Every company has some sort of Ugly Freight. That doesn’t mean it’s unattractive. Ugly Freight doesn’t fit the mold of other products in the standard transportation network. It may be hard to handle for any number of reasons.
It may be big and bulky, smaller, or heavier than your typical items. It may require special handling because of its fragile nature or climate-controlled storage and shipping requirements. It could also be highly valuable and subject to loss or involve specialized hazardous material handling.
The pandemic brought a lot more Ugly Freight into the spotlight as consumers ordered exercise equipment, furniture, and other big and bulky items. Moving products like a kayak with a total length of over 80 inches usually resulted in surcharges from traditional carriers that were off-putting to consumers. New models had to evolve.
Of course, reverse logistics on those large pieces presents another layer of difficulty. None of this is slowing down any time soon as consumers become more comfortable receiving sofas and outdoor grills at the curb, then and changing their minds about the model they ordered or the couch color.
You’ll find additional complications with items for on-premises delivery or white glove, like setting up bedframes, exercise equipment and other furniture and hauling away trash. Add remote and rural deliveries to the mix, and logistics companies struggle to find vendors to meet those needs.
While a number of industries produce freight with Ugly Freight characteristics, the e-commerce segment has introduced new complexities for meeting customer expectations.
Challenges of Managing Ugly Freight
Ordering a new crib for an expectant family is a big milestone in the life of the child. Imagine if there’s confusion about who is responsible for putting the box inside the home and assembling it, or the finish gets scuffed during set up. A heartwarming experience could turn into a big disappointment.
While the crib may be beautiful, it’s a prime example of Ugly Freight that requires a high level of communication and customer service for a satisfactory delivery.
Ugly Freight often requires specialized providers, handling, custom packaging, milestone visibility to the shipments while in transit, chain of custody verification in transit, and specialized equipment or personnel for safe and efficient handling and transportation.
Challenges of managing Ugly Freight include:
- Cost sensitivity. E-commerce companies operate in highly competitive markets with thin margins, so cost-effective premium handling services are critical.
- Network velocity. Speed of delivery to consumers is critical for distribution efficiency and customer satisfaction.
- Visibility requirements. Shippers and customers expect milestone notifications, visibility into transit events, and responsive exception management.
- Customer experience. Customers blame the brand for any problems, not the carrier. The overall consumer experience can significantly impact the brand’s NPS index.
Managing the final mile is critical for the customer experience, but it’s often an arms-length transaction for many shippers who must rely on multiple carriers. Options range from the dominant parcel carriers to regional parcel options, LTL carriers, and gig-economy workers.
In such a fragmented market, ownership of and visibility into the final mile experience is lacking for shippers trying to manage that process independently. Accountability and feedback are challenging without a logistics provider to consolidate and manage the experience into a cohesive operation with a single point of contact.
Technology Makes Ugly Freight Look Better
The future of Ugly Freight success lies in technology integration.
We all know the Covid pandemic and transition to remote work forced the shipping and logistics industry to digitalize across large and boutique providers alike. In many cases, these systems and tools created efficiency, ease of use, and better visibility of products in transit.
Backed by a higher level of digitized systems, it’s time to leverage partner connectivity and technology solutions such as TMS, carrier portals, and analytical tools, to automate data collection, manage scorecard calculations and performance reporting.
E-commerce shippers have the opportunity to improve day-to-day operations and also position themselves for the future. With an endless stream of data now available, analytics are becoming even more critical and will play a larger role in identifying potential risks and associated responses.
New business intelligence solutions with advanced algorithms will be implemented to process this data so shippers and providers can gain valuable insights that improve operations for a better customer experience. More accurate notifications and fewer delays drive customer retention and loyalty.
With a proven logistics partner like Estes Forwarding Worldwide focused on the customer experience backed by a national footprint and effective technology, your Ugly Freight can become beautiful and hassle-free.
