Creating an Optimized Freight Service: The Whole Is Greater Than the Sum of Its Parts.

Freight Services

It comes as no surprise that logistics and fulfillment in 2023 is still being shaped by the significant rise of e-commerce. The latest data reveals that U.S. retail e-commerce sales soared to $400 billion during the second quarter of 2022, showcasing an impressive 40% increase compared to the same period in 2021. These statistics continue to drive transformation and strategic decision-making, both within the industry and at NRI. 

Building upon the success of the previous year’s peak season, NRI fully expects the e-commerce trend to maintain its upward trajectory throughout 2023. Late adopters, including brands and consumers, have wholeheartedly embraced online shopping, further bolstering the expansive community of online buyers and sellers. Recent data indicates a remarkable 50% increase in online spending among Baby Boomers, with Gen X not far behind at an impressive 70% surge. 

To effectively meet the surging demand for e-commerce, NRI utilizes a range of strategies: 

Carrier Diversification: 

Recognizing the persistent challenges faced by major carriers like FedEx, UPS, USPS, and Canada Post, NRI has proactively sought to mitigate capacity issues. By collaborating with multiple carriers, NRI ensures a balanced distribution of volumes, preventing any single channel from being overwhelmed. Furthermore, NRI has expanded its network to include regional carriers capable of expedited local and regional shipments. This strategic approach enables our clients to utilize – and offer to their customers – faster shipping options at reduced costs. The seamless management of multiple carriers at scale is made possible by NRI’s proprietary Transportation Management System (TMS). 

Transportation Management System: 

At the core of NRI’s operations is its TMS, an integral component of Aspire, the company’s proprietary 3PL software suite. This flexible TMS allows NRI to continuously evolve and integrate new partners at an accelerated rate. By minimizing manual processes and streamlining operations, the TMS ensures optimal carrier selection for efficient processing and shipping. It enables the creation and maintenance of comprehensive rules within the rate shopping process – accommodating clients’ specific preferences and requirements including carrier preferences, service levels, and cost thresholds. Rate-shopping across carriers is standard thus leveraging each carrier’s greatest strengths and building a freight profile that is stronger than any one carrier today offers independently. Integration with major USA and Canadian carriers, as well as select international carriers, further enhances the capabilities of the TMS. 

Strategic Geographic Locations: 

NRI recognizes the paramount importance of being strategically located to provide exceptional customer service in an era where faster shipping times are increasingly expected. To address this, NRI has adopted a “four corners” strategy, establishing facilities on both coasts of the USA and Canada. By strategically placing inventory in key regions, clients benefit from reduced transportation costs and expedited order fulfillment. Additionally, the implementation of a Section 321 strategy for duty-free e-commerce fulfillment in the USA presents significant opportunities for cost savings. 

As the logistics landscape rapidly evolves in 2023, NRI remains committed to adaptability and innovation. Through effective carrier diversification, the utilization of an advanced Transportation Management System, and strategic geographic positioning, NRI continues to deliver efficient and cost-effective solutions that meet the ever-growing demands of the e-commerce industry. For more information, please do not hesitate to contact us.

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