According to JP Wiggins, vice president and co-founder of 3Gtms.
Wiggins talks about freight consolidation because there are cost savings there for manufacturers and shippers. Consolidation projects should really come back, he says. “Talk to your customers, have them buy by truck, it’s easy. But also tell them about early delivery. Suppose you have a Thursday shipment and you have a Tuesday shipment. Can I deliver them both to you on Wednesday? »
A modern transportation management system can help with that, he says. It can help identify customers’ hours of operation and the type of freight they handle. “That’s important because if you could turn partial shipments into LTL or LTL into a full load, maybe a multi-stop truck or pool distribution or even a full load, the benefits for everyone in the whole supply chain are just exponential the more you are able to consolidate.”
In addition to cost savings, Wiggins notes, consolidation has significant environmental benefits. He says reducing dead miles can eliminate 200 billion pounds of carbon in America alone each year. “Like consolidation, dead miles is something that can be optimized,” says Wiggins. “That’s something a TMS can help because either your trucks are going home or they’re going to places where you can get cargo out to help reduce carbon.”
A TMS implementation doesn’t have to be a massive multi-year project. “You can still do the big bang, but people have different pain points now. So I would say look at what your problem is and fix that specific problem. Put a slice of TMS to solve this problem. On average, companies save 8-10% on their overall freight spend with a modern TMS, says Wiggins.
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