Approximately 20% of backhaul journeys are currently running empty. This is problematic not only for carriers who are looking to optimise their fleet but also shippers who may be struggling to find capacity, not to mention the carbon footprint for both. DigiHaul’s Wenjia Tang looks at the role that data can play in reducing empty miles on our roads.
Empty running of backhauls has been around for a long time and there’s no silver bullet in the industry – we need to really look into this problem with a holistic view.
In my opinion, the best way to overcome this challenge is to look at network optimisation. This can be achieved with good data analysis – a good model can produce a better quality of match compared to the traditional brokerage process which is a very manual, labour-intensive method.
Another benefit of a good data model is that the quality of match is measured by freight consolidation via optimal routing.
For example, if a shipper has a shipment that needs to go from A to B a carrier might simply pick this up as a job then drive back from B to A with an empty truck. If we take a holistic view of the network, we can create a better picture of how that shipper and carrier can work together: we might identify an opportunity of picking up a load from B to A, or even B to C to A by simply moving the timing of the shipment. This generates much greater efficiency for the carrier and opens up more capacity for the shipper.
By identifying these opportunities that exist we can:
- Make efficiency gains
- Reduce empty runs between loading points
- Reduce empty runs between loading points
- Increase vehicle utilisation
Rather than being the supplier, we operate much more as a partner for both our shippers and carriers, working collaboratively to make improvements for their business.
We know that peak periods are a real challenge for our shippers who are looking for capacity, whereas quieter periods are a challenge for carriers.
To resolve this issue also requires some big picture thinking. Different industries experience peaks at different times, so by looking at the data on our system holistically we can help to identify when these occur and how we can plan ahead.
Embarking on the digitalisation journey gives both our shippers and our carrier partners the opportunity to grow with us and learn how our systems and our expertise can benefit them almost immediately.
There are many longer-term benefits too. For shippers, digitalisation makes logistics much more transparent and gives them much better visibility of where their shipments are. They will also see their costs coming down due to the network efficiency and our large volume of carriers in our network.
For our carriers, that visibility allows them to better plan their journeys, including loading and unloading times and more convenient rest periods for their drivers.
Something as simple as moving the timing of a delivery could free up driver capacity as well as bring the cost down.
Visibility also plays a big part in making the whole process as easy and straightforward as possible. “Shippers can view the status of all their orders at any time on our Shipper Web. They can simply go online to find out whether a delivery has been completed, or what time it’s due to arrive. Of course, if you prefer to pick up the phone and speak to someone, our team is always here to help.”
Access all your transport bookings in one place
Following in the footsteps of many other industries, there’s no doubt that future of freight is digital, but this is a big change for people in the industry. With that in mind, any new processes need to be as simple and user-friendly as possible.
Once you’ve signed up with DigiHaul, you can:
- Book your loads using our online booking system, Shipper Web, or you can call or email our Transport Solutions team to upload them for you
- We will secure a haulier and a price for your booking and will confirm with you
- You can use the Shipper Web to check live updates at any time and download your electronic proof of delivery (ePOD)
- All your orders are shown in a clear dashboard for quick reference. You can find all your history and paperwork here, as well as upload or cancel a booking
- If you have any service-related issues during the journey, you can speak to our Service Delivery team 24/7
Cross-sector solutions for shippers who own trucks
Amidst the surge in demand for capacity over the past two or three years, you may be one of many shippers who invested in your own fleet of trucks and drivers. While this plugged the capacity gap in busier times, this is a big overhead to manage during quieter periods.
“When combined with the drop in consumer spending, we’ve seen a big dip in demand for traction shifts during peak periods,” says Graham, “but we can help utilise those trucks by bringing them into our haulier network, particularly SMEs. Those customers have the option to place a ‘one and final’ offer for work through our Carrier Web to help fill backhaul journeys and cover their running costs.”
For example, a retail customer with an empty backhaul journey may find an automotive movement in our network. This cross-sector collaboration can cut running costs as well as reducing wasted carbon emissions.
Building trust to help you grow
While there’s a big focus on digitalising manual processes, it’s important not to lose sight of the fact that people work with people. There will always be traffic delays, adverse weather and other factors that are out of our control, but good communication builds trust and reassurance.
“While we are a digital transport business we do have the human touch,” Graham explains. “Our teams are at the end of the phone, and we like to meet our customers face-to-face to talk through ideas or issues and help make their shipping experience as smooth as we possibly can.”
“We want our partners – shippers and hauliers – to grow with us. We want to give them an excellent level of service and help them grow their businesses. We also want to work closely with them to make to make our industry greener.”
The good news for shippers and hauliers alike is that we do expect the sub-contraction market to bounce back. And when we do start seeing peaks in demand again, we can find capacity in our large carrier network to give you the reliability and surety of service that you need. So, you can get back to focusing on your business, and let us take care of your transport.
