Optimize your transportation solution by integrating the best of both worlds
In today’s challenging transportation market, where the pool of qualified drivers is shrinking, safety regulations are tighter than ever and fuel prices eat up much of your transportation budget, how do you find time to focus on your business?
How do you make sure your transportation network is nimble? That you have the flexibility to ramp up or down to meet anticipated and real changes in demand, staffing or service requirements? Or that you can redirect resources as new locations open and close without having to worry about securing assets like drivers, vehicles or distribution space?
These challenges are very real for many shippers – especially as the economy recovers and demand and volumes grow. Carriers who downsized during the recession are slow to invest in additional capacity, leaving shippers facing an unpleasant reality: there are more shippers than available freight capacity.
For many businesses, the key to securing capacity in the “new normal” shipping environment is an all-of-the-above strategy. This approach integrates a base dedicated fleet with procured common carriers, and in some cases, private fleets. By considering all network lanes and available freight models, shippers can get the best of all worlds – reliable capacity, high service levels and predictable costs that dedicated models offer, with flexibility to ramp up using procured carrier capacity when surges in demand strain fleet resources.
Is your transportation network optimized?
So how do you make sure you have the capacity you need when you need it – without paying too much for freight or keeping equipment on the sidelines? The first step is to optimize your network. And again, that means thinking differently about where you get capacity.
Say you’ve always used a for-hire common carrier to deliver goods and materials. Or, you have your own private fleet. Or you rely on a dedicated fleet from a trusted partner. In today’s environment, that strategy may no longer work. Instead, you may need to combine options and tap into every resource at your disposal.
Could an integrated transportation model be right for you?
Ask yourself these questions:
- How stable is my transportation network?
- Do I understand what an integrated approach entails?
- Could my company – and supply chain – benefit from a blended solution?
- How much flexibility do I have now? How much do I need?
- Is hiring and retaining good drivers a growing issue?
- Do my customers have fixed delivery windows or would they be willing to receive larger shipments less frequently – and save money?
How to get started….
Switching to an integrated transportation solution that combines a private fleet, dedicated fleet and common carriers can be a perfect solution in today’s transportation environment. However, it’s important to do your homework first. Start with a careful network optimization analysis to identify your needs and a strategy.
While you’re at it, incorporate other factors into the equation – distance traveled, number of stops, types of equipment, returns and/or vendor pickups, issues with empty miles, and customer delivery requirements.
An integrated transportation solution that blends private, dedicated and common carrier fleets can be a great way to solve capacity issues. The key is finding the balance that makes the most sense for your business.
Do you have experience with an integrated transportation solution?
To learn more, download our White Paper – “Run Lean – 10 Best Practices for Running a Leaner, Greener Transportation Network.”