The technology usage in the industry has always been behind, but it's been getting better, innovating, and pushing forward especially the past few years. It's very difficult to expand a business and to build on a business with just a pencil and clipboard in a warehouse.

Navigating the Digital Transformation in Freight: Insights from the Front Lines

The Digital Freight Landscape: A Specialist's View

Jack's role as a Digital Freight Specialist is pivotal in leveraging technology to optimize freight matching protocols for our carrier base and addressing capacity gaps. His daily interactions with both shippers and carriers give him a unique vantage point on the industry's tech evolution.

The Tech Gap: Shippers, Carriers, and the Clipboard Conundrum

Despite the rapid technological advancements, Jack pointed out a surprising reality: many shippers and carriers still rely on outdated methods like pencil and clipboard. This resistance to change, often found in companies with a fleet of trucks yet unfamiliar with basic tools like Outlook, underscores a broader issue of tech adoption in the industry.

The Push for Progress: 3PLs Leading the Charge

Third-party logistics providers (3PLs) are at the forefront of embracing cutting-edge technology. Jack noted that while 3PLs are heavily investing in tech, shippers are increasingly dependent on these resources, particularly in a down market. This reliance is evident in their growing demands for tracking capabilities and technology usage.

The Cloud Revolution: A Shift in the Industry

The 34th annual logistics report from CMP revealed staggering statistics: 96% of carriers and 86% of shippers have moved to cloud-based systems. This shift indicates a growing dependency on what 3PLs like Mariner offer, positioning us as an outsourced technology solution for our clients.

The Pandemic Effect: Investment Flows and Technological Advancements

The COVID-19 pandemic brought a surge of investment into the freight industry, accelerating tech adoption. However, the subsequent down market saw a decrease in investor money. Jack forecasted that as the market recovers, we'll witness a rise in online marketplace freight matching and the success of companies that have weathered the storm.

The Carrier Conundrum: Bankruptcies as Economic Indicators

A concerning trend Jack highlighted is the correlation between carrier bankruptcies and economic downturns. This volatility poses a significant risk for shippers, who must fortify their carrier networks to avoid capacity loss and delayed shipments. Big-time bankruptcies  from major players in the space this past year highlighted this growing concern.

The Right Approach: Embracing Technology for Efficiency

Jack advocates for a move towards empowering employees and shippers with technology. While larger companies like Amazon and Home Depot are models of efficiency, smaller shippers and receivers often lag due to limited capital. It's our job at Mariner to provide the necessary tech solutions to these smaller players, ensuring they can operate effectively within their means.

The Local Loyalty Challenge: Small Shippers and Their Carrier Networks

Many small-town shippers rely on local carriers due to personal connections and established trust. However, this can put them at a disadvantage compared to those who leverage freight matching services like ours. The key is to balance these relationships with the benefits of expanded networks and technology.

Final Thoughts: The Road Ahead for Freight Technology

Our discussion with Jack shed light on the critical role of technology in the freight industry's future. As we navigate the digital transformation, it's clear that both shippers and carriers must adapt to stay competitive. The journey may be fraught with challenges, but the potential for improved operations and efficiency is immense.

Stay tuned for more insights as we continue to explore the intersection of technology and freight. Together, we'll ensure that our industry is not just future-ready but future-proof.