Things are changing – fast. Procurement isn’t the same, and shippers around the country are converting from outdated, time-consuming approaches to something much more fluid and agile. Ignoring the rising tide isn’t a winning formula. Adaptation is key. For shippers, staying ahead means adapting quickly, leveraging data, and rethinking traditional practices in favor of more agile and efficient strategies.
If you’re responsible for managing freight, logistics, or transportation operations and looking for ways to optimize freight and improve operations, this guide is for you. Here are the four new rules for navigating the changing freight landscape.
Rule 1: Data-backed decisions are essential
Data is the backbone of modern supply chain management. Shippers are inundated with information, but information and data are useless without a way to interrupt and analyze what you’re seeing. The right tools will help you convert raw data into action plans.
What does this mean for you?
The days of relying on instinct or outdated processes are over. Reliable data is critical for efficiency, risk reduction, and strategic decision-making. Digital transformation is no longer optional — shippers need to remain competitive.
For instance, utilizing digital tools like analytics platforms can improve accuracy in forecasting, market benchmarking, and cost evaluation. Pair these insights with automation to streamline procurement processes and reduce manual workloads.
How to adapt
- Embrace technology and automation: Invest in digital tools to automate procurement and enhance data insights. Analytics can help detect trends, assess historical performance, and forecast outcomes.
- Prioritize supply chain visibility: Partner with data providers for 360° insight into market rates. Transparency not only builds trust but also strengthens supply chain compliance.
- Focus on planning and collaboration: Incorporate advanced analytics into decision-making. Coordinate with departments like sales and sourcing to integrate different perspectives and capture cost efficiencies.
You’ll gain a significant edge in today’s dynamic logistics environment by digitizing and pivoting to data-driven strategies.
Rule #2: You’ve got to educate stakeholders
The freight market operates in cycles — it transitions between periods of tight and loose capacity influenced by everything from supply-demand fluctuations to external disruptions. Understanding and anticipating these cycles is essential for strategic planning.
What does this mean for you?
Shippers face pressure from leadership to contain costs while maintaining service levels. However, many executives lack expertise in freight markets, making education a critical part of your job.
It’s your responsibility to provide leadership with clear context on market dynamics, such as how rates fluctuate or the challenges of managing spot versus contract freight.
How to adapt
- Educate stakeholders about freight market dynamics: Explain that the freight market is cyclical, meaning conditions will continually shift. Outline how these fluctuations affect costs and capacity planning.
- Budget beyond routing guides: Routing guides are a foundation, but they don’t account for market variability. Plan for a percentage of freight to exceed guide rates due to unexpected conditions.
- Adopt a portfolio approach to transportation: Combine private fleets, contract carriers, and spot carriers to create a flexible network that balances consistency with adaptability.
When you get teams and executives to understand the nuances of the freight market, you can drive better collaboration, smarter decisions, and improved outcomes.
Rule #3: Prioritize agility and risk management
Exceptional freight management is no longer just cutting costs — it’s about building resilience within the supply chain. Geopolitical issues, extreme weather, and shifting consumer demands can throw a wrench in any plan. Shippers need agile strategies to adapt to uncertainty.
What does this mean for you?
The freight landscape is increasingly unpredictable, with market cycles and regulatory changes adding even more complexity. Flexible procurement strategies and getting ahead of risks can help your organization adapt to disruption while maintaining service standards.
How to adapt
- Build structured agility: Implement strategies that balance flexibility with structure, such as agile contracting models that allow for fast adjustments in response to market changes.
- Evaluate and benchmark performance: Regularly assess your network against industry benchmarks to identify areas for improvement or adjustment.
- Develop a risk management strategy: Identify risks across your supply chain, from supplier reliability to weather events, and create contingency plans to mitigate their impact.
- Foster a culture of agility: Encourage collaboration and quick decision-making across departments to respond faster to changes.
With a strong focus on resilience, your organization won’t just survive disruption, it might thrive.
Rule #4: Evolve your procurement process
RFPs are central to procurement practices, but in today’s fluid freight environment, they aren’t the silver bullet they used to be. Modern procurement is dynamic, requiring ongoing adjustments to align with shifting market conditions.
What does this mean for you?
The procurement process must go beyond contracts and negotiations. Proactive planning and data-driven decision-making are necessary to balance cost efficiency, service excellence, and risk.
How to adapt
- Adopt an ongoing procurement mindset: Think of procurement as a continuous cycle, involving preparation, evaluation, monitoring, and optimization throughout the year.
- Use data to unlock strategic flexibility: Analytics will help you prioritize high-impact lanes and assess minimal-use lanes for cost savings.
- Diversify fleet and modal mixtures: Combine private fleets, dedicated fleets, contract carriers, and spot carriers to build a resilient network that adapts to evolving needs.
- Think economies of scope: Identify synergies across lanes where carriers’ operational capacity aligns with your requirements. This approach allows you to streamline bids and uncover savings.
A dynamic, data-driven procurement process transforms your transportation network from a reactive system into a proactive, competitive advantage.
Shippers today are navigating a freight landscape that is more complex, volatile, and demanding than ever before. By adopting these four rules—leveraging data and technology, understanding market cycles, prioritizing agility, and evolving procurement processes—you can elevate your operations and thrive in an era of constant change.
Are you ready to take your supply chain performance to the next level? Our new guide, “The New Rules,” expands on these ideas with guidance on implementation and plans of action so you can bring your shipping operation into the new era.
