Leverage Multiple Transportation Modes
Continual examination of modal mix is critical to running an efficient and resilient transportation network. Supply chain managers should analyse their freight networks
at least twice a year for optimisation opportunities to ensure all freight is moving on the most optimal mode possible. Identifying and converting sub-optimized freight to its best-suited mode leads to cost savings, productivity gains and protects against disruption. If you seek to minimise supply chain disruption, shifting eligible freight from the highway to intermodal rail can be a powerful solution to mitigate risk and lower overall transportation costs.
Use Back-Up Carriers
The trucking industry will face increasing headwinds in the coming months and years that could signi cantly impact the industry and affect over-the-road capacity. The driver shortage is only getting worse, and pending regulations could quicken and exacerbate the shortage. Having a breadth of carriers to rely on can mitigate the risks associated with a single point of failure when the market shifts.
GROW YOUR BUSINESS IN 2017. PROTECT YOUR TRANSPORTATION NETWORK FROM DISRUPTION.
Contact one of our transportation experts for additional information on how to implement transportation network optimisation strategies in the coming year.
U3tilize Strategic Partner Carriers
Logistics is about planning for the unexpected. Any number of internal or external factors can disrupt a supply chain’s productivity. Having a contingency plan in place before the pendulum swings insulates networks from disruption. Utilising the strategic transportation partnerships of Intermodal Marketing Companies (IMCs), third party logistics providers (3PLs) and multinational trucking providers as well as developing strong relationships with the railroads, can help shippers stay ahead of the curve and take advantage
of the most efficient modes of transportation available.
Shift Freight to Alternate Ports
After the port strikes of 2014, some companies shifted freight to various, alternate ports. While the expansion of the Panama Canal isn’t set to have a major impact on high-value, time-sensitive freight, it could prove beneficial for lower-value freight with longer lead time. Exploring new channels and creative distribution tactics can be financially beneficial.
MOVE Old Inventory Closer to Consumption Markets
As consumers’ expectations around free shipping and returns continue to grow, organisations are rethinking their distribution networks and inventory strategies. Companies are experimenting with using brick-and- mortar stores as mini-distribution centres, while others are moving distribution hubs closer to major consumption markets. Companies who are able to effectively manage and distribute inventory to the right place at the right time will enjoy significant efFIciency and productivity gains.