Market volatility remains among the most impactful and essential of all freight analytic data that shippers and carriers need to monitor. Market changes and fluctuation remain constant in logistics, no matter what niche focus is considered. A capable system for market volatility insight remains vital. It will help shippers recognize when, where and how freight spend could likely shift. Even a short heads-up on shifts within the market and customer demand changes can help. Seeing potential acuity and inventory shifts can help logistics managers. It will allow them to better prepare and roll with the network’s changes.
Why shippers need market volatility insight
Market dynamics of freight management can change at a moment’s notice and create far-reaching ripples. These changing ripples can travel throughout a supply chain network and impact freight brokers, carriers and managers. Simultaneously, the data can tap into market volatility insight and contribute additional value when the annual RFP bidding process rolls around.
It can also give greater insight into past disruptions to help managers prepare for cyclic volatility before it rolls around. According to Forbes, “in the Business Continuity Institute’s 2017 report on global supply chain resilience, 69% of respondents said they do not have full visibility of their supply chains. Research from the BCI’s 2018 report found that 56% of respondents had suffered a supply chain disruption in the past 12 months, from causes such as adverse weather, cyberattacks or transport network problems.” The ability to monitor market volatility insights and trends can give shipping managers the ability to make intelligent choices about freight logistics.
Market volatility hints at lane acuity
Shipping lane acuity has several similarities to healthcare systems and frameworks. Acuity in the healthcare industry works as a parallel to volatility in the shipping network. Market volatility insight makes it easier to see changes and fluctuations sooner rather than later. This can help reduce uncertainty in the various lanes and reduce the network’s impact.
As acuity of trouble within the lane increases, the risk of losses or damage increases. As a result, fluctuations and deviations within the transportation lanes can grow and become more problematic. Market disruptions happen, but prior preparation and planning for as much as possible can reduce their impact on the supply chain.
The way to overcome disruptions and adapt quickly to lane changes and variations is an individualized approach to lane management. Taking the market volatility insight and adjusting focus as needed remains key to weathering volatile times. Moving resources not needed in one area to compensate for issues in another place is the best way to adjust and reduce disruptions.
Remaining flexible and adjusting to changes and disruptions will help protect the supply chain and protect profitability.
Benefits of market volatility insight for shippers
Shipping managers and carriers can profit significantly from improved insights and enhanced awareness of volatility within the network. Some readily visible and useful market volatility insight benefits include the following:
- Fewer overall tender rejections and a reduction in overall losses from missed orders and transports.
- Improved freight rates and enhanced tech-driven guides that are utilized throughout the freight network.
- Alignment of pricing to market demands and customized services to meet customer needs.
- Access to more competitive capacity and enhanced partnerships allow for more transportation versatility, especially during changing markets and through both tendered and paid freight data.
- Increased eligibility for shipper-of-choice status and the improved brand recognition that comes with it.
- Reduced risk in transportation budgeting, protection for investments, and enhanced problem response.
- Know the market impact on your operation to stay successful and profitable.
Maximize value with market volatility insight and advanced freight forecasting
There are many ways to apply this insight to the logistics and freight management network. A robust system for market volatility insight will make it much easier for shippers to recognize when, where and how freight spend could shift. Preparing and planning make it easier to adjust and compensate for market changes when the need arises. Why is your organization just running on reactive freight approaches? Stop it, and get the insights needed with FreightWaves SONAR. Request a FreightWaves demo by clicking the button below to get started.