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What is Digital Freight Matching?

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What is Digital Freight Matching?

The chances are that if you’ve worked in the trucking industry within the past few years you’ve heard of digital freight matching.  

 

This fast-growing integration of technology with traditional freight matching methods has caught on quickly and proved to be more than just the newest trend in transportation and logistics. Digital freight matching (DFM) has become the go-to method of many carriers to efficiently connect their drivers with available freight while saving time on paperwork, optimizing space, and cutting costs.  

 

Keep reading to find out what digital freight matching really is, and how AI technology and machine learning could save your company time and money when connecting with shippers. 

 

How does digital freight matching work? 

Simply put, digital freight matching is a technology-driven approach to connecting shippers, or those who need to transport goods, with carriers and other transportation companies. Unlike traditional methods, which involve manual processes and third party intermediaries, DFM leverages AI and machine learning to streamline the freight matching process. 

 

Although all modern freight brokerages and third-party logistics (3PL) businesses use technology to optimize the process, DFM is different in that it takes a technology-first approach instead of the traditional emphasis on human interaction and expertise.  

 

Traditionally, 3PLs have assisted carriers by taking information from shippers about available loads and connected them with drivers looking to carry freight. This included lengthy and potentially challenging manual processes such as booking, load posting, paperwork, and confirmation calls.  

 

Instead, DFM now automates these processes by using predictive analytics rooted in AI to optimize matches for service, efficiency, capacity, and cost. DFM platforms automatically connect different parts of the supply chain, making the process more efficient and responsive for all parties involved.  

 

Shippers begin the process by uploading important job details to a DFM service, including proposed rate, the weight of the freight, and the required pick-up and delivery points and dates. AI-generated algorithms then evaluate the fleet capabilities of existing users to find potential matches. Suitable carriers can then open the DFM’s load board, evaluate the job description, and easily confirm within the platform.  

 

Since most DFM platforms are available as mobile apps or online websites, this provides a single access point for every step of the matching process.  

 

What are the benefits? 

The main draw of DFM is the ability to streamline the entire freight matching process. Companies offering DFM help shippers share and advertise their loads to a wider range of drivers, while optimizing and accelerating the connection between shipper and carrier.  

 

DFM technology also integrates seamlessly with Transportation Management Systems (TMS) and Enterprise Resource Planning (ERP) systems, making scheduling more efficient and reducing the time spent on administrative tasks.  

 

Top DFM software can incorporate quoting, payment, data tracking and a range of other services into a single platform, allowing carriers and drivers to maximize load utilization and lower costs by minimizing empty backhauls. 

 

Are there any drawbacks? 

As with any other technological advancement, there are some important considerations to make before deciding to invest in a DFM platform.  

 

Initially integrating a DFM service into a carrier’s existing freight matching methods can be difficult, especially when considering the price of a program and any training required for the transition.  

 

DFM platforms typically offer various payment models, ranging from a monthly or annual subscription-based service to freemium models with only basic features available for no cost. Although the overall cost can potentially be higher than the fees required for 3PLs and other matching services, it depends on the quality and abilities of the selected DFM platform.  

 

Another important factor is the inherent dependence on technology of any DFM service. Utilizing DFM requires internet connectivity, software platforms, and an understanding of the AI-generated algorithms. While the quality and ease of user interface has continued to improve in recent years, downtime, system glitches, and viruses can still disrupt operations and cause delays.  

 

The top concern for many carriers deciding whether or not to make the transition to digital freight matching is how to strike the right balance between automation and personalized service. While algorithms enhance efficiency, they may not account for all variables, making human judgment still crucial for complex scenarios and exceptions.  

 

Many clients and drivers will still appreciate some personalized services, so be sure to provide a human voice and perspective when necessary.  

 

 

 

For more information on evolving trends in the trucking industry and how to keep your carrier’s services ahead of the curve, remember to follow us on social media and stay up-to-date on our Employer Blog posts.  

Truck Platooning: The Future of Trucking?

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truck platooning

By now, most people in the trucking industry have heard of self-driving trucks and the impact they’ll soon have on the industry. What people may not be aware of is probably the biggest application of self-driving trucks; truck platooning. Many experts view it as a huge step forward for fleets, both in terms of increased fuel efficiency and environmental sustainability. Here’s what to know about truck platooning.  

What is truck platooning?

Truck platooning is when one to two semi-trucks autonomously follow a leader truck at a distance of 50-65 feet while on the highway in order to reduce drag and increase fuel efficiency.  

Truck Platooning relies on a process known as “electronic coupling” where the leader truck communicates electronically to the trucks behind it; telling them to slow down, accelerate, or change lanes as needed. While it’s technically possible for trucks to platoon without technology, it’s highly dangerous (and illegal) for drivers to manually attempt this since the distances between trucks are so small. This is why the process is only able to be done autonomously. 

As of right now, there are two types of platooning; level one and level two. In level one, the trucks have minimal autonomy, with the lead driver driving normally and the follower trucks only braking and accelerating, while the driver keeps an eye on traffic like normal. 

Level two gives more control to the follower trucks, with SAE level 4 being implemented in them. This means that the driver is no longer “driving” at all as long as there’s no inclement weather. The lead truck will still be driven normally though.  

Is Truck Platooning happening now?

Yes, but only for research and testing purposes. For over five years, truck manufacturers and carriers have been investing money and testing the technology on closed highways. 

As of right now, truck platooning is fully legal in only a few states, and legal on a test basis in a few others. It’ll take more time, probably a few years at the least, before we see truck platooning fully legalized in all 50 states.  

What are the benefits of truck platooning?

According to the Federal Highway Administration, 

Truck platooning allows trucks to follow each other closely, thereby reducing air drag and improving fuel economy. Platooning also has the potential to increase vehicle capacity on our highways, particularly along freight corridors. 

Truck platooning can save both the leader and follower trucks huge amounts on fuel each year, which is why the technology is getting so much attention. It’s been shown that platooning can save the leader truck 4.5% in fuel costs and a whopping 10% for the follower trucks.  

This increased fuel efficiency is also more sustainable and therefore better for our environment. These benefits can also carry over to electric trucks as well, with the reduced air drag leading to an increased battery life. 

Are there any downsides to truck platooning?

Long platoon lines could possibly frustrate drivers trying to merge or exit the highway, leading them to perform unsafe maneuvers like weaving in and out of the platoon to get to where they’re going.  

Another issue that could see fleets steering away from truck platooning for a while is liability. Since the technology is so new, it’s still a legal gray area who’s at fault if an accident were to occur between two platooned trucks. This could lead to insurance companies denying liability in the case of an accident.  

Like with all new vehicle-related technologies, there’s an inherent level of danger in the early stages. Research and testing will get rid of 99.9% of problems, but there’s always a chance that something could go wrong while on the road. One semi-truck involved in an accident is bad, but when you’re talking about two or three trucks following that closely behind one another, things can get much worse.  

That’s not to say that truck platooning is dangerous. On the contrary, truck platooning and other related technologies are actually estimated to make highways much safer than they are right now.  

While these issues are important and should be considered, they’re not out of the ordinary for any new technology. With more time, research, and testing, these issues will start to become less and less relevant.  

While giving any level of control to a machine is understandably an unnerving concept for drivers and fleet managers, truck platooning, like autonomous trucking is showing itself to be the future of the industry.

While we won’t see the technology become an industry standard for many years, it’s important for fleets to familiarize themselves with the concept for when the time does come.  

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