In 2021, 3PLs made significant investments in drayage technology to increase efficiency. First, let’s look at the five underlying practices of drayage:
- Drayman-owned chassis prevent shortages and improve driver performance.
- Company operated assets help avoid the risk of independent operator dependence.
- Visibility Systems – Integrated TMS to help monitor availability, Terminal Free Time, Per Diem Tracking, Yard Management and Driver Performance.
- SSRS Reporting for real-time exception management monitoring.
- DOT fleet compliant and safety compliance to avoid third party litigation.
Next, we will look at how transportation companies are further integrating this part of the supply chain into their core business. Technology is changing the way third-party logistics providers incorporate drayage into their business. Additionally, technology that enables 3PLs to interpret, anticipate, and pull important data is revolutionizing drayage.
Drayage technology & connectivity
The connectivity between drayage and the transportation providers moving freight from the port is essential for success. Technology and “gray pool” drayage models prevent backlog. In this system, drivers are assigned based on availability and the total distance that they are driving from the port. Therefore, more drivers are available to take one container. In conclusion, technology reduces time spent waiting for containers or drivers to become available.
Additionally, vast customer, product, and trucker databases need to be updated frequently to ensure the right number of truckers are available to pick up the corresponding number of containers in the pool. Therefore, in 2021, drayage firms made key investments in technological capabilities by investing in digitized load scheduling, advanced cargo tracking, and digitization to name a few.
The future of drayage
The global pandemic made many drayage firms and logistics providers aware of the need to remove many of the physical paper documentations. This benefits health and safety and allows truckers to fill out most (if not all) the required documents on their own electronic devices. Additionally, drivers can complete proper documentation in advance. Therefore, this alternative speeds up the pick-up process. Technology creates faster turnarounds and further alleviates the number of trucks waiting for their documents to be processed.
Lastly, in the future, drayage firms and 3PL providers need to work together and share resources to formulate a process that works for both parties. O’Neill Logistics is continuously striving to provide a quality streamlined service for all your freight. If you have any questions, visit O’Neill Logistics to see how we can assist you.
About O’Neill Logistics
O’Neill Logistics is a leading 3PL with operations in Rancho Cucamonga, CA; Savannah, GA; and Newark/Monroe, NJ. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, our services include omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.
We have over 2 million square feet which are all state-of-the-art facilities, offer dray services to support the warehouses, and handle distribution to retailers and wholesalers.
Our main drive is to simplify your supply chain by delivering exceptional service and optimizing your operational performance. We aim to build, protect and foster strong business partnerships. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.
