Why More Transportation Leaders are Sitting at the Decision-Making Table

Recently, we’ve heard from some of our shipper partners that now more than ever, transportation leaders are taking seats at the executive table. To understand exactly what’s motivating this shift and how logistics professionals can maximize this opportunity, I spoke with one of our seasoned pros here at Transfix, Chief Economist Paul Poziumschi.

 Q: What do you think is behind this shift in thinking and operational strategy? Is it part of a larger trend? 

Poziumschi: Most big shippers realize that transportation is not just auxiliary, but a key part of the value chain. One obvious factor that spurred this change was the COVID-19 crisis. We rely on an extremely complex supply chain infrastructure that’s mostly invisible. Often, people only take notice of it when it stops working correctly. 

When the cost of transporting containers from China went from $2,000 to $40,000, shippers had to account for exponential logistics costs and contemplate not being able to source what they could sell at high premiums. Shippers increasingly realized that unless you integrate not only the cost but the risks of the whole supply chain into your forecasts, you might run into some big surprises.

Q: Diving into this topic a little more, for shippers that have been focused more exclusively on price when it comes to transportation procurement, how might they shift their thinking?

Poziumschi: Transportation leaders in an organization should bring something to the table beyond transportation itself, beyond just inputs into their own system of production. COVID-19 forced the supply chain into focus for leaders across all industries – not only as a function of cost management, but as an opportunity to build sustainable and wide-reaching infrastructure. Instead of single-mindedly focusing on rates, shippers can leverage strategic partners to help them look holistically at network design that will in turn enhance relationships with customers and carriers.

Q: As more transportation leaders gain a seat at the table, how might the role of the broker partner also shift? 

Poziumschi: We’ve seen that our shipper partners are interested in strategically engaging with their partners on a wider range of issues than simply how to get the shipments from point A to B. At Transfix, offering competitive real-time pricing and rate visibility is table stakes. Through our Transfix Shipper App, we are currently productizing insights around GHG emissions, carrier diversity, inventory levels, and the management of facilities. Insights on these types of topics enable shippers to track progress and set policies on a variety of things, like cost thresholds for preferred carriers.

If you’re interested in learning more about the latest enhancements of the Transfix Shipper App or leveraging Transfix as a strategic freight partner, reach out to sales@transfix.io. 

DISCLAIMER: All views and opinions expressed in this article are those of the speakers and do not necessarily reflect the views or positions of Transfix, Inc. or any parent companies or affiliates or the companies with which the participants are affiliated and may have been previously disseminated by them. The views and opinions expressed in this article are based upon information considered reliable, but neither Transfix, Inc. nor its affiliates, nor the companies with which the participants are affiliated warrant its completeness or accuracy and it should not be relied upon as such. All views and opinions are subject to change.