December 17 2013

The human element needs to be taken into consideration when it comes to logistics. Regardless of how many systems are automated in the process, there still needs to be someone behind the wheel make the deliveries and transport items from "Point A" to "Point B."

Unfortunately, truckload driver turnover rates remain high. According to a study by the American Trucking Association (ATA), turnover at large truckload fleets dropped 2 percentage points to 97 percent. The dip was more significant for smaller fleets, where it dropped 8 points to 74 percent.

An article from Transport Topics News, which recapped the study, interviewed Bob Costello, a chief economist for the ATA. He said he would not read much into the recent numbers because the market for experienced, quality drivers remains exceptionally tight.

"I expect, as the economy continues to pick up, we'll see that market get even tighter," Costello told the news source. "Between increasing demand for freight services and regulatory pressures, I expect fleets to remain challenged finding enough qualified drivers, and we'll be contending with driver shortage-related issues for the foreseeable future."

The "regulatory pressures" refer to the restrictions on hours-of-service rules that begin in the third quarter. On top of that, the improving economy means drivers have more opportunities to find a job closer to home that fits their needs better.
Having reliable drivers, whether moving loads of freight across the country or carrying a single document down the street, is crucial. In the end, there is a human face behind delivery and having faith in them is key to successful logistics.

December 16 2013

For many individuals, there is something familiar and traditional about walking to the mailbox and retrieving your letters and packages. However, this process could soon become a thing only seen in old movies as the use of doorstep delivery takes another step toward becoming extinct.

Replacing direct delivery with a communication mail center is something that has been used in new neighborhood developments for some time. It has also been a part of many recent postal reform bills that are making their way through congress, including the current one supported by Darrell Issa, the chairman of the U.S. House Oversight Committee.

However, the validity of such a solution took another step forward last week as the Canada Post announced it will be eliminating doorstep delivery across the country. A five-year plan was laid out to complete this transition.
The Post and Parcel interviewed Issa about what this could mean for the USPS. He mentioned that the Canadian Post has recognized the way that technology is changing how consumers receive and send mail. This move helps address cost issues and improve operations.

"The American people have also changed the way they use paper mail and the cash-strapped USPS must respond accordingly," Issa said. "Likewise, Congress and the Administration need to grant USPS the flexibility to modernize its mail delivery and eliminate unnecessary costs."

While this may work for bulk direct mail strategies, it could cause problems for businesses that need to ensure safe shipping of documents and other parcels. This is where a third party logistics and shipping service can ensure every item shipped reaches its destination safely.

December 12 2013

The power of e-commerce can truly be seen during the Holiday season. Some projections have online shopping numbers increasing by 15 percent and reaching $61.8 billion. However, for e-commerce to be successful, businesses need to make sure they have a reliable shipping and logistics operation in place.

This is especially important in the case of same day delivery, which is becoming a more sought after feature of delivery services. The United States postal service has announced that it plans to expand a pilot program of same-day delivery of small package to New York City after trying it out in San Francisco.

This comes after the partnership between the USPS and Amazon was announced that will see the postal service handling Sunday same day deliveries in New York and Los Angeles.

The most talked about same-day delivery news in recent memory, however, has been the possibility of drone shipments in urban areas from Amazon. Jeff Bezos, the company's CEO, said during his appearance on "60 Minutes" that quicker shipping times are a major step in the delivery process and the company is looking into several ways to improve this process. One of those is a pre-programmed robot dropping of a package 30 minutes after ordering it.

Reliable shipping is a much needed part of any organization that uses e-commerce solutions. With the help of an experienced third party logistics provider, any company can rest easy knowing that quality drivers and professionals are a part of processing and delivering every order.

December 11 2013

For any business that needs to outsource shipping services, there is a certain level of trepidation that comes along with it. It is a process that needs to be done for the company to be successful, and having the right company in charge of your shipping practices can make all the difference.

A recent blog post from Cerasis mentioned that even with improved fuel efficiency and a steadily improving economy, the "solution" side of shipping services is increasingly difficult. The reason is because not all shippers understand the core business practices of the companies they are partnered with.

"One of the major trends highlighted in FTR Associates' annual Transportation Conference earlier in September of this year was how shipper/carrier collaboration will only increase in creating strategic freight management solutions as collaboration remains one of the few ways left in which both shippers and carriers can control both the capacity crunch, costs, and remain profitable in the years ahead," the article reads.

The piece goes on to say that a trusting and sincere relationship between a shipper and a business can help overcome issues in the industry like a lack of quality drivers, increasing capacity crunch and new hours of service limitations. This provides greater sustainability for operations and adds a level of accountability.

By partnering with the right third party logistics provider, a business can essentially find an extension of its own core beliefs and operational tactics. Shipping services that understand this will be able to stand out among the crowd and becoming a top solution provider.