Technology-first logistics service providers (LSPs) entered the supply chain industry to automate mundane tasks typical at traditional third-party logistics providers, including carrier load matching and pricing.
Now tech-enabled LSPs are raising the stakes, not just using technology to create operational efficiencies but leveraging a tech-focused workforce to build value-driven integrations for shippers looking to optimize their specialized marketplaces.
An example of this is a partnership announced Wednesday between logistics technology platform Loadsmart and natural stone marketplace StoneLoads.
Birth of a natural stone marketplace
StoneLoads came about because of a fragmented, inefficient market.
Prior to building StoneLoads, as a partner at private equity firm Alderman Holdings, Patrick Wells purchased and became chief executive officer of Chattanooga, Tennessee-based Majestic Stone. Wells told FreightWaves he soon noticed the substantial amount of waste within the processes of buying and selling natural stone.
“I realized how we were exchanging material was extremely inefficient and time consuming,” said Wells. “Everything was done around phone calls, text messages and paper. Our inside sales team’s day was consumed by just explaining to customers what inventory we had and when it would be available.”
Wells focused on moving the business online and building StoneLoads, making it easier for customers to find and buy truckloads of stone.
“Then we got to the point where we were trying to figure out how to incorporate freight into the platform because we knew that for every load of stone bought, a truck would need to be arranged for it. … After we launched the site, the common feedback we got was could we help on the freight side,” said Wells.
Finding the right FreightTech partner
Wells explained that leadership at StoneLoads knew it would need a transportation partner that not only understood the flatbed market, the asset utilized for moving natural stone, but a partner with a technology-focused execution toward logistics.
“We needed a tech partner, not just a freight broker,” said Wells. “We wanted a solution where you could enter a date and ZIP code, request a quote, book a truck and next thing you know, the load has been delivered without having to chase down a truck — a true streamlined process.”
Now, just a little over a year after founding StoneLoads, Wells and transportation partner Loadsmart have done just that.
“Last year, no quarry was selling online,” said Wells. “Now, stone yards across the country can get on our site, find a load of stone, get the shipping cost and book a truck in a matter of minutes. It’s a big deal for our industry and we are really excited about it.”
According to Felipe Capella, chief executive officer at Loadsmart, this is just the beginning of bringing niche commodity markets into a tech-driven sales space.
“Shippers who use enterprise transportation management systems have become accustomed to 100% tender acceptance in tight markets and lower real-time rates in up markets,” said Capella. “Now it’s time for more specialized marketplaces and industry-specific enterprise resource planning systems to extend these same features to the small and midsized shippers who haven’t realized the value of instant pricing integrations. We’re excited to partner with more of them like StoneLoads to build customized instant FTL and LTL pricing to bring capacity and service to this market.”
Watch now: The Supply Chain Takeover
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