alliances
ACH Food Cos. has selected BluJay Solutions’ logis-tics-as-a-service (LaaS) software offering to help
optimize its transportation management. … Clark
Material Handling Co. has appointed Cornerstone
Industrial Services LLC as an authorized distributor
of Clark products in the Lexington, Ky., market.
… Freight forwarder W.J. Byrnes & Co. has joined
Janel Group, a New York-based provider of integrated logistics solutions. W.J. Byrnes will continue
to function as an independent business unit headquartered in San Francisco. … Missouri-based AD
Lift Truck has joined Kion North America’s dealer
network and will offer sales and service support
to parts of Missouri and Illinois. … Netherlands-based chocolate brand Tony’s Chocolonely is
using Descartes Systems Group’s Global Logistics
Network to support its expansion into the U.S. …
At the Retail Council of Canada “Store 2017” conference, pallet pooling specialist CHEP released a
new case study highlighting its collaboration with
Walmart Canada. The article is available online at
https://solutions.chep.com/resources/case-studies/.
… Logistical Labs, a supply chain analytics company, has partnered with DAT Solutions, operator
of a spot freight marketplace in North America,
to link its LoadDex freight pricing software with
DAT’s RateView online database of current contract freight rates. The partnership will give
LoadDex users access to more accurate truckload
rating data. … International technology group
Körber AG has acquired majority shares in logistics
software developer DMLogic LLC. … XPO Logistics
Inc. has been selected by Nu Skin Enterprises Inc.
as global lead logistics provider under a multiyear
contract. … Hirotec America has partnered with
Otto Motors to automate Hirotec Group’s spare
parts production operation. … Cimcorp, a manufacturer of turnkey robotic handling solutions, has
received an order for automated logistics systems
in a brand-new tire plant in Algeria, Africa. …
Detroit Diesel Corp. has awarded new business to
Penske Logistics to support the company’s engine,
transmission, and axle supply chain operations
in Redford, Mich. … Supply chain optimization
software provider Llamasoft and LynnCo Supply
Chain Solutions have announced an OEM partnership under which LynnCo will utilize Llamasoft’s
supply chain design technology. … Koch Industries
has implemented Infor’s CloudSuite for financial
and human capital management.
only two or three trucks, because with that same phone
call we could reach a company with a thousand trucks,”
Berdinis said.
By using the kind of smartphone-based software model
pioneered by its parent, Uber Freight can now reach that
diverse market of small truckers cheaply enough to profitably match loads with small carriers, he said.
Berdinis acknowledged that the company could
run into stiff competition from the rising number of
well-funded startups. In fact, many truckers have downloaded apps from several of these firms, he said, so the
fierce competition for market share is taking place right
on the small screens in drivers’ palms.
Uber Freight will rely on the personalized features
and ease of use of its software to set itself apart from the
crowd, according to Berdinis. “We’ve found that drivers
are very savvy about choosing the app that gives them a
better lifestyle, lets them earn more, and lets them earn
quickly,” he said. “We know that drivers will find the
app that works best for them, and that they are very loyal
once they find an app that gives them attractive payment
terms and access to easy-to-haul freight.”
HURDLES TO CLEAR
User-friendly software may help firms like Uber Freight,
Convoy, and Transfix enlist more drivers into their networks, but their “sharing economy” model of matching
loads and drivers still faces some hurdles before it can
truly compete against established brokers, said Tony
Wayda, supply chain practice senior director and principal at Boulder, Colo., consulting firm SCApath.
For example, shippers may be reluctant to choose an
owner-operator based solely on information displayed in
an app, while drivers may not be confident the app will
pay them for “accessorial” charges such as detention and
delay, Wayda said. Likewise, without having an existing
relationship with the carrier, shippers may demand
better accountability for drivers’ license and insurance
paperwork, and a clearer path for customer service and
dispute-resolution complaints.
Finally, many shippers and drivers will never have full
confidence in these startups until the firms go public and
reveal when—or if—they start turning a profit, Wayda
said.
Startups will begin to take share from traditional brokers if they can overcome these obstacles, Wayda said.
“Once trust is built, I think this business model will
quickly get traction. The economics work for both the
shipper and owner-operator, and in theory, could help
commercial carriers eliminate empty miles. Some money
is better than none when empty.”
—B.A.
