How Shippers are Countering an Ongoing Labor Shortage with Freight Audit Software

As the shipping industry continues to grow, it is facing a persistent labor shortage. In a recent survey of transportation executives, 93% of respondents reported difficulty in recruiting and retaining qualified workers. This shortage is leading to increased costs and longer transit times for shippers, creating a need for innovative solutions to address the problem.

Understanding the Labor Shortage in the Shipping Industry

The labor shortage in the shipping industry is primarily driven by two factors: an aging workforce and a lack of new talent entering the industry. The average age of a truck driver in the US is 55, and the number of younger drivers entering the industry is not keeping pace with retirement rates. Additionally, the COVID-19 pandemic has made it more difficult to recruit new workers due to concerns about safety and uncertainty about the future of the industry.

Another factor contributing to the labor shortage in the shipping industry is the high turnover rate. Many truck drivers leave the industry due to long hours, low pay, and poor working conditions. This creates a constant need for new drivers, which is not being met by the current pool of job seekers.

To address the labor shortage, shipping companies are implementing new strategies to attract and retain workers. This includes offering higher pay, better benefits, and improved working conditions. Some companies are also investing in technology to make the job of a truck driver easier and more efficient, which could help attract younger workers who are more comfortable with technology.

The Role of Freight Audit Software in Mitigating the Labor Shortage

Freight audit software is an innovative solution that can help shippers manage the labor shortage by reducing the time and effort required to manage shipping operations. By automating the auditing of freight bills and related processes, this software frees up time and resources for transportation teams to focus on more strategic initiatives.

In addition to streamlining shipping operations, freight audit software can also help shippers identify cost-saving opportunities. By analyzing shipping data and identifying areas for improvement, this software can help shippers reduce transportation costs and optimize their supply chain. This is especially important in the current labor shortage, where every penny counts and companies need to find ways to operate more efficiently.

Key Features of Freight Audit Software for Shippers

Freight audit software typically includes a range of features to help shippers manage their shipping operations more efficiently. These features may include automated bill auditing, carrier payment processing, performance analytics and reporting, and real-time tracking of shipments.

In addition to these features, some freight audit software also offers advanced capabilities such as predictive analytics, which can help shippers identify potential issues before they occur and take proactive measures to prevent them. Other features may include customizable dashboards and alerts, integration with other logistics software, and the ability to manage multiple carriers and modes of transportation.

Benefits of Using Freight Audit Software for Shippers

The benefits of using freight audit software for shippers are many. By automating processes and providing real-time visibility into shipping activities, this software can help shippers reduce costs, improve efficiency, and optimize their transportation networks. Additionally, it can help shippers identify areas of opportunity to negotiate better rates with carriers as well as manage claims and disputes more effectively.

Another benefit of using freight audit software for shippers is the ability to track and analyze shipping data. This software can provide detailed reports on shipping trends, carrier performance, and other key metrics that can help shippers make informed decisions about their transportation strategies. By having access to this data, shippers can identify areas for improvement and make adjustments to their shipping processes to better meet their business needs.

Case Studies: How Shippers are Successfully Countering the Labor Shortage with Freight Audit Software

Several shippers have successfully implemented freight audit software to manage their shipping operations more efficiently in the face of the ongoing labor shortage. For example, one large retailer was able to reduce transportation spend by 7% by implementing a freight audit solution. Additionally, a large chemical company was able to improve carrier compliance by 15% and reduce invoice processing time by 90% by adopting a freight audit software solution.

Another example of a company that has successfully countered the labor shortage with freight audit software is a global manufacturing company. By implementing a freight audit solution, they were able to reduce their transportation costs by 10% and improve their invoice accuracy by 95%. This allowed them to allocate more resources towards other areas of their business, such as research and development.

Furthermore, a logistics company was able to streamline their shipping operations by adopting a freight audit software solution. They were able to automate their invoice processing, which reduced the time it took to process invoices by 80%. This allowed them to focus on other areas of their business, such as customer service and expanding their operations.

Implementing Freight Audit Software: Best Practices for Shippers

When implementing freight audit software, it is important for shippers to follow best practices to ensure a successful rollout. These best practices include selecting the right solution for your business needs, setting clear goals and metrics for success, engaging stakeholders throughout the implementation process, and providing comprehensive training to end-users.

Another important best practice for implementing freight audit software is to establish a clear communication plan. This includes identifying key stakeholders and ensuring they are informed of the implementation timeline, progress, and any potential issues. It is also important to establish a process for addressing any concerns or questions that may arise during the implementation process.

Additionally, shippers should consider conducting a pilot program before rolling out the software company-wide. This allows for testing and fine-tuning of the software in a controlled environment, and can help identify any potential issues before they become widespread. It also provides an opportunity to gather feedback from end-users and make any necessary adjustments before the full implementation.

Choosing the Right Freight Audit Software Solution for Your Business

When selecting a freight audit software solution for your business, it is important to consider a range of factors, including the specific needs of your organization, the level of support provided by the vendor, and the cost and complexity of the software. It may also be helpful to read reviews and case studies from other shippers that have successfully implemented the software.

Another important factor to consider when choosing a freight audit software solution is the level of automation it provides. Some software solutions offer more automation than others, which can save your business time and money in the long run. For example, a software solution that automatically matches invoices to purchase orders and flags discrepancies can significantly reduce the amount of manual work required by your team.

It is also important to consider the scalability of the software solution. As your business grows and your shipping volume increases, you may need a software solution that can handle a larger volume of transactions. Make sure to choose a software solution that can grow with your business and accommodate your future needs.

Overcoming Common Challenges When Adopting Freight Audit Software

Like any technology solution, freight audit software implementation can present challenges. Common challenges include resistance to change from end-users, data quality issues, and the need to integrate the software with existing systems and workflows. To overcome these challenges, it is important to engage stakeholders early and often and to prioritize comprehensive training and support for end-users.

Another challenge that may arise when adopting freight audit software is the complexity of the software itself. Some software solutions may be difficult to navigate or require extensive customization, which can lead to frustration and delays in implementation. To address this challenge, it is important to carefully evaluate potential software solutions and choose one that is user-friendly and customizable to your organization’s specific needs.

Additionally, it is important to consider the long-term benefits of implementing freight audit software, such as increased efficiency, cost savings, and improved data accuracy. Communicating these benefits to stakeholders can help to build buy-in and support for the implementation process. It may also be helpful to establish clear goals and metrics for measuring the success of the software implementation, which can help to keep the project on track and ensure that it is delivering the expected benefits.

Future Trends: How Technology is Changing the Shipping Industry and Mitigating the Labor Shortage

The future of the shipping industry is likely to be shaped by emerging technologies such as artificial intelligence, blockchain, and the internet of things. These technologies hold promise for further optimizing shipping operations and reducing the need for human intervention. For example, self-driving trucks and drones may help address the persistent labor shortage by reducing the need for human drivers and increasing efficiency.

In conclusion, freight audit software is an innovative solution that can help shippers manage the ongoing labor shortage in the shipping industry. By automating processes and providing real-time visibility into shipping activities, this software can help shippers reduce costs, improve efficiency, and optimize their transportation networks.

Another emerging technology that is likely to have a significant impact on the shipping industry is 3D printing. With the ability to print products on demand, there may be a shift towards more localized production and distribution, reducing the need for long-distance shipping. This could also lead to a decrease in the demand for traditional shipping methods and an increase in the need for specialized shipping services for 3D printed products.

Furthermore, as the world becomes more environmentally conscious, there is a growing demand for sustainable shipping practices. This has led to the development of alternative fuels such as biofuels and electric-powered ships. As these technologies become more widely adopted, they may become the norm in the shipping industry, further reducing the industry’s carbon footprint and improving sustainability.