ORLANDO – The global logistics and freight sector is undergoing profound transformation, requiring shippers to continuously innovate to adapt, survive, and thrive. From driver shortages to capacity management, pricing strategies to delivery efficiency, and the challenges of last-mile logistics – coupled with emerging technologies like digital freight matching tools, APIs, artificial intelligence, robotics, and drones – shippers face unprecedented challenges. These issues took center stage at the Retail Industry Leaders Association (RILA) 2019 Retail Supply Chain Conference in Orlando, signaling the dawn of a new era in retail supply chains.
RILA Conference: Addressing Challenges and Opportunities
The RILA 2019 Retail Supply Chain Conference brought together retail leaders, supply chain experts, and technology innovators from around the world to examine current challenges and opportunities. Participants analyzed key factors affecting supply chain efficiency and shared innovative strategies and best practices. The interaction between shippers and carriers, collaboration among shippers, and application of emerging technologies emerged as focal points of discussion.
New Shipper-Carrier Partnerships: Breaking Traditional Models
While numerous issues concern shippers, certain themes garnered particular attention – especially the evolving relationship between shippers and carriers. The consensus suggests traditional business models have become obsolete, requiring more strategic collaboration that extends beyond verbal commitments to deep operational integration.
Shippers emphasized the need to differentiate between cost and service while managing external pressures. For large shippers with strict delivery and operational requirements, achieving true just-in-time delivery becomes critical – reinforcing the necessity for close shipper-carrier cooperation.
Limitations of Traditional Models
Historically, shipper-carrier relationships centered on price competition, with shippers selecting the lowest bids and carriers cutting costs to maintain profitability. While reducing transportation expenses, this approach compromised service quality, created information asymmetry, and discouraged long-term partnerships – proving inadequate in today's dynamic market.
Characteristics of New Partnerships
To address complex supply chain challenges, shippers and carriers must establish strategic partnerships featuring:
- Transparency: Sharing accurate demand forecasts, transportation plans, real-time shipping data, and cost information enables better decision-making.
- Trust: Mutual trust forms the foundation for risk-sharing and benefit distribution in sustainable partnerships.
- Long-term commitment: Joint investments in technology and infrastructure enhance overall supply chain competitiveness.
- Innovation: Collaborative exploration of new transportation models and technological applications improves efficiency and adaptability.
Achieving Just-in-Time Delivery
For large shippers, successful just-in-time implementation requires:
- Advanced demand forecasting using big data analytics and AI
- Real-time shipment tracking systems
- Flexible transportation solutions for unexpected disruptions
Shipper Collaboration: Shared Resources for Mutual Benefit
The conference highlighted growing cooperation among shippers. One retail executive described how companies now routinely contact competitors to consolidate shipments – converting two one-way hauls into round trips to reduce empty miles. This practice gained momentum during recent capacity crunches, delivering benefits like improved forecasting and enabling carriers to better plan capacity commitments rather than bidding on individual shipments.
Advantages of Shipper Collaboration
- Optimized capacity through shared transportation
- Reduced costs via joint purchasing and consolidated shipping
- Enhanced efficiency from information sharing and process optimization
- Increased resilience through diversified supply networks
Supply Chain Challenges in the New Normal
Global supply chains face unprecedented pressures from geopolitical tensions, trade disputes, natural disasters, and rapidly changing consumer demands. Shippers confront multiple challenges:
- Persistent capacity shortages from driver deficits and infrastructure bottlenecks
- Rising costs due to fuel prices, labor expenses, and tariffs
- Volatile demand requiring flexible supply chain adjustments
- Technological disruption reshaping operations
Technology Empowerment: Building Smart Supply Chains
Emerging technologies provide shippers new tools to build intelligent supply chains:
Artificial Intelligence Applications
- Demand prediction through historical data analysis
- Route optimization using real-time traffic and weather data
- Automated warehouse operations with robotics
- Risk management through predictive analytics
Big Data Utilization
- Supplier performance evaluation
- Customer segmentation for targeted services
- Inventory optimization strategies
- Fraud detection systems
Internet of Things Implementation
- Real-time shipment tracking via sensors and GPS
- Transport environment monitoring for sensitive goods
- Smart inventory management with RFID technology
Blockchain Solutions
- Product origin verification
- Streamlined cross-border payments
- Anti-counterfeiting measures
- Enhanced supply chain transparency
Conclusion: Collaboration as the Path Forward
The RILA conference made clear that retail's future lies in embracing change through collaborative supply chains. Deeper strategic partnerships between shippers and carriers, combined with resource sharing among shippers, represent effective solutions to current challenges while building more resilient and efficient networks. As technologies like AI, big data, IoT, and blockchain continue advancing, they will further empower supply chains, creating new opportunities for retail enterprises to adapt and succeed in an increasingly complex marketplace.