mile transportation.
In fact, around 45% of Sun Logistics’ freight in urban areas like New York and Miami necessitates appointment scheduling, a significant increase from just 15% a decade ago. Managing these appointments is often challenging due to customers’ unresponsiveness when contacted by unknown numbers.
In response, last year, the company partnered with CLI to launch a text messaging appointment system, facilitating smoother interactions where customers can use a link to schedule appointments.
For customers utilizing text messaging for scheduling, return rates due to recipients being unavailable at the time of delivery are 90% lower compared to traditional phone-conducted appointments, Klein noted.
“Customers find it engaging; they can track their driver’s location easily,” Klein added.
Driving Drayage
The drayage sector presents its own set of complexities, often involving coordination among multiple stakeholders, which include terminals, railroads, depots, chassis pools, freight forwarders, and motor carriers.
“Each stakeholder operates under unique data standards, complicating real-time communication and collaboration,” stated Joel Tracy, chief information officer at drayage provider IMC Logistics.
The TMS utilized by drayage providers must interface seamlessly with systems at port terminals, shipping lines, and other external parties to gather data, offer ongoing updates, and schedule necessary appointments.
“Mobile applications are necessary for fleets to update pickup and delivery statuses in real time,” Magnus’ Delaney added.
Furthermore, the drayage industry has its own specialized lexicon.
“Unique terms such as demurrage fees, detention, and container last free day characterize this sector,” noted Toni Ann Careccio-Pisano, chief customer officer for PortPro, a TMS crafted for drayage operations.
PortPro has focused on digitizing the many manual processes that previously drained carriers and drivers of valuable time and resources while allowing carriers to monitor a container’s status and access 13 other critical data points.
“Without these data points, significant fines can be incurred,” Careccio-Pisano warned.
RoadEx America, a drayage provider with asset ownership, shifted to the PortPro system approximately two years ago, enhancing data sharing and achieving real-time visibility.
“Clients nowadays expect to track their containers, much like they monitor their food deliveries,” commented Lisa Wan, the carrier’s executive vice president of operations.
Once a driver is dispatched, customers can view the containers’ locations, while office personnel and clients can access relevant information and documentation, minimizing the need for excessive email exchanges.
“The speed at which cargo is handled may be constrained by physical laws, but data sharing can occur almost instantaneously,” Wan said. “This capability acts as a crucial differentiator in our service.”
IMC Logistics holds the 33rd spot on the Transport Topics Top 100 list of the largest for-hire carriers in North America and has developed a proprietary TMS to address its specific requirements, boost data sharing among stakeholders, reduce delays, and ensure a real-time overview of shipments from the port to their ultimate inland destinations.
Tracy asserted that IMC’s in-house TMS equips the company to swiftly adapt to industry evolution, providing a competitive advantage over off-the-shelf software solutions.
IMC’s TMS allows for precise tracking of both the chassis carrying the container and the container itself, ensuring validated container numbers for accuracy, a level of attention not typically seen in traditional over-the-road trucking operations.
In drayage operations, managing the return of empty containers to designated locations is another layer of complexity. “Efficiently managing these returns, in adherence to shipping line agreements and terminal protocols, constitutes a specialized function absent in many other transportation segments,” Tracy noted.
As part of their commitment to sustainability, IMC has expanded its zero-emission vehicle fleet and enhanced its TMS to include functionalities for tracking carbon emissions.
“This capability enables us to assess and report on our environmental impact, ensuring we adhere to regulatory demands while meeting our sustainability objectives,” Tracy concluded.
Meeting Other Niche Needs
Carriers serving the agricultural and automotive sectors have distinct needs that diverge from those in other industries.
In the agricultural segment, carriers must adhere to specific requirements such as keeping food kosher, thoroughly washing trailers between different products, or sequencing pickups and deliveries.
“Cross-contamination between a chicken farm and a hog farm can perfectly exemplify concerns that could jeopardize livestock,” remarked Galland of BeyondTrucks.
Agricultural clients often depend on BeyondTrucks’ offline mode, which employs temporary storage solutions to gather and retain data when cellular coverage is unavailable, later transmitting this information once connectivity is restored.
According to Magnus’ Delaney, auto transporters must react swiftly to customer rate inquiries based on vehicle identification numbers (VINs) and respond promptly to load offers. Magnus’ clients can efficiently rate orders based on VINs and construct loads tailored to specific vehicle requests.
“A distinctive feature enables the decryption of VINs, utilizing them as a basis for business logic,” Delaney elaborated.
Auto haulers often collaborate with one another and require a TMS platform that streamlined data entry processes, minimizing repetition with respect to orders, rate calculations, and customer data.
Data sharing is equally essential for third-party logistics providers, necessitating a TMS that seamlessly integrates with their shipper customers’ enterprise resource planning (ERP) systems and interacts with warehouse management systems via electronic data interchange and application programming interfaces.
In the realm of third-party logistics, automation is key to minimizing errors while enhancing operational efficiency. After transitioning to McLeod, MW Logistics succeeded in automating approximately 95% of their billing processes.
“By transitioning to McLeod, we had the opportunity to critically analyze our processes,” Wills-Ward noted. “This allows us to redirect our focus toward initiatives that enhance client relationships and strategic discussions.”
MW Logistics has established its systems to present carriers with immediate insights into their payment cycles, substantially reducing unnecessary inquiries directed toward the back office.
By centralizing information within the McLeod TMS, MW Logistics has fortified its internal and external communications with shippers and carriers while improving reporting capabilities.
“We are providing our shippers with actionable information, leveraging data trends we identify in our operations,” Wills-Ward stated, emphasizing the positive feedback received from their clients.
On the operational front, MW Logistics has instituted alert systems for stakeholders to monitor factors that may hinder daily performance.
“We aim to identify and address the obstacles that could impede your success throughout the day,” Wills-Ward explained.
As a fourth-party logistics provider, Redwood Logistics empowers its clients to select their preferred technology solutions, encompassing their TMS and warehouse management system, all interconnected via an integration framework known as Redwood Connect.
“This flexibility allows clients to choose the TMS that best aligns with their needs while simultaneously benefiting from enhanced data sharing and integration to build their digital and logistics ecosystems,” explained Eric Rempel, chief innovation officer at Redwood Logistics.
Fundamental aspects such as procurement planning, optimization, and tender execution might be effective on various platforms, yet the secret lies in proper configuration.
“Effectively configuring workflows to align with business objectives is paramount,” Rempel articulated.
Redwood Logistics conducts thorough analyses of clients’ workflows to appreciate operational dynamics, automate wherever feasible, and assign exception management, ultimately maximizing the return on investment from their TMS, regardless of the platform used.
He also highlighted the common issue of underinvestment in technology among carriers.
“Organizations can benefit from analyses that quantify how introducing automation could enhance their operations and provide financial rationale for such investments,” he stated.
Redwood Logistics ranks No. 45 on TT’s Top 100 list of the largest logistics companies in North America.
Want more news? Listen to today’s daily briefing below or go here for more info:
How can logistics companies improve customer experience through better communication and visibility in the supply chain?
From delivering exceptional service,” Wills-Ward said. “By proactively managing these challenges, we can maintain our service levels and provide a better overall experience for our customers.”
As the logistics and transportation sector evolves, the adoption of advanced technologies and customized TMS (Transportation Management Systems) is becoming increasingly important. For many carriers, these tools not only enhance operational efficiency but also facilitate better communication with customers, allowing for improved visibility and responsiveness throughout the supply chain.
With the ongoing growth in e-commerce and the demand for more efficient last-mile delivery services, companies are recognizing the necessity of modernizing their logistics frameworks to keep pace with customer expectations. By leveraging innovative solutions, carriers can optimize their operations, meet niche demands, and maintain a competitive edge in the ever-changing landscape of transportation and logistics.
