Data for data’s sake lacks value, especially in the view of the supply chain. And across the market, submitted data becomes rapidly outdated. And in some industries, outdated data can have disastrous consequences. For instance, take the value added by more accurate data in the health industry. As explained by Fierce Healthcare in 2018, “consulting firm Navigant found that hospitals could save up to 18%, or $11 million a year per hospital, by reworking supply chain. That’s the equivalent of 160 registered nurses, 42 primary care doctors or the cost of building two outpatient surgery centers.” Now imagine the value of more accurate data in light of the pandemic. That’s the onus of electronic freight tender trucking data when compared to lagging submitted data that may take 7 to 14 days to come in. The freight market makes real-time decisions, and when it comes to navigating the freight market, they need near-real time data to proactively plan. But that’s not the full picture. Let’s take a closer look.
The problem with lagging submitted data in freight market predictability
Proactive supply chain management is just that – proactive. But it’s difficult to stay proactive if a company is reliant on outdated data. Unfortunately, the supply chain itself can be burdensome when it comes to freight settlement. Depending on auditing systems and standards across individual companies, as well as the variety and complexity of individual companies, the data rapidly grows outdated. The only way forward is to identify what’s happening faster. And since the freight market can literally spin on a dime, fluctuating wildly within a few days, not just weeks, it’s imperative to get a closer view of trucking data and think about how it offers more predictability.
Near-real time freight electronic tender trucking data offers reliable insights
Unlike waiting on data on freight tenders until the bill is paid, audited, and settled, submitted tender data via EDI or API offers a better way to approach predictive modeling of logistics. In fact, these models are so effective with FreightWaves SONAR, that we launched our newest FreightWaves Scientific Rates tickers to backtest how accurate those predictions were. As reported by Supply & Demand Chain Executive, “The closing of restaurants and increased demand for grocery deliveries means that supply chain routes and typical business patterns have shifted for many trucks and drivers. As a result, transportation fleets must leverage truck utilization data daily as well as load percent capacity, driver wellness and other KPIs to monitor the efficiency and optimization of each unit. While it’s important to take an “all-hands-on-deck” approach to help deliver goods and items promptly, fleets need to keep an eye on truck utilization to maintain the right life-cycle management of each unit in the long term.” The analysis of that data helps companies identify reliable insights based on what’s happening today and yesterday, not just what happened last week. However, the additional benefits of actual tender trucking data via EDI or API are much more significant than meets the eye.
Additional benefits of actual tender data
Additional access to tender trucking data can go a long way to promoting supply chain efficiency across all types of companies. Instead of relying on data taken from the end of freight settlement, predictive modeling based on electronic tender data helps logisticians see what’s happening in market conditions now or into the future. As seen with the recent weather turmoil, that can amount to recognizing when freight movements are likely to tighten capacity. And while some events (like the weather) cannot necessarily be predicted entirely, it’s possible to increase trucking capacity in advance due to the presence of certain indicators. For instance, Larry Singleton, FreightWaves SONAR Account Executive, recently noted how a tightening capacity in the Dallas market contributed to a worsening of the supply chain prior to and after the winter weather event. Obviously, that’s only one example, but it shows the value of insight and using data that’s available now.
Other core benefits of electronic tender trucking data include seeing how freight is moving throughout the market, how each mode affects others, the indisputable changes within final-mile logistics and gauging overall market health. It’s a continuous process that helps individual shippers learn when to boost replenishment. It helps carriers navigate the market to make accept-or-reject decisions, and it helps brokers perform functions of both sides.
Realize more effective transportation management and forecasting with the right analytics platform
The best way to overcome market disruption is to make the most of trucking data. And FreightWaves SONAR makes that application of trucking data more accessible and insightful with advanced indices, macroeconomic indicators and tickers that span both truckload and other core means of transportation. Find out more about how your organization could tap the value of actual trucking data and not just submitted, paid data by requesting a demo. Request a FreightWaves SONAR demo by clicking the button below to get started.