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Supply Chain Insights that Shaped Shipping in 2021
Category: supply chain
How to Balance Automation and the Human Element in Shipping
Technology and automation have helped make significant advancements in the supply chain and shipping industry. However, shippers and 3PLs need to understand that a human touch remains a critical element in keeping a supply chain functioning properly. The two must work together in a hybrid approach.
How to Control Shipping Costs as Carrier Capacity Tightens
Rising carrier costs directly related to capacity constraints and elevated fuel costs are making it difficult for 3PLs and shippers to control shipping costs. The Journal of Commerce says shippers are preparing for another year of elevated less-than-truckload (LTL) rates and tight capacity, as a 2022 surge in demand from consumers, retailers, and manufacturers looks increasingly likely.
The Value of Connectivity for LTL Shippers
The definition of supply chain connectivity has adapted and evolved to coincide with the new digital age. Today, our industry understands that the effort one puts into connecting their logistics network will have a direct impact on profitability. Indeed, the “new normal” is here to stay, and as a result, creating collaborative, empowered environments for LTL freight shippers is of the utmost importance.
The Labor Shortage: How to Mitigate Its Effects on the LTL Industry
In last week’s blog, we examined the causes and impacts of the labor shortage on the supply chain. As we know, there are a number of reasons for the impending labor shortage, including changing demographics, skill sets and unemployment benefits. There are also a number of ways that companies can mitigate the labor shortage’s effects on their business’s bottom line.
Where Have All the Workers Gone? The Labor Shortage & Its Effects on the Supply Chain
The driver shortage has been a well-publicized problem in the logistics industry for a long time now. However, it is not the only issue affecting the supply chain. Warehouses, manufacturing plants, factories, retailers and more companies throughout the entire supply chain are seeing a labor shortage. Combined with the record-setting freight increases and capacity issues, the supply chain is suffering widespread negative effects.
Cybersecurity in Transportation: How to Protect Against Data Breaches
The recent ransomware attack to the Colonial Pipeline was a huge eye-opener for many companies across the transportation industry. It not only showcased how vulnerable companies are – no matter what size they are – but it also showed how a cyber-attack can have far-reaching negative effects.
What is the “Amazon Effect” and What Does it Mean for LTL?
The Amazon Effect is impossible to ignore. By definition, it refers to the impact the juggernaut, and all other digital marketplaces, has had on the retail industry. As online shopping and ecommerce has increased, smaller, local retail stores have suffered. However, more recently, the Amazon effect has traveled all the way down the supply chain. It is now something that nearly every consumer, every retailer and every business has been affected by, including shippers, carriers and 3PLs.
The Truck Driver Shortage and Its Impact on LTL
While the truck driver shortage has been an ongoing problem for the better part of a decade, it is still having a large impact on all aspects of the transportation industry and was only accelerated by the CoVID-19 pandemic. The ensuing downturn in the economy caused a number of smaller fleets to lay off drivers during the early days of the pandemic. According to data from the Federal Motor Carrier Safety Administration (FMCSA) and Tucker Company Worldwide, small carriers lost 150,172 drivers during the first half of 2020, when US freight shipments dropped by 25%. Additionally, with extended unemployment benefits, some drivers found that they could stay home and stay safe without losing significant income, all while a number of retirement-age drivers decided to hang up their keys to avoid exposure to COVID-19 on the road. Also, the CDL Drug & Alcohol Clearinghouse cut loose 40,000 drivers due to failed drug test results, which accounted for about 1% of the truck-driving workforce.
Increasing Sustainability in LTL Transportation
Sustainability has been a buzzword for a while now, as it is something everyone can play a part in and something we all need to take responsibility for. As more corporations and consumers prioritize “going green” or being environmentally friendly, sustainability will remain a focus.
This very point was showcased in a couple of recent studies. Forbes found that 92% of consumers will be more likely to trust a company that supports social or environmental issues. Coyote Logistics and Martec discovered that 81% of supply-chain companies have increased their focus on sustainability in the last three years, attributing the sustainability adjustments to pressure from stakeholders and global demand to “go green.”
But what does that mean for the LTL industry? How can companies work to lower their carbon footprint without disrupting their operations or hurting their bottom line?
