Food Shipping Check-In: Where Freight Procurement Stands Ahead of Thanksgiving

Thanksgiving is right around the corner, and that means plenty of consumers going out and buying all the staples for their meal. Turkey, gravy, cranberry sauce and more will be flying off the shelves, but supply chain issues could very well make finding everything a hassle. As of October 31, supplies of food and household items are 4% to 11% lower than normal, which is a number similar to last March at the start of the pandemic, when it was 13%. Of course, the freight and shipping industries have a hand in such shortages. Food, like many other products, has been impacted by the supply chain crisis, and things aren’t expected to get better by the holiday. Here’s a more detailed look into the crisis and how it will affect Thanksgiving: More unloading issues One of the driving factors behind the supply chain crisis, along with bare retail shelves, is the labor crisis. A lack of workers at loading and unloading points has led to delays, and thus less products in stores. With manufacturers now scrambling to meet the demands for the holiday, this could cause even more logjams than the ones that already exist. Higher rates The truck driver shortage has also had a large impact on the supply chain crisis, leaving shippers with fewer options when it comes to finding a carrier. The capacity crunch has led to double-digit truckload price increases for shippers looking to eagerly get holiday essentials to stores on time. Unpredictable Capacity Tying into the logjams that could result from the supply chain snarl-up and shrunken labor force, is that capacity is not only set...

How Will Upcoming Vaccine Mandates Impact Logsitics?

Mandates for the COVID-19 vaccine have been impacting different industries in different ways, whether it’s being mandated by individual companies or by the government. The Biden administration recently set a January 4 deadline for employers with 100 or more workers to verify that all employees are vaccinated or tested weekly. And how these new guidelines will impact truck drivers has recently made headlines. Since most drivers work alone in their cabs as opposed to around other people, many truck drivers will be exempt from the mandate unless they drive with others, or interact with others at the start or end of their trip. Even with the exception, many will still be affected, which will have knock-on impacts for manufacturers, retailers, and distributors looking to haul freight. Just like the rest of the world, some drivers will comply with the mandate while others will not. Those that do not comply will either leave the trucking industry altogether or leave the large carrier in exchange for a smaller one. And as drivers leave large carriers, large carrier acceptance rates may be impacted. To keep goods moving, on-time, shippers will need to rethink their freight procurement strategy and plans, which may require shifting a portion of their freight from large carriers to smaller carriers with fewer than 100 employees. To help rethink freight procurement, and seamlessly shift to smaller carriers, shippers can use intelligent automation technology, fueled by AI and ML. This technology provides instant capacity by automatically sourcing a compliant, small carrier based on pre-configured shipper attributes. It eliminates the need for freight brokers, which are known to block small carriers from large shippers and compound issues during capacity crunches. Another...

Three Tips for Improving Freight Procurement in the Supply Chain Logjam

Originally posted on SupplyChainBrain. No part of the supply chain is immune from the turmoil currently plaguing the supply chain industry — especially not freight procurement. Even when things are going well, freight procurement is critical to the success of the supply chain. But during these trying times, its importance can’t be understated. Following are some procurement-related areas for shippers to consider during this period of disruption, along with a few tips on how best to manage them. Implement modern technology tools. The the industry’s overall uncertainty has made life complicated for shippers, with pockets of open capacity cropping up unexpectedly. Today, many shippers are using outdated technology that doesn’t allow them to adapt to market changes. As a result, they may be missing the boat on less expensive procurement opportunities. Fortunately, tools like artificial intelligence and machine learning are becoming stronger and more reliable each day, providing shippers with greater agility and allowing them to respond more quickly to market conditions. In the process, they can better adapt their procurement strategies to know ahead of time when capacity becomes available. They can also optimize their expenditures and ensure that idle shipments are going out. Embrace digital transformation. Historically, logistics has been slow to adapt to changing technology. And today’s market climate is exposing just how far behind the industry is on this score. It’s common for logistics teams and shippers to be without the data infrastructure necessary to manage any disruptions that take place. And any data they do have isn’t comprehensive, since third-party procurement partners tend to operate as a reporting black box. This fragmented view of data is worsened by...

How Labor Shortages Impact Supply Chain Bottlenecks

Labor shortages continue to impact many different sectors. Logistics has been hard hit with labor shortages impacting multiple points within the supply chain. There are shortages across production workers who make products, dock/ warehouse workers who load and unload product, and truck drivers who haul products. Labor shortages, and growing consumer demand, continue to cause stress on the ever-so-important supply chain. The warehouse and transportation industry had a record 490,000 openings in July, a number that experts believe will grow in the coming months. And with Black Friday and the hectic holiday season less than a month away, things will get uglier. Here are a few things that should be anticipated due to the labor shortage: Longer production times The supply chain crisis has already led to a lack of products in stores. But a thinning production staff could mean that some products may not be made on time, or at all. Whether it’s breakdowns in the assembly line or not enough people to oversee automation, there’s a lack of personnel that would normally be responsible for the timely manufacturing of products. Loading and unloading troubles When off-shore containers finally make their way towards the docks, there may not be enough workers to unload them, and then truck drivers to haul the goods away. But that's not all, once the goods arrive at the company's warehouse or distribution center, again there may not be enough warehouse workers to unload the goods from the truck. Backups at loading docks will continue, and having fewer people to tend to these issues will only add fuel to an already raging fire. Higher costs Because of...