The ROI of Freight Tracking: Enhancing Visibility for a Better Bottom Line

An In-depth Analysis of Cost Efficiency and Customer Satisfaction

In today's volatile freight market, enhancing visibility is paramount. With major disruptions like the shutdown of giants such as Yellow and the closure of over 10,000 trucking firms since the Fall of 2022, the need for agility in freight tracking is clear. This guide examines the ROI of freight tracking, focusing on challenges and strategies to ensure cost efficiency and customer satisfaction. Navigate through for insights that could significantly impact your bottom line.

Where Things Stand

Though some lanes are still higher, most freight shipping costs have finally returned to pre-pandemic levels. Container rates have dropped 75%. Spot market loads for freight are down 50% as of mid-2023 compared to a year ago.

Reduced capacity is driving severe competition in the freight industry. More than 10,000 trucking companies have closed since the fall of 2022. Most are smaller operators, but some major firms are also struggling. Yellow, one of the nation’s largest freight companies, filed for Chapter 11 bankruptcy and announced in August that it’s shutting down operations.

These conditions require an agile approach to managing your shipping. There may be significant opportunities to reduce costs or negotiate deals, but you must also be prepared to switch carriers quickly to avoid disappointing customers.

This guide focuses on how shippers can save money with better visibility and how that can benefit customers, improving your bottom line.

Cost Efficiency

Multiple factors affect freight tracking, each of which have economic implications. Here are six of the more common challenges facing the industry.

1) Technology

When you don’t have the right technology, enough staff, or time to keep up with your shipping workflow, it’s a problem. And it will cost you and create customer frustrations.

Managing day-to-day logistics, negotiating rates, and pulling the information you need off carrier websites in a constantly changing environment is tough. You need technology that provides accurate, real-time updates to manage your freight tracking efficiently.

“Supply chain is a trillion-dollar industry and is literally one of the last industries running on archaic technology...companies have to look forward.
I always say a rearview mirror is small for a reason. What's happened in the past is important, but a windshield is much bigger because what's out in front of you is something you can control and change.”
Brad McBride, Founder/CEO of Zero Down Supply Chain Solutions

You need to set your business up with a robust TMS to sync all of your shipping and find the most cost-efficient routes and rates that meet customer expectations and keep you competitive.

2) Logistics Management

A carrier's logistics efficiency, including scheduling, route planning, and handling, impacts the ability to track freight accurately. You require a reliable method of managing your carriers to evaluate performance and negotiate rates based on service levels.

Efficient logistics can drive faster deliveries and, in turn, improve the customer experience.

3) Customs and Regulations

Customs processes and regulatory requirements, especially for international shipments, can cause delays and complicate tracking. As such, many businesses stay away from cross-border shipping.

_“There's a misconception by some small to mid-sized companies that cross-border is too complicated. They opt to stick with domestic and don't leverage cross-border to help generate revenue and growth of their business. With the amount of online tools and transportation capabilities available, the ability to ship internationally has never been easier."