The Impact of Digital Yard Management on Enterprise Transportation Costs and Capacity

The Impact of Digital Yard Management

Researched and prepared by Adelante SCM’s analyst Adrian Gonzalez and presented by PINC, the publication’s 2020 theme is The Impact of Digital Yard Management on Enterprise Transportation Costs and Capacity.

The report brings clarity to key industry questions such as how important is having digital yard management capabilities in helping you achieve transportation objectives?

And how much do you estimate you would save annually in overall transportation costs by digitizing your yard operations?

The COVID-19 pandemic has made agility, flexibility, and responsiveness even more critical for supply chain success.

Manufacturers, retailers, and distributors have been forced to quickly adapt their supply chain networks and processes to new market realities.

As the uncertainties with customer expectations, unstable freight capacity, and ever-changing guidance from governments and public health authorities continue, trailer and container yards at distribution centers and manufacturing plants are playing a vital role as mechanisms to expedite shipments, support corporate sustainability goals, and reduce costs.

Also, facilities continue to be forced to optimize driver and truck turnaround times and reduce costs while becoming a “Shipper of Choice” as hours of service constraints cause carriers to be more selective.

At the enterprise level, logistics executives are looking for ways to automatically optimize the flow of goods into and out of their facilities and to efficiently manage yard capacities, trailer pool availability, yard service providers, transportation contracts, and accessorial charges from an enterprise perspective.

Gonzalez, the lead researcher, stated;

“Across virtually all industries, transportation represents the lion’s share of distribution costs. According to an industry-leading consulting firm, transportation costs range from 60% of total distribution costs for High Tech companies to 88% for Food & Beverage companies. Therefore, compared with transportation and warehousing costs, it is easy to see why investing in digitizing yard management operations has not been a priority for CEOs, CFOs, and even supply chain executives,” said Adrian Gonzalez, President of Adelante SCM and lead researcher.”

Furthermore, Gonzalez said; “There are many factors that influence transportation costs, but there is one that many companies overlook: the link between yard management, driver detention, and freight rates.“