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LeanLogistics, a provider of SaaS transportation technology and supply chain services, says its recent carrier procurement survey documents a shift to more frequent procurement, coupled with the growing need for technology to offset hours.
The company surveyed a wide range of truckload and LTL shippers throughout North America. Of the 112 respondents, 71 percent indicated they have moved from an annual procurement to an on-going, as-needed process. Nearly 52 percent indicated a shift to a lane-by-lane or region-by-region analysis.
Seventy percent of executives believe technology can improve and streamline their transportation procurement events when used strategically as part of the process. The irony is that executives in this space are slow to adopt new applications, with more than 80 percent indicating they still use manual methods.
"Procurement technology is trending similar to TMS," said Chris Timmer, LeanLogistics vice president of marketing. "Best-of-breed procurement technology should be considered as a strategic tool to drive cost savings and efficiencies internally and externally."
Technologies that streamline transportation procurement can reduce a basic 100-carrier / 1000-lane procurement event from the traditional 300+ staffing hours to 40 hours or less, allowing cost savings to be realized in the process as well as on transportation spend, according to LeanLogistics.
The complete report, entitled "An Evolution in Transportation Procurement Practices," is available at http://www.leanlogistics.com/getattachment/08664742-f505-496c-bb37-69df9c2c35b5/An-Evolution-in-Transportation-Procurement-Practic.aspx.
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