18 FEATURE
with other transportation providers nearly 16,000 times every month . Partnerships are an integral part of our business and I can think of no better opportunity for new partnerships than the growing final mile segment .
“ The ‘ Amazon Effect ’ has opened new business opportunities for all of us in the transportation industry . Customers say they want their deliveries in their homes and they want them NOW . While our networks are designed to move those shipments across North America , CLDA members have the experience and resources to make the final mile delivery efficiently and effectively . The LTL industry needs more partners like you to deliver on that final mile promise .”
Challenges to the Industry
Welch then went on to talk about some of the challenges facing the supply chain .
Chief among them is the challenge of finding truck drivers who can handle the increasing technological advances right in the truck cabs . “ The most important advanced safety technology device in the cab of a truck is the driver . Professional drivers are getting harder and harder to find . We need people who have the patience to deal with both complex technology and the challenges faced by sharing the road with distracted drivers ,” he pointed out . “ We pay our drivers well and provide excellent benefits . What we cannot afford is to hire a driver who is not committed to safety and service .
“ The equipment side of the trucking business is getting extremely complex and expensive ,” said Welch . “ However , drivers need more resources to operate safely . Today ’ s [ vehicles ] are reaching biological levels of complexity ,” Welch said , quoting Chris Gerdes , Professor of Mechanical Engineering at Stanford University . “ Today ’ s advanced Class 8 truck is commanding 100 million lines of code , more than Facebook and the Hadron Collider ,” he said . “ That technology is there to protect the freight , the public and the driver . It encompasses in-cab videos , lane departure documentation , automatic braking monitoring , electronic logging devices and stability controls . The trucks are also equipped with technology that protects the driver and the company in case of an accident so they can detail precisely what happens in a traffic incident . For sustainability there ’ s also route optimization software that includes GPS to minimize the number of schedules and miles truckers run .
“ Back office technology helps us optimize our LTL networks . The most efficient way to move freight is direct with the least possible amount
of touches to ensure it is delivered damage free and on time . Inefficient handling of LTL freight can cause it to be lost , damaged , misrouted or misplaced . The way to decrease that is to minimize the time we use to handle freight .” In the end , Welch pointed out that the technology helps document and optimize the freight handling process . “ In today ’ s world information is as important , or in some cases , more important , than the physical movement of the freight . Customers expect damage free and timely delivery of their order and no one understands that better than the final mile delivery members of CLDA .”
A Changing World
Welch said that change is not only taking place in the cab and with the driver but also in how LTL carriers interface with customers . He pointed to the increasing role of 3PLs and third parties in this space . “ We are the travel agents for freight ,” he said , quoting CH Robinson ’ s CEO John
Customized Logistics and Delivery Association | Fall 2016