A perfect storm of weather events, regulatory restrictions, the pandemic's "great resignation," and inflation are wreaking havoc on the supply chain and delaying getting goods to market.
Adding fuel to the fire is a new law, AB5, set to go into effect in the state of California that challenges the role of truck drivers as owner-operators. The result? Drivers staged actions
along the state's major ports of Los Angeles, Long Beach, and Oakland last week.
A sign of things to come
What can your business do? Be prepared. Be very prepared!
The most important preparedness tool is one that enables you to adjust quickly to changing market conditions. In most cases, that means having transportation management system (TMS) software that is plugged into the major carriers.
Read on for five ways using a TMS can help your business adjust early to sudden market conditions.
Capacity. The main advantage of a TMS is that it gives you unlimited access to truckload capacity. This will not only help get your goods out the door, but it’ll also help you find the optimal balance of price and service to fit your needs.
Flexibility. The most valued TMS providers are flexible, giving you the ability to react quickly to changes in the network. The process of setting up new lanes, shifting volume, or finding capacity in markets can be intense, but TMS software is designed to make these changes as seamless as possible. The same is true if you want to scale space, labor, and transportation according to inventory changes at your warehouse.
Technology. A TMS gives you all-in-one capability for your shipment needs by providing both real-time visibility of shipments in transit and analytics to deliver long-term efficiencies. You’ll suddenly have full control of every aspect of your shipping operation.
Network. The best TMS providers give you access to a vast resource network that can help your supply chain expand quickly and efficiently. Now, due to their relationships, you’ll have new opportunities for volume discounts, lower overhead costs, and timelier service.
Expertise. A good TMS provider knows the marketplace of shippers, from small to large. Which means they can find a solution to any challenge. They have a greater knowledge of compliance programs and access to the online scheduling tools of every major retailer. This means you’ll avoid the costly fines that come with non-compliance. And don’t forget that your software vendor is also on top of market conditions and trends, so you’ll get up-to-date business intelligence on things like general rate increases (GRIs) to help you make the right decisions to mitigate risk.
Has your TMS helped you grow your business, cut costs, or avoid costly mistakes? If not, contact Varsity Logistics and learn more about what we can do for your business.