PLS Logistics Blog

Today’s ground transportation environment has seen the impact of not only a lackluster economy but also the effects of other factors leading to increased cost of Less-Than-Truckload common carrier transportation services. As a result, carriers are focused on margin retention and improvement and sacrificing market share by culling low margin business. We should expect to see increases in prices within the next few months as trucking companies ensure their prices are compensatory to the services they provide.

LTL shipments typically weigh between 151 and 20,000 lbs. LTL carriers will usually apply a discount on shipments starting at 151 lbs on one pallet and up to 5,000 lbs on 5 pallets. Shipments larger than 5 pallets can still ship with an LTL carrier but these moves are normally considered volume moves and are spot quoted by the carrier’s rate department.

Many companies today are working in an environment of fierce competition and razor sharp profit margins.  What separates the top performing companies from the rest of the pack is how well they are able to adhere to standard operating procedures and continue to improve upon those processes.  One example of this is how companies control the carrier selection decisions that are made by their suppliers and how these suppliers are being utilized.  When there are hundreds or even thousands of vendors to reign in, this can be a daunting task for many companies to manage.  How can companies ensure they optimize savings opportunities without experiencing a reduction in service levels?

As we all know the economy has not been the greatest in recent years and everyone has seen the effects of the recession. Therefore, companies that are willing to outsource their shipping needs to a 3PL can save a substantial amount of money on their freight cost.

No matter what the need of a company might be, 3PL’s have the ability to establish set pricing with a multitude of carriers in order to fit the needs of companies they work with. A 3PL has the ability to take your needs, as a company, and find a carrier that will fit those needs at the most cost effective approach. There are a few basic reasons why 3PL’s are valuable for a company no matter what their needs may be.

When it comes to moving Less-than-Truckload shipments from point A to point B, one of the first things to consider is how the product is defined by the trucking industry. In the world of shipping, different types of products are defined according to their makeup. Each product definition is called a classification. The class of freight plays a prominent role in calculating how much the carrier will charge you for transporting it.

Over the years since federal deregulation in the late 1970’s, LTL transportation has morphed from a heavily unionized group of carriers operating in a largely non- competitive environment into today’s high tech, cost-effective and service-oriented transportation industry. Today’s national, regional, and inter-modal providers must vie for their share of a 30 billion dollar market. Leaders of this pack rely heavily on anticipating the needs of customers who are savvier than ever before.

We are in a market where LTL carriers continue to aggressively seek methods to improve their yield, reduce their operating ratios, and filter out poor performing business in their portfolios. As a result, shippers need to consistently differentiate themselves from the pack and improve their attractiveness to carriers.

The two weeks of summer that everyone has been waiting for are finally here – The Olympic Games. Taking place in London, England this year, the Olympics is one of the most watched sporting events on the planet. With this much national attention, a copious amount of detail and planning must go into the preparation of the Games. This entails a huge logistical challenge in how to overcome the mass transportation of products, athletes, workers and attendees to the London Olympics. We have provided you with some Summer Olympics logistical statistics:

Suppliers, manufacturing plants, distribution centers and customers all make up a supply chain network.  When optimizing your supply chain network, customer demand must be satisfied while keeping logistics costs steady and under control. According to Optimum Profit Consulting, “Strategic Network Optimization calculates the most optimal (highest profit or lowest cost) way to source supplies, production and distribution across the supply chain network.”

According to the TDTSA, logistics is defined as “the cost-effective process of planning, implementing and controlling the efficient movement and storage of goods from the point of origin to the end-user.” They define transport as “the movement of products and people from one point to another via air, sea, road, and rail.” Transportation and logistics have become an integral part of how businesses operate today. Here are five key facts that will help you become more knowledgeable about the logistics and transportation industry: