Changes in technology are having a large impact on every aspect of the construction industry, including the methods that shippers use to pack and deliver freight. The biggest innovations are being developed in the less-than-truckload (LTL) freight market, which depends on the accuracy of spoke-and-hub delivery networks to keep national supply chains and construction projects moving efficiently and cost-effectively.
What Is LTL Shipping?
LTL shipping is the transportation of freight that does not require a full truckload. LTL freight is typically packed on pallets, with a total shipment weighing between 150 pounds and 15,000 pounds. Although many different senders’ LTL shipments can be transported on a single truck, each shipper pays only for the space that their own shipment occupies, which helps every sender keep their individual costs down.
LTL shipping is a budget-friendly alternative to full truckload shipping, but it does require very organized freight management and accurate reporting of every shipment’s dimensions and weights, which ensures that carriers can optimize their space on each truck and keep their delivery costs competitive.Looking ahead, here are six ways technology and automation will affect the LTL industry and create new opportunities to reduce costs and improve efficiency for construction shippers.
1. Increasing Use of Transportation Management Systems
A transportation management system (TMS) connects multiple points throughout a supply chain to streamline the end-to-end transportation process for shippers and carriers. For example, TMS providers enable shippers to dim, weigh, photograph and record freight measurements accurately at the point of origin.
TMS technology also helps shippers optimize their freight pricing across carriers and avoid costly overages while simultaneously helping carriers connect their unused truck space to nearby shipments. Their data analysis helps shippers identify opportunities for improvement within their supply chains while also ensuring that all freight is accurately measured and shipped at optimized rates to avoid any surprise fees along the way.
2. Predictive Shipping
The more information supply chains have at their disposal, the easier it will be for them to predict user needs ahead of time based on historical data, industry trends, pricing analysis, material shortages and more. Artificial intelligence (AI) will also increase the accuracy of these predictions and help suppliers forecast potential surges or bottlenecks in their supply chains well before they happen. In turn, this data will help construction companies and their vendors ensure necessary materials and components are where they need to be based on anticipated need, often by making strategic use of LTL shippers to fill those supply gaps.
3. Elastic Logistics
TMS and other third-party logistics solutions enable supply chains to become immensely flexible with regard to traditionally expensive overhead concerns such as storage capacity, fleet management and other big-ticket investments. Rather than purchasing equipment that may go unused during downturns in the economy (like the 2020 novel coronavirus shutdown), more supply chain managers are using predictive data to scale their available capacities up or down by using elastic logistics.
Thus, instead of purchasing a warehouse or a new truck to accommodate a surge in new business, they may rent available warehouse space or partner with shared fleets on a sliding scale that depends on seasonal workload trends. This elasticity helps supply chains reduce fixed costs and enables them to invest in real-time solutions as their clients’ needs change.
4. Digital Sensors Provide Drivers with Cost-Saving Data
On the road, integrated apps and data sensors in trucks can let drivers monitor their engines and equipment for efficiency and maintenance problems, and help them avoid inefficient routes. In addition, camera monitor systems can give drivers a clear view of traffic conditions on all sides of their vehicle without requiring them to rely on side mirrors and blind spots. This can reduce potential accidents and ensure that shipments arrive safely and on-time. Some freight companies are also employing new technologies in their trucks that enable drivers to bypass time-consuming weigh station stops (and potential fines for overweight loads) by instead providing drivers with real-time weight analysis data as shipments are loaded.
5. Automation Will Free Up Human Ingenuity
From driverless forklifts in warehouses to drones and delivery bots on jobsites, automated solutions will continue to be deployed across all facets of the construction supply chain. By using artificial intelligence and programmable tools to execute repetitive, high-risk or time-consuming labor, LTL carriers can apply their human expertise and creativity to solving more complex problems. This shift to mechanized labor will also reduce onsite injury rates from preventable accidents, which keeps employees safe and lowers expenses related to insurance and workers’ compensation claims.
6. Smart Infrastructure Sandboxes
What will the future of freight and smart infrastructure look like? Organizations like AllianceTexas are building full-scale transportation “sandboxes” to explore possible answers to that question.
AllianceTexas is a 26,000-acre mixed-use community in Texas that serves as an integrated logistics hub for multiple transportation companies including Amazon Air, the BNSF Railway, FedEx and the Fort Worth Alliance Airport. They recently created a Mobility Innovation Zone to test potentially game-changing technologies such as autonomous trucking systems for short- and long-haul carriers, as well as experimenting with unmanned aerial systems. The data learned from these studies could transform how transportation systems communicate, and even how the cities and transit hubs of the future are designed, built and maintained.
Technology and data are providing opportunities for innovation and optimization at every point in the construction supply chain, from suppliers and shippers to drivers and builders. As these systems continue to integrate more closely in the coming years, expect the use of AI, real-time information-sharing, and data-influenced decision-making to generate even smarter, faster and more cost-effective LTL solutions that increase efficiency from departure to delivery.
