Understanding Changes in Transportation Spend in 2025
Authored by SMC³ on February 20, 2025
Q&A with Brian Thompson, Chief Communication Officer, SMC³
Q: From your unique perspective, what do you see as the biggest challenges facing logistics and
supply chain professionals as we move into 2025?
A: A significant challenge confronting the industry is the likelihood of shifting freight trends due to the relocation of production and manufacturing facilities worldwide, as companies strive to enhance cost-efficiency, manufacturing speed, and inventory management. Shippers are evaluating how these factors might affect their logistics and contemplating boosting onshore inventory levels in anticipation of possible disruptions. In less-than-truckload (LTL) shipping, the most significant forthcoming hurdle is the anticipated alterations to the NMFC classification system, set to be implemented in 2025. The effects on freight rates could range from increases to decreases, fluctuating based on the density of individual shipments. A thorough analysis is required for shippers to understand the implications for shipping costs. Shippers who lack established procedures to measure the density of their packages accurately or who do not manage their cargo’s packaging will find themselves at a disadvantage.
Q: How is your organization positioned to help logistics and supply chain professionals meet these evolving challenges?
A: SMC³ delivers educational resources and transportation technology solutions designed to assist shippers in LTL, as well as third-party logistics providers and carriers, in confronting future challenges. The technology developed by SMC³ facilitates a digital connection among all industry stakeholders, allowing shippers and 3PLs to oversee their LTL operations throughout the entire shipment lifecycle. This encompasses everything from bid management to provider rate comparisons, transit planning, scheduling pickups, and auditing invoices. The analytical data and technological capabilities that SMC³ offers are essential for effective planning, optimizing transportation modes, and swiftly adapting to the rapidly evolving market conditions. SMC³’s BatchMark® XL solution is a rapid batch rating tool, delivering comprehensive freight expenditure analytics to shippers, 3PLs, and carriers. This tool allows users to create various scenarios and simulate adjustments to their freight characteristics, including alterations in shipment classifications. The high-speed batch rating feature of BatchMark XL enables them to efficiently calculate the implications for their LTL expenses across numerous shipments in mere minutes.
Q: Based on the tumultuous few years we just managed through, what would you say are the most important lessons we’ve learned and what opportunities do you see ahead in 2025 for logistics and supply chain professionals?
A: Stay educated and informed. SMC³offers numerous educational opportunities, including a daily newsletter focused on supply chain intelligence, webinars, and industry events such as Jump Start and Connections. These gatherings bring together supply chain professionals to learn about the latest trends, challenges, opportunities, and best practices from industry specialists. Additionally, SMC³’s LTL Online Education program provides flexible, on-demand learning options featuring exclusive live webinars hosted by industry experts. Invest in technology solutions. While information and education are essential for gaining insights and strategizing for the future, technology facilitates rapid and efficient responses. Implement an advanced TMS that aligns well with your supply chain requirements. Cultivating strong partnerships with a diverse range of transportation providers is crucial for tackling any challenges that may arise. Leveraging technology, such as digital connectivity with your providers, enables shippers to automate many essential tasks involved in freight transportation management. These integrations will enhance your responsiveness, lower freight management costs, and supply crucial data for making informed business decisions. While we can anticipate specific challenges ahead in 2025, every year has the potential to bring with it unforeseen circumstances – challenges and opportunities alike. However, access to information and technology will enable all industry participants to react quickly and successfully meet any challenge ahead.
Originally published in Logistics Management : January 2025