Posts

Network-Based Platform

What is a Network-Based Platform?

/in , , /by

Every year there are new buzzwords about technology circulating the industry. You probably see terms like blockchain, internet of things (IoT) and big data regularly take over your inbox. The latest trend revolutionizing the software and technology space are Network-Based Platforms. Network-based platforms have been around for several years in the consumer space, but now, this methodology is being adopted in SaaS and other cloud-based solutions to add value for users.

Network-Based Platform: Definition

A network-based platform is a piece of technology or software that connects users with other members of a community to create mutually beneficial opportunities. Instead of simply being a tool to use within the four walls of an organization, network-based platforms help users find opportunities by connecting them with other users in the network while simultaneously fulfilling a function. The usefulness of the platform snowballs as more and more members join the network. This phenomenon is known as the Network Effect.

What is the Network Effect?

“The Network Effect” exists when the addition of another person or company makes all the existing members of the network better off.

“In a November 2014 video for UPS, MIT Professor Yossi Sheffi described the power and value of the network effect as follows:

“The network effect exists when the addition of another element [to the network] makes all the existing elements in the [network] better off,” explains Sheffi, citing cell phone networks and Facebook as examples. “It’s a positive feedback loop. As the network grows, the more value it provides. The more value [the network] provides, it grows even bigger. It’s the economics of having an extra point on the network, and the fact that you can build a lot more services on the existing network, that’s the power of the network.”[1]

Therefore, to paraphrase Professor Sheffi, the network effect exists in transportation when the addition of another shipper, carrier, freight broker, or other participant to the network makes all the existing members of the network better off — by more quickly and efficiently matching demand with supply; by executing transactions in a more streamlined and automated way; and by providing everyone with network-based business intelligence and analytics about capacity, rates, on-time delivery, and other metrics.”

A network-based platform is a piece of technology that builds value by leveraging the network effect.

Examples of Network-Based Platforms

Social media – Network-based platforms have become incredibly popular, and very common, at a consumer level. Social media sites like LinkedIn, Twitter, Snapchat and Instagram rely on the network effect to retain users and scale their operations. The more people who join the platform, the more valuable the platform is for everyone else.

Ride-sharing – Ride-sharing technology has also taken off thanks to the network-effect. Companies like Uber and Lyft are based on a network of people looking for rides and people who can offer rides for a fee. This service isn’t merely a regular car rental, instead, these ride-sharing platforms connect thousands of individuals who otherwise would never have an opportunity to collaborate.

Fitness tech – The fitness industry has also incorporated the network effect into their technologies. Fitbit, for example, isn’t only a personal health monitoring device, it’s also a service to connect individuals with similar lifestyle goals. Getting people to collaborate isn’t only an added social benefit for users, it can literally make the technology more effective for achieving fitness goals.

What’s the Difference Between Network-Based Platforms and Traditional Software?

Network-based platforms let users connect and collaborate with other stakeholders outside of the four walls of their offices or homes. As more and more people become accustomed to network-based platforms like social media, companies are beginning to expect similar benefits from their business software. Instead of simply managing day-to-day processes with technology, companies are demanding opportunities to collaborate with other stakeholders in their industry directly through the platforms they use every day.

In the transportation and logistics industry, a network-based transportation management system (TMS) allows users to collaborate with a vast shipping community for greater efficiencies such as accessing truckload spot quotes in addition to contracted carrier rates. Unlike traditional platforms for managing logistics operations, a network-based TMS connects shippers with an entire ecosystem of other shippers, carriers, brokers, freight marketplaces and 3PLs.

The Network TMS

Kuebix TMS is the only true Network TMS. At Kuebix, we’re building the largest connected shipping community driven by our modular, cloud-based TMS that scales to meet the needs of small to enterprise companies. Kuebix customers can manage all their modes and contracted carriers in Kuebix as well as take advantage of savings on truckload spot quotes, opportunities to fill fleet backhaul, and other discounts and benefits because they are part of our network. That’s the Network Effect in transportation management at work!

[1] http://talkinglogistics.com/wp-content/uploads/2014/11/1_The_Network_Effect_Part1.mp4

Fleet Backhaul Management - Kuebix

What You Need to Do to Make Fleet Backhaul Management Easy

/in , , , , , /by

Fleet backhaul management is a notoriously difficult task that fleet owners and operators are all too familiar with. When a truck returns from making a delivery it is usually empty. This is known as “driving empty” or “empty miles.” Even though there is no freight on the trailer, drivers still need to be paid, fuel is used up and trucks depreciate in value. The expense of empty miles are usually calculated into the freight rate ahead of time, but this capacity still presents an opportunity for fleet owners to generate additional revenue for direct bottom-line impact.

Instead of having fleet assets return empty, finding freight to haul on the return trip can create a win-win situation for both the shipper and the fleet owner. Shippers find a new, valuable source of capacity and fleets generate bottom-line revenue. So why has it been so hard up until now to manage fleet backhauls?

Why Traditional Fleet Backhaul Management is So Difficult

Managing a fleet is difficult enough without finding freight to carry on the return trip. When companies do try to generate some additional revenue by filling empty backhaul miles, they can find themselves wasting more time sourcing opportunities than actually moving freight.

Loads Must Meet Certain Parameters

The process of finding available freight is more complicated than simply finding freight that needs to move in the opposite direction the original delivery is headed. There are many other parameters that need to be considered too. Things like Haz-Mat, food-grade and temp control all need to be taken into account. Other parameters like noise regulation or truck size in neighborhoods can also make a difference between a good opportunity and an impossible one.

For example, a truckload order of refrigerated groceries leaves York, PA heading to New York City. After it leaves from New York, the truck typically drives back to York, PA with an empty trailer. The fleet owner looks for a food-grade backhaul opportunity along this route. If they’re lucky, the fleet owner might find a load that needs to travel from Allentown to Harrisburg or even directly back to York. This would reduce the total number of empty miles driven.

Finding Opportunities and Getting Paid Can Be Challenging

This scenario adds bottom-line revenue for the company. But finding that opportunity is easier said than done. It can take an entire team of logistics professionals to source and secure that backhaul opportunity. After the opportunity has been successfully matched with the truck type and other delivery parameters, the fleet still needs a way to invoice for its work and get paid. Doing one-off deliveries for a variety of shippers can be a headache for everyone involved.

Since the process of finding, booking and getting paid for backhaul freight is so difficult and time-consuming, it’s no wonder that many fleet owners decide not to look for backhaul opportunities and stick to their everyday fleet management.

How to Make Fleet Backhaul Management Easy

The answer is to tap into a community.

Fleet backhaul management becomes easy when fleets find and connect with an existing community of shippers and brokers looking for capacity. Instead of individually sourcing loads on a one-by-one basis, fleets instead have a single source to work through. Programs like Kuebix FleetMAX are giving fleets an easy way to expose their available capacity to thousands of shippers while at the same time streamlining the AR/AP process.

Why Kuebix FleetMAX is a Game Changer

With FleetMAX, Kuebix’s technology digitally matches fleet capacity with freight to obtain consistent and repetitive external backhauls to offset empty miles, add revenue to fleet operations, and provide shippers/brokers a new source of trusted capacity.

Kuebix also overcomes the administrative obstacle of charging the shipper and collecting the funds. With FleetMAX, all of the financials and settlements are managed through one of the most trusted names in the industry, Estes Truckload Management, relieving private fleets of these administrative challenges.

After a fleet joins the network through FleetMAX, their open capacity becomes available to Kuebix’s connected shipping community which includes thousands of shippers and brokers looking for capacity. For fleets, this means they can focus on picking up and delivering orders, not chasing opportunities or managing individual contracts with shippers.

Click here to learn more about getting started managing your fleet backhauls with FleetMAX!

Kuebix Shipping Community

Shipper Adoption is the Key to a Successful Shipping Community [Infographic]

/in , , , , /by

How Can Shipping Communities Gain Shipper Adoption?

For a shipping community to be successful it needs to be built upon a transportation management system (TMS). Shippers want to conduct all of their business through a single, connected platform. When they leverage a robust TMS to manage their logistics operations, they can rate, book, and track all of their shipments for every mode through a single window. When they are looking for additional capacity to supplement their negotiated rates, it makes sense that they’d want to use their main source of transportation management to find that capacity.

A TMS is the natural place to house a spot market where shippers can easily get spot quotes for their freight. That’s because users automatically form the basis of the shipping community that will use the spot market. When the shipper can’t get their freight covered as they need with a negotiated rate, they can seamlessly pivot to a built-in spot market where community members can collaborate to find efficiencies. Unlike a disconnected freight marketplace outside of their normal processes, their TMS joins disparate marketplaces, brokers, carriers, and fleets to make it easy for shippers to find additional capacity through the network.

 

Not Just Any TMS Will Do, Though.

Most transportation management systems aren’t designed to have a successful community built upon them. For a start, the TMS needs to be capable of handling its users’ every need. That means every mode needs to be covered by the platform and the TMS must integrate directly with any ERP system. Reporting and tracking functionality are also important along with many other features lower-level TMSs simply can’t provide. Simply put, the TMS must be built for small and enterprise sized customers and everyone in between. Features that can be modularly added as the company’s needs change also increase usership since shippers only pay for what they use. Users must to be able to complete all of their logistics operations inside the TMS to keep them engaged with the system and using it routinely.

On the other hand, the TMS needs to be accessible by the masses. Many small businesses can benefit from streamlining their operations with the help of technology. By offering both free and affordable subscription versions of the software, the TMS can rapidly gain more usership by tapping into a segment of shippers in the industry that would otherwise never be able to be connected to collaboration opportunities. When more users join the network, every other user benefits. This is known as the “Network Effect,” a phenomenon where each additional user of a tool increases the value of the tool for every other user.

Kuebix Community Load Match

Kuebix Community Load Match is the spot market built upon Kuebix TMS that any member of Kuebix’s shipping community can take advantage of and is just one of the benefits members receive by belonging to the network. This spot market connects shippers with available truckload capacity without making them leave the system. With Community Load Match, every shipper can discover additional savings on truckload freight by connecting with Kuebix’s vast ecosystem of dedicated truckload carriers.

Currently, Kuebix has over 16,000 companies using the TMS. This group is made up of companies of all sizes, some using Kuebix Free Shipper, some Business Pro users and some Enterprise users with extensive logistics operations. No matter what type of account a user has, however, they are part of Kuebix’s shipping community and can leverage Community Load Match. This makes Kuebix an ideal partner for carriers, brokers, fleet owners, and other freight marketplaces to expose their capacity through.

As the community grows, more opportunities are created and even more shippers and companies with capacity join the network! This is why shipper adoption is the key to growing and maintaining a successful shipping community.

Amazon Prime 1 Day Shipping Kuebix

What Amazon’s One-Day Delivery Promise Means for Supply Chains

/in , , /by

Amazon is once again raising the bar for speed of delivery with its announcement that the company’s new goal is to make 1-day delivery standard for Prime customers. Amazon’s 2-day free shipping guarantee has already had huge implications on supply chains, so much in fact that the term the “Amazon Effect” was coined just to describe it.

The Amazon Effect is a trend where customers expect incredibly fast delivery, full visibility to tracking information, and great customer service because of the experience they get with Amazon Prime deliveries regularly. Customer expectations have increased because Amazon has proven it’s possible to deliver products in just 2 days, and to do it for free.

How Does Amazon Plan to Make 1-Day Delivery a Reality?

Amazon has laid out an aggressive strategy to make their 1-day standard delivery promise a reality. The company has announced that they will be greatly expanding their Delivery Service Partner program by incentivizing current employees to open their own package delivery businesses. Current employees will be offered $10,000 and three month’s pay to open their own delivery business, greatly reducing the risk and difficulties associated with staring a new company.

By removing many of the barriers to entry, Amazon hopes to expand the number of available trucks to deliver final mile packages across the country. With more available capacity to hand, Amazon will be able to get products to end customers faster. According to Amazon, entrepreneurs who take advantage of this new incentive program will have access to logistics technology, insurance, and support to be successful. Delivery partners who expand their fleets to 40 vehicles can earn as much as $300,000 in annual profits.

As Amazon increasingly replaces human labor in their warehouses with technology, this is also a strategy to move employees into new, fruitful positions with upward mobility. Many employees who may find their jobs in jeopardy of being replaced by robots can make the switch now to being delivery partners. Amazon is not only encouraging current employees to begin final mile shipping operations; the company will also be reimbursing military veterans up to $10,000 to start their own programs.

What Does This Mean For Companies With Their Own Supply Chains?

Customer expectations are about to rise again. Companies with freight to ship will need to work even harder to deliver superior customer experiences without going into the red. Every business will need to emphasise fast shipping and complete shipping visibility in order to compete with the outstanding service Amazon provides its customers.

What Can Companies Do to Keep Up With Increasing Customer Expectations?

Companies need to leverage network-based technology like Kuebix TMS to optimize their supply chains and connect to the greatest number of opportunities to collaborate with other businesses.

It isn’t feasible for most companies to create their own extensive private fleets like Amazon is doing with its Delivery Service Partner program. Instead, businesses need to connect with capacity already available in the industry to find opportunities to cut back on costs and improve speed of delivery.

Programs like Kuebix Community Load Match help shippers quickly and easily connect to a vast ecosystem of dedicated truckload carriers. Through Community Load Match, shippers can receive spot quotes and book loads without needing to pick up the phone.

Amazon is expanding their network by incentivizing employees to create delivery services. Other shippers can expand their networks by leveraging Kuebix to access new, valuable sources of capacity alongside their negotiated carrier rates.

Strategic Partnerships Expand Opportunities in Cloud-Based Transportation Communities

/in , , , , /by

Cloud-based transportation communities are digital networks where companies connect to find opportunities for efficiency and cost savings. These networks are comprised of shippers, carriers, suppliers, brokers, freight forwarders and every other type of company involved in the shipping of freight. On these digital networks, members connect to leverage efficiencies such as finding additional truckload capacity and filling empty fleet miles.

A new eBook, Putting Community in TMS: Enabling the Network Effect in Transportation Management by industry analyst and President of Adelante, SCM, Adrian Gonzalez breaks down how the network effect can be enabled in transportation management. He discusses how network-based transportation management systems (TMS) act as a conduit for shippers to maintain thousands of relationships without needing to manually forge relationships one-by-one with other companies.

“Instead of establishing and maintaining hundreds or even thousands of one-to-one connections, companies make a single connection to the network to communicate and collaborate with their existing trading partners.”

In order to attract the most users and keep them engaged on a routine basis, network-based transportation management systems serve as the operating system for these communities. Shippers are already accessing the TMS for their daily logistics needs and can therefore easily pivot to community-specific features like truckload spot markets and load matching services.

To make these community-specific services enticing and valuable for shippers leveraging the TMS, there need to be a multitude of opportunities flowing into the network-based TMS from the other end. That’s to say, there needs to be extensive available capacity exposed to the community of shippers for opportunities to be found. That’s where partnerships come in.

Kuebix, as the first and only network-based transportation management system, is pioneering this concept. By partnering with external communities and thousands of individual brokers and carriers, Kuebix is able to expose available capacity from all over the supply chain industry to its TMS users.

Partnering with Emerge Private Freight Marketplace

A new partnership with Emerge has enabled Kuebix to rapidly expand the number of opportunities available to its customers in Kuebix Community Load Match, a truckload spot marketplace. Through this partnership, members of the community can tap into Emerge’s Private Freight Marketplace and seamlessly book with thousands of verified carriers without needing to maintain individual relationships.

Partnerships like that with Emerge quickly grow the shipping community and provide users with more opportunities for collaboration. The key is to connect every transportation player through a single system where it is easy to find opportunities for collaboration while simultaneously keeping users engaged with the community, even when they aren’t actively looking for additional capacity.Kuebix and Emerge

 

Kuebix TMS and the Network Effect in Transportation Management

Kuebix TMS was built around the concept of the network effect and is proving the theory in conjunction with transportation management as described by Gonzalez in Putting Community in TMS. As more users join Kuebix’s logistics community by becoming users of the TMS, more carriers, brokers, freight forwarders and other supply chain players can be partnered with to expose available capacity. This creates a snowball effect where when more shippers join to leverage the new opportunities, new partnerships with carriers and brokers can be established to take advantage of more shippers seeking capacity. It’s a win-win for all supply chain players and grows the cloud-based community exponentially.

Currently, there are over 16,000 members of Kuebix’s shipping community and that number continues to grow. The new collaboration with Emerge and other strategic partnerships will continue to drive shippers to the technology, encouraging more partners with available capacity to expose their assets through the technology, and so on and so forth, creating the industry’s largest cloud-based shipping community.

Network Effect Kuebix

Enabling the Network Effect in Transportation Management [eBook]

/in , , , /by

According to Adrian Gonzalez, President of Adelante, SCM, Supply Chain Operating Networks are the business equivalent of LinkedIn and Facebook. These cloud-based networks can enable companies to embrace collaboration and realize huge efficiencies. But Supply Chain Operating Networks are few and far between. One of the reasons for this absence is because the majority of technology traditionally used by supply chains have been housed within the “four walls” of individual companies. New SaaS, cloud-based technologies like Kuebix TMS are changing this.

As traditional, on-premises transportation management systems become replaced by SaaS, cloud-based ones, companies have the opportunity to digitally connect with one another via new Supply Chain Operating Networks. Kuebix is the first TMS to fully embrace this concept, with Kuebix’s technology acting as the backbone for a rapidly growing community.

The swift growth of Kuebix’s shipping community is proving the idea that the Network Effect can be used to great advantage in the supply chain industry. With over 16,000 companies in the Kuebix’s shipping network, thousands of suppliers, shippers, carriers, brokers, and other supply chain players are able to connect with one another for new collaboration opportunities.

These opportunities can lessen the impact of tightening capacity, help fill empty backhaul miles and ensure that shippers are always aware of the most cost-effective and customer-friendly options to ship.

Read an excerpt of Gonzalez’s eBook, Putting Community in TMS: Enabling the Network Effect in Transportation Management, to learn more about the Network Effect in transportation and supply chain operations.

Transportation management is inherently a network-based business process. It involves an ecosystem of different parties — a community, if you will, of shippers, carriers, consignees, brokers, and others that need to communicate and collaborate with each other in order to transport products and utilize assets and labor as efficiently as possible.

This transportation community is analogous to the connections and relationships enabled by social networks like Facebook and LinkedIn. A big difference, however, is that unlike Facebook and LinkedIn, which are powered by network native software, the transportation community has historically been powered by enterprise-centric software — that is, transportation management systems (TMS) that were designed for, and used primarily by, the transportation function within the four walls of a company.

This fragmented, “inside the four walls” approach makes it challenging to quickly and efficiently match transportation demand with available capacity, as companies of all sizes experienced in 2018. This growing need in the market for better matching of supply and demand, coupled with the rise of cloud computing, software-as-a-service (SaaS), application programming interfaces (APIs), and other emerging technologies, is driving the next evolution of transportation management systems.

Simply put, transportation management systems are transitioning from being “inside the four walls” applications to becoming operating systems that power transportation communities and enable network effects.

Click here to download the full eBook!

 

Portfolio Items