When it comes to transportation, businesses in the agricultural sector list three key challenges:
Each of the above has its own set of unique requirements and constraints, however, Aberdeen’s research uncovers how best-in-class companies leverage technology to outperform their competition.
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Unique challenges and solutions
For farmers real-time ETAs for inbound shipments, including fertilizers and seeds, are vital as they enable effective scheduling for the various crew and equipment needed. In this context, visibility and communication are often interlinked and keeping each party (carriers, third parties and shippers) updated with relevant information (delays, capacity requirement changes…) is vital to the smooth running of operations.
This visibility is also key for outbound shipments, particularly in the case of grain and other produce, where moisture and temperature control leave little room for error. The same is true of outbound animal products where stock levels can be especially unpredictable. Live Tracking solutions have proven invaluable, alongside transportation planning software, to helping all parties avoid downtime, reduce costs and benefit from a stress free experience.
When it comes to regulatory requirements, the agricultural industry faces more scrutiny than the vast majority of sectors. And while there is good reason for this, food safety, hazardous fertilizers and more, it adds an extra layer of complexity to the process. Here digitalizing documentation and having a single source of truth with regards to the logistics involved, not only streamlines operations, but also acts as effective risk management for involved businesses.
What do the numbers say?
To what extent do these optimized processes benefit leading businesses? Here are a few examples of best-in-class vs. all others.
- Contract requirements met (percentage of carriers compliant with contract requirements on total cost)
Best-in-class: 98% All others: 48%
- On-time delivery
Best-in-class: 94% All others: 50%
- Routing compliance (percentage of carriers meeting service-level and routing compliance requirements)
Best-in-class: 97% All others: 52%
- On-time pick-up
Best-in-class: 69% All others: 53% Freight spend Best-in-class: 0.56% All others: 1.95%