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The Hidden Costs of Manual Yard Operations and How to Overcome Them

Writer's picture: Jake KoppingerJake Koppinger

Yard operations are somewhat akin to the electricity running appliances and devices in your home  most people are not even aware of them when they’re working properly. But if a tree takes down a power line on your block  or, say, poor gate management leads to a backlog in the yard  they suddenly become very important.


While a prolonged power outage across a grid certainly does more immediate harm, a bottlenecked yard operation has many upstream and downstream effects on the supply chain. Raw materials or parts don’t show up at a manufacturing plant, and production is slowed or halted altogether. Orders are shipped out a day or two late, and angry customers can soon become ex-customers.


Things have quieted down in terms of some global supply chain disruptions, such as labor issues on the East/Gulf and West coasts, long port backups, and capacity crunches, but there’s always the potential for issues to arise. Houthi attacks in the area of the Suez Canal have similarly calmed down, but major carriers continue to divert around the southern tip of Africa, adding weeks to transit times and billions in costs.


Given the importance of yard operations, it’s amazing how many facilities still operate on manual processes for checking drivers into and out of the yard and handling physical documentation such as bill of lading (BOL), commercial invoice and proof of delivery (POD). A survey by FourKites found that more than half of supply chain professionals said manual processes were their biggest challenge in terms of both yard and appointment management.


While manual yard operations may seem like a cost-effective method, they carry with them hidden expenses that negatively impact productivity, safety, and overall operational efficiency. Beyond local yard operations, this outdated scenario has knock-on effects that negatively impact carrier relationships and driver satisfaction.


Fortunately, advances in technology and automation are paving the way for greater efficiency in gate check-in, e-documentation, and dock routing, making yard operations faster and smoother. 


The True Costs of Manual Yard Operations


Manual yard operations create a cascade of inefficiencies, starting with labor-intensive processes and compounding into errors and operational delays. This comes at a high cost, not just in terms of productivity but also in terms of profit margins and reputational impact.


Due to manual processing, inbound trucks are held up at the gate, causing potential delays of 30 minutes per vehicle or more. This affects overall efficiency across operations, pushing up costs. It also causes safety issues, with drivers in and out of their vehicles to complete their check-in and gain access to the facility.


Inefficient labor is a significant pain point. Excessive time spent on manual check-in and check-out processes at the gate means staff is prevented from focusing on higher-value tasks, creating an opportunity cost. Also, without automated check-in systems, managing driver workflows requires more human intervention, further stretching labor resources.


These types of inefficiency pave the way for human error. Paper-based freight documentation is prone to inaccuracies, loss, and inconsistency, leading to miscommunication and compliance risks. Errors in data entry or misfiled records can domino through the operation, causing confusion and delays.


When drivers spend more time waiting at the gates and the docks due to poor workflows, it creates bottlenecks in the yard that disrupt throughput and reduce operational efficiency. Facilities with inconsistent standard operating procedures (SOPs) face even greater challenges in keeping operations running smoothly.


Altogether, the true cost of manual yard operations is not just time lost but also strained resources, diminished customer satisfaction, and unhappy carriers and drivers. A company that is not known as a shipper of choice due to inefficient processes faces higher freight rates and lower load acceptance. All of this makes a very strong case for automation.


Hidden Costs Have Significant Impacts on Transportation Spend


Some drivers have flexibility in their delivery schedules, or come from an “old school” approach favoring more human interaction. However, most today are on extremely tight timelines, with increased demand for fast delivery, and prefer to get in and out and back on the road to their next assignment.


This means that a facility with a manual, paper-based gate check-in process, leading to long wait times and inefficient workflows, causes significant frustration for these time-crunched drivers. As noted, this reduces driver satisfaction that negatively impacts carrier partnerships.


Like everyone else, drivers will post reviews of various facilities where they stop regularly on their routes. A negative driver experience (delays at the gate, overburdened personnel, long lines, document delays, etc.) of course leads to negative reviews, which can then cause a “feeding frenzy” effect that leads to poor ratings and higher freight rates.


Delays and inefficiencies affect facilities in other ways as well. Delays and backlogs in the yard lead to drivers being held longer than two hours. Carriers then charge detention fees, resulting in higher operating costs. Detention fees in North America vary widely depending on the carrier, but generally range between $50 and $100 per hour for delayed drivers.  


These same delays can result in a late start for drivers to reach their destinations. Given how tight delivery windows have become, this drastically increases the likelihood that drivers will miss their delivery appointments, potentially stressing the customer relationship as they are now scrambling to backfill the missed delivery window. The relationship with this carrier and driver also become strained as these missed appointments reflect poorly on them. 


Inefficient resource allocation as a result of poor gate and yard management leads to higher operating costs in other ways. Reduced throughput as a result of delays lowers overall yard capacity. This forces facilities to extend operating hours or hire additional personnel to keep up with the backlog.


Leveraging Automation for Streamlined Yard Operations: Three Winning Tactics


With so much at stake in maintaining supply chain efficiency, and the potential for gate and dock access to become a choke point, it’s time for facility managers to take a closer look at automated solutions to maintain a smooth flow. Automation can revolutionize yard operations by reducing bottlenecks, increasing throughput, and enhancing overall visibility.


Touchless Self-Service Solutions


Automated check-in/check-out processes empower drivers to handle facility entry and exit themselves through self-serve kiosks, mobile-friendly solutions, and/or machine vision-enabled systems. These cost-effective capabilities reduce the need for gate personnel while distributing the inbound burden, which can significantly reduce queuing, wait times, and labor needs. By minimizing face-to-face interactions, these solutions also enhance safety and efficiency, allowing for a smoother flow regardless of demand spikes or irregular arrival patterns.


Real-Time Communication


Automation facilitates real-time updates and instructions for drivers, overcoming common communication barriers, such as language differences or misaligned schedules. Through digital messaging and system alerts, drivers receive immediate updates about their assigned docks, available spaces, and loading/unloading instructions. This creates a streamlined workflow, reduces confusion, and maximizes yard space utilization.


Integrated Digital Workflows


Advanced automation synchronizes processes like proof of delivery, OS&D (overages, shortages, and damages) documentation, and inventory tracking. This leads to higher data accuracy and reduces delays caused by manual errors. Integrated systems also connect yard systems with warehouse and transportation management software, creating a unified framework that enhances decision-making and responsiveness.

By leveraging these automation strategies, facility managers can unlock higher efficiency, lower costs, and improved service levels.


FreightRoll: Don’t Wait … ROLL!  


FreightRoll’s innovative, AI-enabled yard execution system allows facilities to ROLL out custom-configured self-service truck driver experiences to their yards. This allows drivers to skip the line and ROLL to their next destination with proprietary and intuitive mobile-based experiences that address all shipment and driver scenarios, all with strong driver reviews and without the app download.


FreightRoll believes that the driver is the linchpin to automated yard processes. Removing this linchpin hasn’t historically been plausible. However, greater technology adoption and acceptance of digital workflows coming out of the COVID-19 pandemic have changed this. Still, there are many challenges, including technology fragmentation, app fatigue, driver fragmentation, widely varying technology familiarity, data inconsistency, intercompany dynamics, and varying yard shapes/sizes/SOPs.  


FreightRoll’s suite of solutions provides controls for these challenges, while focusing heavily on getting drivers through the yard with ease.


FreightRoll’s digitalGUARD, a mobile and kiosk-based, app-less driver check-in/out solution eliminates inefficiencies, reduces manual tasks, and enhances safety with an intuitive, touchless self-service experience. 


FreightRoll’s digitalCOMMS is an automated communication tool that orchestrates driver interactions pre/during/post the yard. It leverages reinforcement learning to reduce the human intervention required to provide real-time instructions and updates, while also streamlining communications and reducing forced human interactions and errors.


FreightRoll’s digitalBOL is a workflow solution that digitizes trade documentation (BOL, POD, packing list, inspection, etc.) by integrating with existing systems (TMS, WMS, ERP). Documents are shared via tablet, mobile device, and/or PC from driver to facility, creating a digital paper trail.  


FreightRoll’s suite is powered by FreightRoll ID and FreightRoll Deploy.  


FreightRoll ID is a digital wallet for truck drivers that leverages AI to authenticate and passively onboard truck drivers into a digital and increasingly automated experience.


FreightRoll Deploy is a proprietary deployment capability that leverages machine learning to automate integration and data extraction, reducing deployment headache and improving time-to-value, with certain site deployments taking place remotely and in less than 30 minutes.


This comprehensive platform creates value in a number of ways:


Cost Savings


FreightRoll drives cost savings by automating manual processes that traditionally require time-consuming human intervention. By eliminating the need for personnel to manually validate yard check-ins and check-outs and process paperwork at the dock, labor and back-office expenses are reduced. 


Optimized workflows built into the FreightRoll solution streamline operations, ensuring that drivers spend less time at the gate and docks, minimizing delays and reducing operating costs. Overall, this highly efficient system maximizes productivity and lowers expenses.


Improved Efficiency


Faster turnaround times and higher yard throughput are enabled by automating processes, reducing bottlenecks and keeping operations running smoothly. By integrating FreightRoll’s solutions with existing systems (TMS, WMS, ERP), redundant tasks are minimized and communications enhanced across the supply chain. Drivers benefit from real-time updates, allowing them to maximize their time and complete deliveries with minimal disruption.


Enhanced Safety


FreightRoll prioritizes safety with its touchless, self-service solutions that reduce the need for physical interactions between drivers and yard personnel. By eliminating the need for foot traffic in busy areas, accident risk is significantly lowered. Clear, automated messaging gives drivers precise instructions, reducing the chance of errors and unsafe practices. With a focus on streamlined processes, FreightRoll improves both safety and consistency across the yard.


Sustainability Gains


FreightRoll supports sustainability initiatives by reducing the environmental impact of yard operations. Digital documents mean significantly decreased paper usage and waste reduction. The platform’s optimized workflows lower fuel consumption by minimizing idle times, lowering the carbon footprint. In this way, FreightRoll helps facilities both meet their green goals and maintain operational excellence.


Automated Yard Operations: The Time Is Now


The supply chain bottlenecks of 2020-2023 revealed the need for more efficient yard processes, making manual operations increasingly obsolete. Hidden costs from these manual operations ranging from inefficiencies to safety risks hinder productivity, increase expenses, and damage relationships with carriers, drivers, and customers.


Advanced platforms like FreightRoll help facilities modernize yard operations through automation, lowering costs, increasing operational efficiency, and improving safety. Through the use of self-service tools, real-time communication, and integrated workflows, FreightRoll eliminates bottlenecks, improves throughput, and contributes to sustainability. 


FreightRoll’s platform provides a sure path forward for companies looking to stay competitive and improve yard efficiency in the digital supply chain era. To learn more, contact FreightRoll today.


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