There are several ways you can analyze the performance of your carriers and 3PLs, and use that information for good. The right metrics and Key Performance Indicators (KPIs) will ensure you’re getting the level of service you’re paying for by identifying hidden inefficiencies that may be hurting service, as well as costing your company time and money.
Most of the talk about logistics as an industry focuses on the ways new technologies can be used and the constant drive to improve overall supply chain efficiency; however, one crucial part that is often overlooked is the people. In fact, the transportation industry’s lack of young talent poses one of its most significant challenges. With a steadily aging workforce and a decreasing pool of suitable candidates, we could soon be facing a major labor crisis if we don’t start acting now.
If you want to consistently secure capacity at good rates, you’ve got to make your freight appealing to carriers. And while it’s never been easy, getting your products delivered on time has never been more difficult than it is right now due to the current truckload market conditions. As many shippers continue to experience volatile spikes in demand, and carriers remain in recovery from a rough first part of the year, capacity has never been tighter.
Location carries a lot of weight when it comes to considering your warehousing and fulfillment center options. It’s all about finding a balance between having your distribution centers close enough to your customers and not too far apart that your inventory costs skyrocket. Whether you’re just starting to outsource your storage and shipping or looking to expand, it can be difficult to settle on a location that’s the ideal fit for your business.
With everything the logistics industry has been through in the past year, many of us are left wondering — what’s next? The current disruption from technology and other changes that are sweeping the transportation sector, however, marks only the beginning of what’s to come. And, despite its destructive impact, COVID-19 merely sped up the process by forcing companies to adapt at a much quicker rate than anyone was previously expecting.
While it’s been established how aiming to be a Shipper of Choice has its fair share of benefits, it’s quickly become a relevant topic for many in the industry again. With such tight trucking market conditions and capacity issues continuing to surface, obtaining this sought-after shipping status has reappeared as the solution to securing carrier interest.
As logistics professionals, we all know that a low rate is nothing without good service to match. A late delivery on an important shipment, or any other type of supply chain service failure, can cost far more than what the carrier or a fulfillment center’s being paid. And when problems do occur, the provider who made the mistake is still usually getting their money with no penalty for the extra cost or wasted time that their performance failure caused.
Recently the Council of Supply Chain Management Professionals (CSCMP) released their 31st Annual State of Logistics Report. This thorough industry analysis featured 63 pages of detailed information that dove into the logistics of 2019 and 2020 and offered valuable insight framing the industry’s future. As the group explored the devastating effects of the COVID-19 pandemic and examined the pros and cons of various leading players’ responses, it painted an image of tried-and-true resiliency.
Part 1 of a 3 part series of posts inspired by the 31st Annual State of Logistics Report
Despite the many disruptions introduced into shippers’ supply chains by the COVID-19 crisis, new research shows positive signs for the warehousing sector. Due to factors like an all-time low vacancy rate, the pre-coronavirus market could handle the short-term impacts of the pandemic.
There are many different factors that affect shipping efficiency. Whether it’s a disorganized dock design, poor carrier communication, inflexible operations, or overly complex processes, inefficiencies have a way of catching up with you. Smart shippers understand the impact any potential bottleneck in their shipping operation can have and are constantly searching for ideas that keep their freight moving without delay.