Today’s Pickup: Daimler develops spot freight app for its supply chain

Good day,

Even trucking original equipment manufacturers are not immune to spot freight volatility. A sudden order can boost parts required, necessitating a call to a supplier. Because of that, Daimler Trucks North America (DTNA), is working to shore up its supply chain relationship with contracted freight carriers through a new digital platform.

The customized app is based on a version created by Loadsmart and will help DTNA stay in touch with its contractors and help them find spot loads.

“To manufacture trucks, we need carriers to deliver components and parts to our plants,” said Lori Heino-Royer, director of business innovation at Daimler Trucks North America. “Offering a customized app to our contracted carriers gives them first access to our spot business and improves critical points in our supply chain.”

Loadsmart said its vision is “to build the future of logistics by interconnecting all players in a powerful platform. The Loadsmart platform leverages data and machine-learning technology to provide shippers an instant pricing and booking experience in which truck shipments can be scheduled in a few seconds. It allows the carriers to choose preferred spot loads, receive mobile notifications, and manage fleets in real-time. With just one click, carriers have the ability to instantly book spot loads.”

DTNA ran a pilot of the app in the fall of 2017 and found that the time to process shipment decreased from 5 hours to 18 minutes, Loadsmart said. Participating fleets saw a 50% increase in their average number of spot loads and improved their average time to accept, process and deliver a spot shipment by over 90%. 

In addition, carriers using the app were paid within two days instead of 30.

Did you know?

According to the Wall Street Journal, Walmart is now requiring large shippers to deliver full orders within a 1- or 2-day window 85% of the time or face a 3% penalty.

Quotable:

“I am so hoping that 2018 will be the year when detention policies and practices change. Some amount of detention may be unavoidable, and the broker can’t always influence what happens at the shipper’s or receiver’s dock. But carriers and drivers can still ask for fair treatment, including fair compensation for long delays.”

– Chad Boblett, writing in a blog posting for DAT

In other news:

It’s time to change detention policies

Chad Boblett, owner of Boblett Brothers Trucking, says it’s time for detention policies to change to fairly treat drivers. (DAT)

Aftermarket set for growth

Experts are predicting that the U.S. trucking aftermarket will continue to grow through 2022 after surpassing $30.4B in 2017. (Heavy Duty Trucking)

Is an FMCSA hack responsible for bogus medical cards?

A recent hack of FMCSA’s online registry of DOT-certified medical examiners did not expose any driver information, but medical examiners license numbers may have been stolen. (Overdrive)

Chinese e-commerce giant opening L.A. distribution center

JD.com, a Chinese e-commerce retailer, is planning a U.S. expansion and is looking to open its first distribution center in Los Angeles. (Bloomberg)

NAFTA progress made, U.S. says

According to U.S. officials, progress has been made in NAFTA talks, but there are some reports that auto manufacturing remains a large sticking point. (Bloomberg)

Final Thoughts

JD.com, a large e-commerce retailer in China, is planning to take on Amazon on its home turf, with thoughts of selling to U.S. consumers by the second half of 2018. The company just announced its first distribution center in Los Angeles and reports are that it is selling part of its logistics operations to raise funds for the expansion.

Hammer down everyone!

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