Lazer Spot and PINC partner to provide enhanced yard management services and solutions to enterprise customers

Leaders in yard management services and technology to collaborate to bring transparency and efficiency to hundreds of facilities in North America.

Lazer Spot PINC Press Release

Alpharetta, GA and Union City, CA – January 05, 2021 – Lazer Spot, the largest provider of critical outsourced yard management services, and PINC, the number one digital yard™ management solution provider, today announced a partnership to bring enterprise visibility and operational excellence to facilities across North America.

Given the uncertainties with customer expectations and demands, unstable freight capacity, and ever-changing guidance from governments and public health authorities, trailer yards are playing a vital role as extensions of warehouses at distribution centers and manufacturing plants and as a mechanism to expedite shipments, support corporate sustainability goals, and reduce transportation costs.

Founded in 1996, Lazer Spot provides yard spotting, shuttling, trailer rentals and specialized yard services in 400+ locations in North America. PINC digital yard management solutions will empower Lazer Spot’s teams to improve operational efficiency while providing a unique level of safety, visibility, and services to its enterprise customers. Additionally, supply chain and transportation executives will have access to enterprise analytics and performance reports across their distribution yards through the PINC application.

“We are truly excited about this partnership,” said Eric Breen, Vice President of Business Development at PINC. “​Combining Lazer Spot’s network of reliable yard management services with PINC’s yard automated orchestration engine and enterprise visibility capabilities will enable Lazer Spot to continue delivering on outstanding customer service and shippers to safely improve operational efficiency, reduce accessorial charges, and manage carrier contracts and transportation budgets from an enterprise perspective more effectively.”

“One of our top priorities is to continue our investment in innovation to support our customer’s operations and to create a safer environment for our team members,” said Adam Newsome, CEO of Lazer Spot. “Part of that effort is to enhance our partner relationships with tech companies that can help us add more value and grow our services offering to our enterprise level customers.  When we combine our spotting services with PINC digital yard management solutions, we can give our customers a package that truly makes their yard and transportation operations as efficient and productive as possible.”

About Lazer Spot:

Founded in 1996 and headquartered in Alpharetta, GA, Lazer Spot is the market leader in critical outsourced yard management services including trailer spotting and shuttling. Lazer Spot is the only national provider of these services for more than 100 blue chip manufacturers and retailers at 400+ locations across the U.S. and Canada.  Collectively, the company moves 25 million trailers annually with its 1,600 power units and 3,000 employees.  To learn more, visit www.lazerspot.com.

About PINC:

PINC provides scalable software, hardware, and services that enable companies to identify, locate, and orchestrate inventory throughout the supply chain predictably and cost-effectively. The company’s cloud-based real-time tracking platform, powered by an Internet of Things (IoT) sensor network that includes passive RFID, GPS, computer vision, cellular, and other sensors, provides actionable insights and connected expert guidance that allow organizations to optimize their supply chain execution. Visit PINC at www.pinc.com.

PINC Receives 2020 Supply & Demand Chain Executive Green Supply Chain Award

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UNION CITY, Calif.Dec. 15, 2020 — Supply & Demand Chain Executive, the only magazine in the supply chain industry covering the entire global supply chain, has selected PINC, the leader in digital yard solutions, as a recipient of the SDCE Green Supply Chain Award for 2020.

The Green Supply Chain Award recognizes companies making green or sustainability a core part of their supply chain strategy and are working to achieve measurable sustainability goals within their own operations and supply chains. The award also recognizes providers of supply chain solutions and services assisting their customers in achieving measurable sustainability goals.

Founded in 2004, PINC is the number one provider of real-time visibility and automated yard orchestration to the world’s leading companies. PINC Yard Management System is deployed at hundreds of facilities worldwide. During one of the most challenging years of this century, PINC digital YMS has enabled the world’s largest companies to achieve their sustainability goals while improving on-time in-full deliveries, building stronger relationships with carriers, and reducing overall transportation costs.

“This year’s 13th-annual award recognizes small, mid-size and large enterprises that leveraged green practices and solutions to further drive sustainable improvements in their supply chain,” says Marina Mayer, editor-in-chief of Supply & Demand Chain Executive and Food Logistics. “From software solutions to transportation management systems to several other initiatives designed to reduce carbon footprint and improve the re-use of materials, sustainability continues to rank as a key component to a stronger, safer and more efficient supply chain.”

“By focusing on automating processes, minimizing equipment and fuel consumption, and eliminating deadhead miles, PINC is continuously helping organizations to reduce greenhouse gas emissions, their overall carbon footprint, and enabling them to achieve their sustainability goals,” said Rafael Granato, Vice President of Marketing at PINC. “We are extremely excited about this recognition in 2020. This has been an extremely challenging year for the supply chain industry. We would like to thank all our customers and the Supply and Demand Chain Executive team for this award.”

About PINC

PINC is the number one provider of digital yard management solutions to the world’s leading brands. PINC provides scalable software, hardware, and services that enable companies to identify, locate, and orchestrate inventory throughout the supply chain predictably and cost-effectively. The company’s cloud-based real-time tracking platform, powered by an Internet of Things (IoT) sensor network that includes passive RFID, GPS, computer vision, cellular, and other sensors, provides actionable insights and connected expert guidance that allow organizations to optimize their supply chain execution.

About Supply & Demand Chain Executive

Supply & Demand Chain Executive is the executive’s user manual for successful supply and demand chain transformation, utilizing hard-hitting analysis, viewpoints, and unbiased case studies to steer executives and supply management professionals through the complicated, yet critical, world of supply and demand chain enablement to gain competitive advantage. Visit us on the web at www.SDCExec.com.

Technology Trends and Selection Considerations For Yard Management Systems

gartner yard management

Top Gartner analysts say there’s no time like the present to invest in a YMS that can help you offset COVID-19 challenges and future-proof your yard.  

A valuable supply chain asset, the physical area “outside of the four walls” of the typical warehouse or distribution center (DC) is becoming a focal point for companies that are realizing the value of their yards. As part of this trend, more of those organizations are turning to technology to help them run their yards efficiently and safely.

In Yard Management Technology Trends and Selection Considerations, Gartner’s Bart De Muynck and Simon Tunstall discuss how the lack of focus and uncoordinated activities among the yard, transportation, and warehouses—all exacerbated by disruptions like COVID-19—is pushing more companies to adopt yard management technology.

Historically, the need to improve yard operations was overlooked, even where there were well-identified improvement opportunities. De Muynck and Tunstall blame this on an “overfocus” on warehouse and transportation management processes, priorities, and systems.

“Due to this overfocus on warehouse management and transportation management in isolation, there was a frequently missed opportunity to coordinate an efficient flow across all three areas,” they add. “As the impacts of COVID-19 continue to unfold and constrain warehouse and distribution center operations, supply chain leaders are renewing focus on this area.”

Who Should be Using a YMS?

The pandemic is creating longer dwell times for carriers, more congested yards and DC operations, and other inefficiencies. It effectively exposed major interruptions in today’s supply chains and the workflows that they support.

“Yards remain notoriously inefficient as companies waste time and resources searching for trailers and inventory poorly located in the yard,” the authors point out. “Lack of timely location of assets can lead to misaligned inbound processes, incomplete assembly, missed deliveries, and spoiled goods.”

Regardless of their current challenges—or how their WMS and TMS solutions are set up— Gartner says these companies should be considering a YMS:

  • Users with large fleets
  • Users with a high volume of supplier and customer shipments
  • Users who suffer yard, dock door, and throughput congestion
  • Users operating a campus of yards or who need to manage networks of “yards of yards” holistically, to effectively deploy their resources across their network

The authors say DCs and warehouses operating in a high Level 3, Level 4, or Level 5 complexity environment also have a greater need for extended components, such as YMS and advanced dock scheduling to better coordinate their workflow.

“These needs may exceed their WMS capabilities,” De Muynck and Tunstall add. “Additionally, users with significant yard operations and no WMS (i.e., manufacturing sites) should also consider [using] a YMS.”

Steps to Take Now

To prepare their warehouses, DCs, and yards for the future, Gartner says supply chain technology leaders should be taking these steps now:

  • Model yard operations across the network and review the performance of yard activities to determine opportunities for process improvements.
  • Assess the benefits of yard solutions, and the capabilities within and across warehouse management systems (WMS), transportation management systems (TMS), and YMS solutions that best address the operation’s complexity, logistics priorities, and the firm’s current portfolio of logistics solutions.
  • Review technology and market trends and use those insights to determine how you want to bridge the gap between warehouse and transportation management (and, how you can adapt to the external pressures changing these environments).

Selecting a YMS isn’t a decision that should be taken lightly. Supply chain leaders should grasp trends, existing capabilities, and selection criteria to support their needs, they add.

“Organizations typically understand and prioritize investment in, and use of warehouse management and transportation management solutions,” De Muynck and Tunstall continue, “while neglecting the sometimes more impactful benefits that yard management solutions offer.”

Gartner’s “Yard Management Technology Trends and Selection Considerations”, Bart de Muynck, Simon Tunstall, November 2020.

Gartner Disclaimer

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

S&D Coffee and Tea Roasts Logistics and Transportation Costs With PINC

Using PINC Yard Management System (YMS), America’s largest custom coffee roaster has reduced detention costs and eliminated yard inefficiencies while improving visibility and productivity across the supply chain.

S&D Coffee - Yard Management

Since 1927, S&D Coffee & Tea has been making delicious beverages for consumers worldwide. Made from top-quality ingredients, its coffees and teas are not only tasty, but they’re also produced in a very sustainable, eco-friendly manner. S&D’s sustainable sourcing, for example, relates specifically to resilient supply chains for coffee and tea.

“A sustainable supply chain is critical to the future of these global markets,” the company’s website states. “That’s why Raíz Sustainability, S&D’s sustainable sourcing platform, is rooted in impact – in fact, the Spanish word raíz (pronounced rah-ease) literally translates to ‘root.’”

Managing with Spreadsheets

From the beginning, S&D’s founders realized the need to bring coffee to the local area through grocery store delivery. Today, as the largest custom coffee roaster in America, S&D’s capabilities extend into the evolving world of extracts and ingredients — creating new possibilities for culinary applications and exciting new beverage choices for customers.

To support this mission, the company’s drivers used to spend an hour or more physically checking on the location of roughly 150 different trailers. Located at S&D’s five warehouses and manufacturing locations, these trailers provide the vital link between the company’s operations and its customers.

Once gathered, all of the information was entered into a spreadsheet that hardly supported S&D’s dynamic shipping environment. “By 6:30, the information had changed because the trailers had moved,” S&D’s J.T. Hinson told Inbound Logistics.

YMS Wanted

For help managing its yard activities, S&D began shopping around for a yard management system (YMS) that would help it reduce detention costs and inefficiencies while improving visibility and productivity (among other things). It found what it was looking for in the PINC YMS.

“With a yard management system (YMS) from PINC, that job went away,” Hinson told Inbound Logistics. The YMS gathers data related to every trailer move and also captures information on the type of coffee bean stored in each trailer. As a result, the company has reduced to 15 minutes (from a previous 45 minutes) how much time it takes to move a trailer to the roasting area. “It was a big win,” Hinson said.

Meeting Customer Demand

From its YMS, S&D wanted a solution that fit its specific needs and not the other way around. It also liked PINC’s RTLS (real-time location system) tracking, whereby small, magnetic passive RFID tags are affixed to each trailer and then automatically scanned by an RTLS tracker located on the switcher. “The location and other information associated with the trailer are consistently updated in real-time,” Inbound Logistics points out.

Thanks to its YMS, S&D also has reporting capabilities that can be tailored to the needs of each department (i.e., finance, commodities, manufacturing, etc.). That means it can create pick lists based on coffee bean types, as well as by finished product or raw materials—all without having to work with IT developers. “The reports give visibility and detail to the assets and what’s on them,” Hinson told the publication.

And, when S&D Coffee added another facility and yard, the YMS allowed Hinson’s team to manage it without the need for additional yard spotters, tractors, or drivers. “S&D Coffee is better able to optimize equipment and drivers,” Hinson added, “while still meeting customer demand.”

Accel-KKR Completes Carve-Out Acquisition of Shipper TMS

Acquisition Marks Second AKKR Investment in Supply Chain Software Space in Two Months After PINC, A Leader in Yard Management Software Solutions

AKKR PINC ShipXpress

Menlo Park, CA & Union City, CA – September 15, 2020Accel-KKR, a leading technology-focused investment firm, today announced that it has closed on a carve-out acquisition of the Shipper TMS portion of the Supply Chain Optimization (SCO) software business portfolio owned by Wabtec Corporation. The Shipper TMS business provides cloud-based multi-modal shipment management applications to customers in the United States, Canada, and Mexico. Industrial shippers, carriers, logistics providers, and bulk terminal operators know the Shipper TMS business by two leading product brands, ShipperConnect and ShipXpress.

This is a strategic acquisition to Accel-KKR’s platform investment in PINC, a Gartner “Best of Breed” digital yard management software solution leader. Accel-KKR completed a significant growth equity investment in PINC on June 16, 2020. Multi-modal TMS and analytics solutions such as those offered by this Shipper TMS business is one of several growth strategies in support of PINC’s goal to expand its digital yard management and transportation management solutions to help clients optimize complex supply chains.

Shippers, such as those moving bulk commodities in the energy, mining, agricultural, metals and chemical verticals, turn to multi-modal shipments (e.g. rail and truck) due to the reliability, cost efficiency and sustainability afforded by the mix of modality as opposed to a single form of transportation. Among its key capabilities, Shipper TMS provides yard management, shipment visibility, rate management and bulk inventory management that allow for an accurate and timely flow of information to all parties from origin to the final destination.

The combined businesses will serve as a foundation for a Supply Chain Execution (SCE) platform focused on comprehensive transportation management software solutions for shippers. The platform will prioritize offerings that serve the origin and termination points in the supply chain with a specific focus on rail, truck, and terminal yard management. Combined with real-time visibility, electronic documentation, analytics, billing, rating and carrier management functionalities, the platform is well positioned to solve multiple transportation challenges in the supply chain industry.

About PINC:
PINC provides scalable software, hardware, and services that enable companies to identify, locate, and orchestrate inventory throughout the supply chain predictably and cost-effectively. The company’s cloud-based real-time tracking platform, powered by an Internet of Things (IoT) sensor network that includes passive RFID, GPS, computer vision, cellular, and other sensors, provides actionable insights and connected expert guidance that allow organizations to optimize their supply chain execution. Visit PINC at www.pinc.com.

About Accel-KKR:
Accel-KKR is a technology-focused investment firm with over $9 billion in capital commitments. The firm focuses on software and IT-enabled businesses, well-positioned for top-line and bottom-line growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value alongside management by leveraging the significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions including buyout capital, minority-growth investments, and credit alternatives. Accel-KKR also invests across a wide range of transaction types including private company recapitalizations, divisional carve-outs and going-private transactions. Accel-KKR is headquartered in Menlo Park with additional offices in Atlanta and London. Visit accel-kkr.com to learn more.

Media Contact:

For PINC:

Rafael Granato, Vice President of Marketing
PINC
+1 (510) 474-7509
press@pinc.com

For Accel-KKR:

Todd Fogarty
Kekst CNC
+1 (212) 521-4854
todd.fogarty@kekstcnc.com

5 Factors that Impact Carrier Lane Pricing

carrier-lane-yard-management

Ever wonder how your carriers come up with their lane pricing? Here’s a quick primer on some of the key factors that go into these decisions.

Also referred to as a “freight lane,” a carrier lane is simply a route that’s routinely served by a specific carrier. By establishing lanes to operate in, carriers, independent operators, and large trucking operations can run more efficiently and effectively (versus trying to serve “everyone everywhere”).

Many less-than-truckload (LTL) carriers operate within a fixed region of the country where they have established lanes, while national LTL carriers operate both within defined regions and via long-haul lanes that carry freight through those regions. Finally, independent operators manage both full and partial truckloads within their established lanes.

5 Points to Remember

Here are five determining factors that carriers use when developing their lane pricing:

  • Current freight volume. Much like any industry that fluctuates according to supply and demand, freight usually costs more to move when everyone is vying for space on trucks. When that demand wanes, lane pricing usually retreats along with it. “Rates are elevated right now and the supply-demand dynamic suggests they will remain so for some time,” Freightwaves “Carriers are rejecting loads at a high rate and volumes are flowing at historic levels. Carriers have options and they are exercising them in search of margins.”
  • Fuel costs. As fuel prices go up, carriers typically adjust their costs to offset their own increased cost in this realm. When fuel costs go down, the savings are often passed along to the shipper via a fuel cost component that carriers build into their own pricing models. These fluctuations can directly impact carrier lane pricing.
  • Head-hauls, backhauls, and deadhead miles. When truck drivers are competing to reduce empty miles, rates will be lower. When shippers are competing to find capacity, rates will be higher. Key factors that carriers look at include the chances of getting reloaded after delivery; and the load-to-truck ratio at the pickup and delivery locations. They also factor in deadhead miles or the number of “empty” miles that have to be driven between pickup and delivery locations (for the next load).
  • Driver pay and labor availability. These two go hand-in-hand: when there are ample drivers to choose from, and when those drivers aren’t commanding higher wages, carrier lane pricing tends to remain steady. However, when driver shortages begin to drive up wages, those increases are usually reflected in higher transportation costs for shippers. Coming off a year when labor availability was an issue for most organizations—and then moving right into the 2020 pandemic (which took a different toll on workforce availability)—this point remains a major hurdle for carriers and trucking companies.
  • Government regulations. Hours of service (HOS) rules, the electronic logging device (ELD) mandate, and other government regulations can all directly impact carrier lane pricing. For example, the HOS rules—which have since been integrated into carriers’ business models—had an initial impact by reducing the number of hours that a driver could be behind the wheel before stopping for a break. That meant no more waiting out in the yard for two hours for a dock door to open up (during which time the driver’s hours could run out). By deploying digital yard management systems (YMS) like PINC, companies have been able to eliminate these detention issues and keep drivers safe and operating (and subsequently, transportation costs affordable).

Keep these points in mind as you plan out your next load, knowing that most of the issues can be worked around if you attack them well in advance (versus waiting until it’s too late to do anything about it). Talk to your carriers about your options and use your YMS and transportation management system (TMS) to come up with a plan to provides the best value at the right price.

PINC and project44 partner to deliver the next generation of yard automation and predictability

pinc-project44-yard-transportation-management

The world’s number one enterprise yard management system and the leader in supply chain visibility combine forces to provide highly efficient automation and real-time visibility to manage in-transit and on-site shipments.

UNION CITY, Calif. – Aug. 25, 2020 — PINC, the number one digital yard™ management solution provider, today announced a partnership with project44®, the global leader in supply chain visibility for shippers and logistics service providers.

The new partnership aims to empower industry-leading shippers and carriers with end to end real-time shipment visibility and yard management automation capabilities for an enhanced supply chain experience.

Distribution centers, warehouses, and manufacturing plants are looking to improve gate velocity, optimize driver turnaround times, and reduce costs while becoming Shippers-of-Choice. project44’s shipment and ETA data in concert with PINC Yard Management System‘s real-time asset and load data will accelerate the check-in process and provide customers with actionable dynamic load scheduling visibility. Organizations will also gain real-time insights into critical yard asset and load lifecycle transitions through project44’s Advanced Visibility Platform™.

At the enterprise level, the data exchange between PINC and project44 will enable shippers to improve shipment velocity, enhance sustainability, reduce accessorial charges, and manage carrier contracts and transportation budgets more effectively.

“PINC enables enterprises to find and assign trailer assets and associated loads automatically through their life cycle, and optimize their movement between gates, yard, and docks,” said Matt Yearling, CEO of PINC. “Combining project44’s advanced visibility and predictive tracking and ETAs with our yard orchestration engine will enhance the shippers’ ability to meet on time in full (OTIF) requirements, maximize the productivity of warehouse labor and assets, achieve real-time visibility to available inventory, compete on providing an enhanced customer experience, while significantly reduce costs.”

“As businesses face the increasing demand for faster delivery, our partnership is here to fix the existing supply chain gaps, whether shipment is in transit, in the yard, or in the warehouse,” said Jett McCandless, CEO and Founder of project44. “With project44’s robust API integration capabilities and real-time ETA tracking, we are excited to drive additional value to mutual customers. By having real-time insights into inbound load ETA and shipment details, all players within the transportation ecosystem can increase operational efficiencies and exceed their customers’ expectations.”

On September 3rd, Matt Yearling and Jett McCandless will join Gartner’s VP, Bart De Muynck, and other thought leaders and industry experts on the panel discussion entitled “Re-evaluating The Supply Chain:  Transportation Execution Driven By Innovation in Uncertain Times”. The online event is hosted by UC Berkeley’s Sutardja Center For Entrepreneurship and Technology and will be moderated by Dr. Aleks Gollu. For more information, please visit: https://innox.berkeley.edu/event/9-3-re-evaluating-supply-chain/

About PINC:

PINC provides scalable software, hardware, and services that enable companies to identify, locate, and orchestrate inventory throughout the supply chain predictably and cost-effectively. The company’s cloud-based real-time tracking platform, powered by an Internet of Things (IoT) sensor network that includes passive RFID, GPS, computer vision, cellular, and other sensors, provides actionable insights and connected expert guidance that allow organizations to optimize their supply chain execution. Visit PINC at www.pinc.com.

About project44:

project44 is the world’s leading advanced visibility platform for shippers and logistics service providers. project44 connects, automates, and provides visibility into key transportation processes to accelerate insights and shorten the time it takes to turn those insights into actions. Leveraging the power of the project44 cloud-based platform, organizations increase operational efficiencies, reduce costs, improve shipping performance, and deliver an exceptional Amazon-like experience to their customers. Connected to thousands of carriers worldwide and having comprehensive coverage for all ELD and telematics devices on the market, project44 supports all transportation modes and shipping types, including Air, Parcel, Final-Mile, Less-than-Truckload, Volume Less-than-Truckload, Groupage, Truckload, Rail, Intermodal, and Ocean. project44 has placed second, behind only Amazon, on FreightWaves’ 2020 Freight Tech 25, a list of the most innovative companies across the freight industry, and received the 2020 SAP® Pinnacle Award as the Cloud Partner Integration of the Year. To learn more, visit https://www.project44.com/.

Media Contact:
Rafael Granato, Vice President of Marketing, PINC
press@pinc.com

Mariya Barnes, Director of Communications, project44
mbarnes@project44.com

7 Ways to Reduce Carrier Detention Fees and How Digital Yard Management Can Help

Yard management detention charges

If you’ve been paying higher and higher driver detention fees lately, you’re not alone. According to a new report from C.H. Robinson and Iowa State University, favored shippers are receiving better pricing and service. Those that don’t fall into the “shipper of choice” category are bearing the brunt of the driver detention and related fees.

In Do Favored Shippers Really Receive Better Pricing and Service? the report’s authors set out to better understand the voice of U.S. truckload carriers and quantitatively measure the effects of “favored shipper” characteristics on transportation costs. Through this process, they found that the top three characteristics impacting these costs include:

  1. Dwell time/asset utilization. Carriers most frequently commented on shipper and consignee dwell time and the influence shippers have on the carrier’s ability to utilize their drivers and assets (trucks and trailers), the report notes. Comments included concerns about shipper location (e.g., congestion and distance from the highway), drop trailer opportunities, appointment setting, and load/unload times.
  2. Contract terms and liability. All carriers mentioned liability concerns related to either the freight or the drivers who are on shipper/consignee property, according to the report. Payment terms, actual payment time, and detention (driver and trailer) were also commonly discussed.
  3. Driver experience. Several carriers mentioned concerns related to the driver’s experience at the shipper and consignee. These ranged from the check-in process—which can be facilitated by a digital  (YMS)—and parking, to driver lounges and restrooms. “In general, smaller carriers were more likely to discuss driver issues than larger carriers.”

Using shipment data and econometric modeling, Iowa State University’s researchers quantitatively measured the effects of these characteristics on transportation costs. With a 2-hour dwell time at origin increasing the freight rate for every load shipped by an average of $9.83 (along with any detention charges), that cost multiplied across many loads can add up quickly.

7 Steps to Take Now

To keep carrier dwell time to a minimum and reduce the related charges, C.H. Robinson and Iowa State University tell shippers to start using these strategies:

  • Leverage live load flexibility. Freight may be ready early for pickup. If a dock door is open and the shipper can proactively communicate this to their live load provider, they can obtain a truck before a scheduled appointment. “Live loading provides the flexibility to deal with fluctuations in demand,” the report’s authors state. “It enables coordination between manufacturing, shipping, and the carrier to accommodate freight when manufacturing is ahead of schedule, or when shipping falls behind.” Using your YMS, you can designate a dock door (or a percent of time for multiple doors) for live load activity or combined drop trailer/live load freight. This strategy enables the shipper or consignee to dramatically reduce the amount of time the driver is on their property.
  • Pre-stage freight on shipping dock. Proactively prepare for carrier arrivals so they can get in and out faster. This is another process that your digital YMS can handle for you.
  • Offer appointments for loading and unloading. Put an appointment or notification scheduling process in place to maximize the use of dock doors and people and to increase efficiency. “Stay as close to designated times as possible,” the report’s authors advise. “Also monitor the receivers’ facility characteristics and what the carrier encounters on the delivery end.”
  • Palletize freight. Palletized freight can be loaded and unloaded faster than loose boxes and pieces.
  • Maintain adequate staff for loading and unloading. “A cascading effect quickly occurs on dwell time when dock staff is insufficient to handle scheduled appointments,” the report notes. “Shippers should ensure that adequate staff is on hand at all times.”
  • For large facilities, provide a good map or directions to the appropriate dock door. To reduce frustration and enable faster loading/unloading times, provide carriers with a map and directions to the appropriate dock door or their shipment.
  • Use drop trailers. Shippers can load drop trailers according to their timing and schedules. “The carrier arrives, hooks up the trailer, and goes, with a minimum of wait time,” the report states, “This is easily the best solution in high-volume facilities.”

What does ‘on-time, in-full’ (OTIF) mean in the consumer sector?

McKinsey & Co., and Trading Partner Alliance outline some of the key considerations that should go into developing and using the on-time and in-full delivery metric.

Dock Doors - Yard Management Software OTIF

Supply chain complexity is increasing as customers demand a wider selection of products, a broader choice of channels, and more promotional offers. With expectations of higher on-shelf availability and lower inventory costs, the pressure on delivery performance has intensified—as has the need for manufacturers, retailers, and carriers to work together to create efficient, reliable, and responsive supply chains.

The global pandemic has accelerated this trend, and along the way unveiled some major gaps in the world’s supply chains. To fill these gaps, a growing number of companies operating in the consumer sector have adopted the “on-time in-full” (OTIF) delivery metric.

What is OTIF?

According to McKinsey & Co., OTIF measures the extent to which shipments are delivered to their destination according to both the quantity and schedule specified on the order. “In theory, OTIF should be the ideal mechanism to align the objectives of retailers and manufacturers,” the global consultancy points out.

The problem is that there is no standard definition for OTIF. Because of this, supply-chain participants may interpret the metric differently. For example:

  • Does “on-time” mean on the date requested by the retailer, or the date promised by the manufacturer?
  • Does it mean within the specific delivery slot allocated to the shipment, or any time inside a broader, agreed-upon time window?
  • Should “in-full” be measured at the level of complete orders, line-items, or individual cases?

“These differences matter,” McKinsey says in its report, noting that effective supply-chain collaboration depends upon a precise, common understanding of delivery-performance expectations. “Today’s diversity of approaches means partners waste time arguing over the figures, rather than addressing the root causes of delivery issues.”

Survey Says…

To get industry perspectives on OTIF, the Trading Partner Alliance (TPA) and McKinsey surveyed major retailers and manufacturers of North American consumer packaged goods (CPG). Ninety-two percent of those companies agreed that an industry standard for OTIF would create value.

“They noted that a standard definition would significantly reduce discrepancies and confusion and promote collaboration among trading partners,” McKinsey states. “Collaboration would help partners resolve supply problems more efficiently and effectively—creating value for all supply-chain participants as well as for consumers.”

A common definition for OTIF would also:

  • Create a common view. A common view of supply-chain performance would support consumer-goods supply chains by aligning service expectations; enabling joint performance management; and supporting performance benchmarking.
  • Streamline data complexity. “Retailers and manufacturers end up devoting significant time to explaining and reconciling differences in reported data,” McKinsey points out. “Carriers are often caught in the middle, as both retailers and manufacturers push them for improved performance based on inconsistent data and requirements.”
  • Reduce supply chain complexity. Because each retailer has a different definition of OTIF, manufacturers must meet a variety of different delivery standards and keep up with each retailer’s changes to its individual definition. “Even the major retailers use different definitions, and their definitions keep evolving,” McKinsey notes.

So what’s the solution? A viable working definition of OTIF, which McKinsey says would look like this:  “Case quantity that is delivered to the destination by the requested delivery date, calculated as a percentage of the ordered quantity.”

The other parameters would include:

  • Any overdelivered quantity or inaccurate product shall be disregarded.
  • Arrival at the destination facility (rather than when checked in or unloaded, which may be subject to delays outside the manufacturer’s control).
  • The requested delivery window should be the delivery date requested at the time of order placement, adjusted for any retailer-caused appointment delay, measured to the end of the working day and with a one-day early allowance.

$15-$20 Billion in Lost Sales

As the industry works toward a common definition for OTIF, the complexities of running the world’s supply chains will increase exponentially. “Consumers expect products to be on the shelf,” McKinsey points out, noting that the U.S. food retail industry loses an estimated

$15-$20 billion in sales (2%-3% of its total sales) every year due to out-of-stock or unsaleable merchandise.

“The main operational challenge for the consumer sector is to achieve high levels of on-shelf availability,” it adds, “while keeping supply chain costs down and inventories under control.”

PINC named Top Supply Chain Projects for 2020 by Supply & Demand Chain Executive

TOP 100 SDCE Yard Management Solution

Union City, CA – July 29th, 2020 –  Supply & Demand Chain Executive, the executive’s user manual for successful supply and demand chain transformation, has selected PINC, the leader in digital yard™ solutions, as a recipient of an SDCE 100 Award for 2020.

The SDCE 100 spotlights successful and innovative projects that deliver bottom-line value to small, medium and large enterprises across the range of supply chain functions. These projects can serve as a map for supply chain executives looking for new opportunities to drive improvement in their own operations. These initiatives also show how supply chain solution and service providers help their customers and clients achieve supply chain excellence and prepare their supply chains for success.

Since its founding in 2004, PINC has been a pioneer in providing real-time visibility and workflow orchestration to yard operations across distribution centers and manufacturing plants worldwide. PINC’s platform is currently utilized by an array of Fortune 1000 enterprises and gives companies a cost-effective way to move inventory faster and optimize their supply chain.

“Innovation is essential in driving the supply chain industry forward, and thanks to these valuable partnerships, companies of all sizes are able to achieve success in projects that matter,” says Marina Mayer, editor for Supply & Demand Chain Executive. “From business intelligence systems and supply and demand planning to inventory reduction and procurement solutions, the SDCE 100 offers proof-of-concept that with the right planning and execution, anything is possible.”

“We are very grateful for this award during one of the most challenging years of this century,” said Rafael Granato, Vice President of Marketing at PINC. “Given the uncertainties and increased customer expectations placed upon trailer yards, we are playing a more vital role at the termination points of transportation networks, by expediting shipments and reducing transportation costs.”

About PINC:

PINC provides scalable software, hardware, and services that enable companies to identify, locate, and orchestrate inventory throughout the supply chain predictably and cost-effectively. The company’s cloud-based real-time tracking platform, powered by an Internet of Things (IoT) sensor network that includes passive RFID, GPS, computer vision, cellular, and other sensors, provides actionable insights and connected expert guidance that allow organizations to optimize their supply chain execution. Visit PINC at www.pinc.com. 

About Supply & Demand Chain Executive:

Supply & Demand Chain Executive is the executive’s user manual for successful supply and demand chain transformation, utilizing hard-hitting analysis, viewpoints and unbiased case studies to steer executives and supply management professionals through the complicated, yet critical, world of supply and demand chain enablement to gain competitive advantage. Visit us at www.SDCExec.com.