Smarter Shipping, Volume 9: Intelligent Audit's CEO Hannah Testani Named in McKinsey Disruptor Series, Regional Carriers Challenge Giants
Welcome to Volume 9 of "Smarter Shipping" with Intelligent Audit.
If you missed last week's newsletter, "Smarter Shipping, Volume 8: Shippers Adapt to a Stormy Spring Forecast."
Let's dive right in!
In this edition of "Smarter Shipping," we'll cover the following:
- Logistics Disruptors: McKinsey Spotlights Hannah Testani, Intelligent Audit's Visionary CEO
- Intelligent Audit Gearing Up & Getting Ready to Talk to Shippers at the Gartner Supply Chain Symposium
- A Curation of the top 17 stories around the industry to know over the last two weeks
- Customer Story: Anomaly Detection Catches Carrier Costing 50X the Agreed-Upon Rates
- The latest insights from the Intelligent Audit Resource Hub
- Quote of the month!
- Tradeshow Schedule for Intelligent Audit
Intelligent Audit CEO, Hannah Testani, Featured in McKinsey's Logistics Disruptors series
Hannah Testani, Intelligent Audit CEO, has been recognized by McKinsey & Company for her leadership and innovation, especially with her vision for a more technology-driven logistics industry.
This prestigious recognition highlights Testani's leadership in guiding Intelligent Audit to deploy big data and machine learning to identify shipping anomalies and optimize customer logistics processes worldwide.
In her conversation with McKinsey partner, Sandy Gosling, Testani shares how to improve logistics by sifting reams of data, implementing machine learning in business, and throwing away everyone’s ballpoint pens.
See Intelligent Audit at the Gartner Supply Chain Symposium May 8 - 10 at Booth #106
Visiting Intelligent Audit at the Gartner Supply Chain Symposium from May 8th to 10th at Booth #106 will be an enlightening experience for supply chain professionals seeking innovative solutions to optimize their logistics operations.
As a leading provider of advanced freight audit, payment, and analytics services, Intelligent Audit will showcase its cutting-edge software designed to empower businesses to gain unparalleled visibility into their shipping data, driving smarter decision-making and cost reduction.
The Gartner Supply Chain Symposium is the perfect opportunity for professionals to connect, share insights, and discover how Intelligent Audit can revolutionize their supply chain management strategies.
Our Vice President of Strategic Accounts, Richard Perry breaks down all the reasons why to visit us in the video below.
The Top 17 Stories Around The Industry To Know Over The Last Two Weeks
Regional Carriers Challenge Giants as the Big Two Reconfigure
As parcel transportation volumes continue to decline, regional carriers are vying to compete with legacy companies UPS and FedEx, while navigating current difficulties such as a fraught labor market and a harsh parcel forecast.
Texas-based Lone Star Overnight seeks to make an impression with its remarkable performance metrics, while Santa Fe's GLS introduces an innovative pricing strategy to attract shippers away from well-established carriers.
Meanwhile, Walmart and Amazon are revitalizing the #lastmile competition, and Chick-fil-A Restaurants brings not only chicken but also jobs to the people of Olathe, Kansas.
Despite the challenges ahead and little relief expected during the summer months, there are still opportunities for growth and success in the #transportation industry.
To stay informed, industry professionals can rely on the eight essential headlines for the parcel transportation sector and the nine crucial supply chain headlines providing a comprehensive overview of the bigger picture.
Pitney Bowes Parcel Index Reveals Difficult Moment for Legacy Parcel Industry
Legacy carriers are taking significant hits as the parcel industry continues to readjust to pre-pandemic levels, according to the Pitney Bowes Parcel Shipping Index. Supply Chain Dive reports that, according to the index, U.S. parcel volumes declined 2.2% between 2021 and 2022. The news was incredibly bleak for parcel giant FedEx, which saw the steepest volume decline of all major U.S. carriers.
Today’s Shippers Choose Multi-Carrier Strategy, Says Leading Consultant
With UPS already facing the fallout from a potential strike, FedEx is looking to capitalize on this difficult moment for their key competitor. In early March, FedEx told customers that new business from former UPS customers would be prioritized–regardless of whether or not a Teamsters strike occurs.
While this strategy's effectiveness remains to be seen, leading parcel industry consultants believe that a multi-carrier approach is the new industry norm for today’s shippers, according to Mike Erickson, founder of AFMS LLC. “We’ve recently seen several large, longtime UPS exclusive customers putting in place backup plans with FedEx and the regionals,” Erickson told FreightWaves. “These shippers are being proactive and plan to keep these multi-carrier strategies in place regardless if the strike happens.”
Regional Carriers Look to Siphon Volume from UPS
It’s not just FedEx looking to take advantage of UPS troubles. Texas-based carrier Lone Star Overnight is seeing increased interest from shippers as they look to decrease reliance on UPS in the event of a strike. Like many regional carriers, Lone Star Overnight (LSO) hopes to leverage strong performance metrics to pull volume from national carriers. According to reporting from Supply Chain Dive, “LSO’s on-time delivery performance network-wide is now between 97% and 98%, up ten percentage points from a year ago.”
‘Substandard Pilot Contract is not a Path to Success'
In an opinion piece published by Supply Chain Dive, Capt. Chris Norman, chair of the Air Line Pilots Association’s FedEx group, made clear his frustration with FedEx as bargaining between the parcel carrier and its pilots continues.
“‘People, Service, Profit’ is the philosophy that built our brand, and it is still the way forward today,” Norman wrote. “Now is the time for FedEx to stop playing short-sighted, value-destroying games and complete an agreement that truly positions it to compete.”
Further Cuts Expected for FedEx Express, According to CEO
As FedEx continues to restructure in response to plummeting parcel demands, the parcel carrier is making further cuts to Express services, according to reporting from Supply Chain Dive. The reductions follow those instituted last quarter, which saw flight hours reduced by 8% and benefits and salary expenses reduced by 4%. As a result of these cuts to Express, FedEx mitigated 45% of total revenue declines, FedEx CEO and President Raj Subramaniam said during a Mar. 16 earnings call.
Despite Heightened Tensions, Expert Predicts End to UPS, Teamster Negotiations By June 30
Despite a continued escalation of tensions between UPS and the Teamsters, a leading parcel industry consultant predicts that negotiations will end before June 30, well ahead of the July 31 deadline.
The consultant, Satish Jindel, president of Ship Matrix, a logistical consulting and analytics firm, said his views are based on years of industry experience and having experienced many contract cycles, according to reporting from FreightWaves.
Great Content from The Intelligent Audit Resource Hub
Customer Story: Anomaly Detection Catches Carrier Costing 50X the Agreed-Upon Rates
Learn how Intelligent Audit used machine learning to detect how one new carrier was 50 times more expensive than any of the five agreed-upon rates for the lane, so costs spiked significantly for one day on an infrequently used lane.
Read the Case Study
How Would a Strike at UPS Affect Parcel Shipping?
For the past few months, transportation industry headlines have repeatedly focused on a single story: the ongoing negotiations between UPS and the Teamsters, which represent more than 350,000 of the parcel giant's workforce. If the two parties fail to reach an agreement by July 31, UPS operations could grind to a halt, or at least a slow crawl. A work stoppage at UPS, which shipped 24% of U.S. parcel volume in 2021, could see historic disruptions to the parcel supply chain, with the parcel giant potentially having to shutter operations or at least slow to a crawl for the duration of the strike. Most likely, they’ll rely on administrative staff in the terminals and hubs, and contact drivers on the roads.
The high-stakes negotiations between UPS and the Teamsters have both sides offering different stories. This article cuts through the bluster and buzz for nervous parcel shippers and examines the critical question: How would a strike at UPS affect parcel shipping?
5 Steps to Optimizing a Shipper's Transportation Network
Supply chains are complex, and we've witnessed in recent years how easily disruptions efficiently affect goods from point A to point B. It might seem like the process is uncontrollable; fortunately, that's not the case. On the transportation end of supply chains, shippers adapt to the transportation needs at any given time to ensure this part of the supply chain continues as well as possible. They also do what's necessary to continue to meet high consumer demands, which means quick, on-time deliveries at the lowest costs. While disruptions and consumer demands are significant challenges, shippers with the right strategies and technologies can navigate them successfully. This is why transportation network optimization is important.
Quote of the Month!
"Forget the mistake, remember the lesson."
Author Unknown
A Summer of Tradeshows! Where to see the IA team on the road!
This summer is full of great tradeshows! We look forward to reconnecting with current customers, meeting new friends, and attending sessions to learn industry insights.
We would love to connect if you are also attending the shows listed below! Click the button to schedule a meeting with one of our sales team members that will be there!
Upcoming Tradeshows:
- Gartner: May 8-11th | Orlando, FL
- NPF: May 21st-24th | Charlotte, NC
- SCLA: June 12-14th | Litchfield, AZ
- HDW: June 14-15 | Philidelphia, PA
That's it for this edition of "Smarter Shipping" with Intelligent Audit! Make sure to subscribe to not miss a weekly edition!
Next Trend Realty LLC./wwwHar.com/Chester-Swanson/agent_cbswan
1 年Thanks for Sharing.