Last week’s World of Freight Summit in Vienna, attended by Publisher David Priestman, featured two days of panel discussions covering the major current topics. Here’s what he learned:
Freight procurement processes have shortened to a monthly rhythm, as typically opposed to annually, especially for aircargo. This has been caused by ongoing supply chain disruptions. Frequent procurement is made possible by digitization and index-based pricing. There are more RFQs, for sea freight too, which is trending towards quarterly procurement. Frequent quoting is inefficient for both parties so automated bidding helps. Execution is key too. “If you have a nice freight rate but you never get it on a ship that’s no good,” Bernard Schmaldienst of Transporeon said. There is a need for interoperability, connecting so many partners in a supply chain with the goal being unification and standardization. Practical issues persist, such as the driver shortage and lack of young drivers. We may see autonomous trucks on hub-to-hub routes soon.
“The more ecological a supply chain the more efficient it is as you’re not wasting resources,” stated Peter Menky, boss of DoDo. Green logistics was a core theme at the conference.
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