If the first five months of 2023 showed the freight industry anything, it was that freight technology companies without a strong foothold in their niche will be facing some tough decisions for the second half of 2023. Some industry tech companies have turned to a reduction of their workforce, while others have sunset their tech solutions altogether. According to FreightWaves, falling truckload costs and decreased demand for goods are some of the reasons behind these companies having to make some tough decisions as 2023 turns the corner towards the end of the year.
However, some dominant players in the space believe that despite the current industry fluctuations and economic conditions, there is still significant opportunity in the freight technology space. The narrowing of the playing field in this space will help more strategic companies identify true opportunities for increasing their financial returns by investing in advanced technology solutions to drive growth like never before.
Platforms that embrace innovations that pair transportation management systems (TMS) with API connectivity, artificial intelligence (AI), and data analytics will be essential for creating a competitive advantage in the market. The visibility provided by this type of technology, combined with improved customer service and the creation of collaborative opportunities for well-positioned supply chain companies will help them standout against the challenges of current freight environment.
API-Backed TMS Increases Flow of Information
Shippers and 3PLs have reaped the benefits of pairing their TMS solutions with API connectivity, making it easier to share information between stakeholders such as Shippers, Carriers and 3PLs. APIs help improve the communication between companies throughout the supply chain allowing for more expedient responses to customer/client needs.
APIs also increase transparency by allowing Shippers and 3PLs to easily integrate and share information between partners. The result is improved decision making that can be integrated into many TMS solutions, making them the right option for growing Shippers and 3PLs looking to capitalize on the shifts in the industry. API integrations provide the ability to process more loads and book the best rates with preferred carriers in real time while having access to performance data, resulting in better decision-making and cost savings.
AI-Driven Solutions Streamline Shipping Operations
While everyone has had their eye on solutions for more visibility into efficiently rating and scheduling shipments, AI has taken a position in the front seat, become increasingly more important for companies looking to streamline processes such as freight tracking, invoice auditing, exception management, and more.
AI-driven solutions can help Shippers and 3PLs optimize their shipping operations by reducing costs and boosting efficiency. They also play an important role by providing improved forecasting capabilities and automated decision-making tools. With AI-powered analytics companies can access real-time data from across the supply chain
-- enabling them to identify potential problems before they arise and facilitating quicker resolutions for issues related to inventory management or delivery delays. This technology has the potential not only to improve productivity but also boost customer service levels significantly.
Data Analytics for Improving Business Decisions
Data analytics will also play a significant role in increasing visibility across the supply chain. With analytics tools companies can gain insights into carrier cost and performance to help make informed decisions about their operations. Additionally, companies can use analytics tools to identify potential areas of improvement within their organization or detect any issues with customer service before they become bigger problems.
Shippers and 3PLs are also using data analytics to extract customer and carrier data to create more accurate projections about future trends – leading to smarter decisions about resource allocation or pricing strategies that would otherwise be difficult without this data-driven insight.
By investing in innovative technologies such as API-backed TMS services, AI, and data analytics tools, companies can stay ahead of the curve when it comes to staying competitive in this rapidly evolving industry. While the news of the day seems to be more focused on the challenges presented by tenured tech solutions that are cutting back or shutting down altogether, the more favorable alternative seems to be the enlightenment of those businesses looking to make educated, sustainable changes to their tech stacks that support company objectives. Businesses that focus more on the opportunity presented by a streamlining of options in the tech space will be more successful in the long run.
Customer Service is Key for Successful Freight Technology
The supply chain is becoming increasingly reliant on customer service for success. Shippers and 3PLs must have the capacity to measure customer satisfaction and act upon it to minimize their client churn and maximize their appeal to new customers. Utilizing advanced analytics can provide key insights into customer behavior, allowing businesses to develop strategies that will better meet their needs.
Additionally, feedback from customers should be integrated into the technology design process to ensure products are tailored to fit their requirements while staying competitive in the market. By taking these steps and focusing on customer service when developing new technology solutions, businesses in the freight and logistics industry can remain successful even as the landscape evolves around them.
Banyan Technology's End-to-End Freight Technology Solution
Banyan Technology has found opportunity in an economy where the experts have said there was none… experiencing record-breaking load volumes and onboarding more than 30 new clients since the start of 2023.
Banyan’s commitment to innovative functionality and exceptional customer service is driving this success. Clients have embraced the new tools developed in the system within the past 12-18 months, which have also caught the attention of prospective clients and supply chain partners. Additionally, Banyan’s product roadmap forecasts more product advancements that are relevant to the direction of the industry including enhanced capabilities that support carbon impact calculations and AI based integrations into their LIVE Connect platform.
By capitalizing on our extensive history and first-to-market approach for transportation management solutions and API connectivity for Truckload, LTL, Local Carrier and Parcel, Banyan has developed a best-in-class end-to-end OTR shipping solution.
Enhancing our software has given Banyan’s clients access to all OTR shipping modes on a single screen within LIVE Connect. With access to 3x more carriers than any other provider, including more than 10,000 Local Carrier assets and drivers in the U.S. and Canada, clients can easily utilize solutions for Truckload, LTL, Local Carrier and Parcel within Banyan’s LIVE Connect platform to rate, schedule, and track shipments in real-time.
Contact Banyan Technology today to learn how advancements in Banyan Technology’s LIVE Connect™ software can help determine the best mode for your shipments.
Let us know what you thought about this blog.
Put your comment Below.