Did you know that freight logistics is considered the backbone of global trade? 

According to [SeaRates](https://www.searates.com/blog/post/unveiling-the-fascinating-world-of-logistics-surprising-industry-facts), the United States alone spends over $1.5 trillion dollars on freight logistics. The value alone shows how critical of a role it serves to a country.  

But, like every backbone as a support pillar, it has to be strong enough to support what it’s tasked to do, and there’s a ton of complicated red tape to go through in order to ensure it doesn’t crumble. 

Sounds like a tall order for success? Fret not. In this guide, we reveal the necessary details that you will need to master as a beginner or even as a seasoned supply chain professional looking for a refresher! 

So, sit back and read on to gain some serious freight logistics expertise! 

![freight ship in ocean](https://assets.cargobase.com/freight_ship_in_ocean_c3ab28a0b4.jpeg)

## What is freight logistics
Freight logistics is defined as the process of planning, organizing, and executing the movement of goods from origin to destination. It encompasses everything from selecting the most suitable transportation mode to ensuring safe delivery and managing customs clearance (for international shipments). 

![a lady and a man walking in the warehouse talking to each other.jpeg](https://assets.cargobase.com/a_lady_and_a_man_walking_in_the_warehouse_talking_to_each_other_2bf2218a56.jpeg)

## Why an efficient freight logistics is important for business
Efficient freight logistics is essentially what keeps your supply chain moving smoothly. Hence, it’s a key process that can make or break a business. An optimized freight logistics process can positively impact your business in several ways:

**Reduced costs**: By choosing the right mode of shipping and optimizing routes, cost savings can significantly increase by a huge margin. 

**Improved customer satisfaction**: In today's competitive landscape, fast and reliable shipments are paramount for customer satisfaction. Freight logistics ensures your products reach customers on time and in good condition. Delays, damage during transport, or missed deliveries can severely impact customer experience and loyalty..

**Inventory optimization**: Efficient freight logistics helps businesses maintain optimal inventory levels. By streamlining transportation and delivery times, you can avoid stock outs that disrupt sales and lead to lost revenue. Conversely, it can also help prevent overstocking, which ties up capital in unsold products and increases storage costs.

**Increased efficiency**: One of the core foundations of a well-managed freight logistics consists of streamlined processes across the board. This allows businesses to be more efficient and focus on developing core competencies like product development, marketing, and customer service.

![truck and cargo with a map](https://assets.cargobase.com/truck_and_cargo_with_a_map_005a8206cd.jpeg)

## Who are the key players in freight logistics
The world of freight logistics is a vast one! In this entire network, it involves several players, each with a specific role in ensuring goods move smoothly from origin to destination. Here's a breakdown of the key players:

**Shippers**: These are the businesses or individuals who need to transport goods. They can be manufacturers, wholesalers, retailers, or even individuals sending personal belongings. Shippers are responsible for packaging their goods properly, preparing necessary documentation, and selecting a logistics provider.

**Carriers**: These are the companies that are responsible for moving the goods from the origin to the destination. 

**Freight Forwarders**: These companies mainly act as intermediaries between shippers and carriers. They can assist in handling tasks such as:
- **Consolidation**: Combining smaller shipments from multiple shippers into one larger shipment for cost-efficiency.
- **Cargo insurance**: Arranging insurance coverage for the goods during transportation.
Handle complex customs clearance: Ensuring all necessary documentation is accurate and complete, classifying goods correctly, calculating duties and taxes, and facilitating communication with customs officials.
- **Manage import/export documents**: Preparing and submitting required documents such as commercial invoices, packing lists, certificates of origin, and bills of lading.
- **Negotiate with international carriers**: Securing competitive rates and booking space on vessels or airplanes.

**Third-Party Logistics Providers (3PLs)**: [3PLs](https://www.cargobase.com/blog/3pl-vs-4pl:-know-the-differences-to-elevate-your-supply-chain) offer comprehensive logistics services beyond just transportation and can serve as reliable partners for shippers who are looking to outsource many aspects of their logistics process. Some of the services include:
- **Inventory management**: These consist of storage solutions and expertise to manage your inventory safely. Some even provide advanced warehouse management systems for better tracking.
- **Cost-effective delivery**: 3PLs have extensive transportation networks and can deliver products on-time using the most cost-effective methods via various modes of freight (trucks, sea, air).
- **Route planning**: Selecting the most efficient and cost-effective routes for the shipment.

<ProTip/>

![birds eye view of a container port](https://assets.cargobase.com/birds_eye_view_of_a_container_port_5fb09b6421.jpeg)

## What are the different shipping modes in freight logistics
Understanding the types of shipping options available is critical in freight logistics. Each of them presents their own advantages and disadvantages when it comes to considering key factors such as shipping cost, speed, reliability, and efficiency. 

Here's a comprehensive breakdown of the most common shipping modes to help you understand them better and choose the right one for your needs:

**Truck freight**: This freight mode is essentially carried out by cargo trucks of different sizes to transport goods over land. It offers flexibility for a wide range of shipment sizes and can be used for both short and long distances. Compared to other modes of transport, truck freight can be faster for regional deliveries but may be more expensive for long distances or large volumes. Truck freight is usually often classified in these two modes: 

- **Full truckload (FTL)**: Essentially a freight mode for cargo that fills an entire truck container. It’s most ideal for large shipments, offers faster transit times and potentially lower per-unit costs for bulk quantities. However, FTLs tend to be less cost-effective for smaller shipments.
- **Less than truckload (LTL)**: For shipments that are not as cost-effective for an FTL freight, shippers usually look at Less than truckload (LTL) freight as an alternative. LTL freight is more suitable for shippers with smaller shipments and are willing to share space on a truck with other consignments. However, transit times may be longer due to additional pick-up and delivery stops for other LTL shipments along the route.

**Air freight**: Probably the fastest option for urgent shipments, but also the most expensive. Ideal for high-value goods, perishables with short shelf lives, or situations where speed is paramount.

**Ocean / Sea Freight**: Arguably the most common shipping mode. Container ships transport volumes of cargo across extensive shipping routes worldwide at a fairly low cost and they can be often classified between these two modes: 

- **Full container load (FCL)**: Shippers opt to utilize an entire container for a single shipment, offering faster transit times and lower per-unit costs for large volumes. These are often selected for larger shipments which could justify the costs better. 
- **Less than container load (LCL)**: LCL is generally more suitable for smaller shipments as it requires sharing of container space with other shipments. It is also more cost-effective but might lead to potentially longer transit times due to longer consolidation and deconsolidation processes.

**Rail freight**: Rail transportation offers a compelling option for shippers that are looking to ship their goods at rates lower than truck freight. Due to the size of their carriages, it could also be a decent alternative to ship goods in bulk. 

Each of these shipping modes have its own limitations. It's actually common to have more than one freight mode involved in many shipments as it can be more efficient and cost-effective at times. This is commonly known as multimodal/intermodal transportation. 

<ProTip/>

![a warehouse worker working on a desk](https://assets.cargobase.com/a_warehouse_worker_working_on_a_desk_a5a10262a4.jpeg)

## The freight logistics process
Though the freight logistics process is linear from a broad perspective, there are many complications that can render it a challenge to ensure a shipment gets through successfully. Here’s an overview of how the process looks: 

### 1. Freight planning and preparation
Whenever there’s a shipment to be shipped out, shippers will first need to understand and gather the important information for carriers or freight forwarders to transport them. These could include details such as the freight class, weight, dimensions, addresses, [incoterms](https://www.cargobase.com/blog/guide-to-incoterms-2023), and any special requirements for the cargo.

Shippers will usually reference these details and consider important factors such as cost, speed, reliability, and distance to help them determine the best shipping method for a particular shipment. 

For example, if the shipment is not big in size and quantity, and has a long lead time to spare, a [less than truckload](https://www.cargobase.com/blog/all-you-need-to-know:-less-than-truckload-(ltl)-shipping) shipping mode could be the most cost-effective option. However, if it’s an [ad-hoc shipment](https://www.cargobase.com/blog/complete-guide-spot-freight) with a crucial deadline for an important customer, air freight might be the best option to avoid losing a customer. 

Once the most appropriate shipping mode has been decided, the shipper will start getting quotes from different carriers, freight forwarders or logistics providers based on the freight shipment details and requirements. 

<ProTip/>

### 2. Packaging and labeling
While receiving quotes, the cargo is sent to be packaged securely with proper cushioning or protection. This is an important part of the process to reduce the risk of damaging the goods while transporting, which can be costly if it happens. 

At the same time, labels with key information such as addresses and contact details will need to be attached to the goods for tracking, delivery, safety, and compliance. purposes. For international shipments, they may tend to also require additional labeling with information that meets customs regulations and requirements. 

Shippers will also prepare documentation such as commercial invoices, and bills of lading (BOLs) which serve as a receipt for the shipment and a contract with the carrier. 

### 3. Shipment execution
By this stage, a logistics service provider (LSP) should have been selected for shipping the freight over to the destination. 

While transporting, it’s important to be able to [track the shipments](https://www.cargobase.com/real-time-visibility). Traditionally, many shippers have been tracking via emails, phone calls, or manual trackers, which are inefficient. Today, one of the best ways to track is through a real-time visibility tool with a communications platform which allows shippers to check the status of their shipments in the fastest way possible. 

This will also come in handy especially when unforeseen circumstances such as delays, or custom hold-ups occurred. Such situations can then be easily reported and if a solution is required, it can be easily communicated to resolve the issues as well. 

### 4. Completion
At this point in time, the shipment should already arrive at the destination and a confirmation of receipt from the recipient has to be sent to the shipper. 

An invoice will then be issued by the LSP for the freight transportation service provided, including any additional charges incurred during the shipment execution stage. Once it’s received, the shipper will have to [review the invoices](https://www.cargobase.com/invoice-matching) and ensure accuracy of the charges based on the initial agreement. 

As more companies are getting more stringent in an increasingly disruptive world, shippers are also looking for sophisticated [freight analytics tools](https://www.cargobase.com/reporting-analytics) to measure their freight logistics performance. By analyzing the valuable insights generated by these tools, shippers can reliably refine their approach for future shipments, identify areas for improvement, and optimize cost reduction. 

## Conclusion
So, there you have it. We certainly hope you learnt a ton of freight logistics essentials to help you make informed decisions and ensure your shipments reach their destinations smoothly.

That being said, freight logistics is only going to be increasingly complicated to handle. This is why we develop Cargobase TMS, the leading transportation management system that has helped many supply chain professionals streamline their freight logistics processes easily to boost efficiency and maximize profits. 

To find out more about how Cargobase TMS can help your company achieve the same success, be sure to contact us to [find out more](https://www.cargobase.com/contact-us)!


freight logistics 101 the essentials to master smooth shipping

large_freight logistics 101: the essentials to master smooth shipping

medium_freight logistics 101: the essentials to master smooth shipping

small_freight logistics 101: the essentials to master smooth shipping

thumbnail_freight logistics 101: the essentials to master smooth shipping

xsmall_freight logistics 101: the essentials to master smooth shipping

freight logistics 101: the essentials to master smooth shipping

Get your shipping foundation right with this freight logistics 101 guide!

Freight Logistics 101: The Essentials To Master Smooth Shipping

In the world of international trade, there are many risks of penalties to look out for. Two particular examples which are also often shrouded in confusion, are demurrage and detention charges. If not careful, these charges can quickly compound into significant financial burdens, impacting both businesses and consumers alike.

But, worry not. Today we’ll dive deeper into understanding the details and nuances of these shipping charges. By the end of this article, you will be well-equipped with the knowledge to navigate and avoid incurring them with confidence!

## Demurrage and detention: What’s the difference?

![Demurrage and Detention Charges chart](https://assets.cargobase.com/Demurrage_and_Detention_Charges_chart_ecdf267fce.png)

Understanding the difference between demurrage and detention is crucial for navigating the complexities of shipping costs. While both involve fees associated with container delays, they apply in distinct situations and impact different aspects of your supply chain.

### What is Demurrage?

Demurrage is a form of shipping fee charged by the terminal operator when a container exceeds its allotted "free time" after being unloaded from a ship at the terminal. 

Free time essentially refers to the time span after a container is unloaded from the ship and remains within the terminal, free of charge. It usually lasts 3-7 days, depending on the port and agreement. This range of time allows for customs clearance, paperwork, and other processes before the container must be moved.

Here are some common causes that result in demurrage fees being incurred: 

- **Customs clearance delays due to port congestion**: Delays in obtaining customs clearance can prevent the container from leaving the terminal and increase the time spent within the terminal.

- **Incorrect or incomplete documentation**: Missing or inaccurate paperwork can hold up the container's release from the terminal.

- **Lack of storage space at the terminal**: If the terminal is congested and lacks space for your container.

- **Unforeseen logistical issues**: Unexpected events like mechanical breakdowns or inclement weather can cause delays in logistical activities within the terminal and be penalized with demurrage charges as a result.

### What is Detention?
Detention, also known as a per diem fee, is another form of shipping fee. This time, it’s imposed by the shipping line when a container is held onto by the shipper or consignee for longer than the agreed-upon period outside of the terminal. 

Similar to demurrage charges, there is also a free period for unloading or handling the container after it leaves the terminal. This time frame however, needs to be negotiated in the booking contract and can vary depending on the specific agreement and intended use of the container.

Exceeding the agreed-upon free time will then lead to detention charges levied by the shipping line. Some of the common reasons on why detention charges are incurred could be:

- **Inefficient inland transportation**: Delays in transporting the container from the terminal to its destination and returning it.

- **Delays in warehouse operations**: If the container is held up at a warehouse due to slow unloading or other issues.

- **Unforeseen events**: Unexpected events like bad weather, strikes, or natural disasters can delay the return of the container.

- **Lack of planning or communication**: Poor planning and communication between parties involved (shipper, consignee, carrier).

## Who is responsible for demurrage and detention shipping charges?
![shipper on phone ](https://assets.cargobase.com/shipper_on_phone_e27a986f83.jpg)

The specific party responsible for the demurrage and detention charges is ultimately determined by the agreed upon [incoterms](https://www.cargobase.com/blog/guide-to-incoterms-2023) in the shipping contract. These internationally recognized terms define responsibilities at various stages of the journey.

For example, in a demurrage scenario with Ex-Works (EXW) terms, the buyer (consignee) is responsible for delays once the container is ready at the origin terminal. Conversely, under Delivered at Place (DAP) terms, the seller (shipper) shoulders demurrage charges until the container arrives at the designated destination terminal.

Similarly, the Free On Board (FOB) term places detention responsibility on the buyer after the container is loaded onto the ship. However, with Cost, Insurance, and Freight (CIF) terms, the seller remains accountable for detention until the container is discharged at the destination port.

<ProTip/>

## How to avoid demurrage and detention shipping charges?
![container in a port](https://assets.cargobase.com/Container_in_a_port_9b05d6f902.jpg)

In the world of international trade, scenarios that could lead to demurrage or detention charges can happen anytime. But, there are definitely ways you can avoid them with some proactive strategies. 

### 3 Ways to avoid demurrage charges

#### Proper freight documentation

There can be a lot of coordination required to manage the amount of documentation required for every shipment, which is prone to error. This is when shipments might get delayed at the port and you will be charged with demurrage fees. 

So, be sure to ensure all paperwork is complete and accurate before the container arrives at the terminal. Better yet, leverage technology to ensure compliance and documents requirements are met.  

<ProTip/>

#### Accurate cargo details

For terminal operators, your cargo information is the most important detail they will require to provide you with clearance. Always ensure there’s accurate and detailed descriptions of your cargo weight, dimensions, and packing details in your booking to avoid delays during container inspection. 

#### Plan ahead your every move

With proper planning, you can stipulate the time of your pick-up and transportation in advance to ensure a timely departure from the terminal. Always aim to move your container out as quickly as possible.

### 2 Ways to avoid detention charges

#### Efficient transportation and route planning

Once the container is out of the gates, container arrival times are  key to decrease the chances of getting a detention charge.  It’s good practice to plan your inland transportation based on realistic arrival times and container weight/dimensions. 

Optimizing your transportation routes can also help to avoid congested areas, factor in potential traffic delays during peak hours, and if need be, consider intermodal transportation for long distance freight. Be sure to also remain in contact with your logistics partner at all times to check on status and receive important updates. 

<ProTip/>

#### Optimize warehouse operations

Warehouse operations are no less complicated than how it is at the ports, and it could make or break your chance of avoiding detention charges frequently. 

You can optimize your warehouse operations by ensuring there’s adequate manpower and resources to facilitate efficient container unloading, which helps reduce bottlenecks. It’s also wise to ensure that your warehouse’s inventory and storage management systems are in check to prevent any form of stalling caused by slow retrievals. 

### Best practices to avoid both demurrage and detention charges

#### Negotiate for longer free time

While it’s almost impossible to negotiate on demurrage or detention fees, there’s a chance that you might be able to negotiate for longer free time. This is especially beneficial for high volume shipments and can significantly increase your chances to prevent getting charged.

#### Investing in shipper-owned containers (SOCs)

This applies mostly for shippers who have very frequent freight operations that require containers. For the long run, shippers can assume full ownership of their containers and save a lot more by reducing spendage on carrier-owned containers (COCs). By spending less on COCs, chances of getting a detention or demurrage charge also gets reduced. 

## Backing your demurrage and detention prevention strategies with a Transportation Management System

![shipper on a laptop](https://assets.cargobase.com/shipper_on_a_laptop_9ca3b65517.jpg)

There can be a lot to manage when it comes to avoiding detention and demurrage charges. This is where a Transportation Management System like Cargobase TMS can make a difference. Our solution helps you manage shipment documentation easily, use built-in approval workflows to ensure compliance and track shipments from various logistics providers, so you can focus on making better decisions for all your shipments. 

Have you been bothered by demurrage and detention charges lately? Come [find out more](https://www.cargobase.com/contact-us) how our Transportation Management System can help you avoid unnecessary charges. 







Demurrage vs detention what are they and how to avoid them

large_Demurrage vs detention what are they and how to avoid them.png

medium_Demurrage vs detention what are they and how to avoid them.png

small_Demurrage vs detention what are they and how to avoid them.png

thumbnail_Demurrage vs detention what are they and how to avoid them.png

xsmall_Demurrage vs detention what are they and how to avoid them.png

Demurrage vs detention what are they and how to avoid them.png

Never be confused between demurrage and detention again with this structured guide developed for every supply chain professional! 

Demurrage vs Detention: What Are They and How to Avoid Them

As the Head of Sales for Europe, Martin is a mentor for the team, sales strategist, and a true problem solver that seeks to propose the best solutions for anyone looking to boost their supply chain capabilities to the next level.

Today, we chat with Martin to find out what makes him tick.

## Hello Martin, let’s start with a little self introduction and tell us a fun fact about yourself.

**Martin**: Hi, my name is Martin Laux and I’m the Head of Sales for the European region. I’ve been with Cargobase since March 2023 and I've been loving it ever since!

Before I joined Cargobase, I was the Industry Lead and Global Key Account Manager of time:matters, a high-performance logistics firm, and I was responsible for the growth of companies revolving around the automotive, semiconductor, aviation, and componentry industries.

I was also with Kuehne + Nagel for 7 years as a project manager for event logistics. Some of the most memorable projects I will always remember include the Japan Ballet European Tour, Red Bull Airrace, FIFA Women’s Championship in Canada, and the UEFA European Championship in France.

A little fun fact about myself is that I love to walk my dog and when I see trash in my path, I would pick it up. All of us can do our part.

## What do you love most about Cargobase?

**Martin**: It has to be the work culture in Cargobase. Everyone has a can-do attitude and is aligned with creating value for the customer.

During a transport logistics event in Munich, I was asked to wear an attention-grabbing jacket that had our signature hashtag, #GetShipDone, printed all over it. Initially, I found it strange but we received so much positive and inspiring feedback from many people throughout the event! So ever since, I always wear the jacket with pride =)

![Martin Laux at a trade show wearing a jacket](https://assets.cargobase.com/Martin_Laux_getshipdone_7cbc7042e0.png)

## What’s your passion/mantra in life?
 
**Martin**: I deeply believe in creating value. If I’m going to invest time in something, then it should create value for the next individual or organization, whether it’s personal or professional.

Let me explain it from a supply chain perspective. Imagine our supply chain as a series of interconnected steps, each adding value to the final delivery. Similarly, in life, every meaningful relationship, every acquired skill, every act of kindness becomes a building block for a more fulfilling and impactful existence for any of us.

The core principles remain the same: understanding needs, fostering collaboration, and striving for continuous improvement. Whether streamlining logistics or nurturing relationships, we should all strive to create value by leaving a positive impact on those around us. 

## Best advice for getting “ship” done?

**Martin**: There’s honestly so much good advice people can learn from in freight management. But, I'm going to shortlist 3 of my favourite ones. 

One, always know your risks and manage complexity with a solid data management foundation. One of the biggest challenges in the freight industry is knowing how to navigate through the complications. With a strong understanding of data, you will be able to identify potential risks, get to make more informed decisions, and ensure smooth operations.

The second one will be to work closely with your partners because the supply chain industry has evolved to a point where no one is able to work by themselves. By collaborating, supply chains can be further optimized and with greater strength. You can even reduce potential disruptions at any point in time.

Last but not least, it’s a proverb that always resonates with me personally: A smooth sea never makes a skilled sailor. Freight management is a task filled with countless obstacles and it’s always wise to learn how to embrace them with a positive attitude. This will help build your resilience against any adversity and you will become a better supply chain professional in the long run. Also, your supply chain becomes more resilient by knowing what works and what doesn’t.





cargobase spotlight banner featuring martin laux

large_Cargobase Spotlight Martin Laux.png

medium_Cargobase Spotlight Martin Laux.png

small_Cargobase Spotlight Martin Laux.png

thumbnail_Cargobase Spotlight Martin Laux.png

xlarge_Cargobase Spotlight Martin Laux.png

xsmall_Cargobase Spotlight Martin Laux.png

Cargobase Spotlight Martin Laux.png

With more than 13 years of experience in the supply chain industry, Martin Laux is known within Cargobase for his unwavering passion for logistics. 

Cargobase Spotlight: Martin Laux, Head of Sales (Europe)

## What is Less Than Truckload (LTL)?

Less-than-truckload (LTL) is a shipping term for a cost-effective freight transportation mode designed for shipments that occupy less than the full capacity of a standard truck trailer.

Unlike full truckload (FTL) shipping, which utilizes an entire trailer for a single shipment, LTL consolidates multiple smaller shipments from various shippers onto the same truck.

## Key characteristics of less than truckload (LTL) shipping

LTL shipments tend to have smaller freight volumes that weigh between 150 and 15,000 pounds, making it a popular choice for a wide range of industries that are known to ship out small freight volumes often. Some of these industries include:

- Manufacturing
- Retail
- E-commerce
- Consumer goods
- Industrial products

Depending on the pallet sizes, each shipment usually comprises 10 pallets or less.

## How are less than truckload (LTL) freight rates calculated?

![shipper inspecting the cargo outside a container.jpeg](https://assets.cargobase.com/shipper_inspecting_the_cargo_outside_a_container_c639128408.jpeg)

LTL freight rates are calculated mainly based on a couple of factors.

The base rate is usually determined by the freight class. Freight class is a standardized rating system developed by the [National Motor Freight Traffic Association](https://nmfta.org/) to categorize less-than-truckload (LTL) shipments based on various characteristics. 

Essentially, the freight class spans an index range between 50 (densest, easiest to handle) to 500 (least dense, most difficult to handle). The lower the density, the chances of getting a lower freight rate will be higher and vice versa. 

Each freight class will then have a corresponding NMFC (National Motor Freight Classification) code, which is a more specific identifier for individual commodities within a class to further determine a justified freight rate for a shipment. These codes are determined based on 4 main factors:

- Density
- Ease of handling
- Stowability
- Liability

Then it expands to the distance. The further the truck will need to travel to get the goods to be delivered, the more costly the freight rate will be. 

Additional costs could include special requirements such as requesting a driver to perform additional tasks (e.g. collecting a proof of delivery) or if there’s a need for special handling if the item is fragile. Some carriers also provide expedited LTL freight options which will also factor in additional costs.  

## Advantages of Less Than Truckload (LTL) Shipping

![Shippers loading cargo into a container.png](https://assets.cargobase.com/Shippers_loading_cargo_into_a_container_e8f901bd3b.png)

The essence of how less-than-truckload (LTL) shipping works has made it a popular alternate option for shippers due to a couple of advantageous reasons:

### LTL is a cost effective mode of shipping

Less-than-truckload (LTL) shipping essentially allows shippers to share the freight space with other shippers, which leads to reduced costs. This is especially ideal for shippers with smaller shipments as loading them all to a single truck would likely not justify the cost of it. 

Shippers that don’t possess the capital to invest in their own trucks and drivers can also leverage the option of LTL freight to further save costs. 

### LTL freight offers flexibility

From a single pallet to several pallets, LTL freight caters to a wide range of shipment sizes, without requiring the need to fill an entire trailer which is perfect for businesses with fluctuating shipping needs. 

### LTL is a greener option

LTL freight is arguably more environmentally-friendly due to the fact that it’s an option that optimizes truck space by consolidating multiple shipments. In this way, there could be lesser trucks on the road which will lead to decreased carbon emissions. 

## Disadvantages of Less Than Truckload (LTL) Shipping

![Truck driver checking his phone.jpeg](https://assets.cargobase.com/Truck_driver_checking_his_phone_a069e06fc0.jpeg)

Like every freight mode, less-than-truckload (LTL) shipping is not perfect and has its disadvantages to consider too: 

### LTL shipping may not be the fastest

[Freight trucks](https://www.cargobase.com/blog/what-is-a-straight-truck-all-you-need-to-know) that are on LTL duty are transporting cargo from different shippers and will have to deliver them at multiple stops. This might increase the chances of having a delayed shipment if a particular set of goods will be delivered at the last stop, or if there are traffic jams in between stops. 

Therefore, it’s not a freight mode particularly suitable for companies with frequent shipments that require a short lead time. 

### LTL does not provide as much cargo handling control for shippers

Due to the fact that less-than-truckload (LTL) shipments are a combination of different freight from different companies, shippers will only have limited control when it comes to handling freight. 

The contracted freight forwarder or carrier will have to handle different shipments at multiple stops which may need the goods to be moved around more often than an FTL shipment. As a result, the chances of damage to the cargo could be potentially higher. 

### LTL may not be suitable for shipping oversized items or hazardous materials

Generally, less-than-truckload (LTL) shipments are more favorable for smaller shipments with a smaller volume and there may not be enough room for oversized cargo. 

Freight forwarders and carriers will also very likely avoid the risk of shipping hazardous materials for an LTL shipment because the stakes of bearing responsibilities to compensate other companies involved in the same shipment are too high. 

### How to Optimize for Less Than Truckload (LTL) Shipping

![Supply chain manager checking her laptop in a supply chain warehouse.jpeg](https://assets.cargobase.com/Supply_chain_manager_checking_her_laptop_in_a_supply_chain_warehouse_142c5ae69a.jpeg)

LTL shipping might seem like another regular freight activity that helps to get a shipment from point A to B. But if it’s optimized to be more efficient and affordable, it can reduce freight costs and delivery times which leads to driving more value for the business. Here are some key strategies to consider:

### Analyze LTL shipping needs

Each company’s shipping needs are different and it’s critical to understand them as much as possible - all the way from typical shipment sizes to frequency and destinations.

Companies can also dive deeper to see if there are shipping opportunities to consolidate across departments or product lines and review packaging practices to see if there's room to reduce weight or volume. 

<ProTip/>

### Classify accurately

After determining a shipment size, the shipment will then need to be classified according to its relevant freight class and NMFC codes for each LTL freight. This is absolutely critical because misclassification can lead to higher costs or even delays. 

### Package & palletize efficiently

As goods in an LTL shipment tend to be moved around more often, it’s important to package them well to minimize wasted space and reduce the chances of damage to the goods. 

It’s also wise to consider reusable packaging options for frequent shipments and environmental benefits. After palletizing them, it should be ensured that the goods are stacked efficiently to maximize truck space. 

### Compare LTL freight quotes

Never put all your eggs in one basket. There are countless providers out there that can provide LTL freight services so you should not settle for just one quote. 

By sourcing for more competitive freight quotes, companies have more room to negotiate and increase their chances of saving on cost. While considering the best [freight rate](https://www.cargobase.com/freight-management) for a particular shipment, factors such as transit times, service reliability and accessorial charges are some of the attributes worth looking at. 

### Negotiate freight rates strategically

Freight rate negotiation is an art form and there could be so many nuances that can influence the success of each negotiation. A good starting point could be from shipment volume and consistency. 

Many providers such as those from a [3PL and 4PL](https://www.cargobase.com/blog/3pl-vs-4pl:-know-the-differences-to-elevate-your-supply-chain) will favor an opportunity presenting consistent shipping frequency with high volume shipment. This is where they are more likely to offer a lower freight rate in exchange for a high frequency shipment opportunity. Usually, this is dealt through a freight contract. 
  
Being flexible on factors such as pickup/delivery times or prepayment options can also help to secure a discounted rate in exchange. Be sure to also nurture the relationship with the providers upon every successful rate agreement to further increase the chances of getting better freight rates for the long term.  

### Analyze performance

Insights from the performance of each LTL shipment can reveal tons of valuable information that are important for optimization. Again, with a transportation analytics tool, companies should be able to track various key metrics such as transit times, damage rates, and costs per shipment to measure success and identify areas for improvement. 

### Stay informed

The supply chain industry is one of the most dynamic industries in the world so things related to LTL shipping can always change without you knowing soon enough. Therefore, keeping up with industry trends and changes in freight regulations or petrol costs can help provide more insights for companies to adapt an LTL freight strategy accordingly. 

## The Best Way to Manage Less Than Truckload (LTL) Freight

As you can see, there’s a lot going on in a single freight mode such as LTL and it is a real challenge for many supply chain professionals to make the best out of it, even today. This is why transportation management tools such as Cargobase TMS are developed to help navigate through the challenges by providing a holistic platform that enables complete control over every freight mode. 

To find out further about how Cargobase TMS can help optimize your company’s LTL freight processes and more, be sure to [contact us](https://www.cargobase.com/contact-us) for more information. 

All You Need to Know Less Than Truckload (LTL) Shipping

large_All You Need to Know Less Than Truckload (LTL) Shipping.png

medium_All You Need to Know Less Than Truckload (LTL) Shipping.png

small_All You Need to Know Less Than Truckload (LTL) Shipping.png

thumbnail_All You Need to Know Less Than Truckload (LTL) Shipping.png

xsmall_All You Need to Know Less Than Truckload (LTL) Shipping.png

All You Need to Know Less Than Truckload (LTL) Shipping.png

In today's dynamic freight transportation landscape, not every freight load will fill an entire truck all the time. Supply chain managers have to act quickly to optimize freight loads while meeting customer demands. 

This is when less than truckload (LTL) shipments come into the picture. 


All You Need to Know: Less Than Truckload (LTL) Shipping

## What is Double Brokering

Double brokering is the unauthorized act of a freight broker or carrier transferring a shipment to another carrier without the knowledge or consent of the original shipper. 

Double brokering is essentially an unethical practice where the initial contracted party acts as a middleman, outsourcing the transportation to a third-party carrier without informing the shipper. In fact, according to [MAP-21](https://www.govinfo.gov/content/pkg/PLAW-112publ141/pdf/PLAW-112publ141.pdf), double brokering is an illegal offence.

If it goes unnoticed, there can be serious implications for **ALL parties** involved:

**Shippers**: Lose control over their cargo, potentially exposing it to increased risk of damage, delays, or even theft. They might face legal repercussions if the secondary carrier lacks proper licensing or insurance.


**Brokers**: Damage to reputation and credibility. There’s also a possibility that a lawsuit might be raised against the brokers for engaging in an illegal double brokering practice.


**Carriers**: May not receive the agreed-upon payment, leading to financial losses and strained relationships with shippers. Carriers operating without proper authorization can also be penalized or even go to jail for double brokering.


**The entire supply chain**: Suffers from disruptions, delays, and potential reputational damage due to the lack of transparency and accountability.

<ProTip/>

## How Double Brokering Takes Place

![a truck driver talking to a shipper in a truck yard](https://assets.cargobase.com/Two_brokers_7921997626.jpeg)

Due to the complexity of supply chains, double brokering is actually a very common occurrence. Although it usually happens with fraudulent intentions, at times it could happen unintentionally as well. But, regardless of the intention, double brokering cases are a very costly matter and it has been known to [cause the industry to lose over $100m every year](https://www.freightwaves.com/news/is-double-brokering-legal). 

### Example scenarios of fraudulent double brokering

**Bait and switch**: A broker secures a shipment at a competitive rate then secretly hires a cheaper, potentially unlicensed carrier to ship out the goods and pockets the difference earned. 

**Fictitious carrier**: Works like the bait and switch scenario. But this time, the broker approaches a shipper using a fake carrier identity instead to secure a shipment deal at a premium, then subcontracts the work to a legitimate carrier at a lower rate. 

**Network of greed**: This could apply to both carriers and brokers who are looking to “take on more” shipments than they can handle. They tend to promote themselves as consistent service providers at first glance but in actual fact, they outsource the shipments to other carriers within their network without informing or getting the consent of the shipper. 

Remember. Every fraudulent case is an illegal act so be sure to report double brokering cases of such nature to the authorities if it happens. 

### Example scenarios of unintentional double brokering

**Miscommunication**: Misunderstandings between brokers and carriers can lead to double booking. For example, a broker might accidentally assign the same load to two different carriers. 

**Uninformed carrier substitution**: Sometimes, due to [unforeseen circumstances](https://www.cargobase.com/blog/charting-the-unknown:-freight-management-in-a-vuca-era) (e.g. a [freight truck](https://www.cargobase.com/blog/what-is-a-straight-truck-all-you-need-to-know) breakdown), a carrier may subcontract the load to another carrier without notifying the broker or shipper to avoid delays. 

## How to Identify Double Brokering Schemes

![broker saying ok and good](https://assets.cargobase.com/broker_saying_ok_d66ca5558a.jpeg)

Like any other modes of crime, double brokering can be identified before it occurs. Here are some of the most telling signs of double brokering schemes to look out for: 

### Lack of information to verify
Shady brokers and freight carriers tend to not have tallied information when you ask for it. In fact, they will be hesitant to provide them and respond with tons of excuses in return. It’s a definite red flag that signals time to look for other brokers or carriers. 

### Unusually low freight rates
Brokers that quote way lower than market rates are usually too good to be true. There’s a high probability that the broker is operating on a bait and switch scheme to acquire your load before outsourcing it to a cheaper carrier to earn the returns.  

### Pressure to book quickly
There is no need to book a shipment as soon as possible if there is no compelling reason to do so. Legitimate brokers and [carriers](https://www.cargobase.com/blog/3pl-vs-4pl:-know-the-differences-to-elevate-your-supply-chain) will understand that shippers will need time to evaluate options instead of chasing them to agree with the quotes. Not only is this disrespectful but it’s also a sign that there is a need to prevent you from finding out about their schemes. 

## Best Practices to Safeguard Against Double Brokering

![freight brokerage.jpeg](https://assets.cargobase.com/freight_brokerage_0beb5ba691.jpeg)

To guard against becoming a victim of fraudulent or unintentional double brokering, it’s also wise to learn some of the best practices from supply chain professionals around the world. 

### Vet the carrier or broker

Do your due diligence before engaging a carrier or broker. Sources of credibility could include their business registration statuses, licenses, insurance or even reviews online. Government body sites such as the [FMCSA website](https://www.fmcsa.dot.gov/registration/ask-fmcsa?keyword=&topic=23021) are some of the most trusted sources of information to see if a carrier or broker is registered to operate legally. 

### Establish clear communications at all times

Miscommunication is one of the causes for unintentional double brokering. One of the best ways to foster clearer communication is to establish a centralized communications platform, where all stakeholders can exchange and retrieve information in the most efficient manner. 

<ProTip/>

### Work with only trusted carriers

Trust is paramount in the supply chain and logistics industry, especially when it involves time-critical shipments where errors can be costly. 

Hence, working with carriers you can trust to deliver and be transparent at all times is key. Apart from doing due diligence at the start, it’s also important to monitor and [measure the performance](https://www.cargobase.com/reporting-analytics) of your freight partners over time to ensure they are reliable. 

### Invest in a Transportation Management System (TMS)

Today’s Transportation Management Systems (TMS) come with many features that give shippers more control and visibility over their freight rates and shipments. With compliance checks in place, you can limit your exposure to double brokering.

Cargobase TMS offers a user-friendly interface for you to work with your trusted logistics providers. It also ensures consistency and compliance across all quote requests and shipment orders. All communication with freight forwarders is captured and tracked on-platform to minimize the risk of miscommunication.

Furthermore, you can monitor the performance of your logistics providers and rank them by metrics like On-Time Performance (OTP) and Proof of Deliver (POD).

As a holistic transportation management solution, Cargobase TMS is designed to enhance every aspect of a shipper’s freight procurement strategy. To find out more about how Cargobase TMS can drive value for your business, be sure to [contact us](https://www.cargobase.com/contact-us) to find out more. 

large_Is Your Cargo At Risk - The Hidden Dangers of Double Brokering.png

medium_Is Your Cargo At Risk - The Hidden Dangers of Double Brokering.png

small_Is Your Cargo At Risk - The Hidden Dangers of Double Brokering.png

thumbnail_Is Your Cargo At Risk - The Hidden Dangers of Double Brokering.png

xsmall_Is Your Cargo At Risk - The Hidden Dangers of Double Brokering.png

Is Your Cargo At Risk - The Hidden Dangers of Double Brokering.png

In the fast-paced world of supply chain management, efficiency and security are paramount in ensuring that the logistics process runs smoothly. But just like any complex system, vulnerabilities exist and threats can ruin it all. One such threat is double brokering.

Is Your Cargo At Risk - The Hidden Dangers of Double Brokering

## What are the main challenges behind the scenes? What’s your approach to tackle them?

**Evan**: Building a product is always a tricky affair. One of the key challenges is balancing the specific needs of a customer with the overall scalability of our product. Scalability is important so that many more customers can benefit from the cool features we build! 

For each new requirement, we dive deep to actively clarify and understand the customer needs. We study existing industry processes, user feedback and competitor solutions, in order to build features that can add value to a wider range of customers. 

More often than not, features that look simple on the surface can involve a lot of technical complexity to implement. This is why we have to plan carefully and ensure that we communicate technicalities in a way that business users and stakeholders can easily understand.

## What’s a day like in Cargobase with your product teammates?

**Evan**: We have daily standup sessions to align on the team’s progress and highlight any roadblocks that hinder progress. 

This is really important as many of our tasks are interdependent, hence open communication and resolving issues together allow us to tap into one another’s knowledge and work faster as a team. 

Whenever new requests come in, we would have an additional session to scope out the requirements and provide an effort estimation before we begin.

## What motivates you and your team to constantly push the boundaries of innovation in TMS development?

**Evan**: The supply chain industry, with its longstanding history and complex systems, has been relatively untouched by the tech wave until recent years, making it ripe for innovation. 

Unlike other industries (e.g e-commerce, fintech and ride hailing) that have been disrupted, logistics is just getting started. There are plenty of players but no clear winner in freight tech yet.

There is so much potential for innovation and opportunity to make a real impact. And that's the best motivation for anyone building a product - solving problems, exploring possibilities and the satisfaction of leaving a lasting mark on this industry!

## Describe a "Eureka!" moment where your team made a significant impact for Cargobase and its customers.

**Evan**: I won’t say that we have many “Eureka!” moments but positive feedback from customers definitely makes my day. 

Building and supporting a business critical system like a TMS is a bit like running an electric company. It’s really quiet when everything is working well. But when something goes down, everyone is up in arms and complaints come from all directions. So I’ll take every compliment that comes my way!

## What makes a great TMS in your opinion?

**Evan**: Like any great product, a great TMS should alleviate a problem that a logistics user faces regularly, and to accomplish it without adding more complexity to the end user. 

That’s the whole mission of Cargobase TMS: to simplify the lives of logistics professionals.







large_Cargobase’s Product Team feat. Evan Clearesta (Blog).png

medium_Cargobase’s Product Team feat. Evan Clearesta (Blog).png

small_Cargobase’s Product Team feat. Evan Clearesta (Blog).png

thumbnail_Cargobase’s Product Team feat. Evan Clearesta (Blog).png

xlarge_Cargobase’s Product Team feat. Evan Clearesta (Blog).png

xsmall_Cargobase’s Product Team feat. Evan Clearesta (Blog).png

Cargobase’s Product Team feat. Evan Clearesta (Blog).png

From streamlining workflows to uncovering hidden efficiencies, Evan Clearesta is the product manager who keeps Cargobase ahead of the curve. Today, we get to peek behind the curtain and discover what makes him tick.


Behind The Product with Evan Clearesta, The Product Manager of Cargobase

Cargobase, the logistics technology platform for enterprise shippers, today announced the establishment of a new office in Detroit, as the headquarters for United States and Canada.

Cargobase sees tremendous potential in Detroit citing the city's rich automotive history and proximity to its existing customer base of shippers and manufacturers that cemented the decision to make the 'Motor City' the focal point of its operations in USA & Canada.

"We are excited to call Detroit our home base for our expansion in North America, alongside our office in Mexico. Centered at the intersection of trade between USA and Canada, it's only fitting that a logistics SaaS company would leverage the benefits of the geography and indusry landscape available in the region. We see immense potential not only within automotive, but also aerospace, machinery, and battery production, and we recognise the talent and superb quality of life the region offers" **says Henry Julicher, Head of Sales USA & Canada**. 

"The Cargobase platform is constantly evolving and adding value to our customers by simplifying their logistics flows and using real-time data to provide transparency and accountability, and we plan to bring these benefits to shippers all across North America."

Cargobase is poised to fill a gap in today's Transportation Management System (TMS) landscape, where existing solutions cater mainly to domestic needs within the USA or a dominant freight mode. 

"Many of the current TMS solutions fall short in terms of versatility and agility that today’s supply chains require to successfully navigate disruptions. In a saturated digital freight market, the best TMS for your business is one that seamlessly supports your local, regional, or global supply chain flows.” **says Wiebe Helder, CEO of Cargobase.** 

“While our presence in Detroit may be new, our technology is tested and proven. For the past 10 years, our solution has helped automotive manufacturers in Detroit drive down freight costs and optimize logistics operations. We look forward to deepening our engagement with existing customers and forging new relationships beyond the automotive sector.”

Cargobase’s Transportation Management solution accommodates all freight modes and can be tailored to suit supply chains of diverse complexities. The platform excels in [spot freight automation](https://www.cargobase.com/spot-buy-procurement), consistently delivering an impressive 27% in freight cost reduction. Shippers also benefit from a swift implementation process of 4-6 months, outperforming the industry standard for Transportation Management Systems.

large_Detroit Press Release.png

medium_Detroit Press Release.png

small_Detroit Press Release.png

thumbnail_Detroit Press Release.png

xsmall_Detroit Press Release.png

Detroit Press Release.png

Singapore-based Transportation Management System (TMS) software provider opens new headquarters for United States and Canada

Cargobase Expands in North America with New Office in Detroit

For businesses navigating through the ever-evolving supply chain landscape, choosing the right partners can be a daunting scenario. One of them is definitely choosing between a 3PL or a 4PL. To this day, they can still be confusing to many supply chain professionals and could cause financial mistakes, delays, and eventually customer dissatisfaction as well. If this sounds like a familiar situation, then this guide is for you. 

In this article, we’ll reveal more about the differences between a 3PL and 4PL, how they can work for your company, as well as which of them is more suitable for you, so that you will be able to use them to your advantage and be at the top of your logistics game!

## What is a 3PL?
A 3PL or Third Party Logistics Provider is an outsourced service provider offering a variety of logistics services, mainly revolving around the physical movement of goods. 

According to Supply & Demand Chain Executive, the rise of the internet of things is starting to push [3PLs to adopt technology and analytics](https://www.sdcexec.com/transportation/3pl-4pl/article/22485109/gobolt-3-industry-shifts-changing-the-future-of-thirdparty-logistics) to improve their services and provide more value to their customers at a lower rate than 4PLs. They are also starting to adopt a more collaborative approach with their customers to secure a long term business relationship. 

**Order fulfilment**: 3PLs are capable of providing a variety of storage spaces and expertise to safely manage your inventory. Some of them even provide warehouse management systems with advanced analytics to better monitor the movements of the goods. 

**Transportation and freight management**: 3PLs can offer a vast network of routes and modes of transportation to deliver products on-time with the most cost effective manner possible. No matter if you need your goods to be delivered via [trucks](https://www.cargobase.com/blog/what-is-a-straight-truck-all-you-need-to-know), sea or air freight, a 3PL can help figure the best solution for you.  

**Freight forwarding**: Got a shipment that requires complying with complex customs regulations, negotiating with international carriers, or handling import/export documentations? 3PLs can handle them for you to ensure your goods cross over the borders smoothly and efficiently.

## What are the benefits 3PL can provide for companies?
3PLs can provide companies with benefits such as:

**Cost reduction**: 3PLs are great at leveraging economies of scale and optimized transportation networks, which can help many companies reduce logistics overheads on storage and transportation.

**Improved efficiency**: More 3PLs are also adopting modern technology and streamlined processes to help improve your supply chain efficiency. In this way, companies can provide more resources and time to concentrate on the more important aspects of their businesses.

**Greater expertise**: For many companies, they might not have enough time and resources to train up or even hire a logistics specialist yet. This is also where 3PLs can provide value to support as they already possess the experience and knowledge to ensure your supply chain stays competitive. 

![woodworking-company-managers-communicating-with-male-worker-production-facility.jpg](https://assets.cargobase.com/woodworking_company_managers_communicating_with_male_worker_production_facility_42ee5fff21.jpg)

## What is a 4PL?
A 4PL or a Fourth Party Logistics Provider acts more like an overseer that will manage all aspects of a company’s supply chain. 

Today, 4PLs are also starting to provide tactical logistics solutions such as transportation or warehouse management while continuing to upgrade their services as industrial technology sees an update. 

Overall, they mainly position themselves as strategic partners and will have a broader scope of responsibilities including but not limited to:

**Supply chain advisory**: 4PLs will provide business analysis, assess your goals, design a recommended supply chain architecture tailormade to a company’s needs.

**Logistics partner management**: 4PLs act as your central point of contact to manage relationships and negotiations between the company and your partners including manufacturers, distributors, carriers, etc to ensure an optimal performance across your supply chain. 

**Data analytics**: 4PLs are data driven and can leverage technology tools to help to identify bottlenecks or potential disruptions to navigate through challenges and also suggest alternative solutions to improve overall supply chain flow. 

## What are the benefits 4PL can provide for companies?
By leveraging a 4PL’s holistic capabilities, companies can reap these benefits for their logistics operations:

**Visibility**: Companies will be able to gain transparency into their entire supply chain network, which will provide valuable insights on how the supply chain can be improved. 

**Cost optimization**: Through a 4PL’s advisory, partner management and data analytics capabilities, companies will also be able to identify potential wastage of resources, attain better freight rates, and avenues worthy of further investment. 

**Carbon emission reduction**: Depending on the 4PL, it may be able to provide a streamlined  view of your upstream supply chain emissions, companies can determine how and where they can reduce their corporate carbon emissions to help make the world a greener place. 

![men in a supply chain warehouse working](https://assets.cargobase.com/men_warehouse_working_laptop_f3b3b8a69c.jpg)

## Do 3PLs and 4PLs work together?
Yes. As a 4PL serves mainly as an orchestrator of a company’s supply chain and a 3PL coordinates the physical logistics functions, there are scenarios where a 4PL will work together with a 3PL. 

A 4PL could provide data-driven ways to help improve a 3PL’s logistics performance. In this way, the synergy of both logistics partners will be an incredibly powerful driver that can enhance the strength and resilience of a supply chain. 

![supply chain worker talking to a 4PL staff](https://assets.cargobase.com/close_up_people_work_d42e522a9c.jpg)

## Is a 3PL or a 4PL better for my company?
There are many business factors to consider when deciding between using a 3PL or a 4PL for your company and we have laid down the key factors that are worth thinking about. 

Choose a 3PL if:

Your logistics needs are mainly tactical: The need for efficient warehousing, transportation management and freight forwarding supersedes the requirement to manage your logistics partners or strategic planning.

Your company is a growing business: A supply chain network required for a small business also tends to be less complex to warrant a more in-depth solution provided by a 4PL. 

Cost is a big concern: 3PLs generally offer a lower cost than a 4PL and if what you require revolves around the physical aspect of the supply chain then a 3PL should do the job. 

Logistics operational efficiency is key: If you are looking to streamline routine logistics tasks, outsourcing them to a 3PL is an excellent way to save you time and effort. 

**Choose a 4PL if**:

**Prioritize supply chain optimization**: A 4PL will be an ideal logistics partner that can help to analyze, design and manage your entire supply chain for long term growth and performance.

**Your supply chain requirements are complex**: Such supply chains tend to have a diverse network of carriers, LSPs, and customers to coordinate in between. Managing them would require expertise and a 4PL partner is a great option to consider. 

**Visibility is a must**: If you require reliable visibility over your supply chain network, a 4PL will be able to provide a foundation that will enable you to achieve those attributes. 

**You are willing to invest for the long run**: 4PLs tend to operate with their partners for the long run and would require a larger upfront investment. However, they do provide a holistic coverage on supply chain strategy which is worth the returns, especially for companies with a complex supply chain. 

As you can see, a 3PL and a 4PL can provide advantages based on how it operates and the ideal logistics partner will ultimately be determined upon the business needs of your company. 

## The Transportation Management System Solution
If you are looking to have full visibility of your freight management processes without compromising control over it, investing in a [transportation management system](https://www.cargobase.com) (TMS) could be the best choice. TMS users are able to be in the cockpit seat and implement their freight management strategies through the help of technology and an expanded carrier network. 

At the same time, transportation management systems today are also capable of allowing users to monitor their shipments and communicate with their carriers to get quick updates on the statuses to ensure they are delivered successfully. If preferred, some of them are even capable of integrating with your preferred 3PL or 4PL to facilitate a more effective freight operation through technology.

Essentially, you get to take advantage of the best of both worlds and get offered even more technological solutions at your disposal. Cargobase as a TMS provider also provides [rate card management solutions](https://www.cargobase.com/freight-management), [invoice auditing,](https://www.cargobase.com/invoice-matching) and [data analytics](https://www.cargobase.com/reporting-analytics) to monitor the performance of your freight strategy aside from its core offerings.

To find out more, be sure to [contact us](https://www.cargobase.com/contact-us) and understand how Cargobase can help elevate your company’s supply chain to the next level.








large_Copy of Navigating Freight Management in a VUCA Era.png

medium_Copy of Navigating Freight Management in a VUCA Era.png

small_Copy of Navigating Freight Management in a VUCA Era.png

thumbnail_Copy of Navigating Freight Management in a VUCA Era.png

xsmall_Copy of Navigating Freight Management in a VUCA Era.png

Copy of Navigating Freight Management in a VUCA Era.png

The lines between a 3PL and a 4PL are blurring! Here's all you need to know about how each of them operates and which one works best for you! 

3PL Vs 4PL: Know The Differences to Elevate Your Supply Chain

This article aims to explain everything you will need to understand about straight trucks including the types of straight trucks, different freights, advantages and its disadvantages. 

## What is a straight truck
![vincenzo-biancamano-W1wRGZSq_js-unsplash.jpg](https://assets.cargobase.com/vincenzo_biancamano_W1w_RGZ_Sq_js_unsplash_0e024b8e85.jpg)

A straight truck is a single-frame vehicle where all axles, including the cargo box, are permanently attached. Think of it as a sturdy, built-in trailer, often seen as box trucks for furniture deliveries or local hauls.

While their payload capacity might not match the behemoths of the highway, straight trucks are the undisputed champions of short-haul deliveries. They're the workhorses you see buzzing around town, delivering everything from furniture and appliances to boxes full of online shopping treasures. 

## What are the types of freight carried by straight trucks
![A straight truck driving by terraces](https://assets.cargobase.com/ilham_imanulloh_Jmuj_Cjc_Fm_L0_unsplash_bd867d7966.jpg)

As there is a diverse range of straight trucks, they are capable of transporting a diverse range of freight as well. Some of the most common types include:

1. Retail and consumer products 
2. Machine parts and industrial supplies
3. Building materials and construction supplies
4. Perishables and temperature-sensitive goods
5. Waste and recycling materials

The specific types of freight handled by straight trucks can vary depending on the truck's configuration, region, and industry. 

<ProTip/>

## Types of straight trucks
![a red reefer truck in an urban street](https://assets.cargobase.com/sandy_galabada_n8_Vr_U_Fk7k_RU_unsplash_083ca22cbb.jpg)

Straight trucks come in various sizes, categorized from Class 3 to Class 8 based on weight and capacity. The diversity extends to body styles, with box trucks, refrigerated vans, flatbeds, tankers, and dump trucks among the popular choices. Here are some of the most common straight trucks used to transport goods from one point to another. 

### Box truck
Box trucks represent a prevalent category within the realm of straight trucks. These trucks are renowned for their compact design, which renders them more reliable and agile as compared to various other types of trucks. Because of its enclosed cargo space and ease of loading/unloading, these types of straight trucks are particularly suited for moving a wide range of general cargo. 

Some other notable benefits of box trucks is that they’re fuel efficient, don’t need costly maintenance fees to keep them running, and they don’t require a pulling trailer. These factors also make them a preferred choice for numerous freight forwarders, transport companies, and manufacturers, facilitating the movement of cargo to customers or alternative destinations.

### Cube truck
Essentially, cube trucks are a smaller type of box truck with a cargo box shaped in a cuboid form and the cabin is separate from the cargo compartment area.

### Cube van
Cube vans are generally classified as the smallest form of box trucks with the smallest frame. Just like the cube truck and a standard box truck, the cabin and the cargo compartment are separate from each other. 

### Dump truck
Dump trucks are single-frame vehicles equipped with a hydraulically-operated bed that tilts. These are perfect vehicles for transporting loose raw materials such as gravel or sand as the vehicle is designed to unload them with ease. They come in various configurations, from standard rear-dump trucks to side-dump and semi-trailer end-dump types. Their ruggedness and high payload capacity renders them essential for businesses involved in construction sites or landscaping projects. 

### Heavy duty pickup truck
Heavy duty pickup trucks come in a range of sizes and they are great at transporting equipment, materials, or even small boats. Modern heavy duty pickup trucks tend to also be equipped with four-wheel drive capabilities to tackle rugged terrain with ease, making them ideal for navigating through remote locations and challenging environments.

### Reefer truck
Reefer trucks are essentially box trucks with a refrigerated cargo compartment which makes them most ideal for transporting perishable cargo or goods such as fruits and vegetables, frozen foods, pharmaceuticals or vaccines. The integrated temperature control systems in all reefer trucks is designed to help preserve product integrity and freshness throughout the delivery journey. 

<ProTip/>

## Advantages of a straight truck
![A straight truck driving by a mountain highway](https://assets.cargobase.com/rodrigo_abreu_lq9_Pxpw_DZ_Uk_unsplash_8a89c83eee.jpg)

There are many reasons why straight trucks are more commonly seen on the road than you can imagine. Here are some of the advantages they are most renowned for:

1. **Maneuverability**: Straight trucks generally are smaller in size and are designed with a shorter wheelbase, which makes them nimble and agile to navigate through tight city streets, narrow alleys, or even remote locations in some situations. This translates to faster deliveries and reduced risk of damage during tight maneuvers.

2. **Fuel efficiency**: Compared to semi-trucks, straight trucks are relatively more fuel-efficient due to their smaller size and lighter weight.

3. **Lower environmental impact**: Being fuel efficient also leads to reduced emissions which makes straight trucks a more environmentally friendly option, contributing to a greener supply chain.

4. **Lower operating costs**: Aside from being fuel efficient, straight trucks do not require as much maintenance and insurance as compared to semi-trucks. Their simpler design and less complex systems make them easier and cheaper to maintain, which also leads to lower operating costs. 

5. **Flexibility**: Straight trucks come in various sizes and configurations, from box trucks and refrigerated units to flatbeds and dump trucks. This versatility allows them to handle a wide range of cargo types and sizes, catering to diverse needs.

6. **Driver availability**: Driving a straight truck typically requires a standard driver's license in most regions, making it easier and faster to find qualified drivers compared to semi-trucks, which requires a commercial driver’s license (CDL).

## Disadvantages of a straight truck
![A red reefer truck surrounded by magnolias](https://assets.cargobase.com/jan_kopriva_Nvo5xeocc_Vg_unsplash_2a0de9076b.jpg)

While straight trucks have a ton of advantages, they do also carry a couple of disadvantages that are worth noting. 

1. **Limited payload capacity**: Compared to semi-trucks, straight trucks have a significantly lower payload capacity, typically ranging from 5,000 to 45,000 pounds. This makes them unsuitable for large-scale, long-distance shipments or transporting bulky cargo exceeding their capacity.

2. **Higher cost per unit load**: While operating costs might be lower overall, straight trucks can be more expensive per unit of cargo transported compared to semi-trucks. This is because the fixed costs of the driver, fuel, and vehicle are spread across a smaller payload.

3. **Long distance limits**: Due to their smaller engines and lower max speeds as compared to semi trucks, straight trucks tend to not be as efficient when it comes to longer distance deliveries. 

4. **Loading and unloading limitations**: While many straight trucks have roll-up doors or side access, their enclosed cargo space might be too small to transport bulky or oddly shaped cargo, which should be better suited to be onboard flatbed trailers on semi-trucks instead. 

## Strategizing the use of straight trucks

By properly factoring in its advantages and disadvantages, straight trucks can prove to be valuable assets as a part of a road freight strategy, especially when the strategy is being implemented via a capable transportation management system. 

With Cargobase, you’ll be able to seamlessly manage your straight truck operations, communicate with your [preferred carriers/freight forwarders](https://www.cargobase.com/freight-management), and track their performance - all on a single platform.

[Contact us](https://www.cargobase.com/contact-us) to find out more about how Cargobase can be your freight management partner that simply gets ship done. 





large_Navigating Freight Management in a VUCA Era (1).png

medium_Navigating Freight Management in a VUCA Era (1).png

small_Navigating Freight Management in a VUCA Era (1).png

thumbnail_Navigating Freight Management in a VUCA Era (1).png

xsmall_Navigating Freight Management in a VUCA Era (1).png

What is a straight truck - all you need to know

While we’re familiar with the lumbering giants of the highway, we must absolutely recognize the unsung heroes weaving through traffic delivering essential items to our doorsteps day in day out - Straight trucks. 

What is a Straight Truck - All You Need to Know

## What are Incoterms?

Incoterms a.k.a International Commercial Terms were first developed by the International Chamber of Commerce (ICC) during 1936. These terms have since been used as standard terms in sales contracts for importing and exporting. 

They are also internationally recognized rules that define which party arranges for the payment and handling of goods during shipping, from origin to destination.

However, do note that not every Incoterm is applicable for every mode of transportation.  

Below is the chart that summarises all the Incoterms:

![Incoterms-2024-cheat-sheet-1.png](https://assets.cargobase.com/Incoterms_2024_cheat_sheet_1_5e30ef54f9.png)

## Are there any updates for Incoterms in 2024?
There are no updates for Incoterms in 2024. The latest version remains to be [Incoterms 2020](https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/). These terms are roughly updated every 10 years. Hence, we should be expecting the next update in the year 2030. 

## Why is it important to know your Incoterms?
As importers and exporters, knowing the right Incoterms can be very beneficial as it 

### 1. Brings about clarity and certainty
Incoterms help to clarify the responsibilities of both parties, which helps reduce the chances of disputes and delays

### 2. Reduce costs
With a lower level of probability for delays, unnecessary costs can also be avoided.

### 3. Reduce risks
Incoterms also help to lay out who bears the risk at different stages of a shipment, which will help both parties to manage risks more effectively. 

### 4. Simplify communications
By understanding the intricacies, both parties can facilitate clearer communications with each other at any point of the shipment. 

## What are the 7 Incoterms for all modes of transportation?

### EXW:  Ex-Works or Ex-Warehouse

![incoterms chart on EXW Ex Works](https://assets.cargobase.com/EWX_Ex_Works_250ebda08c.png)

EXW (Ex-Works or Ex-Warehouse) places minimum responsibility on the seller and maximum responsibility on the buyer. The seller's only obligation is to make the goods available at their own premises (usually their factory or warehouse), suitably packaged and ready for collection.

**Seller risk**: Lowest

**Buyer risk**: Highest

**Insurance**: NA

**Freight cost**: Buyer bears the most cost 

### FCA: Free Carrier

![Incoterms chart on FCA Free Carrier](https://assets.cargobase.com/Free_Carrier_41ecacb154.png)

FCA (Free Carrier) divides the responsibilities between a seller and a buyer at a designated location. It falls somewhere between the seller-friendly EXW and the buyer-friendly DAP/DDP in terms of cost and risk allocation.

**Seller risk**: Lowest

**Buyer risk**: Highest

**Insurance**: NA

**Freight cost**: Buyer bears the most cost 

### CPT: Carriage Paid To

![Incoterms chart of CPT Carriage Paid To](https://assets.cargobase.com/CPT_Carriage_Paid_To_29d30d8d3b.png)

CPT (Carriage Paid To) is an incoterm that requires the seller to transport the goods at their own cost to a named destination. 

**Seller risk**: Low

**Buyer risk**: High

**Insurance**: NA

**Freight cost**: Seller bears the most cost 

### CIP: Carriage and Insurance Paid To

![Incoterms chart on CIP Carriage and Insurance Paid To](https://assets.cargobase.com/CIP_Carriage_and_Insurance_Paid_To_ce1c608461.png)

CIP (Carriage and Insurance Paid To) defines the seller's responsibility to deliver the goods to a carrier, arrange and pay for carriage to a named destination, and provide insurance coverage for the goods during transit.

**Seller risk**: Low

**Buyer risk**: High

**Insurance**: Yes (only during transit phase)

**Freight cost**: Seller bears the most cost 

### DAP: Delivered at Place

![Incoterms chart of DAP Delivered at Place](https://assets.cargobase.com/DAP_Delivered_at_Place_69b7696b90.png)

DAP (Delivered at Place) denotes that the seller delivers the goods to the buyer’s named location, ready for unloading. It places more responsibility on the seller than FCA but less than DDP. It is a popular choice for sellers who are looking to offer some flexibility for buyers while managing costs and risks on their side. 

**Seller risk**: High

**Buyer risk**: Low

**Insurance**: NA

**Freight cost**: Seller bears the most cost 

### DPU: Delivered at Place Unloaded

![Incoterms chart of DPU Delivered at Place Unloaded](https://assets.cargobase.com/DPU_Delivered_at_Place_Unloaded_51d1629196.png)

DPU (Delivered at Place Unloaded) requires the seller to deliver the goods and unload them at the buyer’s named location. It is the only incoterm that requires the seller to unload the goods. 

**Seller risk**: Highest

**Buyer risk**: Lowest

**Insurance**: NA

**Freight cost**: Seller bears the most cost 

### DDP: Delivered Duty Paid

DDP (Delivered Duty Paid) places the maximum responsibility on the seller in an international trade transaction. It essentially means the seller takes care of everything involved in delivering the goods to the named place of destination, which can be anywhere agreed upon by the buyer and seller.

**Seller risk**: Highest

**Buyer risk**: Lowest

**Insurance**: NA

**Freight cost**: Seller bears the most cost 

## What are the 4 Incoterms for sea or inland waterway transport?

### FAS: Free Alongside Ship

![Incoterms chart of FAS Free Alongside Ship](https://assets.cargobase.com/Free_Alongside_Ship_9f677f8d5f.png)

FAS (Free Alongside Ship) denotes that the seller is responsible for delivering the goods alongside the buyer’s vessel at the named port of shipment. The buyer shall bear the responsibility for the costs and risk of loss or damage from that moment.

**Seller risk**: Low

**Buyer risk**: High

**Insurance**: NA

**Freight cost**: Buyer bears the most cost

### FOB: Free On Board

![Incoterms chart of FOB Free on Board](https://assets.cargobase.com/Free_on_Board_4fbd33add8.png)

FOB (Free On Board) is an incoterm that places the responsibility of transferring the goods onto the nominated vessel on the seller, while all subsequent costs and risks become the buyer's responsibility.

**Seller risk**: Medium

**Buyer risk**: Medium

**Insurance**: NA

**Freight cost**: Buyer bears the most cost 

### CFR: Cost and Freight

![Incoterms chart of CFR Cost and Freight](https://assets.cargobase.com/CFR_Cost_and_Freight_4bcd2d10a5.png)

CFR (Cost and Freight) defines that the seller is responsible for delivering the goods to the port of destination, and for paying the freight costs.

**Seller risk**: Medium

**Buyer risk**: Medium

**Insurance**: NA

**Freight cost**: Buyer bears the most cost 

### CIF: Cost, Insurance and Freight

![Incoterms chart of CIF Cost Insurance and Freight](https://assets.cargobase.com/CIF_Cost_Insurance_and_Freight_557411aac6.png)

CIF (Cost, Insurance and Freight) requires the seller to be responsible for delivering the goods to the port of destination, and for paying the freight and insurance costs.

**Seller risk**: Medium

**Buyer risk**: Medium

**Insurance**: Yes (Only for onboarding on main carriage phase)

**Freight cost**: Buyer bears the most cost 

## What are some of the best practices and tips for incoterms?

While learning the incoterms is good theory knowledge, applying best practices can practically ensure your shipments go smoothly. Here are some of the best practices to take note of:

### 1. Evaluate your shipping goods

Consider whether your goods will get affected in any way in any sort of critical condition. Some of the questions to ask yourselves could be:

- Are they fragile?
- Are my goods perishable?
- Are they of high value and low risk is key?
- Do they require temperature control?

From there on, you should have a clearer idea about which incoterm is best, with the most appropriate risk transfer points and insurance options that will facilitate the smoothest delivery. 

For example, if you are looking to ship out fragile cargo, you might want to consider CIF instead of EXW since insurance has to be covered in this incoterm. Or, if you are shipping sensiive goods with short shelf lives, DAP or DDP could be better incoterms to look at as they tend to facilitate a faster delivery. 

### 2. Ensure compliance

It is always key to know the compliance rules ahead to prevent any scramble at any point of the delivery process. So, be sure to research important import/export information such as restrictions, licenses, and taxes. 

This step will help you select the appropriate Incoterms that facilitate obtaining necessary export documents (e.g., FCA for export clearance or DDP for import clearance). 

### 3. Know your appropriate freight modes

As shown above, not every incoterm covers all modes of transportation. If sea freight is not an option, incoterms such as FAS, FOB, CFR and CIF should not be at the top of mind as they are exclusive incoterms used for sea or inland waterway transportation. 

Choosing the appropriate freight modes could also affect costs, which is also a key factor to consider while determining the best incoterm to use. For example, shipping your goods via air freight with incoterms such as DAP or DDP as the seller could impact your budget.  

### 4. Documentation

Shipping rules and regulations around the world changes from time to time and when new regulations arise, you may need to review or adjust your selected incoterm and associated documentation. 

It is always wise to clearly state your selected incoterm in the contracts, including the named place (if applicable) and any insurance provisions. This step will help prevent ambiguity, confusion, and even legal disputes if things happen to be serious. 

Be sure to also archive all relevant documentation (invoices, customs declarations, insurance certificates, etc) properly for compliance checks, audits or potential claims. 

<ProTip/>

### 5. Consult supply chain experts

Shipping your goods can be very complex and challenging, which can complicate decisions to select the right incoterm. This is when it would be best to consult a supply chain expert who has experience in dealing with shipments and incoterms to help determine the most suitable incoterm in your best interest. 

## Are there any limitations for incoterms?

While incoterms are great at clarifying delivery responsibilities, They do not address the following:

### 1. Payment terms

Incoterms do not cover payment terms. Separate agreements will be needed for this aspect. 

### 2. Product details

They do not identify the prices and the specific goods being sold. Clarifications for these will be required to be facilitated between the buyer and seller. 

### 3. Payment methods

Though incoterms do clarify on who will bear the cost at which stage, they do not determine the mode of payments for any kind of shipments. 

### 4. Ownership or title transfers

Incoterms do not determine when the official ownership or title transfers of the goods shift from the seller to the buyer. A separate mutual agreement on this has to also be facilitated between the buyer and seller. 

### 5. Customs documentations

While incoterms do specify who handles customs clearance, they do not detail the specific customs documents required. Both parties have to align on this aspect in order to prevent any potential bottlenecks or disputes. 

### Legal and non-legal disputes

Regarding legal or non-legal matters pertaining to performance issues (e.g. delays, non-deliveries, etc), Incoterms are not developed to handle them. Instead, robust contracts have to be reviewed and agreed upon by both parties to properly administer these matters should they occur. 

#### Conclusion

Hopefully, we have managed to simplify understanding incoterms for you through this guide. If you would like to know how you can work Cargobase’s TMS can help elevate your transportation management processes to save costs and time, feel free to [book a consultation](https://www.cargobase.com/contact-us) with us today. 












































large_Guide to Incoterms 2023 (1).png

medium_Guide to Incoterms 2023 (1).png

small_Guide to Incoterms 2023 (1).png

thumbnail_Guide to Incoterms 2023 (1).png

xsmall_Guide to Incoterms 2023 (1).png

Guide to Incoterms 2023 (1).png

Even the most seasoned professionals could get confused with Incoterms. This is why we have prepared this guide that provides a simplified overview and some best practices to fully maximize the use of them.


The Incoterms 2024 Guide Simplified to Demystify Shipping

At least in my time, I believe the VUCA era for supply chain began when I was a Global Account Manager for Royale International in the time-critical services department. It was the first time in my career I witnessed one of the most severe supply chain disruptions caused by the infamous 2010 eruption of Eyjafjallajokull.

![eruption of volcano](https://assets.cargobase.com/did_you_know_Eyjafjallajokull_volcano_Iceland_ezgif_com_webp_to_jpg_converter_2c20d1cc69.jpg)
2010 Eyjafjallajokull eruption 
Source: [Brittanica](https://www.britannica.com/video/225296/did-you-know-Eyjafjallajokull-volcano-Iceland)

Volcanic smog engulfed almost the entire continent and caused over 95,000 flights to be cancelled abruptly. Almost the entire European airspace was closed for days and I was scrambling to find alternate shipping solutions for my clients. Naturally, spot freight rates were surging and shipping was a torture for everyone back then.

Fast forward to the post-pandemic period when Cargobase was already established with its spot buy platform, many companies got affected far worse with global inflation at an all-time high, climate change, and geopolitical conflicts. 

The VUCA era by now has become more prevalent than before. 

To move forward and achieve the success we all seek as supply chain professionals, in my opinion, there are 5 facts we need to etch in our minds.

## The new normal of supply chain is never normal, and so is freight management
![a container ship in the night with many containers on board](https://assets.cargobase.com/pexels_julius_silver_753331_11d26e70ea.jpg)

Unless every global superpower is laser-focused on dealing with a common enemy, the current global political landscape is unlikely to change. In fact, it has already severely complicated supply chain management for quite a while. Even the topic of climate change amongst nations stirs debates rather than foster collaborative efforts towards tackling it.  

Traditionally, supply chains benefit the most from peaceful mutual trade agreements which led to lower freight disruptions. But, it is never the case now especially when geopolitical tensions such as the US-China trade war are at an all-time high for the longest period of time. The repercussions have caused countless unprecedented disruptions, shifting trade patterns, and increased costs worldwide, which has also made freight management an even harder challenge for supply chain managers. According to [Reuters](https://www.reuters.com/world/expect-more-turbulence-us-china-2024-2023-12-20/), especially with the ongoing cross-strait troubles and chips conflict, the tensions will likely drag on. 

Bear in mind, we haven’t even touched on the Russia-Ukraine War and COVID (or even another pandemic?)

In my opinion, most companies are still reactive to situations like these and there will always be a consequential price you would want to avoid paying: high operational costs. These are additional resources spent on additional manpower, inventory fluctuations, costly and inefficient expedited freight, etc.

According to the CSCMP State of Logistics Report, [business logistics costs in the US](https://www.supplychainbrain.com/articles/37503-business-logistics-costs-in-the-us-reach-an-all-time-high) alone is at a record high exceeding $2.3 trillion (vs. 2022 at $1.85 trillion) representing 9.1% of national GDP—the highest percentage of GDP ever. These numbers involve the costs incurred in fighting disruptions. Companies should adopt a proactive approach towards prevention by investing in building a resilient freight management system backed by processes that are as automated as possible.

## The global climate will not “change” for the better anytime soon
![a foggy highway](https://assets.cargobase.com/pexels_markus_spiske_226460_10e3b9c180.jpg)

Remember about what I mentioned about how the topic of climate change is still stirring up geopolitical debates? Antonio Guterres from the UN actually agreed we are all “failing to get a grip” on [climate change](https://phys.org/news/2023-11-world-severely-track-limit-planet-heating.html#:~:text=Emissions%20need%20to%20be%20slashed,on%20reducing%20emissions%20this%20decade.) because of it. 

Though [COP28](https://www.globalcitizen.org/en/content/what-happened-at-cop28-fossil-fuels-climate/) did reflect some progress, there was reportedly some controversial reporting on climate funds and a lack of a firm agreement on phasing out fossil fuels, which adds up to a disappointing event after all. 

![bar graphs](https://assets.cargobase.com/Screenshot_2023_12_22_at_10_02_00_PM_a159884c58.png)
Source: [news.un.org](https://news.un.org/en/story/2023/09/1140527#:~:text=The%20world%20is%20not%20on,a%20commitment%20to%20decisive%20action.)

Looking at the chart above obviously shows that we are not even close to seeing any significant progress in climate change. This would mean more disruptions to supply chains due to natural disasters which will then affect any mode of logistics transportation to smoothly deliver. 

![coloured bar graphs](https://assets.cargobase.com/Screenshot_2023_12_26_at_11_05_55_AM_23398bf3bf.png)
Source: [ncei.noaa.gov](https://www.ncei.noaa.gov/access/billions/state-summary/US)

According to the chart above by [National Centers for Environmental Information](https://www.ncei.noaa.gov/), 2023 is the year the United States has encountered the most natural disasters and with it, an all-time high rate of $600 billion worth of damages. We have not even looked at the rippling effects of the wildfires, hurricanes, floods, and earthquakes across other parts of the world. 

Most aspects of climate change are beyond our control as freight management professionals and hopefully, the geopolitics of it can help create brighter days ahead. What we can grasp to help ourselves is embracing technology within transportation management systems (TMS), which should prepare us ahead of possible natural disasters, reveal better alternate routes with LSPs, and establish effective two-way communications during chaotic situations. 

<ProTip/>

However, many TMS tools today are still held back by how complex their infrastructure is and this is why the next element is so crucial for freight management as well.  

## Transportation management systems have to adapt

![a woman working in the office at her desk with analytics on her computer screen](https://assets.cargobase.com/pexels_thisisengineering_3861967_5432ac3e6d.jpg)

Unfortunately, many transportation management systems today are still extremely complex by infrastructure, which is why they are very expensive, could take years to properly integrate into a company’s systems, and might not be able to deliver the agility expected in today's ever complex supply chains exacerbated by a VUCA atmosphere.

If any of these attributes sounds awfully familiar to you, we totally feel you. 

In today’s volatile setting, trade wars, geopolitical conflicts, climate disruptions, and economic fluctuations are already a part of the new normal. Only a modern and agile TMS equipped with real-time visibility, data analytics and communications today can help supply chain managers navigate through disruptions quickly. Rigid and inflexible systems will likely stall operations and incur huge losses due to inefficiencies.    

A volatile environment is also a perfect spawning ground for uncertainty. More than ever, companies deserve to be equipped with an adaptive TMS that can handle the most abrupt route changes, provide the most suitable modes of transportation options quickly, and calculate the best freight rates as soon as possible, to minimize risk and maximize opportunity. 

While a TMS is fundamentally designed to enable companies to achieve efficient transportation management, TMS providers should also understand that the needs of companies vary across the board. 

For small and medium enterprises, pricing and scalability is key. This is also one of the main reasons why [cloud-based TMS](https://www.cargobase.com/blog/top-4-benefits-of-a-cloud-based-tms-system) are more popular as there are no hardware costs, and they are easier for developers to work on any feature or security updates, rendering them as more adaptive solutions. 

As for larger enterprises, TMS solutions have to be extremely [integration-friendly](https://www.cargobase.com/getting-started) with 3rd party solutions (e.g 3PLs, carriers, ERP solutions, etc) and must be capable of supporting tasks involving regional regulation compliance as well as multilingual and multi-currency requirements. 

In short, a well-developed TMS has to supplement the needs of the company, even if it means it has to be tailor-made in some ways. There needs to be more innovation in the providers’ space to develop more modern and effective transportation management systems. With more adoption of these, freight management processes will be a smoother journey for everyone. 

## Spot freight procurement tools will be more important than before

![two logistics men in a truck parking lot](https://assets.cargobase.com/full_shot_men_wearing_protection_equipment_01256b4cba.jpg)

In a VUCA world, contract freight agreements will never be set in stone with shipments going smoothly on auto-pilot mode. According to Hans Hickler, President of [Seko Logistics](https://theloadstar.com/shippers-hold-back-on-contracts-amid-uncertainty-and-ample-capacity/) (Americas), he quoted: “You don’t know when you’re going to get knee-capped, but sooner or later [it happens]” 

There will always be disruptions that will require companies to look for alternatives that can help transport their shipments to destinations on time, and it is always within these moments when seizing the most viable shipping options in the spot market is critical.

However, it can be challenging in a VUCA atmosphere as such situations would mean that there is a spike in demand within the spot market which will cause rates to rise. Your spot quotes could also take a longer time to be received and probably an even longer time to get a quote in return. If you are looking to get your quote across through a manual process and negotiate with emails or phone calls, chances are it will be increasingly difficult and time-consuming. 

This is when a reliable spot freight procurement tool becomes essential. 

A reliable spot freight procurement tool today should possess modern TMS attributes such as an expansive partner network of carriers, freight forwarders or LSPs, [invoice matching capabilities](https://www.cargobase.com/invoice-matching) and [real-time visibility](https://www.cargobase.com/real-time-visibility). 

With a reliable spot freight procurement tool, companies can send out spot quotes to a vast network of carriers and effectively communicate with them to consolidate the best quotes. This will enable shippers to analyze carefully, make the best shipping decisions efficiently, and get their shipments delivered on time. 

After all, the spot market is where shippers will find quick and reliable solutions when contract freight shipments cannot deliver, which will be gaining more traction in an increasingly VUCA setting. 

<ProTip/>

In time to come, more shippers will find securing the best spot buy deals more challenging. Eventually, they will also feel that they are getting outpaced when more shippers invest in a modern spot freight procurement tool. Carriers will also be looking to join the spot freight procurement tool bandwagon as a partner to seize the spot market opportunities more efficiently as well. 

## Strategic partnerships and collaboration will be more important than before

![a happy engineer and a young black worker shaking hands in a factory](https://assets.cargobase.com/happy_engineer_young_black_worker_handshaking_while_greeting_industrial_building_484ef80af8.jpg)

In a VUCA environment, people tend to isolate themselves with a “self-sustainable” mentality by breaking away from partnerships or collaboration. This is likely caused by mental paradoxes driven by an atmosphere filled with heightened distrust, tension and competitiveness. 

Personally, I believe unity is strength. Partnerships and collaborations are even more essential to gain leverage that will help all parties navigate through or even embrace VUCA. It could also help foster agility and adaptability, allowing all parties to respond swiftly to changing circumstances and capitalize on opportunities. 

For freight management, this is absolutely applicable. Under the pressure of unpredictable disruptions and shifting market dynamics, siloed approaches tend to crumble. Hence, It is wise for shippers to seek out partners that can provide them enhanced supply chain visibility, network as well as risk mitigation capabilities that could cover their shipping needs in times of unprecedented disruption. 

With any strategic partnerships or collaborations, all stakeholders should also leverage a transportation management system’s capability to establish a single source of real-time shipment data and facilitate end-to-end communication through messaging and document sharing. This is especially important for stakeholders who are working around suppliers of multiple tiers.

Every supply chain revolves around networks, which is also the reason why Cargobase’s TMS platform is built on the basis of collaboration. It is integration-friendly and already has an ever-evolving fleet of partner carriers available for shippers to work with. Today, we have over 800 carriers within our TMS partner carrier network to cover shippers’ contracts as well as spot freight shipments and we are definitely looking forward to reaching out for more. 

Through such mutual cooperation initiatives, companies will also be able to exchange feedback that can help encourage continuous improvement and innovation that will help equip all parties with the capabilities to navigate through the VUCA landscape. 

## The Critical Mentality Shift in Freight Management 

At times, it might be hard to embrace these elements. Like most people, I was also hesitant in recognizing these facts but a few important lessons throughout my professional career in the supply chain management space eventually changed my perception. 

First, I learnt that nobody can control everything. Again, I’d like to emphasize that supply chain and freight management is a minefield full of unpredictability. Factors like geopolitics and climate change are beyond our control and we have to recognize it. Instead, we have to learn how to focus on the factors that we can control and only from there, we will be able to start looking at things with a little brighter perspective. 

Second, change is inevitable. Even in an ever-evolving VUCA setting, the world is looking to innovate and at times, we have to let go of what we are most comfortable with in order to adapt. Resisting change is only going to delay or even worse, stop you from progressing. We have to embrace change as a natural part of life. Recognizing the importance of change is part of what drives Cargobase forward and we will not be where we are today without constantly looking to adapt our software to the market’s or clients’ requirements. 

Third, I recognized that seeking support from my peers, fellow colleagues, and partners is never shameful. You could be having your own thoughts but perspectives from others could open insights you never knew it could have made so much sense. It is essential to recognize that we are never perfect and we can only truly succeed when you surround yourself with people that align with your directions. Along the way, we must also be sure to value those that chose to support you on your journey and always stay open for a casual conversation with them. Who knows it could spark a revolutionary idea. 

The VUCA storm may rage on but if you need a helping hand, we are more than willing to raise out ours. Feel free to [reach out to us](https://www.cargobase.com/contact-us) to learn more about how Cargobase can navigate these uncharted waters and emerge stronger than ever with you. 


large_Navigating Freight Management in a VUCA Era (2).png

medium_Navigating Freight Management in a VUCA Era (2).png

small_Navigating Freight Management in a VUCA Era (2).png

thumbnail_Navigating Freight Management in a VUCA Era (2).png

xsmall_Navigating Freight Management in a VUCA Era (2).png

Navigating Freight Management in a VUCA Era (2).png

Don’t worry captain. There is hope in sailing your ship smoothly through VUCA territories. 

Charting the Unknown: Freight Management in a VUCA Era

The new office in Kuala Lumpur will accommodate essential operational functions, such as engineering, product, and customer success teams. A key advantage of the Kuala Lumpur location is access to a vibrant and diverse talent pool as the city gains prominence as an emerging technology innovation hub.

_"Many logistic technology companies are facing strong headwinds at this time, but we are optimistic about our growth due to a sustainable business model built over the last 10 years, a growing customer base and an increasing market share in our segment. Kuala Lumpur is an up-and-coming tech innovation hub that offers access to great talent and excellent connectivity at a reasonable cost. Attracting top engineering talent is crucial to developing a top-notch logistics software product that is versatile, powerful, yet intuitive enough for logistics professionals to use every day,”_  said Wiebe Helder, Founder and CEO at Cargobase.

Headquartered in Singapore, Cargobase celebrated its 10th anniversary as a logistics software company this year, with a portfolio of enterprise shippers in automotive, electronics and the semiconductor industry and a base of users that spans 52 countries.

In March 2023, Cargobase announced their Next UI, a new user interface that gives enterprise shippers the visibility they need to make better decisions. Features include improved freight tracking, carbon emissions reporting, advanced analytics and easy API integration capabilities. 



#### ABOUT CARGOBASE

Founded in Singapore in 2013, Cargobase is a global logistics software company whose mission is to simplify logistics for all. The solution: "Logistics Software That Works". Cargobase offers TMS Lite, a Transportation Management System (TMS) that gets to the heart of what logistics professionals want – the versatility to manage various supply chain flows from end-to-end, coupled with the visibility to make better decisions from day one. TMS Lite is used in 52 countries by listed companies and leading enterprise shippers across the Automotive, Electronics, Semiconductor, Fashion, Oil & Gas, Aviation, and Agricultural sectors. 



large_Press Release KL Office Opening.png

medium_Press Release KL Office Opening.png

small_Press Release KL Office Opening.png

thumbnail_Press Release KL Office Opening.png

xsmall_Press Release KL Office Opening.png

Press Release KL Office Opening.png

Cargobase, the global logistics tech platform for enterprise shippers, is pleased to announce the opening of its new office in Kuala Lumpur, Malaysia, as part of its strategic expansion to better serve a growing customer base.

Cargobase Expands Global Footprint With New Office in Kuala Lumpur, Malaysia

It’s estimated that close to 50,000 companies will have to comply with the Corporate Sustainability Reporting Directive (CSRD), which requires the disclosure of information on climate-related impacts, risks, and opportunities in business strategies. 


This includes reporting on Scope 3 emissions, which are more challenging to calculate due to their indirect nature but often account for a higher proportion of the overall emissions.



## What are Scope 3 emissions?

Scope 3 captures all the other indirect emissions not included in Scopes 1 and 2. Scope 3 emissions are divided into **upstream emissions**, associated with things the organisation purchases, and **downstream emissions**, associated with what the organisation sells. This includes the emissions produced by suppliers and customers when they’re using the company’s products or services. 

In total, there are 15 categories that encompass the landscape of value chain emissions.

![V1 #3.png](https://assets.cargobase.com/V1_3_1eae8ddb06.png)


## Why do Scope 3 emissions matter for CSRD?

Scope 3 emissions account for over 70% of the average company’s total emissions and being able to manage Scope 3 emissions can enable the organisation to work towards attaining net zero by 2050. 

As mandatory climate-related reporting continues to accelerate globally, organisations are facing increasing pressure from three key stakeholders.



**Investor pressure**


Banks and investors are demanding more information to assess ESG criteria. A low sustainability score may indicate a higher risk rating and the lack of such information could potentially affect access to capital and the cost of borrowing. 



**Regulatory pressure**


The CSRD is set to be phased in from 2024 and this means that in-scope organisations would be required to make disclosures on the risks and opportunities that arise from social and environmental issues and the impact of their business on people and the environment. The CSRD requires in-scope organisations to follow disclosure and reporting standards that might capture both EU and non-EU groups.



**Supplier pressure**


Suppliers are also looking to reduce their carbon footprint and should work together to identify areas of sustainable sourcing, cost savings, and reducing inefficiencies across the value chain. Organisations can foster collaboration with suppliers and create mutually beneficial sustainable initiatives by quantifying and tackling Scope 3 emissions. 



## What it means for the supply chain

Having access to the right data is the first step to improving supply chain sustainability. This can be done through data collaboration with supply chain partners, third party providers and a logistics technology stack that supports integrations.

The Cargobase platform is one such logistics solution for enterprise shippers. It offers a carbon visibility feature that automatically calculates and tracks carbon emissions of each shipment for inbound and outbound flows, simplifying carbon emission reporting for upstream and downstream activities in the value chain.



## Start taking action now

Measuring the Scope 3 emissions may be challenging but having carbon visibility serves as a benchmark for companies to understand the key sources of emissions and enable them to make better decisions towards a net zero goal. 


#### 
**Learn more about how Cargobase can help with carbon visibility in your supply chain. [Book a consultation](https://www.cargobase.com/contact-us) today.**

large_What you need to know about Scope 3 emissions for CSRD.png

medium_What you need to know about Scope 3 emissions for CSRD.png

small_What you need to know about Scope 3 emissions for CSRD.png

thumbnail_What you need to know about Scope 3 emissions for CSRD.png

xsmall_What you need to know about Scope 3 emissions for CSRD.png

What you need to know about Scope 3 emissions for CSRD.png

The European Union’s Corporate Sustainability Reporting Directive (CSRD) comes into effect in 2024 and this will change the way you manage Scope 3 emissions. Here is all you need to know about Scope 3 emissions for CSRD. 

What you need to know about Scope 3 emissions for CSRD

Based on reviews from actual customers, Cargobase has been ranked the **5th easiest to use** (out of 154) Transportation Management System (TMS) in the G2 Fall Report 2023.

For the first time, we've also been recognised in the Americas region as a Leader and High Performer (overall & mid market).

The [Cargobase TMS](https://www.cargobase.com/) is powerful yet simple to use. Most importantly, it's versatile enough to handle various supply chain flows, and supports all freight modes.

#### Hear it from our customers!
> The Cargobase platform is fantastic for managing our expedited freight demands. We get competitive quotes from our partners in a very short turnaround time - much simpler than sending several emails. Everything is tracked so the team can easily extract data and have great insights. 
Our communication and collaboration across our business improved dramatically. The wonderful thing is real-time visibility across all our partners. 

_**Ramon Rodela**_

_Head of Transportation and Empties Management, North America_

**MAHLE**

Want to simplify your processes? [Book a consultation with us!](https://www.cargobase.com/contact-us)


### The world's largest shippers use Cargobase
![Logo block.png](https://assets.cargobase.com/Logo_block_8cb57e519a.png)

large_Blog.png

medium_Blog.png

small_Blog.png

thumbnail_Blog.png

xsmall_Blog.png

Blog.png

For the first time, Cargobase has been recognised in the Americas region as a Leader and High Performer (overall & mid market) in the G2 Fall Report 2023.

We're recognised as a Leader in Transportation Management Systems Globally and in the Americas

As supply chain and logistics leader, we know that system helps you thrive during peace time and ensure you stand still during war time. Navigating the turbulent waters of supply chain and logistics requires not just an able hand, but also a reliable partner that understands your pain points and knows how to deliver innovative, agile solutions. Enter Cargobase - your seasoned navigator in the voyage to logistical efficiency and optimization. Armed with our battle cry, #GetShipDone, we're here to make your journey smooth and rewarding.

## The Core Pillars of a Reliable TMS

### Digital Agility: The Need of the Hour

As the digital transformation wave sweeps across the supply chain landscape, the ability to ride this wave becomes crucial. A well-equipped TMS should respond swiftly to evolving market conditions, whether it's new routing rules, transportation providers, suppliers, modes of transportation, or customs requirements. By efficiently managing complex, risky, and costly changes, an agile TMS lets you ride the wave of digital transformation with confidence and ease.

Consider [the automotive industry](https://www.cargobase.com/industries/automotive), where digital disruption is driving substantial changes in the supply chain. For instance, electric vehicle battery manufacturers often need to source raw materials like lithium and cobalt from diverse geographical locations, requiring their supply chain to adapt swiftly. A flexible and digitally agile TMS like ours can enable these manufacturers and their customers adjust to new routing rules, and respond to changing customs requirements, ensuring a smooth, uninterrupted supply of essential components. And if there are disruptions, they are at least aware and can prepare accordingly to avoid minimal impact.

### Increased Control and Visibility: The Beacon in Murky Waters

In the often complex world of logistics, control and visibility serve as guiding lighthouses. An effective TMS should provide comprehensive end-to-end visibility, predictive analytics, and AI-assisted decision-making capabilities. It should serve as a well-lit map and a reliable compass, ensuring your operational and strategic needs always find their way to the top of the priority list.

Take [the semiconductor industry](https://www.cargobase.com/industries/semiconductor), which is notorious for its complex and extensive supply chains, as an example. The recent global chip shortage has highlighted the importance of end-to-end visibility and control in mitigating disruption. Our TMS can replace manual tracking with multiple forwarders and offer comprehensive visibility, predictive analytics, and AI-assisted decision-making, providing semiconductor companies a detailed map and a reliable compass for their intricate supply chains.

### Flexibility and Continuous Improvement: The Key to Resilience

In supply chain management, adaptability isn't an asset—it's a survival trait. A robust TMS needs to be flexible by design, facilitating an agile transportation process that ensures the lowest cost and risk under all conditions. It should offer API access for seamless integration with internal and external systems and foster a culture of continuous improvement, regularly updating with new functionalities to increase its value.

[Oil and gas companies](https://www.cargobase.com/industries/oil-gas) often face fluctuating market conditions and regulatory environments, demanding constant adaptation. With the ongoing shift towards greener energy, these companies must continuously refine their transportation processes to ensure low cost and risk. A flexible TMS, like ours, which offers API access and routinely updates for continuous improvement, can help oil and gas firms stay responsive and resilient in this ever-changing landscape.

### Beneficial for Logistics Service Providers (LSPs): The Win-Win Approach

A good TMS should foster a beneficial environment for both shippers and LSPs, reinforcing partnerships and driving profitability for all parties involved. Just like a high tide lifts all boats, a cooperative TMS can pave the way for better, more efficient supply chain management for all stakeholders.

[Electronics manufacturing companies](https://www.cargobase.com/industries/electronics) often deal with sensitive and valuable machinery, requiring specialized providers. A TMS that fosters beneficial relationships with these carriers not only serves the shippers but also ensures that the provider’s unique capabilities are fully utilized. Our TMS aims to reinforce these partnerships, driving profitability for all parties involved, much like a rising tide lifting all boats.

## Charting the Course: Key Features of the Cargobase TMS

### Spot-Buy Procurement: The Navigator of Emergency Shipments

One of the standout features of our TMS is the [spot-buy procurement module](https://www.cargobase.com/spot-buy-procurement) - designed for businesses managing ad-hoc or emergency shipments across all modes of transport. This functionality isn't just adept; it's effortless, whether you're inviting 2, 5, or even 10 providers to quote. Our platform streamlines the procurement process, maintaining full compliance while ensuring you receive an average of 3.2 quotes per request. The system is so robust and user-friendly that it leads to an impressive 27% cost savings. It's akin to having a diligent quartermaster, working ceaselessly in the background to garner the best and fastest quotes while ensuring your Logistics Service Providers (LSPs) are perfectly aligned with your unique needs.

### Real-Time Visibility: The Lookout of Your Operations

In the fast-paced environment of logistics, [real-time visibility](https://www.cargobase.com/real-time-visibility) isn’t a luxury — it’s a vital crew member keeping a hawk-eye on your operations. Our real-time visibility solution presents a single, unified dashboard to track shipments across all freight modes, providing you with an eagle-eye view of your logistics landscape. With dynamic ETA calculations based on real-time data, you're empowered to make quick, accurate decisions that can help reduce unnecessary downtime and costs.

### Freight Management: The Helmsman of Your Shipments

Our [freight management module](https://www.cargobase.com/freight-management) is designed to put you at the helm, allowing you to steer your freight operations with precision. You have the power to oversee shipment tender rates, request spot quotes, and communicate with your partners in real-time. Features like rate management, freight tendering, and freight execution are akin to the controls on your ship's bridge, giving you the reins of your entire freight operation from a single dashboard. No matter the freight, the timing, or the price, you can ensure your shipments always sail smoothly to their destination.

### Invoice Audit: The Purser of Your Finances

Nobody likes surprises when it comes to finances, especially not errors and overcharges on invoices. That’s where our [invoice audit module](https://www.cargobase.com/invoice-audit) comes in — a diligent purser that automatically compares invoices with the quoted or contracted amount, highlighting discrepancies. Whether it's errors, overcharges, or incomplete documentation, nothing slips past our system's watchful eye. Moreover, this module is designed to be as adaptable as the most skilled sailor, ready to be configured to match your company’s unique requirements. It works to ensure compliance while saving valuable time for your finance or audit department. 

### Reporting & Analytics: The Cartographer of Your Business Decisions

Our TMS is not just about managing day-to-day operations, but also about planning the route ahead. Our [reporting & analytics module](https://www.cargobase.com/reporting-analytics) serves as a skilled cartographer, providing in-depth, real-time insights into your performance. It allows you to slice and dice the data to unearth the insights most relevant to your needs. With over 10 years of data, our TMS offers a unique advantage in benchmarking. Armed with this treasure trove of data, you can make faster, smarter, data-driven business decisions that can set your course towards success.

## The Cargobase Advantage: Unfurling the Sail of Transformation

The Cargobase TMS isn't merely a tool to streamline operations. It's a transformative force designed to revolutionize how you navigate your logistics. Regardless of your industry — whether you're charting paths in automotive, semiconductors, aviation, or others — our suite of tools is designed to help you streamline your logistics, enhance operational efficiency, and ultimately save money. 

So, if you're a supply chain professional poised to set sail on a digital transformation voyage, consider Cargobase as your trusty, knowledgeable, and no-nonsense guide. We're committed to helping you #GetShipDone. 

large_Redefining TMS and Supply Chain Efficiency A No-Nonsense Approach.png

medium_Redefining TMS and Supply Chain Efficiency A No-Nonsense Approach.png

small_Redefining TMS and Supply Chain Efficiency A No-Nonsense Approach.png

thumbnail_Redefining TMS and Supply Chain Efficiency A No-Nonsense Approach.png

xsmall_Redefining TMS and Supply Chain Efficiency A No-Nonsense Approach.png

Redefining TMS and Supply Chain Efficiency A No-Nonsense Approach.png

Discover how Cargobase is redefining supply chain efficiency with a no-nonsense approach. Explore our solutions designed for the digital age, enhancing visibility, control, and ROI in logistics. 

Redefining TMS and Supply Chain Efficiency: A No-Nonsense Approach

We are excited to share the key insights and knowledge from our recent webinar, which was designed to help providers win more businesses through a data-driven approach. 

Hosted by Martin Laux, Head of Sales - Europe at Cargobase and led by Mack Ferguson, Data Scientist at Cargobase, this immersive workshop was designed to equip providers with the tools and strategies to supercharge their performance through data-driven insights.

## Workshop Highlights

- Gain a comprehensive understanding of key performance indicators (KPIs) such as on-time delivery, handling of goods, and pricing accuracy, and their significance for businesses.
- Learn effective strategies for accessing and analyzing raw data, using a data warehouse, and leveraging curated dashboards based on these KPIs.
- Discover how these data-driven insights can be used to identify missed opportunities and better understand customer needs.
- Understand how to measure improvements, define goals and timelines, and assign responsibilities for different tasks.

The webinar also emphasized the importance of focusing on the right message, setting end goals, and monitoring progress at set intervals. It provided a clear narrative and visual representation of data, stressing on its context and relevance.

[Watch On-Demand](https://youtu.be/LINtqd8H3qI)

Ready to harness the power of data to supercharge your business performance? We encourage logisitcs solution providers to watch the replay of the webinar to gain a deeper understanding of these concepts and learn how they can be applied to your business.



large_thumbnail.png

medium_thumbnail.png

small_thumbnail.png

thumbnail_thumbnail.png

xlarge_thumbnail.png

xsmall_thumbnail.png

thumbnail.png

Discover key insights from our recent webinar with Cargobase, where we explored how logistics solution providers can leverage data to enhance performance. Watch the replay to learn about key performance indicators, data analysis strategies, and how to translate insights into effective execution. 

[Workshop Recap and Recording Available] Provider Edition | Leverage Your Data to Outperform the Competition

In the unpredictable seas of global logistics, the ability to quickly adjust your sails can be the difference between staying afloat or sinking. Carving out a flexible, agile transport procurement strategy is more critical than ever. This is where operational agility comes into play. With the global freight volume expected to reach a staggering 92.1 billion tons by 2024, the need for a flexible, agile transport procurement strategy is more crucial than ever.

As a next-gen supply chain leader, you're well aware of the challenges that come with managing a complex supply chain. You've likely navigated through the stormy waters of freight delays, the whirlpools of unexpected issues at customs, and the tidal waves of disruptions that these issues can cause. But what if I told you there's a way to not just survive these challenges, but to thrive amidst them? Cue the Transport Management System (TMS).

## The Value of Operational Agility

In the past few years, we've seen a series of black swan events that have disrupted supply chains worldwide. From the COVID-19 pandemic to the Suez Canal blockage, these unexpected events have underscored the importance of operational agility.

Operational agility is the capacity to adapt to unexpected problems. It not only helps you avoid potential losses but also unlocks new strategic possibilities for how your company operates. A TMS can provide the necessary scaffolding upon which to build a far more flexible, agile transport procurement strategy. This is not inherent in the system, of course; it is simply a strategic possibility that the right TMS will facilitate.

## The Limitations of Traditional Strategies

Many companies rely on a handful of suppliers to keep their transportation logistics under control. But this approach reduces agility and leaves you more vulnerable to sudden price shocks or black swan events. The sheer complexity of transportation logistics often leads companies to this strategy, but it's a strategy that comes with its own set of risks.

A TMS can help remedy this, providing a centralized system that simplifies data and gives you a single view of your freight. This allows you to analyze the end-to-end transport process and make sense of the complex web of logistics. With this level of understanding, you can make more effective decisions, leading to more efficient and cost-effective operations.

## The Role of a TMS in Facilitating Agility

There are several limiting factors when it comes to operational agility in transportation logistics. Transport compliance is generally complex and time-consuming, which is why switching providers is not always straightforward. It can also be difficult to get accurate and honest market comparisons, which makes switching tricky.

The right TMS that includes procurement modules will have built-in compliance and be totally provider agnostic. This will ensure any changes you make to your freight sourcing strategy are 100% safe and based on objective analysis of the market. The automation that a TMS provides not only saves your team time - it leads to fewer errors, happier workers, and more efficient overall systems.

## The Importance of Built-In Compliance and Provider Neutrality

In the world of transportation logistics, compliance is king. Whether it's adhering to international shipping regulations or meeting industry-specific standards, compliance is a critical aspect of any logistics operation. A TMS with built-in compliance features can help ensure that your operations are always up to code, reducing the risk of costly fines and penalties.

Provider neutrality is another crucial feature of a robust TMS. This means that the system doesn't favor any particular provider, allowing you to choose the best provider for your specific needs. This level of flexibility can be a game-changer, enabling you to adapt your strategy as market conditions change.

## The Power of Automation and Time Saving

From filling in order forms to manually navigating suppliers, transportation can take up a huge amount of time and effort. These tasks are often boring and highly repetitive, leading to human error, lowered productivity, and decreased employee morale. 

A TMS can automate these tasks, reducing the time spent on them by up to 80%. This not only leads to fewer errors and happier workers but also frees up time for your team to focus on strategic tasks. Imagine what your team could achieve with the extra time saved by TMS-driven automation!

## The Financial Hurdles and the Solution

Traditional TMS often require you to sign a long-term license fee, prior to having actual seen the real-ting in a live environment for your business needs. This slows down the process of getting budget and approvals without a real business case. However, modern logistics software solutions can be deployed in a plug-and-play and modular fashion, significantly lowering financial adoption hurdles.


In the ever-changing landscape of transportation logistics, operational agility is not just a nice-to-have, it's a must-have. A robust TMS can provide the necessary tools to navigate the complexities of the industry, ensuring compliance, provider neutrality, and improved customer and partner relationships. 

As a supply chain and logistic leader, investing in a TMS is not just about improving operational efficiency, it's about unlocking new strategic possibilities for your company. So, set your sails and navigate the waves of the logistics industry with confidence and agility.

Keen to learn more about #GetShipDone with TMS? Be sure to [contact us](https://www.cargobase.com/contact-us) today!

large_Riding the Tide Operational Agility as your Secret Weapon in Logistics.png

medium_Riding the Tide Operational Agility as your Secret Weapon in Logistics.png

small_Riding the Tide Operational Agility as your Secret Weapon in Logistics.png

thumbnail_Riding the Tide Operational Agility as your Secret Weapon in Logistics.png

xsmall_Riding the Tide Operational Agility as your Secret Weapon in Logistics.png

Riding the Tide Operational Agility as your Secret Weapon in Logistics.png

As a next-gen supply chain leader, you're well aware of the challenges that come with managing a complex supply chain. But what if there's a way to not just survive these challenges, but to thrive amidst them? Cue the Transport Management System (TMS).

Riding the Tide: Operational Agility as Your Secret Weapon in Logistics

At Cargobase, we take our mantra, #GetShipDone, to heart. That's why we're beyond excited to share our recent triumph in the G2 Summer Report 2023.

[G2](https://www.g2.com/products/cargobase/reviews), a respected authority offering genuine user reviews and data-led insights on business software, has distinguished Cargobase with not one, not two, but three eminent awards: Leader, Momentum Leader, and High Performer, both in the categories of Transportation Management System and Freight Management.

## Lead by Example
Being named a "Leader" by G2 reaffirms our drive to excel in providing our clients with logistics solutions that drives immediate ROI. It also emphasizes our distinctive approach in an industry often clouded by convoluted systems and extravagant, impractical features.

Traditional logistics software can be prohibitively expensive, laden with superfluous elements, and time-consuming to implement. These complexities often detract from the very purpose of such software - to simplify and streamline freight operations.

At Cargobase, we defy this norm. We believe in a no-nonsense approach that cuts through the noise, focusing on what truly matters: efficiency, reliability, and practicality. We eschew unnecessary frills and inflated price tags, opting instead for straightforward, cost-effective solutions that make a tangible difference to our clients' bottom line.

With Cargobase, convoluted logistics processes transform into a well-oiled machine, saving our clients time, money, and a whole lot of bells and whistles.

## Ahead of the Curve
Our recognition as a "Momentum Leader" shines a spotlight on our simple yet powerful approach. We push the boundaries of innovation, continually upgrading and refining our platform to incorporate the latest technological advancements and user experience. 

In line with our 10th anniversary, [we've rolled out a new user interface](https://www.cargobase.com/blog/cargobase-elevates-logistics-with-next-level-user-experience), which exemplifies this commitment. Our renewed platform takes ease of use to the next level, offering an intuitive, user-friendly design that makes navigating complex logistics tasks simpler than ever. Beyond aesthetics, this interface revamp is powered by a decade's worth of insights, shaped by our users' needs and preferences. We've fine-tuned every feature to eliminate inefficiencies, streamline processes, and facilitate a seamless user journey.

## Committed to Excellence
Cargobase's dedication to its #GetShipDone mantra isn't just a catchy tagline. It's a philosophy ingrained in our every action. Receiving the "High Performer" award from G2 serves as an external validation of our commitment to delivering high-quality service. Every feature on our platform, from [spot-buy procurement](https://www.cargobase.com/spot-buy-procurement), [real-time tracking](https://www.cargobase.com/real-time-visibility), [invoice audit](https://www.cargobase.com/invoice-audit), to [reporting and analytics](https://www.cargobase.com/reporting-analytics) capabilities, is designed with an aim to deliver solutions to truly help our clients streamline their supply chain processes, eliminate inefficiencies, and maximize productivity.

## Standing Among the Best
Cargobase's position [in the top 3 of all other 145 vendors](https://www.g2.com/categories/transportation-management-systems-tms#grid) speaks volumes about our relentless pursuit of innovation and excellence. 

Each client's unique logistics challenge drives us to innovate, improve, and tailor our platform to cater to their specific needs. Our place in the top 3 is a testament to our hard work, dedication, and the no-nonsense approach we take to #GetShipDone. 

Cargobase currently serves over 330 enterprise manufacturer in more than 50 countries across major industries including [automotive](https://www.cargobase.com/industries/automotive), [semiconductor](https://www.cargobase.com/industries/semiconductor), [oil and gas](https://www.cargobase.com/industries/oil-gas), [electronics](https://www.cargobase.com/industries/electronics), and [aviation](https://www.cargobase.com/industries/aviation).

Our clients are more than just customers - they're the backbone of Cargobase. Their trust, invaluable feedback, and continuous support have propelled us to these remarkable heights. We're humbled and grateful for their rave reviews, and we're thrilled to share a few: 

![G2 review Cargobase](https://assets.cargobase.com/2023_spring_3_86bad2517e.png)

![G2 review Cargobase](https://assets.cargobase.com/2023_spring_2_0e015172e9.png)

![G2 review Cargobase](https://assets.cargobase.com/2023_spring_4_8961ce0920.png)

## Cargobase: A Cut Above
We don't just blend into the crowd. Our approach to logistics is no-nonsense, laser-focused on efficiency, reliability, ROI, and most importantly, getting the job done. By offering a seamless platform for shippers, we make complex logistics simple, user-friendly, and affordable. And with our relentless drive for [innovation over the last 10 years](https://www.cargobase.com/10years), we're always ahead, setting industry trends and delivering solutions that truly make a difference.

Here's to Cargobase: a Leader, Momentum Leader, and High Performer in the dynamic logistics industry. We remain dedicated to our mission - to make the lives of logistics professionals as simple as possible. 

Ready to see the difference Cargobase can make in your business? Contact us today and let’s make waves together.



large_Cargobase G2 Summer 2023.png

medium_Cargobase G2 Summer 2023.png

small_Cargobase G2 Summer 2023.png

thumbnail_Cargobase G2 Summer 2023.png

xsmall_Cargobase G2 Summer 2023.png

Cargobase G2 Summer 2023.png

At Cargobase, we take our mantra, #GetShipDone, to heart. That's why we're beyond excited to share our recent triumph in the G2 Summer Report 2023.


Making Waves in G2's Summer Report - No-Nonsense Logistics Software That Works

### Summary
- Semiconductors, the essential building blocks of modern electronics, require a high emphasis on supply chain excellence, highlighting the importance of Transport Management Systems (TMS) such as Cargobase.
- A TMS simplifies and centralizes logistics processes, providing a single-screen platform for all stakeholders and streamlining workflows in the complex semiconductor manufacturing industry.
- By facilitating visibility for both logistics and non-logistics personnel, a TMS like Cargobase allows for improved decision-making, efficient operations, and reduced costs.
- Cargobase mitigates semiconductor shortages by offering real-time visibility and smarter planning capabilities, allowing businesses to adapt quickly to supply chain disruptions and maximize revenue.
- A TMS can be pivotal in navigating the supply chain challenges of fast-paced, evolving industries like AI, assisting in managing the high demand for components like GPUs.
- The use of a TMS ensures business continuity by preventing customer-driven alternative strategies during shortages, thereby sustaining and growing revenues for semiconductor companies across diverse industries.

## Semiconductors: The Invisible Superheroes of Modern Life

In 2011, legendary venture capitalist Marc Andreessen wrote an article entitled “[Why Software is Eating the World](https://a16z.com/2011/08/20/why-software-is-eating-the-world/),” which explained how technology is transforming every industry for consumers and businesses alike. While software may get all the attention, what fuels its growth are semiconductors. These parts serve as the foundation for all computers and electronics. Semiconductors, in short, are the invisible superheroes of modern life.

Given the critical importance of semiconductors, businesses in this space must place greater emphasis on supply chain excellence and resiliency. To wit, if there is a shortage of apples, people can instead eat oranges. If there is a shortage of computers or electronic devices, organizations cannot conduct business operations to full capacity, remote workers cannot telecommute and students cannot attend classes, and consumers cannot participate in the digital economy. With poor planning, the semiconductor business can bring our world to a screeching halt. 

Fortunately, there is a solution to bring organization, efficiency, and transparency to the semiconductor supply chain. Since semiconductors are cutting-edge technology, they can turn to a solution that is equally cutting-edge: a transport management system (TMS), our superhero’s trusty sidekick.One such example is [Cargobase](https://www.cargobase.com/). When original equipment manufacturers (OEMs) or leading suppliers implement a TMS like Cargobase, they can address many of the specific issues affecting the semiconductor industry. 

## The Solution: Logistics Software, Such As a Transport Management System (TMS)

### Simplifying workflows in the semiconductor industry

As one of the greatest technical achievements of modern electronics, semiconductors are extremely difficult to manufacture. Like [the automotive industry](https://www.cargobase.com/blog/automotive-industry-tms-guide-2023), semiconductors are made through a multi-tier supply chain. Whether we're talking resistors, capacitors, diodes, or transistors, Original Equipment Manufacturers (OEMs) face the same maze.

In addition to this ecosystem of multiple stakeholders, there are also many workflows. OEMs and lead suppliers have logistics processes for equipment, sourcing of raw materials, and even research and development. These semiconductor companies will also need workflows to deliver finished products to customers and the supply chain to obtain any necessary spare parts. 

Because of the complexity of semiconductor logistics, most businesses assume that their workflows should also be complex. For example, they may use different solutions for different workflows or even different suppliers, resulting in a multitude of separate systems that all must be used to get parts or products to where they need to be. 

This complexity is in fact unnecessary. With the proper TMS, all of these distinct solutions can be centralized. On Cargobase, for example, semiconductor companies can interface with all their stakeholders, be it OEMs, tier 1 suppliers, tier 2 suppliers, engineers, or customers.

By uniting all the stakeholders into a single system, companies can execute all logistics processes from a single-screen platform, including those relating to equipment, raw materials, finished products, spare parts, and even research and development. This centralization is not only a matter of convenience but translates into real business value: With Cargobase, enterprises can experience [80% less calls and 2x fewer escalations](https://www.cargobase.com/real-time-visibility), which leads to a 18% cost savings. 

Notably, these solutions are not only for those deeply embedded in logistics. Unique to Cargobase’s TMS is its functionality to allow non-logistics users, such as engineers, managers, and even executives to have a clear line of sight into shipment flows including inbound and outbound. 

![semiconductor logistics flows](https://assets.cargobase.com/semiconductor_logistics_flow_5700a0ee90.png)

## Mitigating Shortages: the Power of Logistics Software

Throughout the COVID-19 pandemic, semiconductors [fell into short supply](https://www.spglobal.com/engineering/en/research-analysis/understanding-the-current-global-semiconductor-shortage.html). This shortage was due to the increasing demand for computers, tablets, and other electronics, as a result of more people working or studying from home. Lockdowns and factory closures put further strain on the supply coming on the market, thereby draining existing inventories. OEMs shifted their production lines to cater to this demand, which caused shortages for other customer profiles, such as car manufacturers. This [volatility is expected to continue](https://fortune.com/2023/03/11/chips-and-science-act-semiconductor-shortage-rakesh-kumar/), despite legislation to stabilize production. 

While semiconductors for computers and similar electronics were of higher value, this trade-off did not maximize revenue for OEMs. Instead of sacrificing one customer base for another, they should ideally be able to cater to both customer types. Such can be accomplished through meticulous planning, which is made possible with some of the features of a Transportation Management System (TMS).

Without the right logistics software (or a TMS), many OEMs and leading suppliers are left in the dark. While a shipment of critical parts may be overdue, they may only be able to track its precise location with extensive communication, following up with every partner in the supply chain who may possibly have it. Worst case scenario, OEMs and leading suppliers may be entirely unable to find the exact location of a cargo. 

This lack of transparency will not happen with a logistics software that provides full visibility and control. Because Cargobase provides [real-time visibility](https://www.cargobase.com/real-time-visibility) into the status of shipments, semiconductor enterprises will be able to plan accordingly. When a shipment is expected late, the OEM or leading supplier can anticipate when it will arrive, and make necessary adjustments, such as ordering from another supplier. 

By enabling these quick, corrective measures, semiconductor companies and leading OEMs maximize their logistics and in turn, their business. When they complete workflows faster, particularly those relating to downstream customers, they will not have to choose between which customers to serve. They can optimize revenue by fulfilling all demands for their semiconductor components or parts. 

## AI's Chip Tango: Adding Complexity to the Supply Dance

Let's take a quick detour to the cutting-edge world of artificial intelligence. It's pretty exciting stuff, isn't it? But guess what? They're dancing to the same supply chain blues as everyone else. A specific case of this pops up with Nvidia's advanced graphics chips, also known as GPUs, which are really the unsung heroes of AI operations.

Here's a taste of the tech gossip. Due to the explosive popularity of AI technologies like ChatGPT (you know, the chatbot that chats like a champ), demand for these GPUs has shot through the roof. Nvidia's been keeping up, but it's like running on a treadmill that's getting faster every second - they just can't keep up with the surge in demand. This pickle has entrepreneurs scrambling to secure these vital chips, leading to a mad scramble for processors and server capacity.

Sharon Zhou, co-founder and CEO of Lamini, nails it when she compares the GPU shortage to the great toilet paper rush during the pandemic. Not the prettiest picture, but it drives home the point: shortage situations are rough.

And that's exactly where our unsung hero, the TMS, comes in. It's not just about keeping the usual supply chain moves smooth. In a fast-paced, constantly evolving scenario like this, the ability to stay one step ahead becomes priceless. Real-time tracking, smarter planning, and centralization offered by a logistics software like Cargobase could just be the solution landing the AI industry needs to navigate this thrilling, challenging landscape.

## Steering Away From Business Continuity Risks

When customers face a long-term shortage, they make alternative plans. This has been occurring in the semiconductor industry, much to the detriment of OEMs and leading suppliers. Case in point: During the shortage brought on by COVID-19, many automotive companies began to think of alternative processes.

Some automotive companies explored bringing manufacturing in-house, bypassing their semiconductor suppliers altogether. Others thought of designing components that required fewer chips, which would reduce sales for OEMs and leading suppliers. And even the seemingly harmless habit of chip hoarding can upset the apple cart for OEMs, leading to a revenue rollercoaster ride.

These actions that the automotive industry took should be viewed as a microcosm of what others will similarly take in the face of ongoing shortages. All the other industries that rely on semiconductors, such as telecommunications, aerospace, and healthcare, will adopt strategies that reduce their reliance on their semiconductor suppliers. This is only natural: They must maintain business continuity for their customers.

It’s, therefore, in the interest of semiconductor companies to avoid putting their customers in this position, where their backs are against the wall, and they are left with no choice. Instead of this approach, semiconductor companies can act as reliable suppliers by capitalizing on the efficiency gains that come with logistics software that simply #GetShipDone. 

In turn, their customers will continue to depend on them for these parts rather than explore other avenues. This will maximize revenue for semiconductor companies in both the short- and long-term providing them with a diverse roster of customers across industries, segments, and geographies.

## Building the Future with Logistics Software in the Semiconductor Industry

Semiconductors are the hidden backbone of modern life. They contribute to the powering of our devices, appliances, cars, smart homes, hospitals, and other areas. Given the critical nature of semiconductors, OEMs and leading suppliers must place a high priority on reinventing their supply chain. 

The best way to transform their logistics is with logistics software that works - call it Transportation Management System (TMS), freight management software or what fits in your logisitcs flow. 
With a modular, poweful yet affordable solution like Cargobase, OEMs and leading suppliers can centralize all stakeholders and processes onto a single platform, which streamlines communication and improves associated costs. Such software helps businesses plan around any hiccups in the supply chain so there are fewer shortages to their downstream customers. 

Wondering how to select and implement the right software for your team? [Let's chat](https://www.cargobase.com/contact-us)! 

large_Succeeding in supply chain and logistics management in the semiconductor space.png

medium_Succeeding in supply chain and logistics management in the semiconductor space.png

small_Succeeding in supply chain and logistics management in the semiconductor space.png

thumbnail_Succeeding in supply chain and logistics management in the semiconductor space.png

xsmall_Succeeding in supply chain and logistics management in the semiconductor space.png

Succeeding in supply chain and logistics management in the semiconductor space.png

Explore how logistics software like Transport Management System (TMS) can transform semiconductor supply chain management, improve logistics and maximize revenues.

Succeeding in Supply Chain and Logistics Management in the Semiconductor Space 


Planes belong in the air. This fact is evident in its very category name: aircraft. Unfortunately, many aviation and aerospace companies have to deal with a harsh reality: Their aircraft will be frequently grounded due to extenuating circumstances. In other words, the aircraft is not onboarding cargo or passengers, offloading, or taxing on the runway, but suffering from some predicament that is keeping it from the skies.

### Summary

- The article addresses the financial and operational challenges of Aircraft on Ground (AOG) situations for aviation enterprises, which often stem from poor supply chain management and communication issues.
- Regular and mandatory inspections may ground aircraft, but a specialized Transportation Management System (TMS), like Cargobase, can expedite sourcing and replacement of parts, even major components, thereby reducing downtime.
- AOG costs are heightened due to common leasing business models in aviation, but Cargobase can streamline the quotation process for logistics services, potentially saving significant time and costs for aviation companies.
- Effective communication, visibility into parts supply, and meticulous documentation management are crucial to mitigating AOG periods, all of which are facilitated by using logistics software such as a TMS.
- Amid the current economic crisis, logistics software can be a strategic tool to minimize AOG, making aviation companies more operationally prudent and helping them focus on their main objective: keeping aircraft in the skies.

Aircraft on Ground (AOG) can be viewed as an opportunity cost. When planes are grounded for maintenance, repair, and overhaul (MRO), they are not ferrying passengers between destinations. They are not delivering packages from point A to point B. Instead, AOG are simply incurring financial, operational, and reputational costs on the aviation or aerospace company. While AOG costs may vary between planes, Boeing estimated that a single AOG occurence can cost the airline [from US$10,000 to US$150,000](https://web.archive.org/web/20080130122957/http://www.boeing.com/commercial/global/opscenter.html).

![Financial cost of AOG](https://assets.cargobase.com/Financial_cost_of_AOG_ce0598e470.png)

Given that AOG is so expensive, companies owe it to themselves to explore the reasons that their aircraft are not in the skies. Apart from regularly scheduled maintenance, most AOG situations result from a poor supply chain. For example, they may be waiting for a critical component that is late for delivery, stuck in an unknown location, or still with the supplier due to a cost-prohibitive quote from a logistics service provider. 

While aviation and aerospace companies may have an AOG desk, this is only one pillar of exceptional logistics. Enterprises in this space must also pair their AOG desk with an equally strong and agile logistics software such as a Transportation Management System (TMS). One such example is [Cargobase](https://www.cargobase.com/), where we help multiple companies, including those in aviation, #GetShipDone. We can, in short, get your planes back to the skies where they belong.

## Prepare for any possibility with a TMS

Government agencies require regular inspections of aircraft. In the United States for example, the Federal Aviation Agency (FAA) requires inspections based on flight time (400 to 600 hours) as well as [calendar time (6 to 8 months)](https://www.proponent.com/causes-costs-behind-grounded-aircraft/). There is an abundance of caution with any inspection: The smallest issue, such as even a faulty sensor, will require grounding of an airplane.

Most of these issues are easily rectified. Replacing the faulty sensor can be sourced from the supplier and then rushed to the aircraft via car, truck, boat, or another plane. In these cases, a plane can return to service relatively quickly. But aviation companies should not build their business continuity strategy for their fleet around these minor issues - they should do so around the large issues that can result in prolonged grounding. 

![AOG meme interstaller.](https://assets.cargobase.com/AOG_meme_interstaller_eab3c798b4.png)


These large issues usually involve major components of an aircraft, such as the cabin, engine, or airframe. These are of course difficult to transport. Depending on the size or the sensitivity of the part, they may not be supported by the freight mode of a particular logistics service provider, for example. 

A specialized TMS can help with these major components that commonly lead to extended AOG situations. First, the Cargobase network of over 1,200 logistics service providers supports all logistics flows for major components and parts globally. 

This ensures that enterprises can find the right partner in the quickest possible manner, so that they can get their plane restored to flight-ready. This reduces the unscheduled downtime and minimizes the turnaround time to get aircraft back into operation. 

![logistics flow for all AOG parts](https://assets.cargobase.com/logistics_flow_for_all_AOG_parts_f4838c0fd6.png)

## Minimize the financial impact of AOG

Estimates on the cost of AOG vary, but they all have one thing in common: They show that this problem is a very expensive one. 

The cost of AOG is exacerbated by the most common business models in aviation. Airliners often do not own their aircraft, which would make an AOG situation more palatable. Instead, aviation companies commonly lease planes anywhere from US$60,000 to US$500,000 per month. Leasing places an emphasis on cost recovery: Aviation companies must earn more each month than the cost of a lease - which is threatened by any AOG situation. With a long enough AOG, an aviation company will lose money on a particular plane. Multiply this by enough planes and an airliner risks going into the red. 

Cargobase has a notable feature that reduces the financial implications of AOG. Rather than requesting for an open-ended quote, wherein logistics service partners can submit a quote at any given time, Cargobase makes this process time-bound. Now interested partners will have to submit their quote within a given deadline. This small but important touch streamlines the often elongated quoting process, so that aviation companies can move on to choosing the right partner quicker. 

Even with a time-sensitive deadline, aviation companies can enjoy an average of 3.2 quotes per request, which leads to a cost savings of up to 18%. For a single plane, an aviation company can save hundreds of hours in inefficient quoting. When this process is multiplied by all the planes in a fleet, the aviation company will save thousands of hours in procuring parts for their AOG. 

## Improve communication across the procurement process

When an aircraft is on the ground, the last thing an aviation company needs is poor communication and visibility. Unfortunately, this is far too common. In some cases, an aviation company may not know where a replacement part is in the supply chain. In other cases, partners may be uninformed about the special handling and packing requirements of a major component, resulting in unnecessary damage - damage which may render it unfit for use and thus extend the AOG period. 

A TMS like Cargobase has features to improve communication and visibility during this time-critical period. First, there is a given field for any special processing requirements, so that this key information is automatically communicated to all partners, rather than expressed manually, or worse, forgotten or neglected. This ensures that major parts are packaged and handled in the way that they should be, so that they arrive in pristine condition, ready for deployment. 

In addition, aviation companies have real-time visibility into the parts that they sourced. This level of granular detail enables enterprises to better plan around their AOG. By knowing when the needed part will arrive, aviation companies can estimate when the plane will get back into action. Having a greater understanding of the block hours will enable companies to maximize revenue across all their aircraft.

![benefits of logistics software for AOG](https://assets.cargobase.com/benefits_of_logistics_software_for_AOG_e54484c4f1.png)

## Effective documentation management

A TMS, like Cargobase, not only fosters better communication and visibility but also serves as a pivotal tool for handling documentation with precision and effectiveness. In the throbbing heartbeat of aviation logistics, a misplaced document or a delay in sharing critical information can be the difference between a plane taking flight or staying grounded. Documentation, from supply chain inventories to special handling instructions, need to be managed meticulously, ensuring that the right information reaches the right hands at the right time.

Cargobase helps in elevating this aspect of communication by integrating all essential documentation within the system. It ensures that key paperwork is immediately accessible, updated in real-time, and automatically shared with all relevant parties. This reduces the chance of miscommunication, delays, or errors that can lead to unnecessary AOG situations. In turn, this allows aviation companies to efficiently manage their logistics, ensuring a swift turnaround for grounded planes, and as a result, maximizing their operational and financial efficiency. In short, proper documentation handling through a TMS like Cargobase, helps aviation enterprises keep their aircraft sky-bound, rather than being shackled by avoidable paperwork errors.

Consequently, aviation enterprises can focus on their primary goal: keeping their aircraft in the skies.

## Breaking new ground
With the current economic crisis, aviation companies will likely suffer. Consumers will travel less and send fewer parcels, and businesses will also have reduced cargo. In this kind of environment, aviation companies need to be even more financially and operationally prudent in order to survive. One of the lowest-hanging fruits in this regard is their AOG.
Although some aviation companies may take AOG as a fact-of-life - every piece of machinery will need repair, after all - there are major efficiencies to be gained here. The best way to do so is through a TMS like Cargobase, which can complement your existing AOG desk.

With a TMS, aviation companies can easily send any of the major parts that most commonly result in prolonged AOG. They can also minimize the financial impact of AOG by accelerating the quoting process through time-bound requests for proposals. Finally, they can improve visibility and communication, so that parts arrive on time and intact. Through a TMS, aviation companies can soar above the once-beleaguering problem of AOG. 



large_Taking flight How logistics software can help aviation enterprises soar to new heights.png

medium_Taking flight How logistics software can help aviation enterprises soar to new heights.png

small_Taking flight How logistics software can help aviation enterprises soar to new heights.png

thumbnail_Taking flight How logistics software can help aviation enterprises soar to new heights.png

xsmall_Taking flight How logistics software can help aviation enterprises soar to new heights.png

Taking flight How logistics software can help aviation enterprises soar to new heights.png

Explore how a TMS like Cargobase can minimize Aircraft on Ground (AOG) events for aviation companies, saving operational and financial costs. Learn how efficient logistics can keep your planes in the air.

Taking Flight: How Logistics Software Can Help Aviation Enterprises Soar to New Heights 

We are excited to share with you the valuable insights and knowledge gained from our exclusive online workshop Measure, Manage, and Master: Shipping Performance through Data. Hosted by Wiebe Helder, CEO at Cargobase and led by Mack Ferguson, a seasoned Data Scientist at Cargobase, this immersive workshop was designed to equip shippers with the tools and strategies to supercharge their performance through data-driven insights.

## Workshop Highlights

In this session, participants had the opportunity to:

- Gain a deep understanding of key shipping metrics and their significance for businesses in the supply chain and logistics industry.
- Learn effective strategies for collecting, analyzing, and leveraging shipping data to drive operational excellence and make informed decisions.
- Discover how real-time adjustments and improvements, based on data insights, can enhance agility and responsiveness in the face of changing market dynamics.
- Master the art of predictive analytics to unlock future shipping performance and stay ahead of the competition.

[Watch On-Demand](https://youtu.be/3G2vdRcbxiA)

Ready to unleash the power of data in your supply chain and freight operations? [Contact us](https://www.cargobase.com/contact-us) today to discover how our data-driven approach can optimise your logistics performance.


large_thumbnail workshop data.png

medium_thumbnail workshop data.png

small_thumbnail workshop data.png

thumbnail_thumbnail workshop data.png

xsmall_thumbnail workshop data.png

thumbnail workshop data.png

Welcome to our online workshop where we explored the power of data in the shipping and freight operations industry. If you're looking to supercharge your performance with data-driven insights, this 20-minute session with our industry experts will be a game-changer.

[Workshop Recap and Recording Available] Measure, Manage, and Master: Shipping Performance through Data

Cargobase, the leading provider of 'Logistics Software That Works', is thrilled to announce its recent victory at the LogiSYM APAC Awards 2023, where it was crowned the 'Best Supply Chain Software Company'.

The LogiSYM Awards, which applaud the best and brightest in the logistics and supply chain world, chose Cargobase as the winner in a fiercely contested category, standing tall among close to a hundred other contenders.

"Cargobase has always been about helping logistics professionals with getting ship done—#GetShipDone—and this award validates our commitment to that mission," said Wiebe Helder, CEO of Cargobase. "We're grateful for the recognition. Our unique no-nonsense approach is key to our success and is very well received by executive leadership and their operational teams."

Over the past decade, Cargobase has emerged as an industry leader, continuously rewriting the rulebook with its innovative solutions. From debuting the '[spot-buy procurement](https://www.cargobase.com/spot-buy-procurement)' feature to launching the revolutionary '[autonomous TMS](https://portal.prnasia.com/Orders/Preview#/c8d33197-4279-4f93-bc65-c1c4bfa596f0/5f5a1567-322c-4d0d-8e17-71df63f63668:~:text=launching%20the%20revolutionary%20%27-,autonomous%20TMS,-%27%2C%20Cargobase%27s%20software%20has)', Cargobase's software has been a beacon for next-gen supply chain and logistics leaders seeking an efficient, streamlined freight management experience.

Reflecting on the journey, Helder noted, "From a fledgling startup to an industry leader, we've proven that logistics innovation is not just about talking ideas and frills. It is all about listening to the end-user and what you deliver to them. They just want to get freight moving by a few clicks on a single screen."

Cargobase's solution, armed with a powerful blend of efficiency, transparency, and cost-effectiveness, has reimagined logistics processes for global manufacturers with complex and diverse supply chain flows. In addition, the platform's scalability makes it the go-to solution for logistics professionals who desire ease of implementation, user-friendliness and immediate ROI.

With an eye on the future, Cargobase is redoubling its commitment to revolutionize the industry. The company's newly established data science team is gearing up to provide more data-driven solutions and less industry jargon. This team will harness the power of data to provide actionable insights, simplify decision-making processes, and cut through the noise often associated with logistics. In this way, Cargobase aims to offer straightforward, no-nonsense solutions that drive success in the logistics industry.

But Cargobase won't be resting on its laurels. Celebrating its [10th anniversary](https://www.cargobase.com/10years), the company reaffirms its commitment to spearheading breakthrough solutions and forging a future that makes the lives of logistics professionals as simple as possible. The promise for the next decade? The same passion and innovation that helps businesses #GetShipDone.

"Winning the LogiSYM award is as much about honoring our past as it is about fueling our future," concluded Helder. "We're gearing up for another decade of delivering game-changing updates, trailblazing features, and yes, plenty more of #GetShipDone."

Cargobase Best Supply Chain Software Company @ LogiSym 2023

large_logisym.png

medium_logisym.png

small_logisym.png

logisym.png

Cargobase, the leading provider of 'Logistics Software That Works', is thrilled to announce its recent victory at the LogiSYM APAC Awards 2023, where it was crowned the 'Best Supply Chain Software Company'.