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hurricane supply chain kuebix

Preparing Your Supply Chains for Hurricane Season

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If you live or work anywhere along the eastern seaboard of the United States, you know the panicked feeling when you hear on the news that a major hurricane is approaching. Even if you believe that the hurricane won’t hit your town, hurricanes are unpredictable by nature. Grocery stores run low on stock as people rush in to purchase as much water, food and emergency products to prepare for the damage as they can. So what happens to companies with freight to ship and customers to supply? Businesses in hurricane-prone areas and those that ship to those areas are at risk of lost revenue and major damage if they don’t take the proper precautions ahead of a storm.

How are Businesses Affected?

In the logistics industry, it is safe to say that every aspect of the business, especially transportation and shipping, is highly affected by a hurricane. Category 3, 4 and 5 hurricanes are catastrophic and can wipe out houses, buildings, and infrastructure like highways and local roads which are needed for shipping. Ports are especially affected since they are right on the coast where the majority of a hurricane’s power will break. Major flooding, debris and downed wires make it next to impossible for businesses to be able to move shipments in and out of certain areas that were affected.

When Category 4 Hurricane Florence hit the east coast on September 18, 2018, many roads and rail connections were affected which remained shut down even after the impact. This eventually resulted in a halt of shipments and deliveries being made on time, or at all. Grocery store shelves remained unstocked, bottled water was hard to come by and other necessary emergency products were only slowly supplied to those most in need of them.

Businesses in areas that are at risk of hurricanes must prepare in advance for the possibility of a natural disaster. This is the best way to fully recover from the impact and supply their customers during and immediately following the storm.

What Can Businesses Do to Prepare Their Supply Chains for a Hurricane?

With any business in the path of a hurricane, preparedness is key. Companies in the past have lost market share due to their lack of preparation and failure to completely recover after a natural disaster. According to the Federal Emergency Management Agency, about 40% of companies are not able to return back to normal operations following the impact of a disaster.

However, there are a number of ways that businesses can prepare for impact. A few ideas to protect your supply chain include:

  • • Identifying if you are in an area at-risk of dangerous weather impacts. While this may seem easy and obvious, many businesses surprisingly fail to keep that in mind when deciding on the best location to operate their business. Simply knowing that your business can be in danger of hurricanes is an easy gateway to finding the right tools to prepare and recover.
  • • Gaining complete visibility to your supply chain operations. If you have total visibility over your supply chain operations, your company will be best-positioned to react to a hurricane or other natural disaster. Knowing where your shipments are, being able to quickly rate and book with the best carriers and being able to track orders in real-time will give you an edge when a wrong decision can result in them never arriving. Companies can gain this level of visibility by implementing transportation management technology ahead of time.
  • • Have an insurance plan. Not only can insurance provide protection against loss, it can save a lot of money that would have to be paid to restore damages. Flood insurance may be a great option, or even a requirement, for businesses located in high-risk areas.
  • • Have reliable back-up partners. Having back-up partners can be very helpful because companies are able to move product via drop trailer to locations that are outside of harm’s way when a hurricane is approaching. There is a possibility that availability can be limited, so it’s crucial to have these conversations with your partners far in advance. Truckload spot markets like Kuebix Community Load Match give shippers an easy path to find and book reliable spot volume quickly.
  • • Learning from the past can prevent problems in the future. Data and analytics can help businesses keep track of their supply chain operations (how well or poorly they performed) during a storm. Being able to see what shipped, when, how long it took and for what cost helps businesses strategically plan for the next time a hurricane hits.

 What Happens in the Aftermath of a Storm?

In the case of extreme devastation, helping families and people in need is a top priority. While supply chain managers need to make sure their employees are all safe and well, they also need to work for a speedy recovery of their business. According to the Olin Business School, redundancy and operational flexibility are important processes of dealing with the aftermath of a natural disaster.

Since these disasters are frequently unpredictable, it is better to be safe than sorry and have a back-up plan to conquer the difficulties that the disaster can cause. With hurricane season upon us, remember to stay informed of weather events, leverage technology to retain visibility to your supply chain and have back-up plans in place ahead of time. With these tools, your company will be able to weather the storm!

Prime Air Drones Kuebix

Amazon is Taking Prime to New Heights With Amazon Prime Air

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With the extreme ease and convenience free 2-day shipping gives customers, Amazon is already changing the world. Many retail stores, such as Toys ‘R’ Us and Payless Shoe Source, have lost market share to Amazon, eventually leading to store closures. There is a very high demand for customers who want their packages delivered to them as soon as possible.

Now Amazon believes that they have found a new approach to provide even faster shipping – one that would allow customers to receive their packages within as little as 30 minutes! The concept of Amazon Prime Air was introduced to meet this need. Amazon Prime Air is an electric drone program that will drop small packages directly to customers’ doorsteps.

How Does Amazon Prime Air Work?

According to Amazon, safety is their priority. They wanted to ensure that the design of the drone would include stability and efficiency, so they created a hybrid design which would allow the drone to depart vertically and transition to airplane mode once in the air.

Amazon also claims that the drone is stable in windy conditions due to its six degrees of freedom, which Techopedia defines as “the specific number of axes that a rigid body is able to freely move in three-dimensional space.” The drone is able to fly up to 15 miles with an altitude of about 400 feet, using advanced sensors and artificial intelligence (AI) technologies to navigate through static and moving objects that can interfere. The drone can only deliver shipments under 5 pounds, but this isn’t a problem for the e-commerce giant which claims that 75-90% of the items it sells meet these criteria. This makes a very fast and convenient delivery option for customers who need their shipments in a pinch!

How Will Prime Air Affect the Transportation Industry?

The transportation industry currently involves plenty of physical labor such as actually driving on the road and loading/unloading shipments. Cars and trucks in transit to ship products require money being paid for the gas, money to the drivers, and wear and tear on the vehicle. That doesn’t even include the risk of damage in cases of accidents! Technology within the Amazon Prime Air drones makes them completely reliable for safe delivery of shipments. Since the drones specifically handle smaller packages, trucks and cars are still needed for bigger shipments. However, this new technology would save a lot of time and money that could be wasted from empty backhauls or trucks traveling partially empty. The supply chain of products would be less costly, more efficient and customers’ growing expectations around the speed of delivery would be met. Drones are also more fuel efficient since they are electrically charged.

So What Happens Next?

It is no question that technology is advancing very rapidly. The market for drones will be worth an estimated $127 billion by the year 2020, meaning that many businesses may be in jeopardy if they don’t compete with Amazon’s fast delivery times. If customers are able to receive their shipments within half an hour by using Amazon Prime Air, it will likely be a major hit with consumers throughout the entire world! Amazon claims that the Prime Air program will launch before the end of 2019, so the transportation industry could go through a drastic change very soon. So next time you purchase an item from Amazon, there could be a drone showing up to your doorstep!

Hours of Service Changes Lessening - Kuebix

U.S. Department of Transportation Planning to Relax Hours of Service Rules

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The Department of Transportation (DOT) is reportedly planning to relax what some consider to be restrictive hours of service (HoS) rules. These current HoS regulations were put into effect in July of 2013, roughly 6 years ago, and have been a heated topic of discussion ever since.

According to the Federal Motor Carrier Safety Administration (FMCSA), an agency of the Transportation Department, the current hours of service regulations for property-carrying drivers include:

  •      • 11-Hour Driving Limit – May drive a maximum of 11 hours after 10 consecutive hours off duty.
  •      • 14-Hour Limit – May not drive beyond the 14th consecutive hour after coming on duty, following 10 consecutive hours off duty. Off-duty time does not extend the 14-hour period.
  •      • Rest Breaks – May drive only if 8 hours or less have passed since end of driver’s last off-duty or sleeper berth period of at least 30 minutes. Does not apply to drivers using either of the short-haul exceptions in 395.1(e). [49 CFR 397.5 mandatory “in attendance” time may be included in break if no other duties performed]
  •      • 60/70-Hour Limit – May not drive after 60/70 hours on duty in 7/8 consecutive days. A driver may restart a 7/8 consecutive day period after taking 34 or more consecutive hours off duty.

Though the specifics of the plan to relax the HoS regulations are still unknown, it’s anticipated that the 11-hour driving limit will be the initial change. The requirement for drivers to take a 30-minute break during an 8-hour shift, as well as the requirement for an uninterrupted 10 hour period between shifts, may also be changed.

Proponents of Lessening HoS Regulations

The Associated Press reported that “Interest groups that represent motor carriers and truck drivers have lobbied for revisions they say would make the rigid “hours of service” rules more flexible.” In the article, a truck driver by the name of Lucson Francois was required to pull over and rest for 10 hours a mere 5 minutes from his home in Pennsylvania. Groups like the American Trucking Associations (ATA) cite examples like this for why regulations on the trucking industry should be lessened.

The Owner-Operator Independent Drivers Association (OOIDA) said members believe current HoS rules force them to be on the road when they are tired, during busy travel times, and in adverse weather or road conditions.

Opposition to Lessening HoS Regulations

On the opposite side of the debate are safety groups that emphasize highway and road safety. In a recent Large Truck Crash Causation Study conducted by the FMCSA, it was discovered that there were 4,657 large trucks involved in fatal crashes in 2017, a startling 10% increase over 2016. The National Highway Traffic Safety Administration (NHTSA) estimates that drowsy driving was responsible for 72,000 automobile crashes, 44,000 injuries, and 800 deaths in 2013. It’s widely believed that these numbers are underestimated, however, based on the difficulty of determining which accidents were fatigue related.

Groups like the Advocates for Highway and Auto Safety, an alliance of insurance companies and consumer, public health and safety groups, believe that the industry is putting revenue before the safety of those on the road. Stating that the current 11-hour shift maximum is already “exceedingly liberal in our estimation.”

The ELD Mandate

The deadline to comply with the Electronic Logging Device (ELD) mandate in December 2017 made the HoS restrictions harder to flout. With trucking companies now required to monitor driving time electronically, there is no wiggle room for drivers like Francois to add 5 undocumented minutes to their driving time in order to reach their destination. Some groups see this as a positive, others see it as a negative.

No matter which side of the debate you fall on, a balance between safety and efficiency needs to be made for the industry to prosper. The industry is currently feeling a slight lessening of the driver shortage widely reported on in 2018, which may help regulators reach their decisions. In the meantime, it’s up to shippers and carriers to plan ahead as efficiently as possible so that their drivers don’t get stuck at the side of the road.

Is it Time To Upgrade to A Cloud-Based Transportation Management System

Is it Time To Upgrade to A Cloud-Based Transportation Management System (TMS)?

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Many companies are still using the transportation management system (TMS) they installed 15 or even 20 years ago! Technology has changed and improved significantly over that time. So if you’re still using an outdated TMS to manage your logistics operation, it’s time to upgrade to a modern, cloud-based system.

Why Should I Replace My Old TMS?

The old mantra “if it ain’t broke, don’t fix it” doesn’t work when it comes to technology. Just because a system is functioning doesn’t mean that there aren’t more and better features to improve your shipping operations. A horse and cart are likely faster than walking up the road, but that doesn’t mean a car isn’t the better option to get to your destination efficiently. The same is true when it comes to technology, without exploring all the options, you may be missing out on valuable features.

Legacy TMS systems often don’t provide the transparency and visibility you need to monitor shipments, optimize routes, lower costs and improve efficiencies. What sufficed for customers in the past probably doesn’t cut it with your current customers. Customers have become accustomed to Amazon-like delivery options and visibility to their orders. It’s up to you to meet these heightened customer expectations with technology.

With legacy transportation management systems, there’s no way to tell if a delivery is going to be late so you can warn your customers. You don’t have the ability to collaborate in real time with your carriers and onboarding new carriers is a hassle. Your old TMS is simply not keeping up with consumers’ changing expectations and the increasing demands of the modern supply chain. A modern, cloud-based TMS can help.

How Can I Improve My Transportation Operations with Technology?

Upgrading an older system is rarely an option. To compete in the modern supply chain where visibility and flexibility are key, you need to implement a cloud-based TMS. A cloud-based TMS offers faster start-up, lower usage costs, greater flexibility and rapid return-on-investment (ROI). Lower maintenance and support costs are a big plus, too. With a cloud-based TMS, any size business is given a fair chance at competing with larger companies because of low start-up costs and easier upkeep.

Modern transportation management systems can do a whole lot more than they used to.

Scalability is something that most legacy, on-premise TMS solutions do not offer because of their rigid infrastructure. With scalability available in newer TMSs, you are able to add new features and functionality to your system without starting from scratch. Your TMS should be flexible to grow as your business grows. Start with just rating, booking, scheduling and tracking, then add modular features like freight bill pay and audit, ERP integrations, order consolidation, route optimization, and collaboration portals as needed to help you customize the technology to best fit your needs.

Complete supply chain visibility is another feature which only new, cloud-based TMSs can offer. From the loading dock to the final mile, a TMS should track and trace orders down to the SKU level, giving visibility to what is on each truck, how many items there are and where the truck is. A TMS should help you answer questions like whether the truck is delayed and if there are items missing from the order.

Most legacy TMSs do not integrate well with other systems. Today’s cloud-based transportation management systems have the ability to easily connect and share with customers, suppliers and carriers, on any device, wherever the stakeholder is. New systems integrate purchase orders directly from any ERP system to facilitate the rapid creation of shipments, avoiding the need to re-enter the order, which can lead to errors and increased admin time. Retailers with their own e-commerce engine should be able to connect directly to the TMS by using open APIs, adding shipment tracking and the ability to rate, book and schedule deliveries.

Your TMS Should Connect You To a Vast Network

If your TMS is not cloud-based, will not integrate with other systems and cannot provide end-to-end visibility, along with flexibility and scalability to easily add additional features, then it is time for a change. Not only that, your modern TMS should be connecting you with a vast network of carriers, suppliers, freight marketplaces, brokers, and 3PLs to streamline your operations. Being able to manage all of your shipping functions within a single system is essential. With a cloud-based transportation management system like Kuebix TMS, all of this is possible.

Become a Kuebix Free Shipper to see how a modern TMS can improve your transportation operations today!

Customer Service Kuebix Transportation

Importance of Customer Service in Transportation Operations

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Good customer service is a must in any business that wants to not only survive but thrive within its industry. Good customer service means customer satisfaction. Ever been to a restaurant and the server never came to bring you a menu? Or have you waited in line for a bank teller only to have them close their window when it was your turn? These experiences left a bad taste in my mouth and it was all because the business lacked good customer service. Business should make customer service a company priority.

By providing good customer service in the logistics operation, such as the ability to track shipments and alert customers if their orders will be delayed, you will increase customer satisfaction. Tracking deliveries in real-time and communicating any issues which arise, alerts customers to problems and gives them time to make adjustments, such as finding an alternative source. Superior customer satisfaction and service sets your business apart from the competition and ensures customer loyalty.

Good customer service equates to a greater customer experience while they do business with your company. Poor customer service will drive people away from your brand. If a customer uses social media to inform others of your poor customer service, it can damage your brand’s reputation, which is hard to recover. However, an apology goes a long way. If something goes wrong, such as an order arrives late or a product is broken, quickly acknowledging the error and replacing the defective merchandise along with sending a sincere apology will deter any complaints and shows that your company cares for their customers. Showing you care through good customer service will do your business and your brand a world of good.

Showing respect, sending apologies, acknowledging errors and quickly fixing problems is what makes for good customer service. Improving efficiencies, such as in return processes and inbound shipments, will speed operations and deliveries to help you satisfy time-sensitive customers. Focuses externally on customers, putting their relationship first, helps to ensure customers will feel valued and want to continue working with your company.

In logistics operations, shippers establish KPIs to measure the performance of their carriers, such as the percentage of missed and on-time deliveries, loading and unloading times, truck turnaround times, etc. Using the performance data and actionable reports from a TMS, you can collaborate with carriers to identify how to address any issues that have arisen, especially issues that affect customer service. Focusing on improving your operations using KPI measurements and reporting keeps transport costs down, while increasing efficiencies, leading to greater customer service.

Since consumers today have heightened expectations about customer service, wanting their orders the same day and to know exactly when the order will arrive, businesses have to step up their game when it comes to improving customer service. Technology that gives visibility up and down the supply chain is the answer.

Cloud-Based TMS Kuebix

Why a Cloud-Based TMS is Better

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A decade ago, if you wanted a TMS, you had to buy the software and install it within your organization. Today that has changed as more TMSs are moving to the cloud. Transportation management systems (TMS) based in the cloud are being adopted at faster rates than ever before. Industry analyst firm Gartner sees a 15% growth in TMS usage within small- to mid-sized businesses with some vendors reporting more than 20% growth.

So why are cloud-based TMSs growing in popularity?

We can think of 10 good reasons:

  1. Lower Barriers to Entry – Upfront expenditures related to hardware and software are eliminated with a cloud-based TMS allowing businesses of any-size to gain access to the technology. No longer do companies have to fork out hundreds of thousands of dollars on installed software. Instead, with a cloud-based TMS, you pay subscription or usage fees.
  2. Enhancements Made Easy – The cloud-based TMS software provider is responsible for upgrades and enhancements to its solution, which includes maintaining the application and ensuring its availability and reliability. Most application upgrades can be easily deployed automatically, eliminating the need for internal IT staff involvement.
  3. Connectivity – Cloud-based computing enables the TMS to connect to a global group of supply chain trading partners. As more and more carriers, shippers and suppliers connect to this network of trading partners, the ability to collaborate and conduct business with more and more companies brings value to the participants. Under a cloud model, the TMS can become a central marketplace where you connect to a variety of supply chain stakeholders.
  4. Flexibility as You Grow – Cloud-based TMS systems offer lots of flexibility, starting with basic features that can be easily upgraded with additional functionality as your business needs change. Start with the ability to rate, book and track shipments, then add other features as needed – from predictive analytics to freight bill audit/payment and more.
  5. Level the Playing Field – Deploying a cloud-based TMS levels the playing field as businesses of any size have access to a larger variety of rates and carriers, allowing your business a greater chance to get better rates.
  6. Software Always Up & Running – Cloud-based TMS vendors deploy their systems across multiple data centers to ensure 24/7/365 operations. So, no matter if there is a widespread power outage or weather-related event, you will have access to the TMS and your data to ensure you can always get your products out the door.
  7. Fastest Route to Implementation – Cloud-based TMS systems are easy to deploy and easy to use with typical start-up within minutes or a few hours. Some systems offer online how-to videos to help new users begin.
  8. Faster ROI – Cloud-based TMS users get a faster return on investment (ROI) because of the low upfront investment and quicker start-up. You’ll be up and running quicker, making smarter decisions on rates and carriers.
  9. Smarter Shipping Decisions – Smarter decisions can be made by your transportation operations team by leveraging actionable reports and dashboards within a TMS housed on the cloud. Every transaction is captured and can be analyzed for improvements in service levels, freight spend, KPIs and more.
  10. Lower Freight Spend – Using a cloud-based TMS will lower your freight spend, reports say between 10 – 20% on average, because you have more choices of modes and access to more carriers and lanes.

A cloud-based transportation management system like Kuebix TMS offers a wide variety of benefits for shippers. Before you take the plunge with a new cloud-based TMS, use this Complete Buyer’s Guide to figure out exactly what your needs are!

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