R2 Logistics “bullish” on LTL — and its TMS

The LTL market is healthy, according to John Hansen, director of LTL operations at R2 Logistics.

“While overall tonnage may slow slightly as capacity still struggles to keep up with demand, LTL carriers continue to invest in expanding their number of terminals and transshipments across the country,” Hansen said. “LTL isn’t slowing down anytime soon and preparations are underway to welcome the business.”

R2 Logistics is a 3PL provider that has been providing supply chain management services to shippers of all sizes for nearly 15 years. R2 Logistics specializes in Managed Transportation, Full Truck Load, LTL, Expedited, Air Freight, Intermodal, Ocean, and Flatbed/Specialized. Hansen said that with the R2 Logistics transportation management system, customers can assess shipments and receive real-time visibility into their supply chain networks.

A industry report said the LTL industry is benefiting from the growth of the e-commerce industry, “reflecting increases in consumer spending, business investment, foreign trade and domestic manufacturing.” And the LTL market is expected to grow at a pace compound annual growth rate of 2% between 2021 and 2026.

“Ultimately, I’m bullish on the LTL market in general. As a society, we’ve become very accustomed to ordering the right amount of product at the right time and expect logistics markets to ‘work’,” said Frank Dreischarf, vice president of supply chain solutions. procurement at R2 Logistics. “I consider this the ‘Amazon effect’. We are seeing growth in LTL volumes in general with higher customer expectations for excellent service, follow-up and responsiveness. »

R2 Logistics is also committed to providing its LTL customers with the latest technologies. Gone are the days of using spreadsheets to track and manage transportation expenses. With the right technology, shippers of all sizes can rate shipments and gain visibility into their logistics network, giving small and medium-sized businesses a competitive advantage over their larger counterparts who dominate the LTL industry.

“Keeping up to date with emerging technology is imperative in today’s fast-paced transportation industry. Customers want and deserve full visibility into their shipments, documents and invoices when needed,” Hansen said. “The leading growing LTL carriers are those investing in new technologies to reduce costs, optimize capacity and expand their network. As a result, LTL companies that implement the technology see significant advantages over their non-tech counterparts. »

Hansen said customers using R2’s TMS for LTL have the ability to get quotes or book shipments online, see all available carrier options, and choose price, transit time, and level. services that best suit their needs. They have full visibility into real-time track and trace with the click of a button, and when shipments are delivered, they have the ability to view all necessary documents, from weight certificates to invoices. Clients can also access KPI reports to determine exactly how much they spend and where they are spent.

“Our TMS system was designed for small and medium shippers,” Dreischarf said. “The technology adoption rate for shippers with annual spend of less than $25 million is less than 10%. This means that there are a huge number of companies operating in the United States that use the best technology from the 1980s – a huge problem that is often overlooked.

According to Dreischarf, for a long time LTL networks specifically supported large shippers, but feasted on small shippers who didn’t know enough about the space or weren’t big enough to negotiate favorable deals. R2’s LTL service is designed specifically to serve this niche for small and medium shippers – bringing expertise in operations, sourcing, data and analytics into a single platform that offers shippers the same benefits as a great shipper.

“The reality is that the freight line on a company’s income statement is one of the most significant expenses it has to manage and many companies are not equipped or cannot afford a transport team to support their business. This is where our TMS system and LTL offerings come in,” he said.

Hansen said that to ensure competitive pricing for small and medium-sized customers, R2 leverages its total LTL volumes across its network of more than 30 carriers.

“We believe that, regardless of size, everyone deserves the same level of attention and customer service every day,” Hansen said. “And with our track record, our commitment to adding value to our customers’ supply chain and our niche as a top service provider, we find that once we become part of the network of a customer, we retain that customer for the long term.”

R2 prides itself on its ability to onboard customers into its TMS in just about two weeks, according to Dreischarf, who said the system supports both DIY customers and do-it-yourselfers.

“In addition, we have a team of logistics professionals and analysts who are on top of all of our customers and make sure our DIY customers get the most out of the system and when they see a potential problem, contact immediately the client with alternatives,” he said.

According to Dreischarf, R2’s long-term goals are simple – to be the best 3PL in the United States, and the R2 team plans to continually progress towards that goal.

“We will continue to invest in improving our service offerings and finding ways to add value for our customers,” he said.

To learn more about R2 Logistique, visit its website.

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