The Need for Speed: Why Shippers are Racing to Meet Consumer Demands

The modern supply chain moves at breakneck speed. From big-box retailers requiring near-perfect delivery performance to consumers demanding fast shipping, the pressure to prioritize speed has never been higher. But meeting these high expectations comes with challenges, especially when traditional methods of transportation fall short on both service and efficiency.  

This blog explores why speed is non-negotiable in today’s shipping landscape and how innovative solutions like Shared Truckload (STL) are improving agility while maximizing efficiency.

Why Speed is Vital for Shippers Today  

Retailer Demands Leave No Room for Error  

Big box retailers and grocery distributors demand on-time, in-full (OTIF) delivery compliance rates exceeding 95%, making timely, complete deliveries non-negotiable for vendors. Missing these benchmarks doesn’t just incur hefty penalties; it can also damage customer relationships and revenue.  

These OTIF requirements cost the average enterprise shipper a staggering $6.1 million annually in 2024. This financial burden is driven by heightened consumer expectations for variety and availability, pressuring retailers to maintain strict inventory levels. Failure to comply leads to steep fines, rejected shipments, and strained vendor relationships.  

To meet these demands, many shippers effectively sacrifice cost efficiency, opting for partially filled truckloads that prioritize delivery compliance over capacity maximization. This trend highlights the urgent need for flexible, cost-effective solutions without compromising delivery timelines.  

Consumer Expectations Drive Speed  

The shift toward a consumer-driven market has fundamentally changed the game. Driven by e-commerce giants and the influence of social media, consumers increasingly expect near-instant delivery times. They hold the power to dictate purchasing trends, which means companies must adapt their supply chains to speed up production and fulfillment cycles to remain competitive.  

Gone are the days when traditional, slower supply chains sufficed. Shippers now understand that meeting consumers’ speed expectations is key to retaining customer loyalty in an era of real-time demand.  

Challenges of Traditional Shipping Modes  

The Limitations of Less-Than-Truckload (LTL) Shipping  

While LTL shipping has historically been a go-to method for smaller shipments, its unpredictability is a growing concern for shippers.  

• Delivery Delays: 1 in 6 LTL shipments arrived late in 2024, causing costly disruptions in supply chains.
• Damaged Goods: Roughly 1.24% of LTL shipments were reported damaged in 2024 due to multiple handling points.

Truckload Underutilization as a Result

To mitigate these risks, many shippers are resorting to partially empty truckloads, prioritizing reliability over full utilization. The data paints a clear picture of inefficiency in traditional shipping methods:  

• Empty Space in Truckloads: 58% of truckloads moved partially empty in 2024, leaving as much as 34 linear feet unused on each trip.
• Reactive Decision-Making: Nearly half of shippers booked truckloads simply to ensure timely and damage-free deliveries, bypassing more cost-efficient options.

When every late delivery or damaged product can jeopardize client retention and profitability, it’s clear that traditional shipping modes can no longer meet the pace required in today’s marketplace.  

What Shippers Value Most  

When selecting brokers and freight providers, shippers prioritize reliability above all else. The attributes most valued in a carrier network include:  

• On-time performance (both pickup and delivery)
• Insurance coverage (cargo, auto, liability, etc.)
• Auto-tracking capabilities, ensuring real-time visibility across the supply chain
• Electronic logging device (ELD) compliance for regulatory adherence
• Proven track record through previous load history

Shippers are willing to pay a premium for consistent service to avoid costly delays, late fees, and reputational damage with their own customers.  

The Role of Technology in Elevating Speed and Efficiency  

Leveraging technology isn’t just an advantage anymore; it’s a necessity for staying competitive. Shippers are increasingly turning to advanced tools to streamline their operations and mitigate risks. Top technologies include:  

1. Artificial Intelligence (AI) to optimize routes, forecast demand, and improve decision-making
2. New tracking technologies for real-time visibility
3. Rate forecasting tools to plan budgets and lock in competitive pricing
4. Transportation Management Systems (TMS) to enhance logistics planning
5. Fraud prevention tools for safer, more secure shipments

Despite challenges like cost and implementation time, nearly half of shippers plan to adopt AI and tracking technologies by 2025, signaling a shift toward smarter supply chains.  

Shared Truckload as faster, more cost efficient solution  

Enter Shared Truckload (STL), a game-changing solution for shippers looking to address these challenges head-on. With STL, shippers can combine their freight with shipments from other businesses moving in the same direction, filling underutilized trailers while maintaining the benefits of full truckload service.  

How STL Works  

By pooling shipments with similar delivery requirements, STL optimizes trailer space to improve both cost and speed. This allows shippers to move goods as soon as they’re ready, rather than waiting to fill an entire truckload.  

Key advantages of STL include:

• Lower Cost: Only pay for the space you need, never pay to ship air.
• Faster Deliveries: Eliminate delays caused by LTL transfers and terminal stops.
• Ship on Demand: Ship your freight when it's ready instead of waiting to fill an entire truck.
• Reliable Service: Expect the same truckload-level quality and reliability you’re used to.

At Flock, our AI powered pooling technology aligns shipments based on delivery times, commodity types, and loading requirements, ensuring optimized performance for each trip.  

Closing Thoughts  

Speed is the currency of today’s transportation industry, and shippers who fail to keep up risk falling behind. By prioritizing on-time performance and investing in technologies like AI and modes like Shared Truckload, businesses can meet the increasing demands of retailers and consumers alike.  

Looking to stay ahead in the fast-paced world of freight? Flock’s Shared Truckload service offers an innovative solution that combines efficiency, reliability, and sustainability.