In a July 2024 survey of our Indago supply chain research community and Alpega customers, almost three quarters of the respondents (72%) said that integrating a large “open network” of vetted and trusted carriers with a transportation management system (TMS) would be either “Extremely Beneficial” or “Very Beneficial.” That’s not surprising given that the transportation market continues to be dynamic and unpredictable, and is likely to remain so in 2025. What role will these open carrier networks play moving forward? What else is top of mind for transportation executives as they plan for 2025? And how will innovations in transportation management systems help companies achieve their objectives? Those are the key questions I discussed with Todd DeLaughter, CEO at Alpega, during a recent fireside chat hosted by Alpega.
An Ever-Changing Industry
I began by asking Todd what changes he’s seen in the transportation industry over the past five years. Todd notes a major change was the COVID-19 pandemic and what it taught us about the need to be flexible and adaptable, especially around the issue of remote work. For example, Pfizer-BioNTech came to Alpega as they were finalizing their COVID vaccine. “They called us up and said we need a system to ship vaccines and we were able to implement a TMS for them in less than 6 weeks,” Todd said. “I can tell you, when we saw that first transport order that said -70C truck shipping Covid-19 vaccines, it was an awesome thing.”
Todd also mentions the impact of conflicts around the world, including the Russia-Ukraine war and the various conflicts in the Middle East, which are forcing companies to reroute shipments around war zones as well as to block certain shipments into the conflict areas.
Another factor is the macro-economic impact, with changing interest rates and volatile cost/price changes. This has caused some companies to be cautious about making technology investments that could actually help them address these challenges and improve their business.
And finally, there has been a steady rise in sustainability laws and initiatives. Companies are starting to make decisions on suppliers, modes, and routes based on sustainability requirements.
Top of Mind Issues
Given all the changes, I asked Todd what is top of mind for executives. He explains that the pandemic cemented in executives’ minds that supply chain and logistics is no longer just about inputs and outputs; it’s fundamental to how you do business. “If you can’t get parts to make your products and you can’t ship your products to your target audience, you don’t really have a business,” he says. “Companies want to be able to plan and have visibility to their shipments, but also have the flexibility to react in real time to disruptions.”
Todd says that controlling costs and improving service are always top of mind, so executives are looking at factors like consolidation, routing, and near-shoring to make transportation more efficient. And resilience and sustainability have also risen to the top.
Innovations in TMS
How have TMS solutions evolved to address these challenges? Todd notes that Generative AI is playing a large role by gathering data across systems to synthesize solutions. Using AI to analyze hundreds of millions of transactions and automate solutions can reduce costs and improve service, often without human intervention. “It requires connectivity and integration between systems, but I think we are right on the cusp of being able to do that,” Todd says. “It will require transparency and trust for users to accept this.”
Todd also highlighted the emergence of open carrier networks, as referenced in the recently-published “Generative TMS” report. In the case of Alpega’s Connecta open network, which the company announced earlier this month, shippers have access not only to their contracted carriers but also to 100,000+ carriers and freight forwarders across the network. This enables smarter and faster matching of freight demand with available capacity, which benefits all stakeholders.
Driving Smarter Logistics for a Greener Tomorrow
That’s Alpega’s motto. What does that mean for sustainability? Todd says it’s about using technologies, methods, and strategies to create more efficient transportation operations and thus reduce greenhouse gas emissions. “Small things can make a big difference,” he notes. “As an example, there are a little over six million commercial trucks in Europe. Assuming they do two loads a week, that’s a total of 1.3 billion loads annually with an average wait time of up to two hours at loading/unloadiung docks. We can cut that in half with a dock scheduling solution, which means 1.3 billion diesel truck hours of carbon pollution can be avoided. That’s the equivalent of planting over 100 million trees annually in Europe alone.”
During our discussion Todd had a lot more to add about top of mind issues, TMS innovations and sustainability, as well as what companies should do to prepare for transport excellence. Therefore, I encourage you to watch the full fireside chat video for all of his insights and advice on those topics and more. Then post a comment and keep the conversation going with your questions and comments.
