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June 11 2018

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June 11 2018 | The Journal of Commerce 31 www.joc.com Surface Transportation concept and make it sound like it's something you can do overnight. It's not," Lynch said. "Shippers would be wise to take a more holistic look at where logistics fits into their overall operation," Lynch said. "Up until late 2017, at almost every company on the consumer goods side, logistics was just a cost center, a necessary evil, it wasn't integral to relationship management decision making. Rarely was logistics involved in creating a sales contract." In the current market, "everyone has to align here," he said. The most frequent advice offered by experts? Start at the beginning. "Lead time is critical — the more time we give to carriers [when tendering loads], the more time they have for planning, and that keeps loads out of the spot market," said Julie Thuston, assistant vice pres- ident of operations and account management at logistics provider Unyson, a Hub Group company. Achieving true supply chain visibility means grappling with the concept of time and understanding its relationship to other factors within the supply chain. Logistics, like spacetime, has four dimensions, and time is one of them. A degree in physics isn't required to work that out, though it may help. "The industry as a whole is push- ing toward greater use of data" and analytics, said Mark Carroll, director of product strategy at Descartes Macro- Point, a visibility technology provider. "End-to-end [shipment] tracking is the biggest thing people are focused on right now," he said, but the end goal is to apply more predictive analytics to capacity to offer "predictive capacity." For the foreseeable future, shippers who want additional freight space will have to look for ways to better manage existing capacity. After all, it's about time. JOC email: bill.cassidy@ihsmarkit.com twitter: @willbcassidy result of shorter available driving time. The widespread lengthening of transit times noted by Zipline and by shippers indicates that many drivers, especially at smaller companies, either falsified logs before the man- date or are now avoiding longer trips. Why would they do that? Park- ing. There's a truck parking shortage in the US, as well as a driver shortage, a mechanic shortage, and a slew of other shortages related to transporta- tion. If a truck driver knows he or she can find a parking space after driving nine hours but isn't sure one will be available closer to the 11-hour limit, that driver is likely to stop short of the daily limit. There are better ways to approach the supply chain's "time shortage," Lynch, Salter, and others said. Most require some technology, but as the means to an end, not the answer. Much of the most important work needs to be done before a shipment comes near a dock, at the heart of the planning process., "About 17 to 20 percent of the trucks on the road have available capacity," said Tommy Barnes, pres - ident of technology firm project44. "But people aren't considering the time elements they could use to manage that and dramatically impact the capacity they have today. There's a disconnect between the upstream time component and that empty space in the trailer." "There are fantastic opportuni- ties for better time management in trucking and there are untold billions of dollars wasted every year on poor planning," said Frank McGuigan, CEO of logistics company Transplace. At the moment, shippers are focused on securing truck capacity anyway they can, and they're striving to become what's been called "ship- pers of choice" to carriers that have more demand than supply. When it comes to being a shipper of choice, however, "people oversimplify the shifting the burden, ultimately, to the trucker. As a variable, transportation time could be flexed to accommodate inflexible production demands or consumer expectations. The ELD mandate took away that variable, however, and supply chains that had some "slack" in terms of time suddenly became rigid, and those without slack snapped. "We kept getting calls from our third-party logistics provider that drivers were running out of hours," said John Janson, global logistics director at apparel importer Sanmar. The company also experienced a sudden increase in refused tenders in lanes where a trucker would have difficulty finding a backhaul and returning within 11 hours, the legal daily driving limit. Sanmar, like other shippers, learned that time is more than mon - ey, it's capacity. Truck capacity levels in the US were already stressed by high freight demand and a shortage of qualified drivers when the ELD mandate took effect last year, making a tough situation worse for carriers, 3PLs and shippers. "With ELDs, people have been forced to adhere to a standard," said Andrew Lynch, president of Zipline Logistics in Columbus, Ohio. "We've always had hours-of-service rules, but shippers now have to account to them. Any amount of detention (of a truck driver at a dock) can blow a plan out of the water." Zipline was one of the first companies to measure the actual cost in time of the ELD mandate and its impact on supply chains. Leveraging its data analytics tool KanoPI, Zipline found transit times increased 16 percent on 450-mile to 550-mile routes, from 1.05 transit days before Dec. 18, when the mandate took effect, to 1.22 transit days afterward, a gain of about four hours. Four hours is a big chunk of a truck driver's day. Legally, truckers can drive for 11 hours in a 14-hour window. When they hit that 14-hour limit, they have to stop for 10 hours. Realistically, however, most truck drivers don't get near that 11-hour driving limit. In a 2015 study, Telematics provider PeopleNet found in more than 200,000 records, drivers averaged 6.09 hours a day. Longer transit times are a direct There is a truck parking spot shortage in the United States, as well as a driver shortage. Shutterstock.com "There are fantastic opportunities for better time management in trucking and there are untold billions of dollars wasted every year on poor planning."

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