Monitoring Compliance in a Dynamic Freight Environment
January 30, 2019
Monitoring the where, when, and how of shippers’ goods moving to market requires a host of data-driven resources. Concocting a comprehensive strategy first requires having confidence in a robust digital dataset, but having the right talent and insights analyzing your network information will bring that strategy to life.
Network Outlooks and Actionable Insights
While a front end strategy is often a primary focus for transportation organizations, ongoing measurement of actions within that strategy often go by the wayside. Continuous compliance management, one facet of Breakthrough Supply Chain’s suite of solutions, ensures that you not only have the right front end strategy, but that your organization abides by it in perpetuity—and pivots to adjust to changing market dynamics. Harnessing the data flowing through our Fuel Recovery system—representing over 45,000 shipments per day—we have a unique view of the North American freight market, allowing us to effectively prioritize non-compliant areas that cost clients the most.
After pinpointing specific areas of improvement for a shipper’s network, Breakthrough goes in and matches a shipper’s needs with the carriers that best meet them, serving the shipper with a host of options to choose from, advising them on how to best proceed given their specific network goals. Instead of simply identifying non-compliance where it exists, the Breakthrough Supply Chain solution provides shippers with real choices they can make to improve their network agility.
By taking such a holistic view of their network, a shipper’s dedicated Breakthrough resource will not only watch and identify areas of high non-compliance, but go the extra mile to find carrier matches to reduce overall costs, or increase levels of service, on problematic lanes. We find the root of non-compliance, such as unexpected shipper or carrier behavior, and unearth the “why” based on real data rather than assumptions.
We create this action-oriented approach by serving as an extension of a shipper’s team, developing an ongoing experience in which continuous compliance management is just the beginning.
What are three key benefits of continuous compliance management?
1. Dynamic Networks Require Dynamic Solutions
Both shipper and carrier networks are dynamic, responding to industry changes before, during, and after they occur. For carriers, network distributions frequently shift in response to being awarded freight at different times and locations. Shipper networks, conversely, tend to fluctuate more regarding the volume of goods being distributed. In RFP events, trying to pinpoint the right carriers based on present conditions is like trying to hit a moving target on a dart board—even moments after the event targets will change rendering the plan ineffective.
Because these networks undergo such complex changes, shippers must constantly monitor their own to ensure they are operating in accordance with overall organizational goals. This is where the Breakthrough Supply Chain experience offers tremendous value. We account for this dynamism by monitoring a shipper’s entire network, using data to identify non-compliant areas quickly, provide actionable solutions, and enhance their competitive advantage.
2. Reduce and Minimize Unexpected Costs
Monitoring compliance can also reduce overall transportation costs in shipper networks. In the time between sourcing events, unexpected costs resulting from non-compliance often continue to mount, disrupting budgets and other strategic goals.
By continuously monitoring network compliance with Breakthrough, shippers can pinpoint high-cost lanes and take action on unplanned costs right away, instead of waiting until their next sourcing event. This minimizes unplanned freight network costs—creating more efficient strategies that cut excess cost on problematic lanes or avoid it altogether.
3. Forge Stronger Carrier Partnerships
When both shippers and carriers have a more transparent view of their networks, a more objective and solution-focused relationship develops. Understanding how unexpected behavior arises in freight networks, as well as how to use data to make better decisions that fit both shipper and carrier strategies and movements, builds a much stronger partnership between both parties.
This goes back to Breakthrough’s core principles. We believe transparency has the power to transform our clients’ supply chains, specifically through data-driven strategy creation and decision making. Transparent data creates better relationships—and better relationships translate into more reliable service, capacity, and cost models. This is a critical outcome of an engagement with Breakthrough Supply Chain.
Monitoring Compliance is Just the Beginning
Whether a shipper is experiencing unexpectedly high freight costs, or would like to move their goods more efficiently, monitoring compliance with Breakthrough builds more effective practices and solutions into long and short-term strategies.
With the support of a Breakthrough team using our proprietary technology to uncover valuable insights and solutions, we keep shippers informed of their networks’ ongoing performance and recommend changes when necessary to ensure their transportation strategy is being executed as planned. This opens the door to additional time and resources the shipper can use to dedicate to broader strategies, with the common goal of moving their organization forward.