Capacity is among the challenges that the supply chain industry is facing, especially this year. The Covid-19 pandemic brought much distraction in business, and the supply chain was greatly affected. Due to lockdown across different parts of the globe, manufacturers had to slow down their activities owing to the decline in demand for products.
Things have been getting back to normal, and manufacturing has resumed. This is good news for the economy, but the supply chain is still strained. There is a shortage of drivers, and as the demand for products rises, there is competition for carriers.
Here are some solutions that businesses can employ to combat the challenge and satisfy customers’ needs.
1. Get the services of a transportation provider
Transport services providers will be your saving grace. A managed transportation services provider will not only help you address the shortage challenge but also significantly lower your logistics costs.
Your procurement team will have their daily transportation operations taken care of and also ensure efficiency in logistics. To save costs and utilize the available truckers, you can also consider LTL transport and make shipments alongside other companies.
2. Have friendly payment terms
Since there is a shortage of carriers, you will be competing with other businesses for the available truckers. This could be a great challenge as you will incur delays, which can affect your business’s profitability.
Therefore, make an effort to stand out and win the loyalty of the available carriers. Favorable terms will work wonders. Pay the carriers within 30 days and avoid delays, and they will be happy to serve you. If the available truckers are delighted, you can rest assured that your transportation needs will be sorted out.
3. Reduce driver dwell time
If the drivers are spending too much time at the facilities, then it means that it will take days before you transport all your goods. Being time efficient will go a long way in ensuring that your logistics needs are taken care of despite the shortage.
Ensure that the drivers take the least possible time to get the goods to their destination. Palletize load for faster loading and offloading. Clear the way in the facilities and provide clear direction so that the drivers do not waste a lot of time navigating.
Make the pickups and deliveries smooth to prevent excess dwell time.
4. Distribute your shipments across the month
Demand for products may not be even across the month. However, try to schedule shipments across the months, especially if the operations are constant. Squeezing them within a short period will pose many challenges, especially with the carriers shortage.
This will ensure that the available truckers can fit within your plans and that you are also reliable. Squeezing the pickups and deliveries will only mean that some load may end up not being transported.
The shortage of truckers can end up weighing down your reliability. To ensure efficiency in your logistics amid the challenge of shortage, make proper plans. The strategies above will help you cope with the current shortage and ensure that your goods get to where they need to be in good time.