Every manufacturer, retailer, and CPG company, essentially any business moving freight, relies on carriers—these are what we call “shippers.” And while it varies greatly, let’s assume the average shipper works with around 50 carriers. This means they need to connect with these 50 carriers to manage their operations: getting rate quotes, tendering and booking freight, tracking in-transit status, confirming POD (proof of delivery), and other logistical needs.
The Connectivity Challenge
Connecting to these 50 carriers is where the complexity begins. In North America alone, there are thousands of LTL (Less-Than-Truckload) and final-mile carriers. The market includes regional carriers and large national players, with over 5000 carriers operating across the continent. Major national carriers like FedEx Freight, Estes Express, and Old Dominion Freight Line dominate, but a substantial number of smaller regional or specialized carriers also play an important role.
When it comes to full truckload (TL) carriers, the fragmentation is even more significant. There are over 500,000 TL carriers, with the vast majority being small fleets, often operating just a handful of trucks. Only a few large carriers (Schneider, J.B. Hunt, Swift Transportation) hold a major market share. This diversity creates a dynamic but fragmented industry, leaving shippers managing connections across a wide variety of carrier types and sizes.
The Post-Covid Era: The Need for Digital Integration
In today’s digital landscape, especially post-Covid, seamless integration with all trading partners is no longer a luxury—it’s a necessity. Supply chain managers can’t afford “black holes” in their logistics processes or inefficient operations relying on phone calls and emails. Visibility and real-time data are critical, and operational connectivity is essential to achieving that.
The Problem with Current Solutions
The way shippers address this connectivity issue today is overly complex. Many hire developers and purchase software tools, outsource to third-party consultants, or utilize EDI VAN services or other network-based solutions—often a combination of all of these. The common problem is that they all of these solutions require developers to code integrations.
Take, for instance, “Networks” that boast vast libraries of carrier connections. While they may claim to have thousands of connections, each was built by a development team, costing thousands (often $5,000 to $10,000) per carrier to set up and maintain. This means the industry is spending tens of millions to create and support these connections, and each connection needs constant updates—by developers.
These networks advertise “self-connect” capabilities, reusing pre-existing connections from their library. The result? If you’re a shipper needing 50 connections, you’re paying for the infrastructure to support thousands of other connections you don’t need. And more often than not, your unique mix of 50 carriers won’t all be in the network anyway.
The Real Issue
Every shipper has a unique set of carriers, making a network-based approach overly broad and costly. “I don’t need your 200,000-carrier network—I just need my 50 carriers.” And, since these networks have to cover the R&D costs for all connections, pricing is designed to account for the entire library, even if you only need a fraction of it.
Outside of using a network, all other options involve creating a point-point integration. Yes modern tools make that easier but it is still in the end it’s a developer creating a single custom integration that needs to be maintained.
Why 1Logtech and True Self-Connect are Game-Changers
This is where 1Logtech (1LT) stands out. A shipper using the 1LT tool can reach out directly to their 50 carriers and set up the necessary connections—all on their own terms. And who does this work? The operational staff who are already managing the freight—the subject matter experts (SMEs) whose daily job is transportation management. With 1LT, these SMEs can establish a fully functional integration for their operations with around two hours of work. No reliance on pre-built network libraries, no developers, no third-party consultants—just the SME and their carrier.
Another advantage of 1LT is its network effect—once a carrier or trading partner connects through 1LT, that same connection can be leveraged by all users. This not only creates a robust network but also brings in a crowdsourcing element, which we’ll dive deeper into in future posts.
Cost Savings and Efficiency
The real game changer is cost and time. The costs to update and maintain connections are significantly reduced, as 1Logtech runs on a modern, purpose-built platform designed for scalability on AWS. Not just a modern design but efficient architecture allows 1LT to operate at over 80% less cost than traditional solutions. It costs us LESS to run so we can charge you less.
Plus, we have removed the BIGGEST expense in setting up integrations – developers. Having your SMEs handle the setup, rather than developers, ensures the lowest possible TCO.
When it comes to time, integrations can be created in just hours by your operational teams, rather than taking days or even months with external resources.
Self-Connect at a Fraction of the Cost
1Logtech enables true citizen integrations, allowing shippers to set up and manage their own connections quickly, affordably, and without external dependency. By offering a self-connect solution that’s efficient, cost-effective, and scalable, we’re truly disrupting the way logistics integrations are done.