28 Jan The Human Element in Logistics: Why It’s Important
Digital Freight Brokerage
If you’re in logistics, you’ve heard of or had experience with digital freight brokers. They have cool apps and operate a little like travel giant, Expedia. They’re convenient and they often offer low low prices. The truth is that in many cases, they’ve got a lot of start-up money and they can afford to lose money in order to disrupt the industry and garner widespread use. In times like these, it doesn’t take long for smaller brokerages, even those with longevity in the industry, to close up shop. With enough money to ride out the wave, these digital brokerages can wait until competition has died down, and then they’ll raise their prices.
The Human Element in Logistics
But here’s what we’ll all be missing out on. The human element in logistics. And we can’t overlook what this means to the industry. Sure, you have to look at the bottom line, but it’s easy to forget that the bottom line gets bumped up when you take people out of the equation. People with knowledge of routes and trucks and distribution points. People with contacts all along the supply chain, who understand drivers and their HOS (hours of service) requirements, who know when the new regulations take effect and can protect you from excessive liability, who implement good technology because they’re logistics experts.
When you remove the human element from logistics you save money in the short term, but run the risk dropped loads, service failures, and regulation violations.
What you don’t know about digital brokers.
REVIEWS: Did you know that most digital brokers do not allow customers to leave public reviews on Google? Why do you think this is? We’re guessing that it’s because their reviews aren’t great. In fact, those digital brokers who do allow public reviews often average 2.5 (or less) out of 5. Here at AMT, we’re proud of our reviews. We not only allow reviews, we encourage the manufacturers, distributors, and carriers we work with to leave reviews because they are overwhelmingly good. Reviews can help you decide which logistics providers you want to work with.
SECURITY BREACHES: Were you affected by the Truckstop data breach? In December, right before Christmas, malware attacked Truckstop.com and caused a days long outage that severely compromised customers during the harried shipping days prior to the Christmas holiday. Cyberattacks will continue to be a problem in 2020.
Security firm Emsisoft said 965 government agencies, hospitals and schools experienced ransomware attacks in 2019. Yes, technology is now and will continue to be integral to the logistics industry, but without people, without backup systems, without human knowledge, experience, and ability, technology failures can and will eventually cost you money, reputation, and customers.
Logistics as a Service
Here at AM Transport, we work with manufacturers and distributors who are tired of service failures, frustrated by keeping up with technology changes, and are seeking a partner who will provide supply chain transparency and help with an unpredictable freight budget. Our Logistics as a Service offering pairs unparalleled technology with people–expert logistics professionals with intimate knowledge of the industry.
If you want the technology that a digital brokerage offers with the expertise of long-term logistics professionals, you should schedule a call with AMT today. Ask about Logistics as a Service. We’ll take a look at your supply chain and customize a logistics plan tailored to your needs, so you can get back to growing your business.