blog: The Secret to Avoid Distribution Bottlenecks.
You know first-hand that trucking supply chain bottlenecks can be detrimental to your company. Bottlenecks can lead to delays in production, inventory overstock, pressure from end customers, and low employee morale. So what can you do to maintain a healthy chain during these unprecedented times?
If you're like other large manufacturers, you continue to drive supply chain efficiency by implementing new processes and/or technology to eliminate waste. But there's probably one critical process within your supply chain that has remained unchanged. It’s your freight procurement process. Needless to say, if your company has not optimized how it sources and books freight, your supply chain is at a major disadvantage.
The freight market is unpredictable. Transportation teams are struggling because contracted tender rejection rates are at all-time highs. Once primary, secondary and tertiary carriers have passed on your loads, your transportation team is forced to use freight brokers who are unresponsive, and accept loads without assets (talk about risk). This practice leads to delayed pickup/ delivery causing undue tension at your docks.
New software has reinvented freight procurement, and is helping shippers, just like you, avoid distribution bottlenecks. The software dynamically opens a large universe of asset-based truckload capacity (with 95.5%+ OTD) when needed most. Software users also gain 100% visibility, not shared by brokers, so they can proactively manage every load.
So if you're looking to avoid distribution bottlenecks, check out how your company is sourcing and booking freight. If they're still using the old, static way, smart technology can definitely help.
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Successful manufacturers are always on the hunt for ways to reduce cost of goods sold to help drive margin growth. The supply chain offers a smart place to start because it is one big, connected machine that impacts every part of the business. Usually when one element goes off track, consequences are felt throughout. Time and money have been spent to optimize supply chain processes to mitigate risk and limit the slowdown of goods produced and moved.
But there is one critical supply chain process that has remained unchanged and inefficient. Unfortunately, this process is not equipped to handle today’s market volatility. Manufacturers across the US continue to use this old, rigid process because no other options exist to replace it- until now!
We are taking about the freight procurement process.
Continuous improvement, fueled by technology, within the supply chain is how manufacturers remain agile. But one critical process remains unchanged and is not equipped to handle today's market volatility. Ask yourself, does your company rely on primary carriers and overpay once they reject your loads? Does your company remain at the mercy of freight brokers and the spot market to keep goods moving?
If you’ve answered yes, then your freight procurement process is not optimized, and your supply chain is at risk. The traditional way to procure freight is too rigid and static, paving the way for massive budget overages, poor OTD, distribution bottlenecks, and unhappy customers. Learn how shippers are now leveraging software to overcome increased freight procurement challenges.
Supply Chain Experts from Sleek Technologies & 101 Solutions examine:
1. How freight capacity impacts the supply chain.
2. What shippers are doing to achieve 95.5% OTD & up to 20% TL savings in today's volatile market.