Despite investing heaps of money in logistics technology, why do most businesses still struggle with basic shipment visibility and supply chain planning? One major culprit, I believe, is the sorry state of shipping data. Often, this data is scattered across various systems, fragmented, duplicated, incorrect, incomplete, and rarely provides a Single Source of Truth (SSOT). A potential solution to fragmented shipping data is for supply chains to start using a Transport Load ID to unify shipping information.
Without a doubt, a shipper-generated Load ID can bring together all data related to the shipper’s load. Moreover, it is not a tracking number, purchase order, or invoice number that links only parts of shipping data within different functional silos. So in this article, I’ll introduce the concept of a Transport Load ID. Moreover, I’ll share with you 10 use cases where every organization in the supply chain can benefit from Transport Load IDs. Undeniably, It’s time for supply chains to achieve total shipment visibility and enable informed corporate-level decision-making. As a result, businesses can effectively exploit their investments in data-driven logistics technologies.
What Is A Shipping Data Load ID?
It Is Not Just a Tracking Number. A Load ID for a shipment serves to unify shipping data. Indeed, not just data related to the actual movement of goods, but also shipment planning data and post-shipment data such as the financials related to the shipping activity. Hence, it differs from a carrier’s tracking number in that it is tied to a shipper’s load requirements and any post-shipping activity.
How Is a Transport Load ID Generated? Specifically, how it works is that a shipper, or their representative, would generate the Load ID tying it to the goods requiring transport. Thus, the Load ID is not initially linked to any specific carrier.
A Way to Unify Shipping Data – Planning, Execution, Settlement. Indeed, I think there is a strong business case to use Transport Load IDs across the supply chain to unify shipping data. Absolutely, all supply chain organizations can use a Load ID to tie together all their shipping data. What’s more, this can include everything from supply chain planning through execution and final payment to spend management. For a more detailed discussion on Transport Load IDs and what shipping analytics shortfalls it can address, see my article, Better Shipping Data Analytics Results: Use Of Load IDs To Achieve The Best Efficiency, Visibility, And Financials.
Shipping Data Load IDs: 10 Use Cases To Unleash Shipping Analytics Across The Supply Chain.
Currently, each part of the supply chain uses a variety of reference numbers to link shipping data together for their specific purpose. This includes tracking numbers, carrier invoice numbers, and customer reference numbers such as purchase orders (PO). The challenge is that these reference IDs do not do a good job of coalescing shipping data together. On the other hand, the use of Transport Load IDs can unify all shipping data, and the possibilities are endless. Indeed, with unified shipping data, supply chains can more effectively leverage data-centric technologies. Specifically, this includes data analytics, AI, and decision intelligence.
Further with unified shipping data, supply chain departments can work collaboratively. Specifically, they can see how their actions impact the rest of the organization. Indeed, now they can really have one Single Source Of Truth (SSOT) about their supply chain that they can trust. Now, let’s get a better understanding of the power of using Transport Load IDs. Below are 10 use case examples on how logistics professionals can use Load IDs across the supply chain.
1. Supplier Sourcing: Streamline And Optimize Carrier RFP Process Using Shipping Data Load IDs.
For example, when conducting a Request For Proposal (RFP) to evaluate carriers, shippers can use shipment load IDs to unify their shipping data. Specifically, they can easily anonymize historical shipping data from the original carrier. Also, they can associate shipment characteristics to a shipment load, and then aggregate all shipping activity for RFP analysis. For instance, these shipment load characteristics can include actual weight, dimensions, type of service, origin / destination, date shipped, etc.
2. Supply Chain Planning (SCP): Seamless Transportation Planning For Demand Sensing, Capacity, and Asset Management.
For example, planners can use Transport Load IDs to forecast shipment activity based on expected product demand. Without a shipment load ID, planners currently have to use fragmented shipment data that in many cases is not directly tied to the product.
3. Ecommerce And Order Fulfillment: Increase Visibility Of Order-To-Delivery Operations Using Shipping Data Load IDs.
For example by using a load ID, it ties together all shipping data to include shipment status, shipment characteristics, and financials. Thus, both operations and finance can better identify systemic issues as well as measure the impact of fixes across their departments.
4. Inventory Management: Gain Visibility Of Product Inventory At Rest And In Motion Coupled With Anticipated Demand.
For example, inventory managers can use Transport Load IDs to tie in-transit products with both warehouse inventory and expected demand.
5. Fleet Management And Trucking Technology: Optimize Capacity And Minimize Costs.
For instance, fleet managers can use shipping data Load IDs to gain unified visibility over fleet maintenance and shipping activities. Thus armed with this information, they can best prioritize resources and proactively place equipment where it is needed.
6. Freight Brokering: Increase Real-Time Efficiencies While Reducing Costs And Fraud.
For example, freight brokers can leverage Transport Load IDs to eliminate phantom data, reduce double brokering, and improve pricing. Moreover, transportation organizations can better leverage financial technology (FinTech) solutions to increase profitability.
7. Visibility And Tracking: Gain Multi-facet Visibility Of Orders And Transportation Across The Supply Chain.
For instance using Transport Load Ids, supply chain and finance managers can gain on-demand and end-to-end visibility. This includes both expected and actual shipping activity as well as financial impacts. Thus, this increases opportunities to proactively and smartly prevent major issues from developing in terms of both service and costs. For more ideas on increasing shipment visibility using Transport Load IDs and an intelligent tracking data framework, see my article, The Way To Better Supply Chain Analytics: Overcome Data Interoperability With Intelligent Tracking Status.
8. Freight Bill Auditing And Payment: Streamline Processing, Leverage More FinTech Solutions.
For example using a Transport Load ID, payors have more opportunities to streamline invoice processing, quicken approving invoices, and leverage FinTech solutions such as financing options for shippers or carriers. This is because with the use of Load ID financial data is directly linked to shipping activity data. Thus, this streamlines analytics and increases opportunities to automate manual processes.
9. Decision Intelligence Tech: Optimize Decision Flows Across The Supply Chain.
For instance using Load IDs to aggregate shipping data, supply managers have more opportunities to effectively implement decision intelligence solutions. For more information on decision intelligence, see my article, This Is What Decision Intelligence Technology Is And Know What Its Not.
10. Supply Chain Protection: Minimize Fraud And Detect Anomalies Through Better Traceability.
Supply chains and regulatory organizations can use Transport Load IDs for verification and protection purposes. For example, organizations can use Load IDs for verification of shipments. This includes the verification of legal entities involved, contents of shipment, and shipment characteristics. As a result, this can minimize fraud and irregularities such as double brokering, fraudulent billing, transport of illegal products, shipment hijacking via ID theft, and shipping dock theft.
Summary.
So in this article, I’ve provided 10 use cases on how the use of Transport Load IDs can transform analytics across the supply chain. Without a doubt, a shipper-generated Load ID can bring together all data related to the shipper’s load. Moreover, it is not a tracking number, purchase order, or invoice number that links only parts of shipping data within different functional silos. Undeniably, It’s time for supply chains to start achieving total shipment visibility and begin making better informed corporate-level decision-making. As a result, businesses can effectively exploit their investments in data-driven logistics technologies.
Need help with an innovative solution to make your supply chain systems work together? I’m Randy McClure, and I’ve spent many years solving data interoperability and visibility problems. As a supply chain tech advisor, I’ve implemented hundreds of successful projects across all transportation modes, working with the data of thousands of shippers, carriers, and 3rd party logistics (3PL) providers. I specialize in proof-of-concept and pilot projects for emerging technologies. If you’re ready to modernize your data infrastructure or if you are a solution provider, let’s talk. To reach me, click here to access my contact form or you can find me on LinkedIn.
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Greetings! As a supply chain tech advisor with 30+ years of hands-on experience, I take great pleasure in providing actionable insights and solutions to logistics leaders. My focus is to drive transformation within the logistics industry by leveraging emerging LogTech, applying data-centric solutions, and increasing interoperability within supply chains. I have a wide range of experience to include successfully leading the development of 100s of innovative software solutions across supply chains and delivering business intelligence (BI) solutions to 1,000s of shippers. Click here for more info.