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This whitepaper was jointly produced by Tive, Inc. and the Transportation Intermediaries Association.
Freight Visibility Whitepaper
The electronic logging device (ELD) mandate is often credited for opening the floodgates of digital innovation in the transportation and logistics industry. Still, it has not been the only force in the market.
When the ELD rule was published in December 2015, motor carriers had until December 2019 to modernize their fleet and back-office systems to meet the final compliance deadline. Concurrently, shippers and third-party logistics (3PL) have been reshaping their businesses in response to:
1. The ‘Amazon Effect.’ As the world’s largest online retailer and 3PL, Amazon sets the delivery expectations for speed, visibility, and convenience for customers with Prime membership. These expectations carry over to all supply chains.
2. Tighter Delivery Windows. Many large shippers, particularly in the retail industry, began charging exorbitant fees to suppliers if loads arrive early or late.
3. Food Safety Requirements. Shippers, 3PLs, and carriers must keep detailed records of load temperatures to prevent cargo claims and protect themselves from audit risks. Monitoring load temperatures in transit has been the norm since the April 2017 compliance deadline of the Food Safety Modernization Act (FSMA).
4. Supply Chain Disruptions. The COVID-19 pandemic disrupted global supply chains by causing factory shutdowns and altering the buying habits of consumers and businesses. Shippers and transportation providers depend more heavily on data insights to respond to customer needs proactively.
This powerful combination of market forces created a groundswell of demand for freight visibility technology and formed a new technology landscape. Supply chains have critical visibility gaps that need to be filled. To rapidly meet customers’ current and future visibility needs, some technology providers have taken an integrated and collaborative approach called the Open Visibility Network.
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TIA Is The Trusted Voice For Third-Party Logistic Companies of All Sizes
TIA provides leadership and direction for the third-party logistics industry and professionals to advance professional standards and business practices, to include the overall image and credibility of the profession and its ultimate contribution to society. TIA serves more than 1,600 3PL members and helps them better manage their companies for growth and profitability. No other association provides more ways for third-party logistics professionals to grow, connect, and to protect their business.