3PLs Blog Category - SPS Commerce Tue, 26 Aug 2025 16:35:48 +0000 en-US hourly 1 Solving the 5 critical challenges preventing carrier success https://www.spscommerce.com/blog/solving-5-critical-carrier-challenges/ Wed, 16 Jul 2025 20:21:45 +0000 https://www.spscommerce.com/?p=750452 A load comes in at 9:03 a.m. It’s a high paying lane from a priority shipper, and you’ve got a driver to take it on right now. But your dispatch team isn’t equipped to respond in time. The bid goes unanswered while someone hunts down lane history in a spreadsheet and calculates rates by hand. By the time the team replies, the load has been taken by another carrier. Now your new customer is still waiting for onboarding paperwork, and the driver who could’ve taken the shipment stays idle.

At 9:46, you’re blindsided by changing requirements for another long-time customer, spiking load acceptance times. It’s an all-hands-on-deck moment, but the full consequences of the bottleneck won’t be felt until the carrier scorecards are delivered. Your teams start to worry about keeping the shipper relationship alive as they scramble to manage the chaos.

Hour by hour, the challenges that come with outdated systems and disconnected processes combine to take their toll on revenue. At the center of it all is a tangled web of slow communication, manual effort and missed insight. But even the toughest challenges carriers face can be overcome with solutions designed to help transportation companies fit into the flow of today’s supply chain.

Let’s break down where it hurts the most and how implementing new solutions could prove to be a turning point for carriers.

1: Slow tender response time

Delayed response to load tenders leads to missed opportunities, slashed revenue and eroded trust. With shippers giving preference to carriers who respond quickly, inconsistent communication damages relationships and increases the chances of being passed over entirely. The longer it takes to respond, the less likely a carrier is to win profitable loads.

That makes reducing the time from receipt to response a high priority for carriers, and as transportation companies look to process optimization to push times down, load tender responses are a prime target.

As companies evaluate options to accelerate the pace of business, leaders are turning to centralized EDI solutions that can simplify tender responses. Instead of chasing down information, dispatchers can respond to tenders within seconds, helping boost revenue and keep preferred carrier status. The benefits of implementing an EDI solution can be far-reaching, as carriers find they gain added visibility on top of improved customer relationships.

2: Delayed shipper onboarding

Onboarding new shippers can require carriers to enter a danger zone of endless emails, redundant paperwork and disconnected workflows. When carrier teams are stuck in the weeds and unable to focus on performance or relationship-building, shippers experience downhill delays, confusion and frustration.

Ensuring that new customers feel comfortable and your systems align can help carriers shorten time to value. But what happens when all the new business results in a mess of disconnected portals and logins? As you take on more shippers, the need to work alongside their tech stack can drag efficiency down.

Some carriers are working toward standardized forms, real-time data validation and automatic system updates to reduce friction and error, but increasing numbers of transportation companies are opting for turnkey, full-service solutions with onboarding workflows already built in. This results in shippers being onboarded in weeks instead of months, allowing carriers to grow their business without increasing manual effort.

3: Lack of TMS optimization

Operating without a TMS—or with one that’s poorly configured—leaves carriers gambling with their shipments. There’s no reliable way to manage capacity, optimize routes or track carrier performance. The result is a mixed bag of effects caused by manual processes: slow dispatching, underused resources and excessive labor costs.

But even as more carriers move to a TMS system to handle these details, barebones implementations can leave out vital features, leading to processes that are only half as powerful as they could be. As carriers work to remain relevant in a fiercely competitive industry, ensuring that their TMS is supported by solutions that streamline other areas of the business can help them stay ahead.

As carriers fight to keep pace with their peers, more powerful TMS tools will be a deciding factor in their success. A centralized EDI system can integrate seamlessly with TMS platforms, enhancing their capability by feeding them real-time data. The addition enables better automation and more accurate routing while boosting the scalability of the business as a whole.

4: Weak shipper scorecard results

Without clear, trackable shipper scorecard metrics, performance management becomes guesswork. Are you meeting SLAs? Are certain lanes costing more than they’re worth? Without the numbers, you’re flying blind, and that’s risky, especially with shippers who expect transparency and proof of value.

Better scorecard results can strengthen partnerships with higher freight volumes and better contracts, while less desirable scorecard results can spell disaster for medium-sized carriers. But to get the best scores, it’s clear that carriers need the right solutions in place to manage common friction points that can drive scores down and leave dollars on the table.

Solutions that enable automatic metric tracking from load acceptance to delivery KPIs can best help carriers sidestep those friction points and achieve scorecard success. The result is a win-win situation: Shippers get the visibility they need, and carriers gain actionable insights to improve efficiency, win more freight and do it all with improved service quality.

5: Trouble turning growth into scale

As volume increases, so does the complexity of managing the people, systems and data needed to support a network of new customers. Without streamlined workflows, growth becomes unsustainable, leading to burnout, mistakes and customer dissatisfaction. That means operational inefficiency isn’t just holding carriers back from doing their best work day-to-day—it’s holding them back from scalable growth year-over-year.

Scaling logistics operations can be shackled by complexity as carriers expand operations to take on new business, with slowdowns surrounding billing and hiring compromising carrier revenue. As carriers manage a list of billing templates, schedules and workflows, the added complexity requires carriers to spend extra time handling shifting requirements.

The disruptions have led carriers to look for solutions that create a foundation for scalable operations by standardizing communication, automating routine tasks and consolidating fragmented customer portals. New solutions allow carriers to grow without having to chase down updates, reconcile documents or respond to avoidable exceptions, leaving teams to focus on strategy and service.

The turning point

The challenges facing transportation companies today are more about structure than speed. A centralized, full-service solution offers a framework for running leaner, faster and more resilient operations, and it shows in our original example:

It’s 9:03 a.m. and a high-priority customer posts a shipment that’s bid, accepted and off the dock faster than ever. Your team is on top of every reply and all your customers experience an onboarding workflow that’s fast and standardized. Drivers are busy, and every requirement is managed without extra personnel to manage it all. The upcoming scorecards look great, and you’re looking forward to taking on even more shipments next quarter as the excellent results keep rolling in.

Sound too good to be true? SPS for 3PLs Transportation Solution can get you there. In a business where every delay costs money and every inefficiency compounds, carriers who focus on modernizing their workflows can gain margin and momentum. That’s why SPS for 3PLs Transportation Solution was made to help carriers work at the pace of today’s supply chain and offer a standout customer experience in the process. Learn more here.

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3 roadblocks to transportation scorecarding success for carriers https://www.spscommerce.com/blog/3-scorecard-success-roadblocks/ Fri, 11 Jul 2025 18:53:24 +0000 https://www.spscommerce.com/?p=750179 The entire supply chain depends on carriers to ensure timely delivery, cost efficiency and reliable service, putting transportation businesses under increasing pressure to perform. As shippers and customers raise their expectations, the carrier scorecard has become an essential tool for evaluating carrier performance through KPIs like on-time delivery, acceptance rate, tracking compliance, damage to goods and claims. But the value of scorecarding as a practice isn’t limited to shippers. With the right strategy and technology, carriers can leverage scorecards to win more business and strengthen their reputation.

Scorecard performance is a reflection of how well a carrier aligns with a shipper’s operational and strategic priorities. Earning high marks requires a combination of operational discipline, data visibility, compliance and adaptability. In today’s environment, where cost control and service levels are critical considerations, carriers that treat scorecard success as a core competency will be better positioned to compete, scale and lead their markets.

Strong scorecard performance opens doors to long-term, high-volume relationships with favorable terms, while a weak showing can limit growth, regardless of operational capabilities. But maintaining consistently strong marks is difficult without the right systems in place—especially in a complex, margin-tight environment where rules and requirements are constantly changing.

Here, let’s explore where carriers can focus to drive better scorecard outcomes and unlock growth.

Roadblock 1: Complex load acceptance

Though it may be a straightforward decision for an owner-operator carrier, developing load acceptance strategies for companies with multiple power units and shippers has become a multi-dimensional problem. Carriers must weigh margin, resource constraints, regulatory issues and the downstream impact of each load on performance metrics before taking it on.

Manual processes often lead to poor load selection, missed SLAs and rejected tenders, all of which hurt scorecard performance. Inefficiencies in carrier operations can also lead to higher logistics costs, damaged goods from inefficient loading and transportation delays, but a successful scorecard strategy can help identify underperforming areas of the business.

Carriers that implement data-driven load acceptance models can weigh profitability and performance impact side by side, enabling better decisions at scale. By integrating a modern TMS with EDI and visibility tools, carriers can streamline decision-making to improve and protect scorecard health.

Roadblock 2: Limited shipment visibility

Tracking compliance and milestone visibility are key metrics on most shipping scorecards. Without automated updates, accurate ETAs and real-time alerts, carriers risk falling behind, even if actual delivery performance is strong.

Supply chain disruptions, such as delays or damage to goods, also pose risks to visibility and scorecard success. With added stress around order and inventory management, stock levels may be kept low to avoid warehousing costs, so there may not always be a backup plan for late or damaged goods.

Lack of system integration, outdated tracking methods or overreliance on manual updates can all erode trust and lead to missed opportunities. Carriers that invest in telematics and connect their systems to shipper platforms demonstrate greater transparency, reduce administrative overhead and build stronger partnerships.

Roadblock 3: Changing customer requirements

Requirements change—constantly. As shippers evolve their strategies, they introduce new metrics and compliance standards, which can catch carriers off guard. New internal initiatives from shippers require carriers to quickly pivot and adjust their strategy. Without a way to stay in sync, the added communication demands can become a challenge.

With increasing emphasis on sustainability and efficiency, businesses desire carriers that align with their priorities. Scorecarding can evaluate carriers both operational and environmental metrics such as fuel efficiency and emissions reduction.

The most successful carriers implement internal governance processes to track changes, assign ownership and respond proactively. But not every carrier has the internal resources or usable data to manage this effectively. In those cases, partnering with a full-service analytics provider or managed service can help bridge the gap — providing strategic insight and hands-on support to keep performance in sync with changing demands.

Improving shipping scorecard performance goes far beyond checking compliance boxes to unlocking business value. Carriers who excel in scorecard metrics enjoy better rates, stronger relationships, reduced operating costs and priority access to freight. In a landscape where every dollar counts and every shipment matters, investing in the right tools and strategies is the path to sustainable growth and differentiation. See how the SPS for 3PLs Transportation Solution can help.

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Scaling smarter: Why trucking companies are prioritizing operational efficiency https://www.spscommerce.com/blog/scaling-smarter-carriers-operational-efficiency/ Mon, 07 Jul 2025 13:58:41 +0000 https://www.spscommerce.com/?p=749206 To successfully take on new business and work with top brands, carriers need to efficiently scale operations without overburdening their current resources. But as margins tighten and delivery expectations rise, trucking companies are tasked to do more with less. Whether in routing, communication or back-office operations, even small operational inefficiencies can directly impact the businesses’ ability to scale. This means operational efficiency as a practice has rocketed to the top of carriers’ priorities as they race to grow their operations to accommodate top shippers.

But achieving operational efficiency isn’t that simple, and scaling operations can stall in the face of common problems that cause delays and bottlenecks. Without the right strategies and solutions, teams can spend valuable hours chasing down updates, reconciling documents and responding to avoidable exceptions, compromising the scalability of the business as a whole.

In this blog, we’ll look at the challenges that stand in the way of scaling operations for trucking companies, and how persistent problems can be solved with the right mix of processes, people and technology.

Moving past inefficient manual processes

Today, many carriers still rely on spreadsheets, emails and other manual processes to manage critical business functions. Teams waste time rekeying data, working around multiple partner portals and tracking down missing documents, all of which cut into margins and take dollars away from the company’s bottom line.

Top carriers are now replacing outdated processes with digital workflows that connect shippers and data in real-time. Systems that reduce manual touchpoints and minimize errors allow businesses to more easily onboard customers and keep operations synced with their partner network.

An EDI solution can help trucking companies reduce manual processes by automating the exchange of load tenders, invoices and delivery confirmations between carriers and a network of retail and manufacturing partners. This reduces costs associated with time-consuming emails and data entry, allowing the business to operate with enough efficiency to confidently take on new shipping partners.

Navigating complicated billing requirements

Carriers that support a wide range of shippers know each has its own invoicing rules, formats and compliance needs. What works for one might not be acceptable to another, forcing carriers to maintain multiple templates, schedules and workflows. As carriers grow their partner network, the operational complexity grows with it, ultimately cutting into cash flow and damaging the financial health of the business.

But without automation, that level of detail introduces operational risk; incorrect or late invoices, disputed charges and delayed payments are common costly challenges that restrict revenue. A single mistake like sending an invoice in the wrong format or missing a required field can delay payments for weeks.

However, carrier technology solutions can streamline cash flow by enabling automated, rules-based billing that adapts to each customer, meaning carriers no longer have to manage a tangle of custom processes. Instead, they can standardize and automate billing across their entire customer base, allowing them to scale operations as they take on new business.

Relying on expensive employee hours

As they grow, many carriers discover a frustrating truth: adding more customers often means hiring more people just to handle the increased volume of paperwork and communication. What should be a success story quickly becomes unmanageable as operational costs rise alongside number of shipping partners.

Scaling by constantly expanding workforce alongside customer count is both inefficient and unsustainable. Labor costs quickly eat into margins while new hires require training, oversight and time to ramp up—and that’s not even considering the current challenges with finding and hiring talent.

Rather than building out larger teams to handle repetitive tasks, carriers are moving toward smart systems that offer the efficiency they need to handle additional customers. Automating document exchange, standardizing processes and implementing real-time data visibility allows carriers to support higher volumes and more complex operations without proportionally increasing headcount.

Without addressing the problems created by manual processes, complex billing and dependence on large workforces, it becomes impossible to operate a carrier business at scale. But proven solutions can help carriers grow without struggling with common challenges. Problems with billing, data exchange or process automation can be effectively managed with a combination of the right technology and team.

Want to see how SPS helps carriers achieve that combination? Read more about SPS for 3PLs here and discover a single-point solution that integrates seamlessly with your TMS, so you can elevate your efficiency to new heights.

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TMS and beyond: Why carriers are integrating specialized tech https://www.spscommerce.com/blog/tms-and-beyond/ Tue, 13 May 2025 05:49:40 +0000 https://www.spscommerce.com/?p=737118

In today’s competitive freight market, efficiency and visibility are no longer optional. They’re essential elements of the supply chain, and when your customers and internal teams expect transparency from your operations, they can be the difference between growing your margins or watching them vanish.

But establishing efficient, visible processes can be a challenge for growing carriers that already have a lot on their plate. Some carriers may default to business as usual, relying on old, outdated manual processes to handle the complexity of doing business with leading shippers. Unfortunately, this can lead to bottlenecks, slowing the pace of internal work and adding additional risk to the customer experience.

Business-forward carriers are now focusing on integrating TMS (Transportation Management System) solutions into their operations, giving them more ways to handle the flow of digital information between their company and their customers. Carriers that want to take a further step can accelerate their workflows with support systems that enhance the capabilities of their TMS, offering even greater control and automation than what out-of-the-box TMS solutions can provide.

Here, we’ll break down the challenges and benefits of each growth stage as carriers integrate TMS solutions into their work:

Without a TMS: messy and manual

Fast-growing businesses that have not prioritized digital transformation can find themselves managing a flood of information by hand as they take on new business and maintain the contracts they currently have. But that initial rapid growth can plateau as carriers struggle to find new shipping partners with flexible visibility and acceptance requirements.

Dispatchers operating without a TMS may rely on manual processes like spreadsheets, whiteboards and sticky notes to communicate internally, often leading to missed messages and additional human errors. Loads might be scheduled and tracked via phone calls, texts or emails, further adding to the number of personnel hours required to keep the business moving at speed.

And because those logs and communications aren’t kept in one place, it’s even more difficult for carriers to create new efficiencies that allow them to take on new partners. Beyond the internal challenges, relying on manual processes can compromise the customer experience. Without a centralized system, it’s difficult to track where trucks are, which loads are active or offer real-time ETAs for customers.

The principal benefit of manual processes would be temporarily sidestepping the initial time and cost of digital integration, but this is a short-sighted savings in the face of even greater time and money needed to run a carrier business without a dedicated management system. When carriers don’t use automated document management and alerts, staying compliant with hours-of-service rules, maintenance schedules and safety checks become a time-consuming process full of errors and setbacks.

With a TMS: scalable and strategic

By contrast, carriers that implement a TMS see their internal processes simplified as they replace manual operations with automated workflows. A TMS can match available drivers with the best loads in seconds based on route efficiency, driver hours and equipment type—an impossible feat for a pen-and-paper operation. This means faster load assignments, fewer empty miles and improved driver satisfaction across a carrier’s entire workforce.

Additionally, many modern TMS platforms offer GPS tracking and live updates, giving dispatchers and shippers real-time visibility into truck locations, delivery ETAs and load status updates. But the benefits go beyond customer transparency; the ability to easily keep tabs on every resource in the field allows transportation companies the latitude to make better decisions as they plan for both the short and long term.

A carrier’s strategic planning is further boosted by analytics dashboards within the TMS that allow businesses to identify customers with the highest margin, optimize routes and fuel costs and improve on-time performance. Enhancing data-driven decisions can help carriers take on more of the right partners as they expand their footprint.

And as they scale, carriers can simplify compliance by integrating their TMS with a variety of other solutions, from logging devices to safety programs. Automating the flow of data between a carrier’s TMS and other solutions in their tech stack can amplify the efficiency of a carrier’s entire operational stance.

Enhancing a TMS: synchronized and streamlined

A TMS becomes significantly more powerful when integrated with other systems and data sources, transforming from an internal scheduling tool into a central nervous system for logistics. Effectively combining solutions can help eliminate silos, automate workflows and streamline decision-making internally, while also improving how carriers connect with a growing list of partners.

While a TMS can be integrated with telematics software, warehouse management systems, enterprise resource planning technology and more, the most effective integrations improve how carriers interact with shippers. Carriers that are not at the top of shipper’s transportation lists can find it hard to stay competitive, and rising in the ranks can often be a matter of meeting more of a shipper’s requirements.

Solutions that optimize load tendering and acceptance times can bridge the gap between a TMS’s capabilities and a shipper’s expectations by automating status updates as loads are picked up, in transit, delayed or delivered, keeping shipper informed without check-ins and phone calls. These solutions can also centralize logins and simplify billing by sending freight invoices directly from the TMS, shortening time to revenue and boosting cash flow.

But combining these solutions doesn’t just improve existing customer relationships—they help forge new ones. Some shippers won’t work with a carrier unless they can support certain kinds of electronic data, making an enhanced TMS solution a prerequisite to partnering with leading brands. As transportation companies take on more high-value contracts, they may find that TMS integrations are basic qualifications for doing business.

But there’s even more that an enhanced TMS system can do for carriers—especially when they’re backed by a full-service team of experts. Want to learn more about how SPS helps carriers stay in sync with their entire partner network? Learn more about SPS for 3PLs here.

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3 impacts to streamlined shipper onboarding https://www.spscommerce.com/blog/streamlined-shipper-onboarding/ Tue, 06 May 2025 20:49:54 +0000 https://www.spscommerce.com/?p=736154 Supply chain carriers are no longer just behind-the-scenes operators—they’re central players in shaping a brand’s reputation. Whether they’re delivering raw materials or finished products, carriers operate at critical points of the customer experience. And in a landscape where expectations are higher than ever, carriers are making their customer experience a strategic priority.

Faster response times, more training for reps and new customer support channels like chatbots are a few ways carrier businesses have chosen to handle the challenge. Unfortunately, these methods can merely act as a bandage for underlying operational bottlenecks that compromise customer trust. Addressing common inefficiencies at the junctures where shippers interact with carriers can help streamline collaboration and elevate the customer experience beyond the call center.

Here, we’ll unpack how supply chain carriers can improve customer relationships by paying closer attention to operational friction points that can cost them time and money.

#1: Accelerated shipper onboarding

For carriers, speed and agility are core expectations of the business, and they apply to everything from operations to bringing on new customers and partners. Still, many carriers rely on manual, outdated processes that slow down the shipper onboarding process, frustrate clients and hurt the bottom line.

Onboarding is one of the first interactions shippers and carriers have in a working partnership, and a smooth experience sets the tone, builds trust and reduces churn. Plus, a seamless, rapid shipper onboarding process shortens the sales cycle and boosts customer acquisition; carriers that offer faster onboarding stand out. If a shipper has to choose between a carrier that takes months to onboard and one that takes weeks, the decision is easy.

Solutions that automate onboarding can reduce manual data entry, errors and delays — all of which eat up time and devalue the customer experience. Streamlined onboarding makes customers feel prioritized while freeing up internal teams to focus on service delivery rather than administrative firefighting. As carriers evaluate options, they should look to implement fast, repeatable, tech-enabled processes that ensure they can scale partnerships and respond to new opportunities without breaking their workflow.

#2: Consolidated customer portals

Shipper portals give carriers access to new shipment information, documents, invoices, support and more. But as carriers grow, they may find themselves using a variety of disconnected portals across services, regions or business units. That fragmentation can lead to customer experience challenges that hurt both shippers and carriers.

A single, unified portal is easier to maintain and means carriers don’t have to juggle multiple logins, interfaces or support channels. It’s easier for internal and external teams to use and provides a consistent experience, regardless of whether team members are tracking a container or paying invoices. Plus, with a single point of connection, there’s less need for redundant infrastructure and additional support staff, saving the business more money.

As they move forward, carriers should consider adopting a platform that allows them to consolidate access while also enhancing visibility and simplifying operational workflow. Combining efficient data management with other industry-forward benefits like streamlined communication and simplified load acceptance can help carrier businesses further centralize their operations for even greater gains.

#3: Revamped communication

Every shipper has unique needs, data formats, SLAs and integration preferences. While flexibility is valuable, a tangle of shipping requirements can bog down operations and increase costs. On the flip side, ineffectively managing changing requirements can lead to the breakdown of the customer relationship as a whole.

But the pressure of handling the constant demand for information on shipments can’t be ignored. As carriers grow, the manual workarounds and one-off customer setups don’t scale, placing additional demand on internal teams and introducing room for errors. Streamlining how carrier businesses handle the unique requirements of each shipper makes it easier for them to serve more customers without proportionally increasing headcount or cost.

Solutions that automate the communication of critical load data can help growing carriers stay on top of shifting customer requirements without dramatically increasing resources. This means shippers can stay informed about the goods being transported in real time while carriers simplify operational load.

Smoother shipper onboarding, single-point solutions and instant communication can help carriers create a better customer experience as they grow their business.

See how the SPS for 3PLs Transportation Solution helps carriers deliver excellence at every turn with a solution that addresses their toughest operational challenges.

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4 impacts from streamlining load tender response times https://www.spscommerce.com/blog/load-tender-response-times/ Tue, 06 May 2025 20:42:03 +0000 https://www.spscommerce.com/?p=736090 Whether you’re moving products across town or across the country, working with shippers and receivers can be a complex process. And the more sophisticated the shipper, the more detailed the process becomes. Getting these details right can demand extra time from carriers as they navigate additional documentation and requirements from their network of business partners.

Reducing the time from dock to dock is a critical part of their competitive edge, brand promise, and a major focus of company initiatives. Managing the growing complexity of shipping data is vital for carriers that want to work with top shippers, and meeting all of a shipper’s requirements can help carriers stand out as a top choice in a competitive field.

In this blog, we’ll unpack some of the far-reaching effects that load tender response times can have and how they can be improved via the introduction of EDI .

Impact 1: Improved communication

The faster and more consistent communication is between a shipper and a carrier, the more efficiently they can work together. Processes like updating a spreadsheet, keeping notes on a whiteboard or manually logging into multiple portals can significantly slow the load tender response times. That added time means some carriers could be passed over for competitors as shippers search for the fastest options. Speeding up the flow of communication between partners can impact the overall health of a carrier’s business.

The EDI 204 (Motor Carrier Load Tender) helps bridge the gap between shipper and carrier by instantly sending clear, consistent details that are essential to the proper intake for goods as they’re transported from location to location. Using the EDI 204 to accelerate load tender response times can eliminate delays from managing the flow of goods with phone calls or faxes and has the added benefit of reducing manual processes across a carrier’s entire operational footprint.

Impact 2: Centralized access

Carrier businesses are often tasked with juggling multiple portals, logins, and passwords for each shipper. As carriers grow their business, they may find that the time it takes to log into each of these systems individually can become unmanageable across a wide network of partners and affect their relationships as response time increases. If a carrier cannot reliably handle the day-to-day logistics of connecting with partner systems, they may find their growth path limited.

However, some load tender EDI solutions, like SPS for 3PLs Transportation Solution, offer the added benefit of bringing all shipper electronic communication together under a single login, cutting down on the time it takes to coalesce requests, reports, data and details from multiple sources. Centralizing access to all shipper portals at once can prove a significant time—and cost—savings for carriers taking on a greater range of trade partners.

Impact 3: Reduced costs

Labor costs are a huge consideration for carriers, and fluctuations in the availability of OTR personnel plus the rising salaries of office-based employees have transportation businesses searching for ways to reduce bottom line expenses. The added communication efficiency afforded by the adoption of load tender EDI can help businesses cut down on extra hours, but the cost savings go beyond right-sizing carrier workforces.

Load tender EDI solutions can also be integrated with TMS software and other applications to automate operations, saving even more time as processes are completed in the background rather than requiring worker time to finish. And with paperless operations, businesses can cut down on office materials and offer more options for centralized data access, trimming dollars that can add up to significant savings over time.

Impact 4: Added visibility

Carriers that want to deliver an outstanding customer experience pay close attention to the expectations they set with their shippers, but without accurate visibility into transportation and receipt times, carrier companies can misjudge essential timeframes and sacrifice longstanding relationships. Carriers seeking to grow their business by trading with top retailers and suppliers need to be able to communicate in real time and deliver key information to partners when it matters most.

Solutions that offer real-time visibility into shipment status allow all stakeholders to check in on progress and handle any issues proactively. In turn, the added efficiency helps with the planning and scheduling of shipments, allowing carriers to maximize space, workforce and timelines—and that added efficiency is just another example of how carriers are using EDI 204 to save on costs across their entire operation.

As the supply chain grows more complex, load tender response time becomes a critical component of carrier profitability. Driving enhanced efficiency isn’t just a matter of having the right people and processes in place—but having a full-service solution that can help you deliver the requirements, the communications and the tracking that leading businesses need right now.

Want to know more about how SPS can help? See how we help 3rd party logistics companies of every variety deliver incredible customer experiences for everyone in their network.

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Building brand trust: why transparency matters https://www.spscommerce.com/blog/building-brand-trust-why-transparency-matters/ Tue, 25 Mar 2025 02:25:24 +0000 https://www.spscommerce.com/?p=732802 When consumers have aisles of similar items to pick from, the choice of what to put in their cart is often based on brand loyalty. But the factors that build a trusted brand are changing.

Today’s customers are conscientious and want to know more about the products they purchase, especially for health and personal care items.

According to a Forbes article, a recent report by Label Insight found that 94 percent of consumers would be more loyal to brands that practice transparency, while 56 percent claim that brand transparency would make them “loyal for life.”

Read on to learn more about the importance of transparency for building brand trust.

Keep it clean: ethical sourcing and sustainable practices

When consumers demand “clean” products, they’re not just talking about product ingredients. They want to see transparency in the supply chain—from the origins of ingredients to the ethical practices behind them. Key issues include:

  • Clean beauty movement: There’s a growing desire to see transparent ingredient lists and “clean” formulations.
  • Ethical practices: The conditions under which items are produced matter, including Information about labor practices, animal testing and sourcing.
  • Sustainability: Green initiatives are driving demand for eco-friendly products and sustainable practices, including packaging, sourcing and production.

Companies who offer transparency in their sourcing practices boost consumer trust. When brands openly share where and how they source their ingredients, they also demonstrate a commitment to ethical practices.

Brands who can share information about sustainable practices throughout the supply chain also elevate their credibility as conscientious, trustworthy companies.

Provide clear information: safety through traceability

Health and personal care suppliers rely on traceability to ensure product safety and quality, but the complexity of global supply chains makes it challenging to keep track.

To modernize, suppliers are replacing manual processes with digital solutions for everything from tracking raw materials to fulfillment and transportation logistics.

Innovations such as blockchain technology and the Internet of Things provide real-time, end-to-end tracking, allowing every step of the supply chain to be recorded and monitored.

These digital solutions can not only enhance efficiency, visibility and accountability, but also ensure the safety and quality of products and improve the ability to manage recalls.

Be proactive: effective recall management

The way a company manages a recall can make or break consumer trust in their brand.

While a poorly managed recall can damage a reputation, a well-managed recall not only demonstrates a commitment to safety and transparency but also encourages loyalty.

Key strategies for a proactive recall include:

  • Develop a process: Plan a clear and efficient recall process to ensure that any issues can be addressed swiftly and effectively.
  • Communicate openly: Provide all necessary information and updates openly and honestly, including detailed information about the recall process and what consumers need to do.
  • Be visible: Use multiple channels to reach consumers, including social media, email and company websites.

Being proactive not only mitigates the risks of immediate harm to your reputation but also reinforces consumer confidence that they can trust your products in the future.

Authentic transparency builds success

In an era where consumers demand access to complete product information, transparency in the supply chain is not just a nice-to-have; it’s essential. Brands that can provide clear, detailed and honest information will be the ones that thrive.

By prioritizing ethical sourcing, embracing digital traceability and implementing proactive recall management strategies, you can build and maintain consumer trust.

SPS Commerce is ready to be your partner in building a more robust and transparent supply chain, with our team of experts offering the people, processes and technology to not only make you more efficient, but support trust in your brand to maximize your success.

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Supply chain performance monitoring: What’s at stake? https://www.spscommerce.com/blog/supply-chain-performance-monitoring-whats-at-stake/ Thu, 07 Nov 2024 01:25:54 +0000 https://www.spscommerce.com/?p=725866 Recent tech advances make it possible to track supply chain performance in real time by continuously analyzing data—and logistics leaders are taking notice. As global trade fragments and international supply chains see rising disruption from inflation and climate change, logistics companies need better tools to keep them ahead of potential challenges. Plus, increased operating and insurance costs combined with low freight rates and excess stock concerns have prompted 3PLs to look for new ways to improve efficiency.

That search has led 3PLs to invest in technologies like AI, end-to-end visibility and process automation, all of which are essential to establishing an effective supply chain performance monitoring practice. But because moving toward real-time data analysis might require multiple new tech implementations, it’s important to understand how 3PLs are using their newest solutions to streamline their processes and drive better performance across their entire business.

Here, we’ll talk about some of the key benefits of supply chain performance monitoring and start to weigh how the initial investment could be offset by unmatched benefits for 3PLs.

Advanced operational efficiency

Performance monitoring allows 3PLs to track their operations continuously and create strategies based on data rather than hunches. Without it, leaders are left to reflect on reports rather than react as needs arise.

Supply chain performance monitoring can help identify inefficiencies and optimize routes, leading to cost savings and improved customer satisfaction. On the partner side, providing clients with real-time updates on the status of their shipments is a great way to build transparency and trust.

Easier compliance and reporting

3PLs can have a hard time keeping up with constantly shifting requirements from business partners, leading to problems that must be corrected before trade can return to normal. Performance monitoring practices help 3PLs stay up to date and comply with regulatory requirements, like tracking and tracing for safety standards, and simplify the generation of reports for both audits and compliance checks.

Simplifying a once-challenging element of the supply chain with an automated solution can have other downstream results in terms of bandwidth and time saved. By adjusting to changing requirements as they evolve, 3PLs can cut out the compliance catch-up and turn their attention to other areas of the business.

Streamlined cost management

By continuously monitoring KPIs such as fuel consumption, driver performance, on-time ship metrics and asset utilization, logistics businesses can identify areas where costs could be cut immediately instead of waiting to see the results in a quarterly report.

When margins are thin, real-time da ly ta allows businesses to save money by making decisions at the right time rather than waiting weeks or months down the line—long after the opportunity has passed or the problem has gotten worse.

Enhanced partner collaboration

Supply chain data sharing enhances collaboration between 3PLs and their partners by ensuring all parties have access to the same information at the same time.

This reduces potential misunderstandings and misses on the 3PL’s behalf, which can be costly to the business and the customer relationship.

A stronger competitive edge

3PLs that leverage supply chain performance monitoring can differentiate themselves from competitors by offering more service options, which are especially important in rapidly changing markets. By implementing a robust supply chain performance monitoring practice, 3PLs will find it easier to keep existing and win new contracts.

As the business grows and takes on more clients, real-time performance monitoring can scale with them, with always-on data providing the flexibility needed to manage increasingly complex logistics networks.

As markets shift with customer expectations and international disruptions, supply chain performance monitoring is the key for forward-thinking logistics businesses that are looking to stay ahead of all the changes.

Thinking more about implementing supply chain performance monitoring practices at your company? See how solutions from SPS Commerce can help 3PLs stay in sync.

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What is operational flexibility? https://www.spscommerce.com/blog/what-is-operational-flexibility/ Mon, 21 Oct 2024 15:12:36 +0000 https://www.spscommerce.com/?p=723471 Across industries, adaptability is essential in today’s market, and the ability to adjust to new disruptions separates highly successful businesses from their less-successful competitors. The drive to improve the elasticity of complex, highly regulated operations has created an emerging practice called operational flexibility.

Understanding operational flexibility

Operational flexibility refers to the capacity of a business to make functional adjustments based on changes in the market, fluctuations in demand or other disruptions. The supply chain is full of variability and uncertainty, and businesses that can flow through disruptions instead of halting their process will have a marked advantage.

Still, there are a number of challenges that stand in the way of reaching peak operational flexibility, and seeing how your business can identify and move past them will help you achieve a new level of efficiency across your organization.

Moving past legacy tech

One of the largest roadblocks to improved operational flexibility is the reliance on older systems to keep up with modern challenges. With rigid solutions that might be confined to your premises or too old and expensive to maintain, it can be difficult to build in more flexibility, more visibility or more simplicity as you need it. Your business may be experiencing:

  • Hindered adaptability from slow systems.
  • Lack of real-time data that limits responses.
  • Resistance to new tech due to implementation concerns.

Considering a cloud-based system that can make use of AI- and ML-based tools and pairing it with IoT-enhanced sensors will help your business break out of the rigidity imposed by legacy systems and move toward greater flexibility.

Managing partner disruptions

While outdated solutions represent a large hurdle for operational flexibility, the way your business works with partners could be hindering your growth. As commerce expands beyond borders, the global supply chain becomes more complex by the day—making them exponentially more difficult to manage. Global partners might have slowdowns and bottlenecks that can’t be predicted from your vantage point, and those longer lead times can jeopardize your flexibility, ability to fulfill orders and forecasting for next season. You might see the following:

  • Hindered efficiency from slow production cycles.
  • Bottlenecks created from relying on a limited number of suppliers.
  • Slowdowns due to global distance from suppliers.

Rethinking your supply network to multi-source products, improving visibility with solutions like digital twins and blockchain and utilizing practices like lean manufacturing or just-in-time production can help you tighten lead times and remain flexible during partner disruptions.

Handling the human angle

Dated technology and logistical partner challenges are often top of mind when it comes to operational flexibility, but the people that make up your workforce comprise another potential challenge as you move toward improved agility. Employees with limited skills can make your processes feel rigid and stiff, and longstanding company culture can create resistance to change. The common problems are:

  • Slow response times stemming from siloed skills.
  • Limited agility rooted in company culture.
  • Inaccurate forecasting from misaligned stakeholders.

Prioritizing cross-training employees while promoting a culture of continuous improvement can take your business out of the cycle of reactive operations and toward a m ls. ore flexible approach. Supporting that approach with Sales & Operations Planning can also help align leaders on goals, initiatives and challenges as the business moves forward.

SPS can help you achieve operational flexibility

Thinking more about improving the agility and market position of your business? Take a look at what SPS has to offer and see how we help companies across the supply chain stay in sync.

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The 5 biggest demand forecasting challenges in supply chains – and how to fix them https://www.spscommerce.com/blog/5-biggest-demand-forecasting-challenges/ Thu, 17 Oct 2024 13:00:43 +0000 https://www.spscommerce.com/?p=722815

AT A GLANCE

  • Explore key issues impacting accurate forecasting.
  • Find out how data silos create visibility problems.
  • See how automation enhances forecasting accuracy.
  • Delve into technology-driven demand planning strategies.

Unbalanced inventory levels can have big consequences on both sides: Hold onto too much, and you end up paying for discounts and storage. Keep too little, and your customers will find what they’re looking for somewhere else. Each side carries its own associated challenges and costs, but they both stem from an inability to accurately predict demand and adjust inventory to meet it.

To streamline costs and make the most of sales opportunities, demand forecasting combines sales, inventory and advanced modeling so 3PLs can determine how much stock they should have on hand at any time. But common challenges can make inventory forecasting difficult, inaccurate or unreliable, leading to even more lost time and money.

Here, we’ll take a look at five of the top challenges that stand in the way of better demand forecasting and planning in supply chains, and how logistics leaders are overcoming these problems with better control over their data.

1. Limited data availability

Problem: Incomplete data affects accuracy
Having siloed inventory data can lead to inaccurate forecasting because it provides an incomplete picture of the market. When you base your inventory levels on incomplete data, it can lead to downstream challenges that can be hard to fix later—including some of the other challenges on this list. To gain value from your demand forecasts, ensure your inventory and sales data is clean, accessible and reliable.

Solution: Integrate data into a unified platform
To get a more accurate view of your business and the buying landscape, centralize your business data into a single platform that helps you stay in sync. By having all the key data available in one place, you can create a more complete picture of the market and capitalize on new opportunities while fine-tuning stock levels for peaks and valleys in demand.

2. Inaccurate forecasts

Problem: Leads to overstocking or stockouts
Incomplete data leads to inaccurate inventory forecasts, and inaccurate forecasts can bring down your bottom line by leading to either overstock or stockouts. Inaccuracy can also stem from adhering to manual processes, experiencing rapid growth or a shift in personnel, but despite the root cause, there are advanced tools that can help businesses dial up their forecasting accuracy.

Solution: Use advanced models with historical data, machine learning and AI
Advances in machine learning and AI can help companies clean and apply market data quickly, unlocking a level of accuracy that can’t be matched by older, more conventional methods. Combining these innovations with verified historical business data can help you plan accurately for swings in demand across your entire footprint by applying complex logic to your sales patterns.

3. Demand fluctuations

Problem: Sudden changes disrupt forecasts
When products become popular or get overshadowed by a newer offering, it can be difficult for everyone along the supply chain to keep up. The overnight changes in demand can throw off your forecasts, leading to backups and out-of-stock challenges. Disruptions in transportation and weather can also cause breakages along the supply chain that defy current modeling and planning.

Solution: Use demand sensing tools and predictive analytics
Demand sensing tools and predictive analytics use AI and machine learning to look at your data and offer insights that help you forecast demand. New analytics tools can help you see around the corner and calibrate for market changes before they land on your doorstep.

4. Long lead times & supplier variability

Problem: Hard to align supply with demand
While it’s difficult to adjust for buyer demand, it can be equally challenging to flex for long supplier lead times. Extended lead times or disruptions on the manufacturer’s side can generate a mismatch between the rhythm of supply and demand that can leave you with too much—or too little—product on the shelf.

Solution: Collaborate & communicate with suppliers
Streamlined communication between you and your supplier can help you bridge the gap and gain visibility into disruptions on their side before they become a problem on yours. Solutions that offer easier channels for collaboration boost forecasting accuracy by keeping you in touch with individual suppliers, allowing your business to adjust instantly to challenges that might be developing on the other side of the world.

5. Departmental misalignment

Problem: Poor collaboration causes inaccurate forecasts
A collaborative approach isn’t just key for you and your external partners; it’s critical for the effectiveness of your internal departments, too. Using siloed departmental data can cause your forecasts to be inaccurate, and misalignment on goals and initiatives can cause forecasts to be ineffective. Solutions that bring stakeholders together to work toward a common goal should be prioritized.

Solution: Implement Sales and Operations Planning (S&OP)
Focus on business management process by implementing Sales and Operations Planning (S&OP), which usually takes the form of a monthly sync between marketing, production, inventory management and sales. Assign leaders and set up a strategy for meetings, handoffs and changes to the S&OP as you coordinate business areas for more effective forecasting.

Inventory and demand forecasting in supply chains will look different for each business, but by adopting these proven best practices, you can ensure your stock levels are balanced and your forecasts are accurate.

Curious about how SPS can help? See how we help 3PLs everywhere stay in sync with the rest of the supply chain.

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